The car giant started by marrying the daughter of the king

Chapter 519 The Early Arrival of the SUV Era

The first month's sales data of Land Rover Range Rover was soon officially announced to the public.

It was launched on September 1991, 9, and more than 15 units were sold in just half a month.

This result is absolutely outstanding.

The key is that with the hot sales of Land Rover Range Rover, the data for October will definitely be more impressive.

At that time, it would not be a simple matter of increasing from 5000 vehicles to 10000 vehicles.

"Mr. Geng, should we at Hongqi BMW also consider introducing an SUV model?"

"The power system of the Hongqi A8 is the same as that of the Range Rover. We can create our own SUV by simply changing its appearance."

Zhao Guangming naturally saw the rapid rise of SUV models.

In the past, everyone wanted to own a car.

But now this idea is beginning to change.

Some people wish they could own an SUV.

Although the number of this group of people is not as large as that of sedans, it is also growing rapidly.

"I don't think Mr. Jiang will agree."

"The positioning of the Hongqi A8 itself overlaps to a certain extent with the Mercedes-Benz S-Class."

"If we develop a large SUV, the overlap with the Range Rover will definitely be higher."

"This is not in the interests of the BMW Group."

Geng Weidong saw the situation very clearly.

Although Hongqi BMW is a 50:50 joint venture between FAW and BMW Group.

It seems as if both parties are equal and have the same rights.

This is not actually the case.

The three models of Hongqi BMW, whether it is Hongqi A6, Hongqi A4 or Hongqi A8, are all designed by BMW Group.

Core components such as engines and gearboxes are also supplied by BMW Group.

It can be said that apart from producing some stamping parts and injection molded parts, FAW contributes very little to other parts.

The only thing that is worth mentioning is the production factory, where most of the staff originally came from Hongqi cars.

However, it is obviously wishful thinking to rely on these people to dominate the development of Hongqi BMW.

In other words, Jiang Hui does not want to compete with FAW for the actual control of Hongqi BMW, otherwise, FAW will never be able to compete.

"The market is so big, it's normal for Range Rover to have competitors."

"I think Mr. Jiang should be able to understand."

"Besides, all the previous models were designed by President Jiang himself, and the appearance is very classic."

"We can take a step back and let the BMW Group's R&D center design the Hongqi BMW SUV model."

"In this case, the competitiveness of our products will definitely decline compared to Land Rover. President Jiang should not be particularly worried."

Zhao Guangming proposed a compromise plan.

In his opinion, even if the car model was not designed by Jiang Hui, it would not be worse than the products of other OEMs.

So it is still competitive in the market.

Besides, if Hongqi BMW wants to grow and develop, it naturally cannot rely entirely on Jiang Hui to design car models alone.

If this conflicts with the design resources of various brands within the BMW Group, the development speed will definitely be unsatisfactory.

"Your method does make sense."

"Our Hongqi BMW models are positioned lower than Land Rover cars, and their exterior designs are not as good as theirs."

"In terms of some modern configurations, we can also carry less of them appropriately, which can also reduce costs."

"Then we will eventually form a high-end and low-end combination with Land Rover, and both parties will jointly explore the SUV market."

Geng Weidong suddenly realized that Zhao Guangming's proposal was not completely unfeasible.

If this is really achieved, the overall sales volume of Hongqi BMW is expected to double.

That would be really amazing.

According to the current situation, relying on the three sedans, Hongqi BMW's annual sales this year can reach 15 units.

By the time SUV models are launched, we will aim to achieve the high target of 30 units, and the situation will be completely different.

"Yeah, that's what I thought."

"I will perfect the plan later, and then go to Shenzhen City to discuss it with Mr. Jiang in person."

"Hongqi BMW models use a large number of BMW Group parts. I believe President Jiang would like to see us grow and develop."

Zhao Guangming was in a very good mood when he saw that his proposal was approved.

Soon, he came up with a specific plan and flew to Shenzhen with Geng Weidong.

