The car giant started by marrying the daughter of the king

Chapter 463: Intense Stimulation, Revolution in the Automobile Market
GM is still moving quickly.

Thanks to the cooperation with BMW Group and a series of other improvement measures.

General Motors had a very good market performance in 1988, with sales exceeding $1100 billion and profits setting a historical record.

They naturally hope that this situation can continue this year.

So after Edward and Austin returned from China, General Motors immediately began arranging promotions for the Buick C-Class sedan.

Mercedes-Benz also cooperated and provided two sample cars to be sent to America to assist in subsequent advertising shooting and other related work.

After this series of actions were carried out, many colleagues naturally knew a lot of information immediately.

"Bill, did you see the article about GM's Buick C-Class sedan?"

"This car is a product of their cooperation with BMW Group, and its appearance has set a new industry benchmark."

"I estimate that competition in the mid-size sedan segment will become very fierce this year."

Peterson had someone specifically analyze General Motors' financial report last year.

Although the sales of OEM products jointly developed by General Motors and BMW Group account for less than 10% of the total sales.

However, the profit contribution reached almost 20%.

This is definitely something very enviable.

"I have specifically read those reports. The positioning of Buick's C-class sedan is likely to be highly consistent with the Mondeo model we are developing."

"The size and exterior style of the models in all aspects are somewhat similar."

Bill frowned and told me the bad news.

Ford Motor Company has very high expectations for the Mondeo model.

Its design concept is to create a "world car" to merge Ford's mid-size car product lines in major regions of the world, share costs and integrate global resources.

To achieve this goal, the R&D expenditure reached 60 billion US dollars, setting a new record for Ford's investment in automobile design costs.

Of course, this $60 billion figure is definitely inflated.

However, Ford Motor Company developed three body styles at once: four-door sedan, five-door hatchback and five-door station wagon.

There are also 1.6L, 1.8L, 2.0L and 2.5L four-cylinder gasoline engines.

There's even a diesel version.

Such a rich configuration and the plan to produce it simultaneously at multiple locations around the world shows how much importance Ford attaches to this.

This is the only car that was mass-produced in 1992.

But this time, due to the stimulation from the BMW Group, Ford Motor Company moved much faster.

If nothing unexpected happens, this car will be officially put into mass production in the first half of next year.

At this pace, we will start planning some promotional activities in the second half of this year.

But now the Buick C-Class sedan is here.

Although this car currently only has a four-door sedan version and only two engine options, it is far less than the rich derivatives of Mondeo.

However, judging from the current information, the exterior design is obviously more fashionable and beautiful than Mondeo.

This is depressing.

GM got such a beautiful car without investing almost a dollar in research and development.

However, Ford Motor Company spent a huge amount of money and invested all its profits from the past two years into this project.

Although Mondeo will not fail due to the emergence of Buick C-Class sedan, its sales will definitely be affected.

“That’s the biggest problem.”

"In this class of cars, Toyota's Camry and Honda's Accord have already grabbed a very large share of the market."

"Other competitors, such as Hyundai's Sonata and Chrysler's 300C, are also making every effort to expand the market."

"The situation facing our Mondeo is a bit grim."

Peterson is now very worried that if the Mondeo project fails, he might even lose his position.

The overall situation of Ford Motor Company is still good.

But I am afraid of comparison in everything.

General Motors' development speed in the past two years has been significantly faster than Ford's.

"Peterson, the mid-size sedan market is the one with the largest sales potential."

"It can accommodate a wide variety of car models. I am very confident in Mondeo."

Bill can be regarded as the actual promoter of the Mondeo project and is quite confident in this product.

Although the appearance is different from Buick C-Class, it is not so different from the previous generation.

In this case, coupled with Ford's strong publicity capabilities, he feels that Mondeo's sales are still guaranteed.

Of course, it is definitely influenced by the Buick C-Class sedan.

"I hope so."

"Assign someone to keep an eye on the information related to the Buick C-Class sedan."

"See what feedback consumers have, especially the performance after the official launch."

The competitors are about to go on sale, so even if Ford wants to imitate or modify Mondeo's design, it is too late.

Besides, Ford Motor Company also has to maintain its reputation and would definitely not do something like plagiarizing others.

Don't even have this thought.

……

Another car that is as depressing as Ford is Toyota.

"President, I think the Buick C-Class sedan is coming for our Camry."

