The car giant started by marrying the daughter of the king

Chapter 446 Huge after-sales demand, unexpected surprise
In July 1988, Persia signed an armistice agreement.

Although the actual conflict between the two sides has not yet completely ended.

But the Iran-Iraq War, which lasted for eight years, finally showed signs of coming to an end.

This was a war without a winner. In addition to conventional warfare, the two countries also used methods such as raiding cities, ships, and oil fields to destroy the enemy's logistics, economic facilities, and infrastructure.

The war caused heavy losses to both countries, economic development stagnated, oil exports plummeted, millions of deaths and injuries, and the economic development of both countries regressed by decades.

Baghdad and Persia were also burdened with huge debts as a result.

Baghdad, for example, owes $140 billion to its small next-door neighbor alone.

This also became one of the reasons why Baghdad invaded its neighboring country a few years later.

For BMW Group, this news is actually not good news.

After all, in the past year, Baghdad and Persia purchased a large number of Land Rover X-Series pickup trucks from Land Rover in order to make a final gamble.

Used to be converted into rapid fire support equipment.

This year, the sales volume of Land Rover X Series has been able to catch up with that of Land Rover G Series, and Baghdad and Persia have made a significant contribution.

Now that the war is over, this kind of business will definitely be affected.

However, when the Iran-Iraq War officially came to a complete halt in August, an unexpected news came.

"Boss Jiang, Persia has sent us a large number of orders for after-sales parts for the Land Rover X Series."

“It includes engines, transmissions, tires, glass, body parts, and a wide variety of other parts.”

"I made a preliminary estimate and the amount of this order reached 1 million US dollars."

Chen Chenxing came to Jiang Hui's office happily.

This is definitely an unexpected surprise.

Anyone working in the automotive industry knows that after-sales parts are actually quite profitable.

It is normal for consumers to spend 10 yuan to fix a product with a cost price of 30 yuan.

If they are a bit more ruthless, they might sell it to you for 50 yuan or even 80 yuan.

That is to say, for a small number of parts with relatively transparent prices, such as tires, the difference between the cost price and the price paid by the final consumer is not that large.

"Weren't many of the cars in Persia bought just this year?"

“Why is there such a huge after-sales demand all of a sudden?”

Jiang Hui had never thought that there would be such an unexpected order this year.

In recent years, the BMW Group has been continuously expanding its international market, and its after-sales parts-related business is naturally also developing.

But overall, this part of the business has not yet started to take off.

After all, in the past few years, the demand for after-sales parts was relatively small.

Just perform routine maintenance and you'll be fine.

According to the normal pace, it will take at least another three years before Persia will have large-scale demand for after-sales parts.

"I roughly understand that it should be due to the various battles in the past six months that caused many Land Rover X-Series in Persia to be damaged."

"Many cars even broke down."

"But because Persia had been at war with Baghdad, there was no way to coordinate enough people to repair these cars."

"If the relevant field needs the Land Rover X Series, we will directly purchase a new one for use."

"So, although they have only been purchasing a large number of Land Rover X-Series from us for a short time, they have accumulated a lot of vehicles that need to be repaired."

After Chen Chenxing’s explanation, Jiang Hui understood.

Love still benefits from the war.

It’s just that no one has noticed these benefits before.

After all, if a car breaks down during a battle and you can't find anyone to repair it, you'll have no choice but to abandon it.

Now that the war is over, we need to return to development and construction.

Those broken down cars need to be repaired properly.

"According to what you said, not only is there demand in Persia, but Baghdad will also have this demand soon, right?"

Although Baghdad ordered fewer Land Rover X-Series than Persia, the total number was not low.

Now Persia has started to consider repairing the Land Rover X Series. Baghdad will not leave these cars to be scrapped.

That's too wasteful.

If it were before the war, Baghdad would probably have done something like this given its wealth and power.

Now that I'm heavily in debt, the situation is completely different.

"Yes, I think Baghdad will start ordering aftermarket parts soon."

"Nanshan Technology, Nanshan Engine and other related companies need to make preparations in advance."

"After all, some factories are already under heavy production loads to cope with the current mass production of parts."

