The car giant started by marrying the daughter of the king

Chapter 410: Benchmark Factory, BMW's Big Investment

"Director Jiang, we have prepared an additional 1000 acres of land next to the Land Rover."

"As long as you need it, whether it's a Land Rover production plant or a new plant for Nanshan Engine, Nanshan Transmission and Nanshan Technology, we can build it there."

"This way, we can provide better services for Land Rover vehicles by providing nearby facilities."

Liu Tianwu did what he said. After listening to Yao Yiming's report, he immediately went to find Jiang Hui.

Of course, he did not ask about the new factory so directly, but took the initiative to tell Jiang Hui about the land acquisition work nearby.

Throughout the city of Shenzhen, as long as the BMW Group needs land, it will be supplied with the highest priority.

After some other companies acquire the land, they sometimes delay construction or do not necessarily produce good output after production begins.

But the BMW Group does not need to worry about this problem at all.

Besides, the taxes paid by BMW Group in recent years alone are enough for Shenzhen to fully support it.

"Thank you, boss. We are preparing for the construction of the third factory inside our factory."

"The land previously reserved is basically used up this time, and some supporting factories that want to build factories nearby have no place to go."

"With these 1000 acres of land, these problems are solved immediately."

Jiang Hui did not hide anything.

BMW Group’s current production capacity is already very tight.

It can be said that we completely rely on overtime to cope with it.

This situation is definitely not sustainable.

So it is normal to build a new factory in a timely manner.

"Are you already preparing to build the third factory?"

"How much production capacity do you plan to use?"

Liu Tianwu was very satisfied with Jiang Hui's answer.

The production capacity of a brand new automobile factory will definitely not be low, which will bring a lot of GDP to Shenzhen Jianghui.

"The third factory will be a benchmark factory for the BMW Group and we will build it according to the most advanced factory standards in the country."

"The current planned production capacity is 36 vehicles a year, with double shifts every day."

"In order to achieve this production capacity, our stamping shop will introduce four large stamping production lines, and the welding shop will also adopt a processing technology different from the existing one."

"Through the formation of several small welding lines, which are eventually merged into a complete body-in-white, we can greatly shorten the welding time for each vehicle and maximize the monthly production capacity of the workshop."

In general automobile factories, the annual production capacity of a production line is only hundreds of thousands, or at most two hundred thousand.

Of course, this is the production capacity that belongs to the later generations under strict compliance with labor laws.

If you want to speed up, you can either increase the number of shifts and extend working hours, or reduce the time required to process each vehicle.

For example, if the original welding workshop can only produce 800 white bodies a day, you invest in more welding lines, divide the welding process of a car into several large parts, and assemble them after welding at the same time, maybe you can produce 1500 cars a day.

This will certainly increase some investment and personnel, but it can still save a lot of money compared to building a new factory.

When we promote it, we can also talk about these improvement plans in detail.

“36 vehicles a year?”

"Director Jiang, are you planning to launch a new project?"

Liu Tianwu has a relatively good understanding of the situation of the BMW Group.

A factory with a normal planned annual production capacity of 36 vehicles can, if necessary, change from two shifts to three shifts, and work overtime on weekends, ultimately increasing the monthly production capacity to more than 5 vehicles.

That's extremely exaggerated.

With the current models of BMW Group, it seems that there is no need for a factory with such a large production capacity.

"Yes, we will soon start the development of two new models, one under Land Rover and the other will be the first new model under Chitu."

Although this matter has not yet been fully implemented within the BMW Group, Jiang Hui already has some ideas in his mind.

At the year-end summary meeting, he will formally put forward these two projects.

At that time, we will need to combine some actions of Nanshan Engine and Nanshan Transmission to determine the overall configuration.

It’s nothing big to talk to Liu Tianwu now.

"This year, the BMW Group's annual sales volume is expected to exceed 50 vehicles, right?"

“Even if the new model is not available until after 1988, sales next year should be able to exceed 80 units.”

"By then, you will be considered a large-scale automobile company, not to mention in China, even in the international market."

The two Land Rover models were only launched after the middle of this year.

The output in the first half of the year is naturally not as high as that in the second half.

For example, in December, 12 Land Rover cars were produced, and more than 5 BMW and Mercedes-Benz cars were produced in one month this year.

But by 1987, it was worth looking forward to.

