The car giant started by marrying the daughter of the king

"There is also a project about our cooperation with Hongqi BMW Automobile to introduce the Hongqi A6 and Hongqi A4 models produced by the other party for OEM sales."

"How did your negotiations go?"

In order to increase Volkswagen's sales, Hahn has made considerable concessions.

Because according to the judgment of Volkswagen's internal professionals, if Volkswagen sells these two models in markets around the world other than China, it can contribute at least 30 units in sales each year, or even 50.

This is definitely not a small amount.

After all, the current overall sales volume of Volkswagen Group is only more than 300 million vehicles.

If there are 30 more vehicles, it would be equivalent to a 10% increase.

This is definitely not to be underestimated.

"We've almost finished talking about it."

"Basically, once Hongqi BMW finally confirms our terms, the two parties can sign a cooperation agreement."

"We are already preparing parts to replace some of the logo-related parts on the Hongqi A4 and Hongqi A6."

When Verdi was asked about this project, he immediately became interested.

This can quickly increase Volkswagen's sales, which is a great achievement for him as the sales director.

Anyway, if GM can do it, why can't Volkswagen do it?

If Volkswagen wants to become the world's number one car, it will certainly be difficult without taking various actions.

"We need to hurry up on this matter. I have personally test-driven both the Hongqi A4 and Hongqi A6."

“Whether it’s the exterior, power performance, or chassis design, it’s all very good.”

"If it is sold under our Audi brand, the profit margin will definitely be very large."

Hahn single-handedly promoted the cooperation between Volkswagen, FAW and Shanghai Automobile Group.

I have a relatively good understanding of the situation in China.

These two models of Hongqi BMW have not encountered any major problems since they were launched on the market.

The powertrain uses a relatively mature solution from the BMW Group, so there is naturally no need to worry too much.

Coupled with the pleasing appearance, after Volkswagen took over, it had basically no problem using its own sales channels and marketing capabilities to turn them into best-selling models.

Hongqi BMW is a mid-range model in China, which means that the price of exported Hongqi A4 and Hongqi A6 will not be particularly high.

However, Volkswagen put these two models under the luxury car brand Audi, so the profit margin is naturally huge.

Even if it is sold at a slightly lower price, the profit will still be greater than other Audi models.

No wonder the opposition within Audi was so weak this time.

"Well, we'll have the results as soon as next week."

"However, according to our previous communication, this cooperation must be carried out in a low-key manner."

"Neither party will conduct any special publicity, so we can just sign the contract in a low-key manner when the time comes."

Although this cooperation is a great thing for Volkswagen, they do not want to make it known to the world.

Just like General Motors, it has weakened its publicity in this area over the years.

The limited related news is all created by competitors.

They will never take the initiative to say that a certain car model is sold under a private label.

That will affect your brand power.

It may even cause some consumers to give up purchasing.

"I'll leave this matter entirely to you."

Hahn still has confidence in Verdi's ability to do the job.

The credit goes to the sales department, so Verdi will naturally have to follow up on the matter.

Volkswagen's attitude is very positive, and FAW is naturally not idle either.

"Mr. Geng, this is the final cooperation agreement between our two parties. If there are no problems, we can officially sign it."

Zhao Guangming came to Geng Weidong's office with an agreement and reported to him the content of the cooperation with Volkswagen.

After several rounds of integration and comparison, Hongqi BMW finally chose to cooperate with Volkswagen.

The two parties already have a joint venture company, so there is a certain level of trust between them.

"Is Volkswagen willing to place an initial order of 1 Hongqi A4s and 1 Hongqi A6s?"

For Geng Weidong, the most important thing is how many models Hongqi BMW can export through this cooperation.

Everything else is secondary.

So after seeing the cooperation agreement, I immediately focused my attention on the agreements related to sales data.

"Yes, the first batch will be an order of 2 cars."

“Orders are expected to follow this pace for the first three months.”