When Chen Chenxing said this, there was a smile on his face.

This kind of happy trouble is definitely what people in sales want to see.

"Persia's action gave me some inspiration."

"We sell a lot of our various vehicles in the Middle East, but we haven't formed a relatively complete service system there yet."

"Considering the particularities of these places, it is impossible for us to handle all the after-sales work ourselves."

"We will set up some of our service stores in major cities, and rely on local dealers or partners to handle more places."

"I think the sales department can consider getting this done as soon as possible."

"We started developing a number of cooperative repair shops in various places, including Persia and Baghdad."

"This will help us better solve the after-sales maintenance problems of various vehicles and also enable our after-sales parts business to grow rapidly."

Since the food has been put into his mouth, Jiang Hui will definitely not miss this opportunity.

Currently, Persia mainly places official orders for the Land Rover X Series, but Jiang Hui is confident that in the future some ordinary people will also become users of the Land Rover X Series.

Making the Land Rover X, Land Rover G, and even the Land Rover Highlander the most popular models in the Middle East will definitely be very beneficial to the future development strategy of Land Rover.

The key is the huge profits behind it, which is worth the effort.

As domestic raw material prices have risen during this period, the BMW Group should consider making more profits from the international market.

"No problem. I will go to the Middle East in person in a while and implement this matter as soon as possible."

Chen Chenxing has naturally realized the new opportunities in this area.

Who knows, after-sales business may become a very stable and key source of income for the company in the future.

……

"Boss Jiang, the Polar Bear branch will increase its purchases of various aluminum and steel materials starting this month."

"Especially various aluminum ingots, we will try our best to purchase them from Polar Bear and keep more than three months of inventory to ensure the company's needs."

During this period, Fang Huihui stayed in the Polar Bear Branch for two months to further deploy various related tasks.

Especially with the abolition of the dual-track pricing system in the country, the BMW Group has no way to obtain particularly cheap raw materials.

Although there is no problem with supply, the cost has increased significantly.

In this situation, the Polar Bear Branch naturally thought about whether it could make more contributions.

For example, various types of steel are sometimes different from the requirements of the drawings, and it is difficult to switch them at will.

But for aluminum ingots, the difference is very small.

There is a large demand for aluminum in engine oil pans, cylinder blocks, cylinder heads, gearbox housings, and aluminum wheels.

We used the loan from Polar Bear to purchase these raw materials on a large scale. Polar Bear's partners were very happy, and so was BMW Group.

By then, with the rapid depreciation of the ruble, these investments will be basically negligible.

Fang Huihui, who has gradually realized the benefits of this, has become more and more enthusiastic about promoting these things.

"I have asked the R&D center to consider adjusting the drawings of some parts and adding the steel plate grades used by Polar Bear to the same materials."

"In the future, we will consider increasing the purchase of steel from Polar Bear."

The problem of aluminum usage is relatively easy to solve. After all, there are fewer brands and they are more versatile.

But for steel, the grade rules in different countries are not exactly the same.

For the sake of quality stability, you must not switch randomly.

When the designer is doing part testing and confirmation, he must do the relevant confirmation work of the same material before considering switching.

Fortunately, this work is not very difficult to carry out.

Considering the cost-benefit, it is worth doing it.

"The polar bears have an abundant supply of various types of steel, and their heavy industry is particularly developed."

"But during this period, some of their internal related investments have also decreased, and many steel manufacturers have experienced inventory backlogs."

"If we can increase steel purchases, I think they will be more cooperative."

Fang Huihui stayed with the polar bears for some time and had a better understanding of the relevant situation.

"When in Rome, do as the Romans do. If you want to make money from polar bears, then don't be reluctant to give up some things."

"As long as those people can help us expand our business, we will generously give them the dollars they deserve."

Jiang Hui had some understanding of the internal situation of the polar bears during this period.

Although it is not as chaotic and dark as after 1991, there are actually signs of some things.

It's not realistic to get things done without spending money.

"I understand. I will personally check these matters when the time comes."

"But Mr. Jiang, wouldn't it be better if you arranged for someone to keep an eye on this area?"