"This is not a good thing. We have to take some measures to prepare for it."

Saito Shangying immediately felt the pressure.

Camry's global sales last year reached more than 200,000 units, most of which were contributed by the American market.

Last year, Toyota Motor's wholly-owned factory in the United States also officially started mass production.

I was thinking about doing something big.

"The appearance of the Buick C-Class sedan was very sudden. I had never heard of anything like this before."

"On the contrary, I heard that Ford Motor is developing a mid-size sedan with a similar positioning to our Camry."

As the president of Toyota Motor Corporation, Shoichiro Toyoda has a lot of things to deal with every day.

We won't panic just because a new car model appears.

The American market is very important to Toyota, but Toyota's global business layout is already relatively complete.

Not putting all his eggs in one basket is also the source of Toyoda Shoichiro's confidence.

"This Buick C-Class sedan, like the Buick Highlander, is also a product imported from the BMW Group in China."

"It is estimated that after the mass production of this car, the global mid-size sedan market will be greatly affected."

Before Saito Shoei came to report to Shoichiro Toyoda, he had to make sure to get the situation clear.

The cooperation between General Motors and BMW Group did not start today.

Toyota Motor Company has also specially arranged spies in Hong Kong and Shenzhen to keep an eye on the movements of BMW Group.

Although Mercedes-Benz did not make a big fuss when the prototype rolled off the production line, information about the Mercedes-Benz C-Class sedan inevitably spread within a small circle.

Considering that it will be officially
"Now that it's on the market, the level of confidentiality of information in all aspects has naturally decreased.

"BMW Group again?"

“How come each of their new products is so amazing?”

“Should our designers also reflect on how to better grasp the needs of consumers?”

Shoichiro Toyoda is naturally very familiar with the BMW Group.

These are some of the few competitors that have caused a lot of trouble for Toyota.

Unfortunately, Toyota does not have a particularly good way to suppress others for the time being.

After all, the two largest markets of BMW Group are America and China.

On one hand, they are relying on General Motors, and on the other hand, they are fighting at home.

"Previously, there were media reports that Jiang Hui, head of the BMW Group, is the world's top automotive designer."

"Every car model he designed over the years is so classic."

"Many car models launched on the market in the past year have been more or less influenced by the appearance of some products of the BMW Group."

"It is absolutely rare for a Chinese company to be able to do this."

Saito Shoei gave his evaluation relatively objectively.

Compared with other Japanese companies, Toyota's working style is relatively generous.

After all, their goal is to become a large global automobile company.

Leaders naturally need to think from a global perspective.

Otherwise, Toyota's globalization efforts would not be smooth.

"We really need to take this matter seriously and try not to let it affect our Camry sales."

"Then we also need to speed up the modification of our Camry."

Shoichiro Toyoda obviously wants to improve his competitiveness through product iteration.

This is also a relatively common way of dealing with it.

However, in the automotive industry, it is still difficult to quickly iterate products.

After all, any change to a part will take a long time.

Toyota now has no choice but to move forward.

……

"Old Wang, you need to propose to Volkswagen to import more advanced mid-size sedans."

"Otherwise, if we rely solely on Santana, there is absolutely no way we can compete with the Mercedes-Benz C-Class sedan."

Yu Jin naturally soon learned that Mercedes-Benz was going to mass-produce the Mercedes-Benz C-Class sedan.

Combining the information he had already obtained, he felt that this car was definitely a huge threat to Santana.

Previously, the Capital Automobile Manufacturing Plant's Shouqi Zhiguang had a very different pricing from Santana.

Coupled with the difference in brand power, the impact on Santana's sales is relatively limited.

But the Mercedes-Benz C-Class is different.

The positioning in all aspects is highly overlapping, and with the Hongqi A6 launched by Hongqi BMW before, Santana has absolutely no room to survive.

This situation is definitely not what Shanghai's automobile manufacturers want to see.

"I've also been thinking about this, but even the Passat B3, which Volkswagen just launched last year, can't compare to the Mercedes-Benz C-Class in terms of size."

Wang Huiliang said a little worriedly.

The Passat B3 has a body length of 4595 mm, a width of 1705 mm, and a wheelbase of 2625 mm, which is indeed a standard for mid-size sedans today.

However, the Mercedes-Benz C-Class sedan was designed according to the standards of later mid-size sedans. At this time, it could actually be considered a mid-to-high-end sedan in size.