Not to mention any increase, even if the production scale is maintained at 7 vehicles per month, it will exceed 80 vehicles a year.

This is definitely not a small business.

"This month, we produced 7 vehicles to meet GM's distribution needs in Europe and other places."

“It will probably be difficult to maintain such high demand every month next year.”

"But we are also trying to find ways to expand into new markets and see if we can sell more cars."

“As for the new car, it was still very challenging to launch it in 1988, but it would not be a problem to get it done in 1989.”

Jiang Hui didn't say that with such confidence.

According to his estimation, there should be no problem in maintaining production and sales of 70 vehicles next year.

Whether it can exceed 80 vehicles depends on whether General Motors can stabilize the sales situation.

As for moving to a higher level, BMW Group's current production capacity cannot keep up.

By then, even if the sales of Land Rover G Series and X Series increase, the production of BMW X5 will have to be freed up.

After all, even if the new factory is built now, it will take until the end of 1987 for it to start production no matter how fast it is built.

But after 1988, the situation was completely different.

The two new cars had almost been developed by that time.

As long as the engine and gearbox are not lagging behind, there is hope that it can be put into production in the second half of 88.

Even if we can't catch up in 88, a delay of one year is acceptable.

By then, we might be able to hit the high target of 100 million vehicles.

"Your speed is already very fast, and the leaders are very satisfied."

"The number of employees in the entire BMW Group is now about to exceed 3."

"Around your group, there are more than 3 people working in other factories in the Shenzhen Automobile Industry Park."

"Behind these 6 people are tens of thousands of families, making Shenzhen's economy much more prosperous."

Liu Tianwu said with emotion.

In urban construction, in addition to being willing to invest money, having sufficiently wealthy residents is also very important.

Employees of companies like BMW are considered high-income earners.

Even if you are a worker, your income is much lower than most people in this era.

In addition, the BMW Automobile Group has also built a large number of various residential buildings for families. The various residential buildings such as the "BMW Community", "Land Rover Community", "Mercedes-Benz Community", "Nanshan Science and Technology Community", and "Nanshan Engine Community" alone have driven the development of various nearby businesses.

With money in hand, the company quickly built various family buildings and distributed them to employees. Even if there was no property rights in the early stages, it allowed everyone to spend money boldly.

Unlike in later generations, some people’s salary income seems to be not low, but with all the hassles of mortgage and car loans, they actually don’t have much money they are willing to spend every month.

"It's mainly because of the good policies of the country and the strong support of the leaders in Shenzhen that we dare to give it a try."

"But I am also very happy to be able to make some contribution to the rapid development of Shenzhen."

"Especially, I heard that the model of the government service center led by you has now been promoted throughout Lingnan Province."

"It will be possible to promote it throughout China in the future, and I am very happy about that."

“This has solved a lot of problems for countless people.”

If you want to get things done these days, it’s OK if you have connections, but it’s really troublesome if you don’t.

With the government service center, we can worry less.

Although it is not yet at the level where most services can be handled on mobile phones in later generations, the service efficiency has definitely improved rapidly compared to the situation in previous years.

“The quality of a government service center can only be best understood by experiencing it.”

"It's a good thing you were the one who came up with this concept."

Without any outsiders around, Liu Tianwu would feel embarrassed to take all the credit for himself.

The concept of government service center was originally proposed to him by Jiang Hui.

"Leader, the country now allows all kinds of foreign-funded enterprises to enter the country to build factories, and the number of joint venture factories is also increasing."

"But for private enterprises, policies in all aspects are still quite ambiguous."

"Although relatively large-scale self-employed businesses have emerged in various places, their legal rights and interests are not fully guaranteed."

"Shenzhen is a special economic zone. Can we consider conducting some pilot projects in this regard and give private enterprises similar treatment as foreign-funded enterprises?"

Jiang Hui has always been reluctant to touch upon policy-related issues, as these are sensitive matters.

However, with the rapid development of the BMW Group, the entire supply chain needs to keep up with the pace.

The working style of some state-owned enterprises is obviously a bit behind the pace.

Otherwise, Jiang Hui would not have supported small businesses like Yonghua Stamping Factory and Hengyi Plastic Factory.

These companies are small in scale, but they are very flexible, proactive and develop very quickly.

Given enough opportunities, they could catch up with BMW Group in a few years.

After further development and growth, it will become a member of the BMW Group's stable supply chain system.

This is actually very important.

