The car giant started by marrying the daughter of the king

Chapter 450: The giant surrenders and eats at the table

Although the temperature in Shenzhen at the end of October is still relatively high, it is somewhat cool.

When we walked inside the new Nanshan Transmission factory, we didn't feel hot at all.

In this era, except for a few special electronic product workshops, other factory production workshops definitely do not have air conditioning.

Being able to install several large fans for you is already very good condition.

This new factory of Nanshan Transmission is naturally no exception.

In summer, like July or August, the working environment inside is still quite bad.

A limited number of fans cannot have a particularly significant effect.

In the summer in the north, it won’t be particularly hot as long as you don’t stay under direct sunlight.

But it’s different in the south. No matter where you are, it’s hot and humid.

"You have reserved a lot of space in this new factory."

After the off-line ceremony, Zhu Jiansheng and a group of leaders did not leave immediately, but chose to continue to refer to the Nanshan Transmission Factory.

The world's first 5AT automatic transmission was born, and the relevant leaders were all quite curious.

"Our new factory is planned to have three 3AT automatic transmission production lines."

"We are currently mass-producing one line, with a production capacity of 40 units, and we will add more units later based on the order situation."

The factory building has been built and the space has been reserved.

If we simply repeat the investment in production lines based on existing production lines, the cycle can be shortened to about half a year.

This time is enough to cope with various subsequent needs.

After all, BMW Group itself does not need such a large production capacity for the time being.

As for the international automobile giants, they will definitely need to combine various test and verification results before finally determining the installation situation.

In this way, Nanshan Transmission does not need to be particularly anxious.

"The export value of each of your 5AT automatic transmissions should be more than 1000 US dollars, right?"

"If all three lines are put into operation in the future, the export earnings will increase by more than a billion US dollars a year, right?"

After Zhu Jiansheng said this, the relevant personnel in Lingnan Province and Shenzhen City were very happy.

No matter where or when, no one will complain about the amount of export earnings being too high.

Land Rover is now the largest export-earning factory, and Mercedes-Benz and Nanshan Technology are not far behind.

Nanshan Transmission is now emerging as a strong force, which is definitely something we are looking forward to.

After all, this is the world's first 5AT automatic transmission, and the global annual automobile production is as high as tens of millions.

If only Nanshan Transmission's performance was more significant...

It’s exciting just thinking about it.

"This time, General Motors, Ford and other major car manufacturers have arranged personnel to come here."

"We will also deliver a batch of samples to them based on their needs."

"Then we will arrange for the technical and sales teams to connect with the other party and implement the 5AT installation plan as soon as possible."

"It is expected that in the next two to three years, this 5AT factory will still be able to achieve full production."

“It may even require further construction of new factories.”

Jiang Hui was not modest at all.

This is not the time to be modest.

"Then I will wait for the construction of your second 5AT automatic transmission factory. I will definitely come to attend the groundbreaking ceremony then."

Zhu Jiansheng is the most senior leader attending the event today.

Although there are people of the same level as him in Lingnan Province, the Ministry of Machinery and Electronics Industry is now in charge of one of the largest departments in the country.

The things of several previous departments, including the First Ministry of Machine Building, the Fifth Ministry of Machine Building, and the Ministry of Electronics Industry, were merged together, and their influence was even more exaggerated than that of ordinary provincial governors.

To be frank, the number of staff in the subordinate factories and research institutes alone has reached nearly ten million.

No wonder the superiors later wanted to further reform the Ministry of Machinery and Electronics Industry, classifying many of the factories within it and establishing new group companies.

Or part of the company can be transferred to local management.

It is impossible to achieve refined management for so many factories by relying on only one department.

It’s just that in state-owned enterprises of this era, everyone is accustomed to carrying out their work according to the arrangements of their superiors.

This is a bit troublesome.

Zhu Jiansheng and others knew that Jiang Hui would continue to receive customers from various OEMs such as General Motors today.

So after they visited the factory, they did not continue to monopolize Jiang Hui, giving him time to communicate with other OEMs.

Jiang Hui had contacted General Motors and Ford before, but the personnel from other OEMs such as BMW and Volkswagen had never even met Jiang Hui, the person in charge, which was obviously inappropriate.

Jiang Hui is particularly looking forward to Volkswagen.

On the contrary, as for BMW, Jiang Hui did not have particularly high expectations, knowing the special relationship between this car company and ZF.

Don’t think that the cooperation between ZF and BMW is just a simple one. In fact, there is a complex relationship between the major shareholders of the two companies involved.

Germany is so small, and the relationships between shareholders behind those large companies are generally quite complicated.

People at this level prefer to consolidate relationships through marriage. As the circle becomes smaller, there are more complex marriages.