Although consumers have far fewer choices than in later generations, they are not as picky.

However, the car has no advantages in appearance and body size, so Wang Huiliang's confidence is not very sufficient.

"If we introduce it, the molds for the body parts will definitely need to be remade."

"We can consider asking Volkswagen to lengthen the wheelbase by 100mm, so that the size difference with the Mercedes-Benz C-Class will not be obvious."

"If you keep everything else the same and just lengthen the wheelbase, there are relatively few parts that need to be adjusted."

"If this long-wheelbase version is popular in the market, we can also consider exporting some of the models to overseas for sale."

Yu Jin’s calculations were very good.

I wonder if the joint venture Shanghai Volkswagen can also contribute some export earnings to the shareholders who are planning to change their name to Shanghai Automobile Group.

However, his idea was destined not to be so easy to realize.

After all, the main purpose of international automobile giants such as Volkswagen setting up joint ventures in China is to develop the Chinese market.

If they want to expand markets in other places, they can try to use the models produced in their own wholly-owned factories.

There is absolutely no need to share half of the profits with our Chinese partners.

This situation did not change until after 2015.

At that time, the competitiveness of China's automobile industry had been greatly improved.

The production cost of the same car model in China is lower than overseas.

Even if part of the profits are taken away by the shareholders on the Chinese side, it is still profitable.

That is why some car models produced by joint ventures have begun to be exported and sold overseas.

But now it is 1989, and the situation is of course completely different.

If calculated based on the official exchange rate of RMB to USD, the USD price of cars produced in China will be higher than that in other places.

"We can discuss this with Volkswagen."

"The Passat series is a model that Volkswagen attaches great importance to."

"The first two generations of Passat were developed based on the Audi 80 platform. Starting from the Passat B3, Volkswagen's own platform was used, and the engine was changed to a transverse layout."

"Compared with the previous two generations of models, the Passat B3 pays more attention to comfort and practicality in its interior design and configuration."

“Higher quality materials are used, the seat comfort has been improved, and the interior space layout is more reasonable.”

"And the front grille has been removed, making the front face more concise and smooth, and the overall appearance is streamlined, which is in sharp contrast to the square design style of the previous two generations."

"Volkswagen is certainly hoping that this model, which has such high hopes, can improve its global competitiveness."

Wang Huiliang quickly thought about the relevant information about Passat.

In fact, the Santana they are producing now is actually the previous generation of Passat model.

According to the normal pace of historical development, Volkswagen in Shanghai will have to wait another ten years before introducing new Passat models at a similar pace to the rest of the world.

There are many reasons for this.

Historically, the second generation Passat, also known as Santana, was still a best-seller in the country.

Moreover, the localization of Santana's parts was not fully completed until the mid-90s.

Due to the limited market size and poor industrial base, Passat B3 was not introduced for production.

But the situation is completely different now.

Santana’s competitiveness is no longer sufficient, and it can only maintain sales by promoting localization and lowering prices.

At this time, Volkswagen in Shanghai needs a mid-size sedan to maintain its market share and influence.

"Let's communicate as soon as possible. This matter cannot be delayed."

"Otherwise, by then, the Hongqi A6 will occupy the official car market, and the Mercedes-Benz C-Class will occupy the individual user car market."

"Then there will be no place for us in the mid-size sedan market."

"If we compete with Shouqi Zhiguang in the entry-level sedan market, we will not be competitive in terms of cost."

"This will make the group's situation very passive."

Once upon a time, the Shanghai Automobile Manufacturing Plant was the most important car manufacturer in the country.

Shanghai brand cars are also considered famous brands.

But now the situation has completely changed.

According to the current situation, the car sales of Shanghai Automobile Group this year will not even be able to enter the top 3 in the country.

BMW Group is far ahead, with Capital Automobile Manufacturing or Hongqi BMW taking the second and third positions.

Shanghai Automobile Group can only become the fourth.

The key point is that the position of the fourth one is not necessarily so stable.

How could Yu Jin accept this situation?
"Well, the BMW Group's Mercedes-Benz C-Class sedan is in cooperation with General Motors."

“Then it will be put on the market in both America and Europe.”

"Volkswagen must have felt the pressure from the Mercedes-Benz C-Class."

"It shouldn't be that difficult for us to discuss with them about the introduction of the latest generation of Passat B3 at this time."