"Mr. Jiang, the performance of the Range Rover has exceeded everyone's expectations and opened up a whole new market."

"This is a grand event for our Chinese auto industry."

As soon as Geng Weidong saw Jiang Hui, he started greeting him.

When you ask someone for something, you naturally have to say something nice.

Create a good atmosphere, and then naturally formally bring up the idea that Hongqi BMW wants to produce SUVs.

"This is the result of everyone's hard work. We didn't expect consumers to like it so much."

Although I know that Geng Weidong must have a purpose for coming here today.

Otherwise, how could he have so much time to fly over and chat with me?
Can't you just make a phone call?
However, if Geng Weidong doesn't take the initiative to speak, Jiang Hui will definitely not take the initiative either.

In business negotiations, whoever speaks first is likely to fall into a relatively passive situation.

“The classic status of the Range Rover is obvious to all.”

"Not only do our domestic consumers like it very much, but the performance in America and the Middle East is also very impressive."

"The cumulative sales of our Hongqi BMW in the Middle East are not as high as that of a Range Rover."

Geng Weidong slowly shifted the topic to Hongqi BMW.

The project that has the closest relationship between FAW and BMW Group is BMW Automobile.

"Hongqi BMW's overseas development speed is much faster than other OEMs."

"I looked at the sales data some time ago. Hongqi BMW's export sales this year have exceeded 1 units as of last month."

“This data is already very remarkable.”

Jiang Hui's words were not meant to flatter each other in business, but rather to state an objective fact.

For a long time, China's automobile industry has been considered very backward in the eyes of the world's developed countries.

The emergence of BMW Group has reversed this view to a certain extent.

But more foreigners regard the BMW Group as a brand of Hong Kong and England.

In the entire European market, BMW Group also has the best sales in England.

Now the export sales of Hongqi BMW have reached more than 1 units, which is already the third place in the country.

No wonder FAW’s attention to Hongqi BMW is increasing.

"The sales of the three current models have become relatively stable."

"If no new models are launched, it is estimated that the annual sales volume will remain at more than 100,000 units in the next few years."

“I think it’s definitely not enough.”

Geng Weidong said, looking at Jiang Hui's reaction, "Thanks to the emergence of Land Rover, the concept of urban SUV was launched unprecedentedly." "Now the SUV market is developing very fast, and the growth rate is faster than that of sedans."

"I think Hongqi BMW could also consider producing some SUV models?"

Jiang Hui was not surprised to hear Geng Weidong say this.

Many automakers have realized the early arrival of the SUV era.

Whether it is Toyota, Honda, General Motors or Foton Motor, all foreign companies have stepped up their efforts in developing SUV models in recent years.

The sales growth of SUV models on the market is also very fast.

In China, the situation is similar.

So he can understand why FAW wants to develop SUV models.

"Boss Jiang, this is what we are thinking."

Seeing that Jiang Hui did not answer Geng Weidong's question immediately, Zhao Guangming added, "Land Rover is a high-end brand, and the prices of its various models are moving closer to luxury cars."

"But the sales volume in the mid-range market cannot be ignored. In fact, in terms of absolute numbers, the scale of the mid-range market is even larger than that of the high-end market."

"It is a pity that BMW Group has given up on this market."

"It would be better to let Hongqi BMW produce it, and then the two sides will form a complementary relationship."

Hearing what Zhao Guangming said, Jiang Hui did not hesitate any longer, "It's not impossible. The future market prospects of SUVs are indeed very good."

"But my energy is limited and I don't have that much time to design all kinds of new models."

Jiang Hui's words were not an excuse.

He has a lot of things to deal with every day, and he also has to pay attention to the matters of Lingnan Semiconductor, Zhujiang Technology and Zhujiang Investment.

It is indeed impossible to design too many car models for Hongqi BMW.

The key is that if there are good car models, wouldn’t it be better to give them directly to BMW Group?

