The car giant started by marrying the daughter of the king

"This policy encourages auto industry enterprises to establish their own product development and scientific research institutions and form independent product development capabilities."

“Encourage the promotion and use of automotive electronic technology and new processes and materials, produce energy-saving and low-pollution automotive products, and research and develop vehicles using new fuels and new power sources.”

"This is also good news for our group. After all, we are already doing this work."

Jiang Hui said as he looked at the executives' reactions.

Although everyone has seen the document, they basically understand its meaning.

But after Jiang Hui's "Chinese-Chinese translation", it immediately became extremely clear.

Not every company has this kind of opportunity.

"In accordance with the policy direction and based on the development of the automobile industry, the tariff rates for imported automobiles and motorcycles will be reduced in a timely manner, and the structure of the tax rates for separate products will be adjusted."
"This means that the price of imported cars in China will drop significantly in the future, which is a potential threat to us."

Although most of the policy is good news for BMW Group.

But there are definitely some adverse effects.

However, this impact is completely within an acceptable range, so Jiang Hui did not raise any objections at all.

If the development of BMW Group in the Chinese market needs to rely on high tariffs for protection, then how can it expand into the international market?
"For parts companies like Nanshan Technology, this policy has a major benefit, which is the localization policy."

"The relevant departments will formulate preferential import tariffs based on the localization rate of automobile industry products to encourage higher localization rates."

"For example, if the localization rate of a car is only 50%, then the tariff on its imported parts may be as high as 50%."

"But once the localization rate reaches 80%, the tariff on imported parts can be reduced to 30%."

"This will certainly promote the rapid localization of new products by various joint ventures and introduce more local suppliers to produce parts."

"This is undoubtedly good news for Nanshan Technology."

"Of course, this will certainly attract a number of foreign-funded auto parts companies to set up factories in China."

“This is also a new competition that needs to be taken seriously.”

Not only the whole vehicle, but also the auto parts will definitely be affected by the policy this time.

This is a major document that has been thoroughly prepared and will affect the future development of China's automobile industry.

"This policy is also a major benefit to the development of the entire automotive industry."

"That is, relevant departments support the gradual change of the consumption structure of public funds purchasing and using cars, which was mainly dominated by administrative agencies, groups, institutions and state-owned enterprises in the past."

"The policy clearly encourages individuals to buy cars, and specific policies will be formulated in due course according to the development of the automobile industry and changes in the market consumption structure."

"This means that the purchase of cars by individuals will increase rapidly in the next few years."

"Domestic auto sales will increase rapidly."

“The sales department must fully seize this opportunity to increase the market share of our group’s products in China.”

When Jiang Hui said this, he glanced at Chen Chenxing.

BMW Group cannot miss such a good development opportunity.

Originally, this policy was not to be introduced until 1994, but now the entire automotive industry and economic circle have undergone tremendous changes.

This policy also appeared several years ahead of schedule.

Overall, it is definitely a good thing for BMW Group.

……

While the BMW Group was interpreting the policy documents, other car manufacturers were naturally unwilling to lag behind.

"Director, according to policy documents, relevant departments guide the development of the automobile industry through industrial policies and plans for the automobile industry."

"New construction, expansion, renovation, Sino-foreign joint ventures, cooperation and technology introduction of passenger cars, light vehicles and engine projects shall all be approved and approved by relevant departments regardless of upper or lower limits."

“The rest of the vehicle and engine projects will be approved according to procedures.”

“This may have some negative impact on our group.”

"We are negotiating to set up a new joint venture. Originally, as long as we communicate well with the joint venture partner, there will basically be no problem."

"If the superiors disagree now, there will be twists and turns later."

After carefully reading the policy document, Lu Jianqiang expressed his concerns.

During this period, he contacted several international automobile giants on behalf of Capital Automobile Manufacturing.

Just when things were looking up, the policy changed again.

"The policy is aimed at all automobile factories in China, not at our group."

"I think this impact is relatively controllable."

"Although our factory is not the largest, it is still considered a relatively large automobile group in China."

"The relevant departments have introduced policies to guide the development of the automobile industry, which is actually a good thing for large companies like us."

"Otherwise, if some small car manufacturers in various places come and go, it will mess up the market."

"Just like our Shouqi Zhiguang, there are small factories in some places that hand-make similar products and sell them directly in the local area."

"Strictly speaking, these products are illegal and should not be produced and sold."

"But because of local protection, these models were produced."

"With this major policy in place, similar incidents will definitely become less common in the future."

As the factory director, Chen Qi obviously looks at things from a higher perspective than Lu Jianqiang.

Although the policy will bring some problems to the Capital Automobile Manufacturing Plant, it will bring more order, standards and benefits.

In particular, encouraging individual consumers to buy cars is a good thing for Shouqi Zhiguang.

"That being said, I am worried that some factories will use their special influence to impose restrictions on our joint venture."

"For example, we have already negotiated the terms of cooperation with others, but the higher authorities just don't approve it."

"FAW, Second Automobile and BMW Group are all capable of doing this."

After Lu Jianqiang said this, Chen Qi finally understood what the other party was worried about.

Needless to say, FAW and Second FAW are of higher level than Capital Automobile Manufacturing Plant.

As for the BMW Group, it is even more special.

Whether it is the influence in the automotive industry or the influence in the ministries, it is very special.

If these three companies want to disrupt a joint venture project of a certain automobile manufacturer, they really have the ability to do so.

At least there will be no problem in setting up some trouble for you in the schedule.