"After all, the rapid changes in the Chinese market and the rapid increase in car sales are something that people at Volkswagen cannot fail to see."

Wang Huiliang has some understanding of Volkswagen's situation.

Although Volkswagen's vision is beautiful, the current situation is far from ideal.

Neither Toyota, General Motors, or even Ford, want Volkswagen to rise.

To break this situation, Volkswagen will naturally have to make various efforts.

Expanding the Chinese market is one of Volkswagen's efforts.

……

"Director, do you think the appearance of the Mercedes-Benz C-Class will have an impact on the sales of our Hongqi A6?"

On the FAW side, Zhao Guangming had naturally also paid attention to the situation of the Mercedes-Benz C-Class sedan.

As both are sedans, although the Mercedes-Benz C-Class is slightly shorter than the Hongqi A6, the difference is very limited.

Judging from the appearance alone, the difference is not that big.

The Hongqi A6 is the model that FAW has paid the most attention to this year.

The current sales situation is very good.

Zhao Guangming naturally does not want its sales to decline.

"Our Hongqi A6 is mainly aimed at the official car market, and the purchasing units are basically government agencies and state-owned enterprises."

"Mercedes-Benz C-Class sedans are mainly targeted at individual users. Most of the buyers are probably self-employed individuals or people related to private enterprises or foreign companies."

"The exterior design of the Mercedes-Benz C-Class is indeed very beautiful, very stylish and luxurious."

"But on the street, the Mercedes C-Class is too dazzling and not suitable as a business car."

"On the contrary, our Hongqi A6 is different."

"Its stable and elegant body design fully meets the needs of government officials."

Geng Weidong is still very confident about the prospects of Hongqi A6.

Although the Mercedes-Benz C-Class sedan is also very excellent, it is not on the same track as the Hongqi A6.

We cannot say that there is no competition at all, but it is indeed very limited.

"If that's the case, then that would be the best."

"I am worried that when the Mercedes-Benz C-Class is officially launched, the sales of our Hongqi A6 will decline."

“That’s very depressing.”

"I am now organizing the relevant departments to start planning the new Hongqi BMW factory."

"If the sales volume of Hongqi A6 continues to rise, there will be a shortage of production capacity next year."

"It's just the right time to start planning now."

Zhao Guangming now focuses his main energy on Hongqi BMW.

FAW's current automobile business is mainly divided into three major areas.

One is the Jiefang truck segment, and the other is the passenger car segment.

Another area is the parts business, but this part of the business is still relatively weak and its independence is not that strong.

Zhao Guangming felt that the future prospects of passenger cars would be even brighter, so he thought about moving in this direction.

In the future, after Geng Weidong retires, if he still has the opportunity, he can take over for a few years.

After all, he is a few years younger than Geng Weidong.

"The planning of the new factory needs to be communicated well with the BMW Group."

"We can just purchase some equipment that Nanshan Equipment can produce from them."

"They can smoothly cooperate with the construction of several new factories of BMW Group, so they should have their own advantages."

Geng Weidong specifically gave Zhao Guangming some instructions.

Now that the future of Hongqi BMW is bright, he naturally does not want any disagreements.

BMW Group itself has rich experience in building modern factories, so don't waste it.

"Based on the current production capacity of the BMW Group, it is estimated that they will soon start considering building a new factory."

"I'll find some time to go over and have a look at some of the equipment at Hongqi BMW's new factory to see if it can be consistent with their new factory."

"That way, the technological level of our new factory will be the most advanced in the country."

Zhao Guangming keeps an eye on the movements of the BMW Group every day, so he naturally has some understanding of the situation.

Although there has been no specific news about Mercedes-Benz building a new factory in Shanghai, it is still relatively easy to grasp the other party's production capacity.

Some information can be found in various past reports.

Combined with the current development situation, we can generally know that the other party should consider starting the construction of a new factory this year.

"Well, that's a good idea of ​​yours."

"Hongqi BMW also owns half of the shares of BMW Group."

"It would not be a bad thing for the BMW Group to refer to their proposal for the production line of our new factory."

Geng Weidong is not worried that BMW Group will discredit him during this process.

Judging from past experience of dealing with them, the BMW Group’s style of doing things is not that shady.

Most of the time, both parties negotiate and discuss.

BMW Group has not been unreasonable in exploiting their own advantages.

(End of this chapter)