The car giant started by marrying the daughter of the king

Chapter 440 Huge Changes, Great Wall Industries' Decision
The hot sales of Land Rover X-Series pickup trucks are definitely not just the focus of Toyota and General Motors.

All the supporting factories in Shenzhen are increasing their production capacity, and the entire automobile industrial park is filled with a bustling atmosphere.

Even the vendors selling fried noodles and grilled sausages near the factory gates are doing much better business than usual.

Various raw materials transported from all over the country to Shenzhen are also being turned into parts one by one and delivered to Land Rover cars.

This situation naturally made Shenzhen very happy.

"Mr. Jiang, since the Land Rover X Series is very popular with Middle Eastern customers, I think we can come up with a plan to export the Land Rover X Series and sell it with a heavy machine gun or anti-aircraft machine gun in the future?"

"The export coordination work related to military products can be handed over to us in Shenzhen City."

Liu Tianwu came to Kuhu Automobile to inspect the work in a very good mood.

Shenzhen's development this year has completely continued last year's trend, with its extraordinary growth rate leaving all other cities far behind.

Today, Shenzhen has become a rising star not only in terms of its total GDP, but also in terms of its growth rate.

These are naturally considered Liu Tianwu's political achievements and are the key driving force for his continued promotion in the future.

"The crazy sales in Baghdad and Persia over the past two months may be the last crazy sales before the end of the Iran-Iraq War."

"After half a year of war, neither side has enough strength to continue fighting, and both sides are willing to cease fire."

"If nothing unexpected happens, with the mediation of the international community, it is estimated that the two sides will achieve a ceasefire this year."

“Ending the worst war since World War II.”

Jiang Hui does not want BMW Group to get involved in military products business so quickly, as this will bring a series of constraints to the future development of international markets.

As for whether to enter the related military products in the future, that is a matter for the future.

So he would definitely not consider Liu Tianwu's proposal.

Selling a Land Rover X gives away an anti-aircraft machine gun or a heavy machine gun, or selling an anti-aircraft machine gun or a heavy machine gun gives away a Land Rover X pickup truck?
No matter which plan is adopted, it is not a long-term solution.

If Land Rover X was used in large numbers when Baghdad and Persia first went to war, then this would be something worth paying attention to.

It’s completely different now. Jiang Hui knows very well that this war will definitely end this year.

Even if my appearance causes some changes in the specific details of the war, the final trend will not change.

"If the war between Baghdad and Persia is over, then they will stop ordering Land Rover Xs for modification, right?"

Liu Tianwu asked with regret.

Land Rover X and Land Rover G are now Shenzhen's main export products.

Any increase in sales in any month is a huge contribution to export earnings.

Today, the export earnings of Shenzhen alone are greater than the rest of Lingnan Province combined.

It is even greater than the export earnings of various provinces in the country.

The most important contribution here is the BMW Group.

"That's not so absolute."

"Many of the pickup trucks ordered by Baghdad and Persia will probably be damaged on the battlefield."

"But after they feel the benefits of this device, they will definitely continue to place orders for it and use it in many places in the country."

"Even in the future, the Land Rover X pickup truck will also have new opportunities in the civilian car market in these places."

"It's just that the sales volume is unlikely to be as exaggerated as it is now."

Jiang Hui is quite confident about the future of Land Rover X.

The trend has already started, but it won’t be so easy to fall.

"For vehicles like pickup trucks, the civilian market is the most durable."

“It would be great if the Middle East market could maintain its popularity.”

After hearing Jiang Hui's words, Liu Tianwu breathed a sigh of relief.

This situation is better than I thought.

"If domestic policies do not manage pickup trucks as trucks, but instead classify them as passenger cars, future sales will actually be very promising."

"However, with the development of urbanization, there are indeed some problems with pickup trucks running in urban areas."

Jiang Hui knew that the pickup trucks produced by Land Rover would pay great attention to emission-related performance.

But some other domestic automobile manufacturers did not care so much when they first started out.

As long as there are no laws and regulations, they will definitely do whatever they can to save money.

When you step on the accelerator, it is normal to see black smoke coming out of the exhaust pipe.

This is really a big problem for urban pollution.

Unlike in many places abroad, the emissions of pickup trucks are at the same level as those of cars. There are no additional problems, so naturally no additional measures are needed to manage them.

"Shenzhen can issue a policy to allow pickup trucks to drive normally in the city like cars, but it may be difficult for other places."