"Although your worry is not without reason, it is something that has not happened yet after all."

"We can't possibly go to our superiors and say anything in advance just because we have these concerns."

“Besides, the policy documents have already been issued.”

"Even if we have opinions, we can't change them."

Chen Qi didn't want to dwell too much on the content of the policy document.

As long as the factory understands this document correctly, that is enough.

For other things, we'll take it one step at a time.

Anyway, there have been quite a few various documents issued by superiors over the years.

He had no idea how long this policy would last. In extreme cases, it was possible that it would be changed in a few months.

From this point of view, we can see the advantage of BMW Group having Jiang Hui as the helmsman.

……

"Director, it's a good thing you made the decision early. Before the 'Automotive Industry Policy' was officially released, our factory had already started developing cars and had already settled the production qualification issue in advance."

"Otherwise, according to the current policy, it would be very difficult to obtain the qualification to produce cars from the relevant departments."

Li Dagui came to Li Shufu's office with lingering fear.

As a private enterprise, it is now supported and encouraged by policies for development.

But when it comes to the automotive industry, the situation is very different.

Geely Refrigerator Factory is now just a company that produces refrigerators, although it is also considered a large private enterprise in the local area.

However, if we rashly switch to producing cars, it will definitely not be easy to obtain production qualifications.

"The domestic auto industry did have problems of being 'scattered, chaotic, low-quality and slow' before, and our factory was one of the problems."

"However, we successfully became a regular soldier before the policy was introduced, so we can be considered the beneficiaries of the policy."

"It will be very difficult for other companies to enter the automotive industry in the future."

Li Shufu was in a very good mood.

He believes that many contents of this policy are beneficial to Geely Auto.

In particular, it encourages automobile consumption, which means that his betting on the automobile industry is absolutely correct.

Hard work is important, but the direction of your effort is equally important.

Li Shufu was also afraid that the direction of his efforts was wrong.

That would be deadly.

Now it seems that this worry can be put aside.

"That's true, but this time the policy has raised the threshold for automobile production."

“For us, there are also some areas where we need to make changes.”

"For example, how to meet the requirements of product certification is something we haven't considered internally before, but now we need to study it carefully."

"Subsequently, the automotive industry management department will work with relevant departments to formulate technical regulations, management regulations and management systems for the safety, pollution control and energy conservation of automotive products."

"This will definitely have a certain impact on our production."

Li Dagui studied the policy documents carefully.

This work must definitely be done.

"Anyway, these requirements are for the entire industry, not just us."

"In this industry, different OEMs have different strengths."

“The relevant departments should take these situations into consideration when formulating specific implementation documents.”

"We won't create a task target that many factories cannot achieve."

"So in the short term, I don't think we need to worry too much. We just need to keep an eye on changes in policies and regulations and make sure we can respond accordingly."

After Li Shufu said this, Li Dagui couldn't help but nodded.

This is indeed the truth.

It seems that I am worrying too much.

……

"Wols, China has issued a new policy for the automobile industry. From now on, if you want to set up an automobile production plant in China, you can only do it in the form of a joint venture."

“And our shareholding cannot exceed 50%.”

Vardy has been involved in BMW's investigation of the Chinese market and partners during this period, and knows that the company is considering whether to enter the Chinese market.

Now that there have been major policy changes, he naturally needs to communicate with President Walls in a timely manner.

"I've heard that, too."

"Although this policy will have a certain impact on our entry into the Chinese market in the future, it should be relatively limited."

"Volkswagen has entered the Chinese market through a joint venture with Shanghai Automobile Manufacturing Plant and FAW."

"If we want to enter the Chinese market, we must find a partner to communicate with, so that there will be fewer problems."

"Now it's nothing more than a formal policy stipulation that our shares cannot exceed 50%."

"But as long as the partner we find is not so powerful, we can still have the final say in the company even if we only have 50% of the shares."

Walls was relatively calm.

On the one hand, although BMW wants to enter the Chinese market, it is not in a hurry.

Relatively speaking, the scale of China's luxury car market is not very large.

If BMW enters now, it will be full of challenges.

They still have time to wait and see for a year or two.

On the other hand, the technology is in the hands of BMW.

They have sufficient means to control the joint ventures and gain more profits from the joint venture projects.

For example, there must be some parts that need to be imported from BMW.

At that time, whether a part is sold for $100 or $200, won’t it be BMW that has the final say?
The joint venture company has no bargaining power at all.

In this way, even if BMW only holds 50% of the shares in the end, it can actually obtain 70% or even higher profits.

"That's true, but the introduction of the policy should still have a great impact on the development of China's automobile industry."

"In the future, China's automobile industry should enter a fast lane."

"In particular, Huaxia began to explicitly encourage individual consumers to buy cars and positioned the auto industry as a pillar industry of the national economy."

“This is also good news for us.”

Vardy is a little pessimistic about the Chinese automobile market now, but he is still looking forward to the future.

After all, it is a market with the largest population in the world.

Once the number of individual consumers increases significantly, BMW can consider officially investing in and building a factory in China.

"Yes, the Chinese automobile market is finally starting to rise."

"The global auto market landscape is expected to continue to change in the future."

"I hope that China can quickly become a car market comparable to that of the United States."

"At that time, our company's sales will definitely rise to a higher level."

BMW focuses on luxury models, and the number of its customer groups is subject to certain restrictions.

Only by continuously opening up more markets can sales continue to increase.

Obviously, the Chinese market has many factors worth looking forward to. (End of this chapter)