Otherwise, the BMW Group cannot always rely on its own strength to conquer the world. It would be best to bring a large group of people to fight others.

"Your suggestion is very good. In fact, the policy in this regard has been relaxed over the years."

"In the beginning, self-employed individuals were not allowed to exist." "Now there are a large number of self-employed individuals and collective enterprises in every place."

"Some people also register their own businesses under collective enterprises in order to break through existing policy restrictions."

"But what you said makes sense. I will report this proposal to my superiors and try to conduct a pilot project in Shenzhen first."

Jiang Hui seldom makes serious requests, but this time he actually mentioned the issue of private enterprises, and Liu Tianwu took it very seriously.

He has heard some rumors that the higher-ups are going to introduce some relevant policies, but there are still some controversies.

Since Shenzhen is a special economic zone, it makes sense for it to take the lead.

The risk he needs to take is actually not particularly big.

Besides, if this really becomes the final development direction in the future, the dividends he, the initiator, can enjoy will be very considerable.

After weighing the pros and cons, Liu Tianwu expressed his agreement.

The matter was concluded in less than a month, and Shenzhen City officially released relevant policies.

Of course, this is something to talk about later.

After meeting Liu Tianwu, Jiang Hui quickly formally convened relevant personnel within the company to discuss the construction of the third factory.

……

"Director, half of the equipment that the third factory needs this time can be provided by Nanshan Equipment."

"With the experience of this construction, Nanshan Equipment will be able to provide equipment localization services to other OEMs in the future."

Lin Qiao is the director of Nanshan Equipment. He was a talent poached by Jiang Hui from the Beiyi Machine Tool Factory at the beginning of this year.

Coincidentally, his father Lin Zhongwei also took photos of Jiang Hui and Zhu Ling back then.

This retired eighth-level worker has now been rehired by Nanshan Equipment to guide workers in improving their skills, which can be regarded as helping his son gain a foothold.

As the former deputy chief engineer of Beiyi Machine Tool Factory, Lin Qiaosheng's professional level is still very strong.

Combined with Jiang Hui's directional guidance, Nanshan Equipment has also undergone tremendous changes in the past year.

When the second factory was being built, a lot of equipment had already been handed over to Nanshan Equipment.

The progress this time will definitely be greater.

"We produce what we can produce ourselves, and if we can't produce it ourselves, we will find a cooperating supporting factory to produce it."

“In the future, Nanshan Equipment must have the ability to design and supply a package of turnkey solutions for automobile OEMs and parts factories.”

"As long as the customer makes a request, the rest will be coordinated and solved by Nanshan Equipment as the general contractor."

"As long as this path is taken, Nanshan Equipment will have great room for development in the future, whether in the automotive industry or other industries."

Jiang Hui attaches great importance to the development of the equipment industry.

Only when equipment technology keeps up can the performance of various products be greatly improved.

Otherwise, even if your design is very good, it may not be able to be produced and it will be of no practical significance.

"Director, we are already working with Nanshan Software on this arrangement, and we are preparing to work on both the software and hardware aspects at the same time."

"Forming a production line management model with Nanshan equipment characteristics."

"Even if we purchase stamping equipment from Ji'er Machine Tool Factory, we will provide control system software for their equipment."

"In this way, their products can better meet our usage needs."

Lin Qiaosheng has a very strong ability to comprehension.

After Jiang Hui told him a similar idea before, he quickly put it into practice.

In addition, Nanshan Equipment has expanded BMW's original practice of attracting retired Japanese engineers to work in Hong Kong and providing training for the company's employees.

Today, Nanshan Equipment has more than 100 retired engineers from various machine tool and equipment industries in Japan.

These people spend most of their time in the port city, and regularly arrange a few days every month to work in Shenzhen.

At other times, we arrange for personnel to go to the port city for training.

Anyway, it’s very convenient to go there from Shenzhen.

The relevant departments even set up a special channel for BMW Group employees to pass through.

Under the guidance of these experienced masters, Nanshan Equipment has made significant progress in both the design of machine tools and various auxiliary equipment.

The equipment industry is very special, and there are many areas of proprietary design.

If you don't master some experience, it's easy to take a detour.

Especially since Nanshan Equipment has now spread its business too wide, the cost of taking a detour is even greater.

Therefore, there is absolutely no harm in spending a little more money to hire retired people to provide guidance.