Liu Tianwu immediately expressed Shenzhen City’s opinion.

It is indeed not something he can promise about other places.

Jiang Hui doesn't care about this.

Anyway, the main market for Land Rover's pickup truck models in the next few years will be overseas.

In the domestic Chinese market, as long as we do a good job in sedans and SUVs, that will be enough in the short term.

As for the more distant future, when the BMW Group has more and more car models, it will be easier to deal with them.

He is not worried at all that domestic competitors will put pressure on the BMW Group.

……

While Jiang Hui was accompanying Liu Tianwu to visit the pickup truck production of Land Rover, several key executives of Great Wall Industrial Company, more than a thousand kilometers away, were also discussing the Land Rover X-Series pickup truck.

"Uncle, I went to ask around and found out that Land Rover's X-series pickup truck production plan has now increased to 3 units per month."

"That's more cars than our factory produces in a year."

"In the domestic truck and off-road vehicle markets, our current products are completely uncompetitive."

"Trucks from FAW, Second Automobile Works and Ligong Special Vehicle Factory have basically divided up more than 80% of the market share."

"Off-road vehicles such as the BJ212 produced by Capital Automobile Works and the Land Rover G-Series produced by Land Rover have captured % of the off-road vehicle market."

"If our factory wants to grow and develop, we must consider producing other models."

"Obviously, a pickup truck would be a very good option."

Wei Jianjun is the deputy general manager of Great Wall Industrial Corporation, and the general manager is his uncle Wei Deliang.

As a local state-owned enterprise, Great Wall Industry Corporation's performance in the past few years has not been good, so it has also carried out factory contracting reforms in line with the situation.

However, due to the lack of product competitiveness, the cost control level has improved slightly after the contracting reform, but the sales increase is very limited.

The entire company has not yet entered the fast track of development.

As the deputy general manager, Wei Jianjun was naturally very anxious.

However, his uncle has been working on trucks and off-road vehicles for most of his life, and now he is switching to pickup trucks, so naturally he has some concerns.

"We can't compare with the strength of Land Rover."

"Their engine and transmission technologies are comparable to those of international giants, and their exterior design level even exceeds that of international auto giants."

"That's why their Land Rover X Series sells so well overseas."

As the largest automobile company in China, Wei Deliang is naturally more aware of what is happening at the BMW Group.

In almost every report every month, someone will mention something about the BMW Group.

"What you said is not wrong, but it's not like we don't have a chance."

"I have done some research and found that the Land Rover X is currently selling best in the United States and Europe, followed by the Middle East market."

"If we were to produce pickup trucks, we would probably have a hard time gaining a foothold in the American and European markets right away."

"But the Middle East market is different from the African market. The requirements for cars there are not that high."

"Especially, I read reports that many armed forces in the Middle East have purchased Land Rover X and converted it into military vehicles."

“This is where we excel.”

"We can use the engine and chassis of our existing off-road vehicle, modify it appropriately, and develop a pickup truck."

"At that time, the gearbox can be purchased directly from Nanshan Transmission 5MT manual gearbox or from Capital Gear Factory 4MT manual gearbox. Both are possible."

"If you think our engines are not good enough, you can also purchase 1.5L or 2.5L engines from Nanshan Engine."

"But in this case, our cost advantage is not so obvious."

"Even if we can control the cost of parts in other places such as the body, it will be embarrassing if the cost of the most critical engine and gearbox cannot be reduced."

Wei Jianjun quickly came up with his own solution.

Today he came to report this matter to his uncle, and it was obvious that he had already made a decision in his mind.

It is definitely not going to work for Great Wall Industrial Corporation to continue like this.

He still hopes to achieve some results.

"Do you really think pickup trucks are a promising type of vehicle?"

"in the country, pickup trucks are managed the same as trucks."

"But compared with trucks, it doesn't have many advantages, so its market share in the domestic market is very limited."

Wei Deliang is still not optimistic about pickup trucks.

Moreover, the cost of developing a new car model from scratch is very high, even if the powertrain is purchased from outside.

If the development of this model fails, Great Wall Industry Corporation may have to close down.

Although the current situation is not ideal, at least it can still be maintained.

Relying solely on some local support orders, the production line can still operate intermittently.

“It is true that domestic sales will not be very large, but there is great potential overseas.”

"We can set the price lower and focus on less developed markets such as the Middle East, Africa and South America."