Fang Huihui was not stupid, so she naturally understood what Jiang Hui meant.

During her time with the polar bears, she also personally felt that many things were different from what she had previously understood.

This involves many unclear things, and is usually handled by the boss himself, or he arranges his confidants to do it.

That way you won't deceive yourself. But Jiang Hui waved his hand and said, "Leave it to you to check, I only look at the results!"

Even if Fang Huihui made some money from it, Jiang Hui actually didn't mind.

As long as BMW Group can gain the greatest benefits in the end, that's enough.

……

"Xiao Jiang, your response speed is very good. The daily newspaper has even reported on your salary doubling plan."

"In the face of rising prices, relevant departments are also formulating specific salary increase plans. You are ahead of the curve."

In recent years, Zhu Jiansheng has also heard some news about private enterprises in various places.

Although there are some good reviews, there are more negative news.

Zhu Jiansheng has seen many reports about poor working conditions and low wages.

Although the BMW Group is nominally a foreign company, it is essentially a private enterprise in China.

It is definitely a typical example in China.

"Our group is taking an international route, and in the future we will arrange for more and more people to work abroad."

"It would be unrealistic if employees abroad were treated the same as those in China."

"By then, a month's salary will be gone, even for a meal."

"So it is inevitable that the salary and benefits of employees working abroad will be in line with those of their peers."

"This will lead to a huge gap in the treatment of our employees working in China and abroad."

"For some people who have worked abroad and then transferred back to China, this is absolutely difficult to adapt to."

"Domestic employees will also feel unbalanced."

"In order to solve these problems, we will gradually improve the benefits of domestic employees and make our company's welfare benefits comparable to those of giants such as Toyota and Volkswagen."

“It’s almost inevitable in the future.”

"By then, our domestic employees may earn 10,000 to 20,000 yuan a month."

"For those who are abroad, they can get an additional subsidy of 10,000 or 20,000 yuan, which will basically allow them to get by normally."

"With a monthly salary of less than a few hundred yuan now, there is still a huge gap between 10,000 and 20,000 yuan."

"My salary doubling plan is just the beginning. There will be adjustments of varying magnitudes every year in the future."

Jiang Hui has nothing to hide from his father-in-law.

State all the purposes clearly.

The situation faced by BMW Group is different, and some of the solutions it has adopted are different from those of other companies, which is completely understandable.

"It would be great if you could see that far ahead."

"The situation at home and abroad is indeed quite different now.

"But apart from you, most factories are doing domestic business. It is impossible to raise wages too high in a short period of time, otherwise the business will not be able to continue operating."

"You are a Hong Kong-funded enterprise, and your wages and benefits are higher than other factories, so everyone can accept it."

“This is also good for recruiting more talents.”

"I heard that more and more university graduates are willing to give up job assignments and choose to work for BMW Group."

“This is especially true for universities in Lingnan Province.”

Zhu Jiansheng naturally had no objection to Jiang Hui's approach.

To a certain extent, this kind of attempt is a good thing for the Ministry of Machinery and Electronics Industry.

If BMW Group can manage its business well despite such high salaries, then it is worth reflection for other companies.

"After those university graduates join our group, their annual salary is almost equivalent to what they would earn in government agencies in ten years."

"The atmosphere in Lingnan is relatively open, so everyone's choice is expected."

"But relying on Lingnan alone is not enough. We need too many talents every year."

Although it is much easier to recruit college students now than in previous years, it is completely incomparable with later generations.

As long as colleges and universities do not give up unified employment arrangements or do not expand enrollment on a large scale.

Many college students will not easily choose to work in enterprises.

"You are the talents jointly trained by Shenzhen University and Capital University of Technology, Shenzhen Branch. They will begin to graduate in two years."

"If we can hold on for a few more years, the situation will be much better."

Zhu Jiansheng is naturally very clear about the current employment situation of college students in China.

Even the various ministries are competing for graduates from good universities, not to mention the cities and counties below.

In later generations, many positions in counties were competed for by large numbers of college students.

But if today's college students are willing to work in city and county government agencies, they will definitely be able to arrange as many vacancies as possible for you.