Previously, we only considered FAW’s influence and the needs of the mid- and low-end markets, so we cooperated with FAW to establish a joint venture.

The future positioning of the joint venture needs to be carefully considered.

“We naturally understand this.”

"I think the Hongqi BMW SUV model can be entrusted to the designers at the BMW Group R&D Center."

"Under your leadership, President Jiang, their strength is definitely second to none in the country."

Geng Weidong said with great anticipation.

If this problem is solved, the future development and growth of Hongqi BMW will be just around the corner.

"This is a good plan. I think it's feasible."

They flew here from Spring City specifically, so they must be hoping to make this project a success.

For the BMW Group, this project has more advantages than disadvantages, and Jiang Hui will definitely not object.

You can expand your business without investing too much extra time and make more money. There is no reason to object.

"Then let's contact the design center to see what kind of car to design first?"

Geng Weidong was overjoyed.

This matter is settled.

However, since we have discussed it to this extent, he must hope to further clarify some specific contents.

In this way, the people below can implement the plan more smoothly.

Otherwise, there will be a lot of wrangling and it will affect the production time of the new Hongqi BMW models.

"Mid- to large-sized SUVs, the market size of this segment is larger than that of large-sized SUVs."

“The price is higher than that of a mid-size SUV, so it’s a good entry point.”

“After the mid-to-large SUVs are successful, the next step will be to launch mid-sized and large SUVs.”

"When several models are launched together, it will be no problem for Hongqi BMW to exceed 30 units in sales, or even 50 units."

Jiang Hui quickly expressed his thoughts.

Hongqi BMW has 6 models, which is enough for the next five years.

Of course, if we want to hit more exaggerated targets such as 100 million or 200 million vehicles in the future, that is another matter.

"If we start designing now, it will be ready for the market next year."

“Then we may need to start thinking about building a new factory.”

Geng Weidong's face was full of smiles as he thought about the rising sales of Hongqi BMW.

Jiang Hui naturally had no objection to building a new factory.

In any case, many of the large orders for factory equipment will eventually fall to Nanshan Equipment.

While FAW was negotiating the SUV business with BMW Group, other domestic OEMs were also discussing similar topics.

For example, Capital Automobile Manufacturing, whether it is a joint venture or an independent brand, all of them use SUV as their main model, so it is natural that they need to further strengthen it.

As for Shanghai Automobile Group, they currently do not have any SUV models.

Next, we naturally have to discuss the topic of import.

Similarly, Geely Auto and Great Wall Motors have also noticed this change.

"Jianjun, we already have two pickup truck models."

“Can we consider developing an SUV next?”

Wei Deliang has always wanted Great Wall Motors to produce SUVs, but Wei Jianjun insisted on producing pickup trucks.

Seeing the rapid development of the SUV market, he became a little restless.

So even if their pickup truck models sell well overseas, their monthly export sales have long exceeded 1000 units.

It is the second largest export car company after BMW Group.

Even Hongqi and BMW have to rank behind them.

Because of this, local support for Great Wall Motors has entered a new stage.

This has enabled Great Wall Motors to develop very rapidly.

"No problem. I'll arrange for someone to formally consider designing an SUV model."

Wei Jianjun did not agree to build an SUV on previous occasions.

But things are different now.

The strength of Great Wall Motors is also different.

His attitude is naturally different.

"Do you agree?"

Wei Deliang was stunned for a moment. He thought he was going to do useless work again today.

"Great! We can develop an SUV directly based on the pickup truck chassis. If we move fast enough, it will be available for sale in the first half of next year."

"By then, the popularity of SUVs will be even higher than it is now, and our monthly sales are expected to reach 1 units."

"By then, we will be considered an influential car company in China."

Great Wall Motors' influence in China is certainly not comparable to that of BMW Group, FAW, Second FAW, Shanghai Automotive Industry Corporation and other automakers.

But as sales increase, the situation is changing.

This is the change that Wei Deliang really hopes to see.

(End of this chapter)