"Land Rover will take the mid- to high-end market, and we will take the low-end market."

"The official exchange rate of RMB against the US dollar is now 1 US dollars for 3.7 US dollar, and the black market exchange rate is 7 RMB or even 8 RMB for US dollar."

"As long as we can successfully realize export earnings, it will bring huge potential benefits and turn our factory situation around."

Wei Jianjun stated his point of view in a very firm manner. The success of Land Rover in the international market proved that Chinese-made cars could also be popular in the international market.

He believes that as long as the right product positioning is found, Great Wall Industry Company's pickup truck model can also become a hot-selling model.

By then, let alone selling tens of thousands of units a month like the Land Rover X, as long as we can sell a few thousand units a month, it will be completely different.

By then, as the second company in the domestic automobile industry to achieve large-scale export of products and earn foreign exchange, Great Wall Industrial Corporation's influence in the industry will immediately increase significantly.

It’s not like now, where it is a company with no presence in the local area.

"Okay, since you think pickup trucks are promising, come up with a specific plan as soon as possible."

"But we must have a clear product positioning to ensure that our products are not unsalable after they are launched."

"Otherwise the company will close down."

Wei Deliang knew that the company would be handed over to Wei Jianjun sooner or later.

Since he cares so much about pickup trucks, it would not be a good thing for me to keep opposing it.

"No problem. I already have a rough idea."

"Now is the right time to start developing new products and strive to finalize the plans and drawings within this year."

"Then we will manufacture the prototype next year and make some improvements, and finally realize mass production and start the export journey within the year after next."

After hearing what his uncle said, Wei Jianjun breathed a sigh of relief.

Great Wall Industry Corporation's transformation and upgrading into pickup trucks has finally been finalized.

Although in the next three years, the company's financial situation will become more difficult due to the development of new pickup trucks.

Even at that time, the employees’ salaries may not be guaranteed to be paid smoothly, and they will need to go to the bank to apply for loans.

But Wei Jianjun was not particularly worried.

Combined with the policy changes, Great Wall Industrial Company, which was in very bad operating condition at that time, could carry out shareholding reform and become the owner of the enterprise.

In the future, the company can even be renamed Great Wall Motors, which will help it better expand into the international market.

He hopes that in the future Great Wall Motors can become a force that cannot be ignored in the automotive market, just like Land Rover.

……

In 1988, along with the price reform, the prices of many raw materials and products began to rise.

This naturally makes the operating conditions of many companies more difficult.

Geely Refrigerator Factory is a typical example.

In the past two years, due to the rapid increase in domestic demand for home appliances such as refrigerators, Geely Refrigerator Factory has developed very rapidly.

However, the prices of various raw materials are rising rapidly, and the operating pressure on enterprises has suddenly increased.

At this time, everyone will look at various industries and see which company is living a more comfortable life and making more money.

Land Rover's dazzling achievements are naturally envied by every private entrepreneur.

"Dagui, do you think it is feasible for our factory to transform into producing cars?"

Li Shufu called his partner Li Dagui to his office to discuss the next development arrangements for the company.

In this life, the emergence of BMW Group has brought about many changes in the development of domestic private enterprises.

The degree of recognition of private enterprises by relevant departments has also increased significantly compared with the same period in history.

This naturally makes the development speed of various private enterprises faster than the same period in history.

It’s just that the company has been developing rapidly, and now when prices are rising, the pressure is naturally great.

Although you can respond by raising product prices, if the price is raised too high, sales will naturally decline.

It feels like it’s difficult to do anything.

"Mr. Li, we are just a refrigerator factory now. Wouldn't it be too big of a leap to change to making cars?"

"Weren't you thinking about getting into motorcycles in the future?"

“I feel that producing motorcycles is much easier than producing cars.”

"And if you want to produce motorcycles, the qualification requirements are relatively low."

As Li Shufu's right-hand man, Li Dagui has a very good vision.

The rapid development of Geely Refrigerator Factory in recent years is inseparable from his efforts.

"I originally thought so, but the competition in the motorcycle industry is actually quite fierce now."

"The Chaoyang Motorcycle Factory and the Jialing Factory have already taken up most of the market."

"Several private motorcycle companies have been established in Shuangqing City in the past two years, and they have produced a lot of products imitating Honda's motorcycles."

"This will intensify competition in the market."

"It may not be that easy for us to make a name for ourselves in the motorcycle market."