In addition, Lin Qiaosheng also implemented the practice of poaching retired experts and senior workers from various domestic machine tool factories very thoroughly.

With the help of his father Lin Zhongwei, almost all the retired old masters of the Beiyi Machine Tool Factory were invited to Shenzhen to continue to shine.

At Nanshan Equipment, you can sometimes even see many white-haired old masters in their seventies guiding young technicians in their work.

In the field of machine tool design and production, there is no such thing as being unpopular after the age of 35.

As a traditional mechanical industry, these designers become more popular as they get older.

The losses suffered by people in their sixties and seventies are all experiences for Nanshan Equipment.

"Your idea is very good. In addition to working hard on the hardware, the software of Nanshan Equipment should not lag behind."

"We can't rely on foreign manufacturers for all our software, as problems will arise sooner or later."

Jiang Hui was very satisfied with the arrangements made by Nanshan Equipment.

After the overall equipment arrangement is finalized, the third factory can officially start operation.

"Xiao Jiang, your factory is very good. It has developed into the third factory so quickly."

At the groundbreaking ceremony of the third factory, Hu Yong, head of the Fifth Machine Department, also attended in person.

Originally, Jiang Hui wanted to keep a low profile. BMW Group's achievements were already impressive enough, and there was no need to rely on such ceremonies to increase its influence.

However, Shenzhen, Lingnan and the Fifth Ministry of Machine Building do not want to hold the event in a low-key manner.

A benchmark factory with an annual production capacity of 36 vehicles, this scale is not small even in the world.

The key is that BMW Group's production capacity is now seriously insufficient.

No one is worried at all that the new factory will be idle after it goes into production.

The worst case scenario is that the current insufficient production capacity will be transferred there.

Therefore, the groundbreaking ceremony of such a new factory is very important and is welcomed by all levels.

Important personnel from the Fifth Ministry of Machine Building, Lingnan Province, and related departments such as metallurgy and foreign exchange management attended the meeting.

It is estimated that there will be no other event in Shenzhen this year with so many heavyweights participating.

"It's mainly because the country has set up many support policies in Shenzhen, and our products are popular abroad."

“That’s why we have the current situation.”

Jiang Hui and Hu Yong are old acquaintances.

So when I was chatting with a group of leaders today, I definitely communicated with Hu Yong a little more.

"When it comes to exporting and earning foreign exchange, every factory is very active."

“But there are only a few that are really good at it.”

"It is even more rare that we can export a large amount of important industrial products such as automobiles to earn foreign exchange."

"You don't have any special experience?"

Hu Yong has worked in the Fifth Ministry of Machine Building for so many years, and it is likely that he will work here until retirement.

Naturally, he also hopes that the factories under him can do better so that he can retire with more dignity.

"If we really want to talk about experience, it's not like I don't have any at all."

"The most common way for our products to win in the international market is naturally to rely on cost advantages."

“Some textile factories in Shenzhen take this route.”

"There will certainly be many companies taking this path in the future."

Jiang Hui thought about it and began to share his thoughts.

"But this path is obviously not the best choice. If we can achieve some technological innovation and sell industrial products to the markets of developed countries such as the United States and Europe, the profit margin will be much higher."

"Japan's economy has grown rapidly by selling cars, home appliances and other products to global markets such as the United States."

"To achieve this, it is naturally difficult."

Seeing that people around him were listening to him very seriously, Jiang Hui decided to say a few more words today.

It would be best if it could appropriately influence future policies.

"Objectively speaking, there is still a gap between our industrial level and the world's advanced level."

"But we are not without advantages."

After Jiang Hui said this, Hu Yong couldn't help but ask, "What are the advantages?"

This is a question that many people would like to ask.

The 1980s was a time when many Chinese admired America the most.

There was no way. After opening the country's borders, everyone found that the gap was too big.

It seems that no matter how hard I try, I can't catch up.

So some people just completely accept their fate.

“The advantage is that we have a very complete range of industrial products and can produce almost all products.”

"On the one hand, these products still have a market in some countries in Asia, Africa and Latin America where they are not so widely distributed."

"On the other hand, as long as we upgrade and innovate appropriately, we may be able to launch products with international competitiveness."

"Our Land Rover is a case in point."

"It's hard to say that Land Rover is much more advanced than the models of GM, Toyota and other international auto giants."

"But we were able to emerge as a dark horse because we grasped some key points."

(End of this chapter)