Most college students are aiming for provincial government agencies or higher-level units.

The term "chosen one" is absolutely true nowadays.

"I think private enterprises will develop rapidly under this wave of demand."

"Can the ministries and commissions also promote the development of this business to fully stimulate the vitality of the entire economy?"

For Zhu Jiansheng, the three priorities since he took office have mainly focused on cooperation with polar bears.

These achievements have begun to show, but the greatest deterrent effect will not be felt until the ruble depreciates significantly.

After all, some people think that the equipment and raw materials purchased with loans are actually a waste of foreign exchange.

In the future, if people know that these equipment and raw materials are almost free, then their views will be different.

However, for Zhu Jiansheng, his position is now secure.

We certainly can’t always rely on these three tricks.

Promoting the development of private enterprises is the new action proposed by Jiang Hui in the second stage.

Even if others don't know, how could Jiang Hui not know the future development of private enterprises and the support from his superiors?
"Private enterprises are indeed very flexible in doing things, and their superiors also support their development."

"But there are still too few excellent private enterprises like yours."

"Many companies have even attracted some criticism."

Zhu Jiansheng has extensive information channels and has heard about the situations of many different companies.

There is definitely some bad news.

"The current employment situation in many places is not particularly ideal. Developing private enterprises can promote employment very well."

"According to my estimation, as long as we vigorously promote the development of this aspect, the number of jobs in private enterprises will surpass that of state-owned enterprises in the future."

“And it can encourage more farmers to move from the fields to the factories.”

"Everyone involved in the economy knows that it is difficult for farmers to create much value or become rich by relying solely on small-scale farming like ours."

"Especially in the south, in many places the average farmer has less than one mu of land."

"These lands alone can only ensure that we don't go hungry, but it is impossible to make a fortune."

"If these farmers can work in a factory, no matter which factory they go to, their income will definitely be higher than what they can earn from farming."

"Even if you work in some shady private factories and earn 20 or 30 yuan a month, it's still more than farming."

"What's more, with the increase in enterprises, the wage level of the entire industry will increase rapidly."

“That way, more people can become less poor.”

Jiang Hui knew that he would need some reasons to convince Zhu Jiansheng to accept his idea.

Otherwise, if you accidentally use too much force, you may very likely fall from the altar.

That is definitely not what Zhu Jiansheng wants to see, nor is it what Jiang Hui wants to see.

“Liberate the peasants from the land?”

"If this is the case, won't the employment problem become even more serious?"

Although due to the rapid economic development in recent years, the employment problems caused by the return of educated youth to the city have been basically solved.

However, the 1980s and 1990s were the era when people born in the 1960s, an age group whose birth rate had begun to explode, began to enter society.

That's why Zhu Jiansheng is very cautious.

"Dad, it will take time to free farmers from the fields and let them work in factories."

"And this is not a mandatory behavior, but something that attracts them to participate actively when there are real job opportunities and benefits."

"We have gradually begun to integrate into international economic transactions. By taking advantage of our low cost, we can vigorously develop industries such as clothing."

"The number of people needed by then will also be very exaggerated."

"Industries that are sensitive to labor costs and do not require high levels of technology will be opportunities for private enterprises in the coming years."

"Ministries can make some efforts in this regard, which will definitely have a great impact on China."

Jiang Hui continued to persuade Zhu Jiansheng to work in this direction with a very firm attitude.

The Ministry of Machinery and Electronics Industry has a large number of resources and factories.

While promoting the development of private enterprises, their affiliated factories will certainly be impacted to a certain extent.

But if these factories could make good use of the resources they have and cooperate with private enterprises, perhaps the situation would be completely different.

You can even encourage your own employees to go out and work on their own and create a number of typical cases.

This is totally in line with the trend of the times.

"I probably understand what you mean."

"But the matter you mentioned has a huge impact. I need to discuss it within the department and then report to my superiors before expanding on it."

Zhu Jiansheng still has confidence in his vision for his son-in-law.

However, this matter is more sensitive, so he must be more cautious.

Otherwise, you may be attacked easily if you are not careful.

In a few years, these concerns will be largely negligible.

(End of this chapter)