Like Volkswagen and Porsche, the shareholders of the two companies will perform one big drama after another.

Under such circumstances, it is still very difficult for Nanshan Transmission to enter BMW's transmission supporting market.

However, it is obviously inappropriate not to make any effort at all.

After all, even if we can't get the majority of the market share, it's okay to get a car model to expand the business.

It will also be a good gimmick when it comes to publicity.

After all, everyone is familiar with the luxury attributes of BMW.

……

"Vardy, BMW's 7 Series, 5 Series and 3 Series are all very classic."

"Compared to the M series models that pursue the ultimate driving experience, users of sedans such as the 5 Series and 7 Series require more comprehensive performance."

"It is an inevitable trend to simplify driving operations by equipping the car with an automatic transmission while maintaining excellent driving performance."

"The 4AT automatic transmission currently used in BMW has been used in the world for decades."

"It is undoubtedly a very classic piece and a symbol of the times."

"However, compared with the 5AT automatic transmission, the 4AT has fallen behind in all aspects."

"Especially when driving at high speeds, the performance of models equipped with 5AT is much better than that of 4AT in all aspects."

"I think BMW needs to switch from 4AT to 5AT as soon as possible."

Jiang Hui and Vardy were not particularly familiar with each other, but at least they had met before.

There are many OEMs here today, and it is impossible for Jiang Hui to chat with each and every one of them.

So after a brief greeting, we would get down to business and express our own opinions.

Anyway, what he said was all true, and even if Vardy wanted to refute it, he couldn't find many entry points.

It's nothing more than raising some doubts and concerns about quality stability.

But the same problem has already been encountered by other OEMs, and Jiang Hui can easily give an answer.

“I understand the advantages of 5AT.”

"But I guess you also know that ZF's 5AT automatic transmission has been under development for many years and will soon enter mass production."

"We still need to conduct some internal comparisons to confirm the specific differences in performance between your two 5ATs."

"But from what we can see so far, the design approaches you two have adopted are completely different."

Before Vardy came to attend the Nanshan gearbox's off-line ceremony, he naturally did some preparation work.

As BMW's most important supplier, he knew about the development of ZF's 5AT relatively early on.

He even knows the various structures of their gearboxes.

After comparing it with the 5AT of Nanshan Transmission, I found that the difference is quite big.

It can be said that although they are both called 5AT, their structures are completely different.

Nanshan Transmission's 5AT unexpectedly adopts a balance shaft structure, which is very different from the mainstream design in the industry.

4AT has been around for so many years, and the related gearbox companies and universities have naturally not stopped developing 5AT over the years.

Some papers related to 5AT also appear in front of everyone from time to time.

As a design director with a doctorate degree, Vardy also specifically looked up a lot of relevant information.

"I fully understand BMW's considerations."

“Whether something is good or not, it is indeed necessary to make a comparison in order to reach a clearer conclusion.”

"I am very confident in the 5AT produced by Nanshan Transmission. Whether it is the unique structural design or the detailed arrangement of each component, it contains a lot of technology."

"Our engineering team will then cooperate with BMW in various tests."

It is unlikely to expect that all OEMs will place orders immediately after a production line-off ceremony.

The automotive industry is not such a simple and rough industry.

The use of various parts, especially functional parts, requires a lot of confirmation work in advance.

Many people cannot understand the practice of developing a new car model every year in later generations.

Because of such a short time, all normal testing work was not completed.

After receiving the BMW team, Jiang Hui continued to communicate with other customers such as Volkswagen.

In the end, whether sincerely or not, everyone expressed their interest in the 5AT and purchased a batch of samples.

……

"Mikas, BMW has given us the two Nanshan Transmission 5ATs they recently received."

"How's your R&D team's analysis going?"

Stephen attaches great importance to Nanshan Transmission's 5AT.

The 4AT gearbox has been used around the world for so many years, and it is time for an upgrade.

If the 5AT automatic transmission market is dominated by other manufacturers, it will definitely be bad news for ZF.

You know, in order to become the world's first company to launch 5AT, ZF has invested a lot of manpower and material resources.

They are not like Jiang Hui who has a unique golden finger to tell the development team which direction to work towards.

Therefore, in order to develop this gearbox, ZF paid more than 1 million US dollars in various development costs.

Not to mention that further investment will be needed for the subsequent construction of the factory.

"Stephen, we have completed the preliminary disassembly analysis and comparison."

"Their 5AT adopts a parallel shaft design with gears arranged in parallel, which is compact and suitable for the transverse engine layout."

“The main component is the parallel shaft gear set.”

"It is a very clever design to achieve five forward gears and one reverse gear through multiple sets of gears."

