The car giant started by marrying the daughter of the king

1990 was a year in which the BMW Group laid a solid foundation for its development.

Nanshan Engine has successfully upgraded the 1.5L, 2.5L and 3.5L carburetor engines to electronic fuel injection engines.

Therefore, even if there are no heavyweight new models launched this year, the sales of various models are very good thanks to the modifications of these engines.

Judging from the appearance of the various cars designed by Jiang Hui, even after a few years, they are still the best in the world.

Throughout 1990, BMW Group's vehicle sales exceeded 150 million units and continued to increase steadily.

Next, new products such as the Land Rover Range Rover and Mercedes-Benz S-Class will continue to be launched, and it is almost certain that the overall sales volume will exceed 200 million units.

Under such circumstances, the number of year-end bonuses issued by BMW Group naturally broke the record.

Starting this year, the basic salary of all employees will be increased by at least 20%.

Then the year-end bonus starts at 6 months, and the highest individual can get 12 months.

This creates a very good atmosphere in the entire group and makes everyone more enthusiastic about joining the BMW Group.

Working for BMW Group for one year is almost equal to ten years' salary in many inland factories.

This huge gap will naturally have a huge impact.

"Jiang Hui, we spent so much money last year, how come the group's financial account showed more profit?"

Zhu Ling does not have a particularly high pursuit of money.

But seeing the data in the account constantly increasing, she couldn't help but ask a few more questions.

She was a little worried that the money was too much and a bit hot to handle.

"The development of the BMW Group is on the right track, and the sale of each car can bring us considerable profits."

"Compared with the money spent, these profits are obviously more substantial."

"However, we will build another automobile factory in Shanghai and expand the production scale of Nanshan Steel Plant."

"Lingnan Semiconductor will continue to build new factories, which will cost a lot of money."

Jiang Hui was not surprised at all about last year's financial report data.

At this time, the automobile industry is still a high-profit industry.

Unlike later generations, many OEMs were in a state of loss or close to loss.

For example, for every Land Rover G-series off-road vehicle sold in China, the company can earn more than 40,000 yuan.

Even after 1991, the value of the RMB was not as high as it was ten years ago.

But a profit of more than 40,000 is still very exaggerated.

The profit from a car can buy a house in Shenzhen.

"I think besides Shenzhen and Shanghai, do we also need to consider investing in other cities?"

"For example, the capital and Chang'an City actually have some industries that are suitable to be located there."

"Especially since we recently brought back a lot of information and talents from the polar bears."

"If we want to enter the military industry and aerospace field in the future, it would be more appropriate to locate the factory in Chang'an City."

Zhu Ling has been exposed to a lot of confidentiality-related information since she was a child, and she is quite sensitive to this aspect.

It is obviously not so convenient to place the military industry in Shenzhen.

"Your suggestion is good. We do need to go to Chang'an City to investigate and see if we can build a part of the factory first."

“When we officially enter these fields in the future, we won’t have to start from scratch.”

Jiang Hui would definitely not object to Zhu Ling's idea.

It is time for the group to move out and no longer stay in Shenzhen.

"In addition to expanding the domestic market, I think we can also consider developing overseas."

"If our group wants to become a giant, it cannot just be influential in the country."

Zhu Ling is still considered a Hong Kong resident and has a relatively high level of international vision.

She felt that it was time for the group to further expand into overseas markets, especially to build some factories abroad.

"In this regard, we can consider letting Nanshan Technology take the lead and let them build various factories in the United States, Europe and other places."

“We try to manufacture parts locally for OEMs such as General Motors, Ford and Volkswagen.”

"This is the only way to get orders from the other party for a long time."

Jiang Hui knew that the spare parts industry could not always be concentrated in China.

Unless it is a part with relatively low shipping cost.

Otherwise, people will definitely find some local suppliers to produce, which will gradually reduce the development of Nanshan Technology.

This is a situation that Jiang Hui does not want to see.

"Nanshan Technology is indeed more suitable to play as a forward."

"If necessary in the future, Nanshan Transmission, or even Mercedes-Benz or Land Rover, can set up factories overseas."

"Let's make our group a truly global enterprise."

Zhu Ling further expressed her thoughts.

Jiang Hui responded to this, saying: "You can give it a try, but international management and the demand for talent need to match."

“It will take some time to transition to this kind of work.”

“But if we go international, there will definitely be no problem in this direction.”

Considering the gap between domestic and international income levels during this period, there will definitely be many problems to deal with if we take the internationalization route.

Although we have accumulated certain experience in the past and have countermeasures.

However, as the scale varies, some plans must be adjusted in a timely manner.

Zhu Ling can understand this.

……

"Mr. Yu, I heard that the BMW Group is planning to build a new factory in Shanghai."

"They sold more than 150 million vehicles last year, and their influence is growing."

"If we continue to expand our production scale in Shanghai, it will definitely bring huge pressure to our development."

Wang Huiliang is a little worried now.

Although Shanghai Volkswagen's development speed in recent years is acceptable, it also depends on who it is compared with.

With the example of BMW Group in front of him, his achievements seem rather unremarkable.

"I heard the news, too."

"The new factory they built for Mercedes-Benz is expected to be able to utilize 100% of its production capacity this year."

“I heard that Mercedes-Benz and Land Rover are both developing new models, which may be launched this year.”

"The production capacity will definitely be tight by then."

Yu Jin’s information channels are naturally no less advanced than Wang Huiliang’s.

But there was little he could do about this matter.

Although Shanghai Automobile Group is a subsidiary enterprise of Shanghai, it can enjoy many conveniences.

