The car giant started by marrying the daughter of the king

"Sterling, if we want to establish a joint venture, in addition to contacting Shanghai Automobile, FAW and other OEMs, I think Nanshan Technology, the only manufacturer in China that can produce ECUs, is also the one we need to focus on."

"Now they have just mastered the production technology of ECU, and their accumulation in various aspects is definitely still relatively weak."

"I think it may have a very different and special meaning to take advantage of the opportunity of the joint venture to completely let them give up their own ECU production."

After Franz said this, Sterling's look suddenly changed.

Naturally, he had already understood the meaning behind this approach.

"If Nanshan Technology really agrees to a joint venture, it will definitely be more meaningful than looking for a joint venture with a manufacturer like Shanghai Automobile."

"BMW is the largest automobile company in China, with annual sales exceeding 100 million vehicles."

"In the future, they will definitely switch to electronic fuel injection engines, which will be a big market."

"After we establish a joint venture, we will be able to occupy most of the ECU market in China in the future."

Sterling was very interested in Franz's proposal.

This is also a brand new attempt for Bosch.

Parts like ECU are technically difficult to manufacture.

There are only a few parts companies in the world that can produce it.

Therefore, the fewer opponents like this, the better.

In particular, auto parts companies from China often become industry disruptors.

The best thing would be to turn this troublemaker into your friend.

In history, when BYD was developing ESP, Bosch immediately drastically reduced the price for BYD as soon as it discovered that the other party had actually developed this kind of parts.

The price was even reduced to cost in order to force BYD to give up the development of ESP.

You have to know that the ESP technology developed by BYD at that time was much more backward than that of Bosch.

The final cost was much higher than what Bosch offered after the price reduction.

In this case, it will be difficult for BYD to continue to develop ESP.

After all, businesses need to make money.

BYD developed its own ESP because the price of the ESP sold to them by Bosch was too expensive.

Now that this problem has been solved, it is highly likely that Bosch will not sell high-priced ESP to BYD in the future.

As for whether Bosch will continue to sell ESP to other OEMs at high prices, that is not something BYD will consider.

"Yes, I think so too."

"But I just don't know what the other party thinks."

"Over the years, Nanshan Technology has invested in some Chinese auto parts companies, but has never directly established a joint venture with an international auto parts company."

Franz was not sure whether his trip to China this time could achieve his goal.

So I dare not say too much.

"It doesn't matter. We have to talk to find out the details."

"It's difficult for us to make decisions without clarifying the situation."

"Please arrange it as soon as possible and make it happen."

Sterling didn't worry too much.

You start worrying about this and that before you even do anything.

This is not his style.

……

"Mr. Jiang, Bosch, as one of the world's leading auto parts companies, has taken the initiative to extend an olive branch to us and is planning to establish a joint venture parts company specializing in the production of automotive electronic products."

“I think this matter is worth considering carefully.”

From a business perspective, Fang Huihui believes that cooperation with Bosch is profitable.

By leveraging Bosch's cooperative relationships with various OEMs around the world, it is possible that the products of this joint venture will be exported to foreign markets on a large scale in the future.

At worst, you can still get into various joint ventures.

However, Jiang Hui certainly has different ideas. "There is nothing good about the joint venture. The first condition of the joint venture proposed by Bosch Automotive is that both parties jointly develop and produce ECUs, and Nanshan Technology will no longer independently develop and produce ECUs."

"This is obviously aimed at suppressing our independent research and development capabilities."

"Before we develop the electronic fuel injection engine, if Bosch is willing to cooperate with Nanshan Technology, I would definitely welcome it."

"After all, Bosch is a global leader in both gasoline and diesel engines."

"But now that our products have already started mass production, they are pretending to want to cooperate with us."

"That's totally a case of the old man drinking for a different reason."

Jiang Hui definitely has a very thorough understanding of this cooperation.

Those international auto parts giants are definitely not that kind.

They don't enter into joint ventures early or late.

As soon as you have mastered ECU technology, we will establish a joint venture with you.

The purpose is too obvious.

"The other party must have considered the conditions to their advantage, so they wanted to discuss the joint venture."

“But I think this matter cannot be viewed so simply.”

"Once the two parties really cooperate, even if we give up the research and development of ECU, as long as the production cost and technology of this part can meet our own needs."

"In fact, it does not affect the development of the company."

Fang Huihui wants to continue trying.

This time, Bosch found her first to communicate and basically convinced her.

"It's just that Nanshan Technology currently has no plans to start a joint venture with other companies to build a factory."

"If we have such considerations in the future, we will communicate with Bosch first."

"Let's end this matter here."

Jiang Hui didn't want to waste time on this matter.

However, Bosch's "olive branch" also made him realize that international automobile giants and parts giants have actually been paying attention to the development of the BMW Group.

Once there is any new technological breakthrough, those competitors will definitely take action.

In this regard, we really need to consider some things in advance.

……

After hitting a wall at Nanshan Technology, Bosch naturally did not stop.

"Francis, there are many automobile companies in China. We don't necessarily have to look for the BMW Group."

"The combined influence of Shanghai Automobile, FAW, Second Automobile, Capital Automobile Works and other automobile companies is no less than that of BMW Group."

As the deputy general manager of Bosch China branch, Xu Wencai is considered one of the first Chinese executives in foreign companies.

Naturally, he hopes to achieve some results in this position.

Bosch wanted to set up a joint venture in China to produce electronic components such as ECUs, so Xu Wencai was naturally very active in helping to promote this matter.

This time he personally accompanied Franz to Shenzhen for the negotiations.