“There is also a hydraulic control system that operates the clutch and brakes to ensure smooth gear changes.”

"Then there is the torque converter, which is used to improve low-speed torque and start-up smoothness."

Mikas reported his confirmation results to Stephen with dark circles under his eyes.

As soon as he got the Nanshan Transmission 5AT sample, he personally led the engineers to disassemble it and compare it to clarify the structural differences first.

"Our 5AT uses a planetary gear set design, which has a complex structure but strong load-bearing capacity and is suitable for a longitudinal engine layout."

"Relatively speaking, our main components include planetary gear sets, multi-plate clutches and torque converters." "Multiple planetary gears are used to achieve five forward gears and one reverse gear, and a multi-plate clutch is used to shift gears, with a fast shifting speed."

"As for the torque converter, there is no essential difference. It is also used to improve low-speed torque and start-up smoothness."

After Mikas said this, Stephen immediately had a direct impression in his mind.

After all, he is a professional.

"What about performance? What's the difference between the two?"

Different structures only represent different design ideas.

Originally, Stephen suspected that someone had leaked the information, which led to the 5AT launch speed of Nanshan Transmission, a Chinese company, being faster than ZF.

But now after hearing what Mikas said, he knew that the two designs were completely different.

Nanshan Transmission's 5AT has nothing to do with ZF.

At this time, he paid great attention to the performance difference between the two sides.

"The hydraulic control system of Nanshan Transmission's 5AT is well optimized, shifting is smooth, and it is suitable for city driving."

"Our multi-plate clutch shifts quickly, but there may be a slight jerk at low speeds, and the experience will be a little worse."

"But the shifting speed of Nanshan's gearbox is moderate and suitable for daily use."

“And our shifting is fast, suitable for a high-performance car.”

"In addition, the 5AT of Nanshan Transmission has average load capacity and is suitable for small and medium-sized cars."

"Our 5AT has a strong carrying capacity and is suitable for large and high-performance vehicles."

Mikas said, watching Stephen's reaction.

Judging from the current situation, it seems that our own 5AT is not as good as others.

Seeing that Stephen had no intention of interrupting him, Mikas had no choice but to continue speaking.

"Nanshan Transmission's 5AT gear transmission has high gear transmission efficiency and good fuel economy."

"Relatively speaking, our 5AT has a complex structure and slightly lower fuel economy."

“There will also probably be differences in maintenance costs.”

"Nanshan gearboxes have low maintenance costs, simple structures and easy maintenance."

"In turn, ours will be higher, and the failure rate will probably be higher as well."

Seeing his boss's face becoming increasingly ugly, Mikas didn't dare to say more and gave a direct summary.

"In general, Nanshan gearboxes have a compact structure, smooth gear shifting, and good fuel economy, making them suitable for small and medium-sized cars."

"Our 5AT has strong carrying capacity and fast shifting speed, making it suitable for large and high-performance vehicles."

After Mikas finished speaking, the office fell into silence.

Although judging from the results, it seems that each has its own advantages, the actual situation is obviously not the case.

"BMW should know this information soon, right?"

After a long silence, Stephen asked with an unpleasant look on his face.

Although some BMW cars are high-performance cars, judging from the comparison information just now, they are more suitable to be equipped with ZF's 5AT automatic transmission.

But the sales volume is actually 3 series and 5 series.

It would be very unacceptable if a mass-produced car could not be equipped with a ZF gearbox.

"The structural differences will be apparent once they dismantle it."

“The impact on performance can actually be deduced from the structure.”

"The final information will be known after testing."

Mikas did not hide anything, after all, this information could not be hidden at all.

So in order to avoid subsequent embarrassment, it is best to speak honestly.

At most, we will focus on strengthening our own advantages and weaken the advantages of Nanshan gearbox.

"Based on the current situation, our costs should be higher than Nanshan Transmission, right?"

When Stephen asked this, Mikas couldn't help but lower his head.

There is no way, there is really no way to say more about this issue.

Not to mention that the production cost in China is relatively low. Just from the perspective of the structure of the gearbox, the cost of ZF's complex structure must be lower.

Even if the same two gearboxes are produced by ZF, the price difference will be more than 20%.

If there is no competition in the market, it doesn't matter if ZF's 5AT is a little more expensive.

Now that we have made a comparison, the final selling price of ZF's 5AT may be much higher than that of Nanshan Transmission, which makes this business difficult.

"Stephen, I think we might need to have a serious talk with Nanshan Transmission."

"While they haven't officially supplied gearboxes to various OEMs yet, and haven't even officially quoted prices yet."

"We should make some agreements, which should be beneficial to both sides."

Mikas brought up something that was not so appropriate, but very meaningful.