Li Shufu expressed his concerns.

He had indeed thought about getting a motorcycle.

After all, compared with refrigerator factories, the technical threshold of motorcycle factories is slightly higher, and the competition they will face in the future will not be so fierce.

It’s not like a refrigerator factory, where you just need to buy a compressor and many other things can be done by piecing together.

"That's indeed the truth, but if we were to produce cars, no one in our factory would understand it."

Li Dagui thought about it and felt that a car was indeed an option, but he didn't know how to do it.

After all, he had never thought about the factory producing cars before.

"A car is nothing more than four wheels and a sofa. There's nothing difficult about it."

"As long as we are determined, I think we can accomplish it."

'Now that the country strongly supports the development of private enterprises, matters related to licenses may be easier to handle.'

"After a few years, it might be even harder to get approval."

Li Shufu put forward his own views from a very unique perspective.

The more he thought about it, the more he felt that there was actually potential in the automotive industry.

"Then...then let's start thinking about making cars?"

Li Dagui was still a little nervous, after all, this decision seemed a bit sudden.

“Just do cars!”

"You can see that the BMW and Shouqi cars are selling very well in the market now."

"The performance of Mercedes-Benz and Land Rover cars under the BMW Group in the international market has also exceeded our imagination."

"Combining the current situation of our factory, I think we can first imitate the development path of BMW Zhiguang and Shouqi Zhiguang and develop a very cheap model for everyone to choose."

Li Shufu must have had some specific ideas before he called Li Dagui over to discuss them.

Although he said he was discussing it, he had actually made a decision. He was just a little hesitant and wanted someone to give him a push.

"We have no way to produce car engines and gearboxes ourselves. It is very difficult. If the quality is not up to standard, our reputation will be completely ruined."

“So the new car must purchase these two parts from outside.”

"The best domestic auto engine manufacturer is probably Nanshan Engine. The engine of Shouqi Zhiguang is a 1.5L product produced by them."

"If we are going to do it, I think we should refer to the Shouqi Zhiguang and make a more entry-level car and bring the price down completely?"

Li Dagui did not think about producing a product similar to the BMW Light, which would definitely make BMW unhappy.

If you are blocked in engine procurement, Geely will be in big trouble.

"That's what I think too. We need to make the new car cheap enough to give full play to the advantages of our private enterprises."

"The various costs of Capital Automobile Manufacturing are definitely much higher than ours."

"If our Geely Sunshine can be priced 5,000 to 10,000 yuan cheaper than theirs, we can definitely snatch away a large number of consumers."

The more Li Shufu spoke, the more he felt that his plan was feasible.

He can't wait to get this model out.

……

The booming scene of Land Rover cars has not only brought huge stimulation to companies such as Great Wall Industry Corporation and Geely Refrigerator Factory, but also to automobile manufacturers in the industry such as FAW, which must have received even greater stimulation.

After all, they are the easiest to compare with Land Rover and bring the situation of their own factories into the situation of Land Rover.

Just thinking about it makes people look forward to that day.

"Director, the Hongqi A6 prototype has already been assembled and will hopefully be officially unveiled to the public this year."

"Can we consider communicating with the BMW Group and start the development of the second model as soon as possible?"

Zhao Guangming couldn't wait to see the Hongqi BMW cars take off.

He didn't think about producing pickup trucks and SUVs directly like Land Rover.

After all, this proposal is equivalent to competing with Land Rover for the market, and the other party will definitely not agree.

However, he thinks there will be no problem in deepening development in the sedan field and completely monopolizing the official vehicle market.

After all, both parties already have a product called Hongqi A6, and have previously mentioned the development of Hongqi A4.

Then it is naturally not a problem to start this project as soon as possible.

"I heard that BMW Group is currently developing three new products."

"The people in their R&D center are very busy every day."

"If we propose to develop a second model at this time, I guess the timing may not be particularly appropriate."

Geng Weidong said this with some hesitation.

He naturally hopes that the situation of Hongqi BMW will get better and better, but if in this process the BMW Group feels that the cooperation is not very pleasant, then it would be a loss.

Only long-term cooperation can make Hongqi BMW's life better and make FAW's life better.

"We are just proposing an idea, not forcing BMW Group to agree."

"It never hurts to give it a try."

"At worst we can make some concessions elsewhere or offer some help."

Zhao Guangming was reluctant to give up just like that.

(End of this chapter)