"We will make adjustments based on market sales later, and it is likely that the number will continue to increase."

When Zhao Guangming said this, he became quite excited.

This data is much better than he expected.

If things really continue to develop in this way, Hongqi and BMW will really become prosperous.

"Won't our production capacity soon be insufficient?"

Geng Weidong immediately thought of a problem.

That is, if export and domestic demand are added together, the existing factory production capacity can no longer meet the requirements.

"This is not a particularly big problem. Our new factory is already under construction."

"Before, there was not much demand, so the construction speed was relatively slow."

"If we speed up, we can achieve mass production in half a year at most."

“And we can increase production at existing plants by adding overtime and additional shifts.”

"At worst, we can divert some of our domestic sales to exports, which will definitely meet the demand in the next six months."

After hearing what Zhao Guangming said, Geng Weidong breathed a sigh of relief.

As long as there is a plan, it's fine.

Otherwise, it would be too painful to watch the demand disappear.

The current Hongqi A4 and Hongqi A6 are classic enough that Volkswagen is willing to cooperate.

It may not be the case in the future.

So we must take advantage of this period of time to export more.

"Then sign the agreement as soon as possible and arrange for relevant departments to start preparing for the export of models."

Geng Weidong was eager for the agreement to be implemented as soon as possible, so he did not dwell too much on some of the conditions for concession.

The best thing to do is to get things done as quickly as possible.

……

"Boss Jiang, Hongqi BMW has officially signed a cooperation agreement with Volkswagen to export Hongqi A4 and Hongqi A6 overseas."

Chen Chenxing is responsible for the daily affairs of Hongqi BMW. He must report such important information to Jiang Hui.

"Geng Weidong actually succeeded in this?"

Hongqi BMW must have discussed these actions with Jiang Hui in advance. "Yes, since Hongqi BMW made concessions on some terms, Volkswagen's attitude has also changed a lot."

"Once their attitude became positive, cooperation between the two sides naturally developed very quickly."

"Over the years, General Motors has contributed nearly 100 million additional sales since its cooperation with our group."

"Volkswagen wants to become a leader in the global automotive industry, so it is naturally interested in this kind of cooperation."

"The models of Hongqi BMW are essentially designed by our group."

"Mr. Jiang, your design talent is recognized in the global automotive industry."

"After Volkswagen introduces the Hongqi A4 and Hongqi A6, it can contribute at least 30 units in sales per year."

"If it works well, more than 50 vehicles or even more is possible."

Chen Chenxing gave his own judgment.

Although there is suspicion of flattery here, this kind of content based on objective facts is still easy to believe.

"Our domestic auto industry as a whole is still too weak."

"The successful export of Hongqi BMW is very beneficial to boosting the confidence of the domestic auto industry."

"In the future, more car companies will be willing to invest more resources in research and development."

Chen Chenxing did not fully agree with Jiang Hui's judgment.

The boss has good intentions, but some domestic car companies may not be so ambitious.

Especially when they find that they can live a comfortable life by relying on "borrowing", it is hard to say whether they are willing to invest large-scale in research and development with uncontrollable risks.

"Hongqi BMW is preparing to speed up the construction of the new factory."

"Subsequently, annual production will quickly exceed 30 vehicles, or even 50 vehicles."

“It’s possible that even building a new factory may not be enough.”

Next, Chen Chenxing reported to Jiang Hui on the construction of the new Hongqi BMW factory.

As the largest equipment manufacturer in China, Nanshan Equipment's influence in the automotive industry is unmatched by any other company.

The new factory project of Hongqi BMW is naturally also a meal for Nanshan Equipment.

"This matter can be left to FAW to decide. We have no objection."

The growth and development of Hongqi BMW is also a good thing for Jiang Hui.

Key parts such as engines and gearboxes are all produced by BMW Group.

Most of the profits of the entire industry chain were taken away by BMW Group.