However, the results are not optimistic.

"But we can't find so many companies to set up a joint venture at the same time, right?"

Franz could understand what Xu Tiancai said, but he was still a little unhappy. He felt that the cooperation conditions offered by Bosch to Nanshan Technology were already very good.

He only needs to control 51% of the controlling rights, and the remaining 49% can be given to Nanshan Technology.

But it was rejected.

"Why not?"

"Huaxia has now proposed the concept of 'market for technology' and is very eager to introduce some auto parts companies with real technological strength."

"In the field of electronic fuel injection engines, Bosch is undoubtedly the king."

"As long as we are willing to produce core components such as ECU in the joint venture, we can definitely attract many Chinese companies to cooperate with us."

"We don't even need to communicate directly with the various OEMs such as FAW, Second Automobile Works, Shanghai Automobile Works, and Shouqi, but can communicate with their superior departments."

"As long as the higher authorities agree, they can arrange for the lower-level automakers to jointly establish a company, and then use this company to cooperate with us."

"In this way, we don't have to negotiate directly with so many OEMs. We only need to communicate with this independently established company."

After Xu Wencai said this, Franz's eyes changed.

Can you still play like this?
I've never heard of it before.

But if you think about it seriously, it seems that this thing can really be done.

Although Bosch entered the Chinese market in the 1980s, it has always been its own sole proprietor.

Now that we are willing to take the initiative to start a joint venture with others, there must be people who are interested.

Franz is also very confident about this.

After all, Bosch's technology is really amazing.

There are only a handful of parts companies in the industry that can say they are better than Bosch.

Even Denso, Japan's largest auto parts company, doesn't dare to say this.

"Xu, we will follow your idea and implement this matter as soon as possible."

"If such a company is really established, it will definitely be more meaningful than a separate joint venture with Nanshan Technology."

Franz excitedly began to make arrangements.

He felt that he must complete this plan.

When I go back to report, I can give the board of directors a surprise.

With such a joint venture, Bosch's ECU and other electronic products business will be stabilized in the Chinese market.

Even if you are not the first, you can still be the second.

this is very important.

……

"Xiao Jiang, people from Bosch have contacted the Ministry of Machinery and Electronics Industry."

"They want to cooperate with several major domestic OEMs to establish an auto parts company."

"They have even decided on a name: United Automotive Electronics Co., Ltd., or United Electronics for short."

"Currently, both Shanghai Auto and FAW are very interested in this plan."

"Capital Automobile Works and Second Automobile Works are also ready to make a move."

"What do you think about this matter?"

Zhu Jiansheng personally called Jiang Hui to discuss Bosch's plan to produce ECU and other electronic components in China.

Zhu Jiansheng naturally knew that Nanshan Technology had mastered the production technology of ECU.

Now Bosch is going to set up a joint venture in China to produce similar products. Zhu Jiansheng can probably guess what the purpose is.

Otherwise, he wouldn't have made this call to Jiang Hui.

"Dad, since all the car manufacturers are so interested, we can't stop them, and there is no reason to stop them."

"But this time, Bosch was so proactive in coming to us. They must have felt the pressure."

“So I think we can make more requests before United Electronics is established.”

"For example, the research and development of related electronic components will also be gradually transferred to the joint venture."

"We cannot allow our joint venture to become a single production plant. That is not our original intention of 'trading market for technology'."

Jiang Hui knew very well that it was impossible to keep Bosch out under the current situation.

Parts like ECU, or even any automotive parts, are produced by more than one parts company around the world.

He is not worried at all about the competitive pressure from Bosch.

"If Bosch joins forces with so many OEMs to form a joint venture, it will be very difficult for Nanshan Technology to get orders for parts produced by this company in the future."

Zhu Jiansheng directly stated the impact of this incident.

After all, one of the purposes of establishing a joint venture is to obtain orders from shareholders.

Even though the scale of FAW, Second FAW and Shanghai Automobile Factory is not as large as that of BMW Group.

However, as a car company of such a high level, it will definitely continue to develop in the future.

Even if the combined output of these factories is not as high as that of the BMW Group, the gap will not be particularly large.

After all, there are a lot of them.

"If Bosch really wants to release the technology, it won't be a bad thing for us."

"At least in the future, if we want to recruit some technical talents, we will know where to find them."

Jiang Hui said half-jokingly.

There is a severe shortage of automotive electronics talent in China.

Nanshan Technology can only cultivate its own talents.

Otherwise, they would recruit people from Japan and America.

But the cost of poaching is a bit high.

After all, the wages in these places are much higher than those in China.

Nanshan Technology wants to poach people, and the conditions it offers are much better than others.

At least it can't be too different, right?

Otherwise, how can we attract talented people to join us?
"If you understand it that way, it makes sense."

"I will tell my people that United Electronics must truly master the technology of the various parts it produces."

"Otherwise, there would be no point in going through so much trouble to set up such a company."

Seeing that Jiang Hui had thought it through, Zhu Jiansheng didn't worry about it anymore.

As long as Jiang Hui thinks there is no problem, there will naturally be no problem on his side.

Even as the head of the Ministry of Machinery and Electronics Industry, he was happy to see the emergence of such enterprises.

After Bosch took the lead, when other auto parts companies enter China in the future, they will definitely consider establishing joint ventures.

Although not every joint venture will eventually master the core technology of components, there will always be some gains to a certain extent.

It will definitely not be bad for the development of China's automobile market.

United Electronics, which was originally scheduled to appear in 1995, appeared at the end of 1989.

This is also a reflection of the changes in China's automobile industry. (End of this chapter)