Strictly speaking, their practice violates the Anti-Monopoly Law.

But in fact, there are many similar things in all walks of life.

If it hasn't come to that point, or if there's no hard evidence, then everything is actually easy to deal with.

"I don't care about this matter. Anyway, our 5AT must get orders in the end."

"And we need to complete various tests and confirmations as quickly as possible to complete all development work."

"After that, the company immediately started the development of 6AT automatic transmission, striving to make a comeback with 6AT and completely reverse the passive situation."

Stephen knew that it was impossible to completely gain an advantage on 5AT.

You can only take one step at a time.

However, Stephen attaches great importance to ZF's transmission business and hopes that it will have the opportunity to become a global leader in the future.

After listening to Stephen's words, Mikas naturally knew what to do.

Whether he likes it or not, things have to be done.

……

"Mr. Jiang, ZF has specially arranged someone to come and communicate with us. We hope that both parties can reach a certain agreement on the price of the 5AT automatic transmission."

Ji Hua came to Jiang Hui's office with great interest and said something that surprised everyone.

A parts giant like ZF actually took the initiative to approach Nanshan Transmission in private to form a price alliance.

This would have been unimaginable in the past.

Now it is actually happening.

"What's the agreement method?"

Jiang Hui obviously does not reject this approach at all.

Obviously, if the deal can be reached, more money can be made by selling the same number of 5ATs.

Why doesn’t Nanshan Transmission do this kind of business?

According to current investigations, Nanshan Transmission is the first supplier in the world to master 5AT technology.

ZF is the manufacturer that follows closely and can launch 5AT products in a relatively short period of time.

Other manufacturers, whether BorgWarner, Aisin, or existing 4AT transmission manufacturers such as Jatco and Honda Motor, will not be able to mass-produce 5AT products in the next three years.

It may not even be able to enter mass production in the next five years.

This will give Nanshan Transmission and ZF a few years to make big money.

With the transition over the past few years, we can recover the development costs to the greatest extent possible.

Later, when other manufacturers launched their products, it was obviously impossible for them to make the cost lower than that of Nanshan Transmission or ZF.

If they start a price war, Nanshan Transmission is not afraid.

It would be best if there is no price war, and we can all make more money together for a few more years.

"ZF's initial idea is that both parties agree on a minimum price, and the price quoted to any customer cannot be lower than this minimum price."

"Then within this range, we will make a preliminary division of the customer range."

"Due to the different customer targets, both parties should also make targeted adjustments on prices."

"For example, when we quote to BMW, they hope that we will not quote such a low price."

"But when we quote to General Motors and Ford, they will cooperate and raise their prices, making our price advantage more obvious."

Ji Hua briefly talked about ZF's ideas.

These things will definitely not be recorded in writing, but are just things agreed upon after verbal communication between the two parties.

Otherwise, if the antitrust law is implemented, it will cause huge harm to both parties.

"They want to monopolize high-end users like BMW and Mercedes?"

Jiang Hui asked a little dissatisfied.

"That's not the intention, but some of ZF's traditional customers hope that we won't do it too aggressively."

"But it is okay for us to provide one or two models appropriately."

"For example, BMW can accept that we will take away some of the gearbox for the 3 Series."

After hearing what Ji Hua said, Jiang Hui felt better.

If this is the way to divide the cake, it is not completely unacceptable.

After all, some cakes may look delicious, but in fact, Nanshan Transmission cannot eat them.

In this case, it would be better for everyone to discuss the approximate distribution in advance and grab the cake within certain rules.

That way everyone can live comfortably.

In the past, Nanshan Transmission had no chance to participate in this kind of gameplay, but now it can.

"I agree with this plan in principle."

"ZF's 5AT should have been developed for many years as a long-established European auto parts giant."

"They have very good relationships with various OEMs such as BMW."

"If we completely piss them off, we may not get all the orders."

"After all, those OEMs don't want to purchase all the critical parts like gearboxes from China."

"But this agreement can only be made on a trial basis for one year."

"If we don't suffer too much, we can continue."

Although it was not an agreement on paper, Jiang Hui did not want to go back on his word once he agreed to it.

That would cause invisible damage to the company's reputation.

However, you should not have the intention to harm others, but you must be on guard against others.

He also has to avoid falling into ZF's trap, which would be bad.

"No problem. Our 5AT has excellent performance and costs much less than theirs."

"I don't believe they would dare to do anything tricky under such circumstances. Ultimately, it would only damage ZF's interests."

Ji Hua is now very confident in 5AT.

During this period, various automobile companies have arranged personnel to connect with Nanshan Transmission.

Although the final order has not yet arrived, the progress is very encouraging.

(End of this chapter)