It would be strange if Jiang Hui would object.

After talking with Chen Chenxing about the Hongqi BMW matter, he thought of something new.

"Although Nanshan Technology had some cooperation with Volkswagen before, the scale of parts exported directly to Germany was still very small."

"Taking advantage of this opportunity of cooperation between Hongqi BMW and Volkswagen, we can let Nanshan Technology take the initiative."

“Integrate more parts into Volkswagen’s global supply chain.”

"After all, many parts of the Hongqi A4 and Hongqi A6 with Audi logos are produced by Nanshan Technology."

"To some extent, Nanshan Technology is already a Level 3 supplier of many parts for Volkswagen."

The parts industry has always been an area that Jiang Hui attaches great importance to.

Only when the auto parts industry develops and grows can the BMW Group truly become bigger and stronger.

Especially with the development of electronics, there will be more and more changes in auto parts in the future.

If the foundation in this area is too weak, it will definitely affect the further development of the BMW Group.

"Well, I will take my team to Wolfsburg in person in a while and have a good exchange with Volkswagen's purchasing director."

“Although it is unlikely that Volkswagen will quickly accept all our parts.”

"But compared to before, it is inevitable to achieve some major breakthroughs."

Chen Chenxing also knew that this was an opportunity for Nanshan Technology.

Even Nanshan Transmission has the opportunity to enter Volkswagen's supply system on a large scale through this cooperation.

The meaning is very different.

Previously, apart from 5AT, Nanshan Transmission had very little cooperation with car companies such as Volkswagen.

But it’s hard to say what will happen in the future.

……

"Mr. Yu, FAW has launched an unprecedented cooperation with Volkswagen."

"The Hongqi A4 and Hongqi A6 produced by Hongqi BMW will be sold globally by putting Audi badges on them."

As the executive vice president of Shanghai Volkswagen, Wang Huiliang heard some news from Volkswagen.

After a little inquiry, I found out about the cooperation project between Hongqi BMW and Volkswagen.

After all, by that time, Hongqi and BMW will export a large number of models. Even if there is no large-scale media coverage, it will be impossible to keep it completely confidential.

It was not surprising that Wang Huiliang was able to find out this information.

"This is a huge bargain for FAW."

"If BMW hadn't helped design the appearance of the Hongqi A4 and Hongqi A6 and directly used their platforms and parts, how could Volkswagen be interested in them?"

Yu Jin naturally had a thorough understanding of the issue and knew that this time FAW would be able to successfully achieve such great results in exports.

This credit should be attributed more to BMW Group than to FAW.

How could he not know the situation of various domestic automobile factories?

If everyone's strength was not so weak, how could there be the concept of exchanging market for technology?

There would be no need to establish joint ventures.

"That's true, but with FAW doing this, we will be under more pressure when we go to the ministries for meetings in the future."

"Whatever the reason, the result is that FAW has indeed made a huge breakthrough in exports."

"By then, they may well become the second largest export earner in the country."

The output value of automobiles is relatively high, and the export scale of hundreds of thousands of vehicles naturally brings in an exaggerated amount of foreign exchange.

This is definitely not something that ordinary small businesses can compare to.

"This is indeed a problem. We have to spend a certain amount of foreign exchange every year to import parts and other things from abroad."

"The amount of foreign exchange earned from exports is almost negligible."

"Everyone used to be like this, but now that there is a comparison, the superiors' views will change."

Yu Jin sighed, knowing that this situation was unavoidable.

Unfortunately, Shanghai Automobile Group has no way to reverse the situation.

We can only let time slowly dilute this impact.

"Should we contact BMW Group again to see if there is any chance to establish a joint venture?"

"BMW Group has so many brands, and now it is cooperating with FAW in the sedan sector."

"If they can cooperate with us in the SUV sector, they can replicate FAW's success."

After Wang Huiliang said this, Yu Jin immediately became interested. (End of this chapter)