But it certainly cannot stop the superiors from actively introducing the BMW Group.

The GDP growth brought by a car factory is very impressive.

Shanghai, once the largest city in China, has been surpassed in GDP by Shenzhen, its younger brother. Shanghai must be very anxious.

When Mercedes-Benz built its first factory here, it was the relevant leaders who came forward to communicate.

Now Mercedes-Benz is taking the initiative to build a second factory, but it will be ruined by the Shanghai Automobile Group.

Someone will definitely suffer the consequences.

"Their development speed is really too fast."

"With so many models, not a single one has failed."

"This situation is very rare even among the world's auto giants."

Wang Huiliang said with great emotion.

In all his years, this was the first time he had witnessed such an exaggerated scene.

A Chinese company has actually made a name for itself in the world automobile market.

You should know that of the 150 million vehicles produced by BMW Group, more than 100 million are exported overseas.

The key point is that their various models of cars are not sold at low prices.

This is very rare.

"I heard that the BMW Group has made a lot of moves in the polar bear sector, and many of the scarce raw materials are purchased directly from the polar bear sector."

"I even heard that most of the funds used by BMW Group to purchase goods in Polar Bear were purchased with rubles borrowed from local banks."

"But now the ruble has depreciated significantly. At that time, BMW Group only needs to exchange part of it for US dollars to repay the loan."

"The exchange rate gain alone is an extremely exaggerated number."

"Do you think there is anything we can learn from this?"

Yu Jin is now slowly adjusting his mindset.

BMW Group is the largest automobile company in China, and no one can change this situation.

Even if Shanghai Automobile Manufacturing had two joint ventures, Shanghai Volkswagen and Shanghai General Motors, it would be impossible to reverse the situation.

So how to learn from the BMW Group is something that we must consider carefully.

"We didn't have any branch in Polar Bear before, and even people from our group had never been there."

"In this case, even if we want to borrow money from there, there is no channel for us to do so."

"And now that BMW Group's approach has become known, other companies are sure to want to learn from it."

"Under this situation, it will probably be even more difficult to make this business."

"But I think we can learn from their practice of introducing a large number of personnel and technical information from polar bears."

Wang Huiliang thought about it for a while and gave his opinion.

Faced with major changes that have not been seen in a century, it seems unreasonable for Shanghai Automobile Group to do nothing.

"You are right. We can learn from the BMW Group's approach of introducing talent and technology from the polar bears."

“Now is the time when their willingness to cooperate is the strongest.”

“Our previous truck business has never been particularly smooth.”

“If we can use this opportunity to develop the truck business, that would be great.”

Yu Jin quickly affirmed Wang Huiliang's proposal.

In terms of passenger car business, the pressure on Shanghai Automobile Group is not that great now that it has two joint ventures.

However, in terms of truck business, there is still a big gap compared with FAW, Second Automobile Works and Ligong Special Vehicle Factory.

The economy in the Yangtze River Delta is developing rapidly now, so the demand for trucks is naturally huge.

This part of the market has been taken up by other OEMs, and Shanghai is definitely not satisfied with this.

Soon, the Shanghai Automobile Group also started to move.

……

"President, the sales of BMW Automobile Group in China surpassed ours last year."

"According to this development trend, the gap between them and us will become wider and wider."

As the sales manager of Hyundai Motor, Jin Chenggang has actually been living a pretty good life in recent years.

After all, Hyundai's sales are increasing every year.

But facing the pressure from BMW Group, he became more and more worried.

In his opinion, BMW Group has taken the path that Hyundai Motor is heading for.

As a latecomer, Hyundai Motor's products are able to rapidly expand the market around the world. One important reason is that their cars have beautiful exterior designs.

Coupled with a price slightly lower than Toyota and Honda, Hyundai has rapidly risen in the American market.

In particular, the popularity of the Elantra model has given Hyundai Motor great confidence in its development.

However, facing the development of BMW Group, Jin Chenggang felt troubled.

"I have also asked the R&D department to carefully analyze the various products of the BMW Group."

“Let’s see if we can design more classic products one after another.”

"Otherwise, competition in the automobile market will become even more intense in the future."

Zheng Shiyong could naturally feel Jin Chenggang's worry.

Everyone’s positioning is similar and the competitive relationship is quite strong.

"We are now communicating more frequently with China."

"Samsung Electronics has already opened a factory in China, and I heard that they are also considering establishing diplomatic relations."

"Can we also consider building a factory in China and selling our cars to China?"

Offense is the best defense.

In Jin Chenggang's opinion, if Hyundai Motor wants to develop further, it must enter the Chinese automobile market.

Especially in recent years, China's automobile market has grown rapidly and has generally caught up with the scale of Korea.

And considering the future market potential, the Chinese automobile market cannot be ignored.

"That's something you can consider."

"The Capital Automobile Manufacturing Plant in China has contacted us before and wants to establish a joint venture with us."

"Let's find an opportunity to visit China in person and discuss the matter to see if we can finalize it."

Zheng Shiyong had not originally considered setting up a factory in China so soon.

But the situation changed too quickly.

If no action is taken, it will be very difficult for Hyundai Motor to make a difference in the Chinese market in the future.

"Then I'll arrange it as soon as possible."

"The Capital Automobile Manufacturing Plant has a unique geographical location and should have a good influence in China's automobile industry."

"Besides, there is only one automobile joint venture in the capital, Shouqi Jeep. If we go there, we should be able to enjoy more policy benefits."

Jin Chenggang is still optimistic about the cooperation with Capital Automobile Manufacturing Plant.

Obviously, he has some knowledge of the situation of China's automobile factories. (End of this chapter)