The car giant started by marrying the daughter of the king

"Do you think BMW Group will agree to our cooperation plan?"

This is a moment.

Although he had hit a wall before, now facing such great pressure and inspired by FAW, Yu Jin also wants to try again.

It doesn’t matter if I fail.

What if it succeeds?

"If there is no special plan, the other party will definitely not agree."

"After all, it doesn't make sense for them to find another company to jointly produce cars."

"They can completely produce the same models under Land Rover itself."

"But if we show some sincerity and offer some attractive conditions, it is not impossible."

Wang Huiliang thought about it seriously and didn't say anything final.

After all, I was the one who brought up the topic, so I have to explain it in detail.

Otherwise, wouldn't Yu Jin feel that he was being teased?
"This is the biggest problem. BMW Group has no need to seek cooperation with other factories."

"At the beginning, FAW just took the lead during a special period."

"FAW has a unique influence in China's auto industry. Many leaders of ministries and commissions came from FAW."

Although Yu Jin is very interested in cooperating with BMW Group to produce cars and then exporting them to earn foreign exchange like Hongqi BMW, he also knows the difficulty involved.

“BMW Group is very concerned about the development of the parts and equipment industries.”

"As long as they are willing to form a joint venture with us, all companies in Shanghai Automobile Group will give priority to cooperating with them in the future."

Wang Huiliang began to slowly lay out the conditions that the group could offer to see if Yu Jin agreed.

“It’s a little bit appealing, but it’s not enough.”

"If Nanshan Equipment and Nanshan Technology have sufficient strength, we will cooperate with these two companies even if there is no cooperation project."

Yu Jin didn't think that this condition alone could convince Jiang Hui.

“It’s indeed not enough, but the positioning of all models of Mercedes-Benz and Land Rover under the BMW Group is moving up.”

"Especially after the launch of the Range Rover and Mercedes-Benz S-Class, they already have some attributes of luxury cars."

"Under these circumstances, they are destined to be less suitable for launching models with more affordable prices in the future."

"In the sedan sector, Hongqi BMW and Mercedes-Benz have formed a certain complementary relationship."

"From this perspective, we can create a complementary relationship between the joint venture and Land Rover."

"This can further increase the other party's willingness to cooperate with us."

Wang Huiliang continued to analyze the cards he could play.

"This is certainly convincing, but the BMW Group is trying to expand sales in the mid-range market."

“They don’t necessarily have to choose to cooperate with us.”

"Whether they continue to cooperate with FAW or with Second Automobile Works, it won't necessarily be worse than cooperating with us."

After hearing what Yu Jin said, Wang Huiliang found it difficult to refute.

After all, this is an objective fact.

"I think Mr. Jiang's layout for BMW is mainly concentrated in the Yangtze River Delta and the Pearl River Delta."

"The automobile industries in these two places are also the fastest growing."

"Although FAW's supply chain is relatively complete, it already has Hongqi and BMW behind it."

"I don't think they'll put all their eggs in one basket."

"And now the higher-ups are vigorously developing Shanghai, and they want Shanghai to once again become the city with the strongest economic power in China."

“I think this kind of big background can be used well.”

After thinking about it, Yu Jin could only find a reason from this dimension.

"That's not enough. If we want to show our sincerity, we need to be more straightforward and tell the other party what we think."

“As we move forward with this project, we just have to have a little soup.”

“It’s a 50:50 joint venture, but in reality % of the profits can be given to the BMW Group.”

"After all, they are the suppliers of engines and gearboxes, and the BMW Group must be well aware of the financial situation of the joint venture."

"We put this thing on the table, it should still be attractive to them."

After Yu Jin said this, Wang Huiliang nodded immediately.

For the BMW Group, cooperating with other manufacturers is equivalent to giving up its own interests.

This is definitely something that no one is willing to do.

But if what you give away is very little, but what you gain is relatively large, the situation will be different.

It is impossible for the BMW Group to take over the entire market.

There are benefits to bringing in a few partners to develop together.

After all, no matter how powerful a lion is, it still needs some followers.

"Then I will take the initiative to arrange a meeting with Chen Chenxing, who is in charge of sales at the BMW Group, to find out what they are thinking."

Wang Huiliang was ready to take action immediately.

Second Automobile Works and Capital Automobile were also a bit anxious, feeling that they could not be left too far behind by FAW.

As a result, Chen Chenxing immediately became a hot commodity.

As the person in charge of external liaison for the BMW Group, he is usually the first person to be approached for important external matters.

Matters like establishing a joint venture with a car company are definitely not something Chen Chenxing can decide.

So after receiving contacts from several parties, Chen Chenxing hurried to report to Jiang Hui.

"Boss Jiang, FAW's Hongqi A4 and Hongqi A6 have started to be exported smoothly, which should have stimulated many car factories."

"Now Second Automobile, Shanghai Automobile, Shouqi and Yangcheng Automobile are all contacting me, wanting to discuss the establishment of a joint venture."

"According to current policies, a foreign-invested automaker can set up two joint venture vehicle companies in the country."

"Our BMW Group was established as a wholly-owned company before the policy was released, which means that we can have a wholly-owned vehicle company and two joint venture car companies in China."

"Hongqi BMW has already occupied one joint venture quota, and the remaining one has become the object of competition among everyone."

"After all, compared with joint ventures with other international auto giants, cooperating with us has the opportunity to achieve export earnings."

Chen Chenxing quickly reported the situation to Jiang Hui.

Today's various joint venture car companies are all here to develop the Chinese automobile market.

All the cars produced are sold domestically and there are no plans to export them.

After all, overseas markets are all served by wholly-owned companies.

People won't let you mess around.

It was not until 20 years later that the competitiveness of China's automobile industry continued to improve.

In order to improve cost competitiveness, some automakers such as Shanghai GM have begun to export cars produced by their Chinese joint ventures to the global market.

Because at that time, the cars produced by the joint venture, even after paying the joint venture a manufacturing fee, were still cheaper than those produced by overseas factories.

But the BMW Group is different.

The current main export market is generated through OEM cooperation with General Motors.

The same is true for Hongqi BMW.

This is also the main reason why other car models are so eager to cooperate. Who wouldn't want to earn hundreds of millions or even billions of dollars in export earnings every year?

As long as you complete a project like this, a large group of people can basically get promotions and salary increases.

"What is your opinion on cooperating with other car companies?"

Jiang Hui did not express his opinion directly, but wanted to listen to Chen Chenxing's thoughts first.

The market situation changes very quickly. Although he has the advantage of being reborn, he may not be more familiar with the latest situation on the sales front line than Chen Chenxing.

"That's what I thought about it."

Chen Chenxing quickly considered his words, "Although the country is implementing a market economy and is continuously deepening reforms."

"But many situations are still different from the international market."

"Large state-owned auto companies such as FAW and Second Automobile Works will definitely continue to exist and will also receive policy support."

"Our cooperation with them will definitely be beneficial for our future development."

"Of course, who to cooperate with, when to start cooperation, and what models to produce together all need to be carefully considered."

"The initiative is in our hands now. I don't think we need to be so anxious."

Chen Chenxing knew that the BMW Group was now in a critical period of development.

It is hard to say what the impact will be if the development strategy is changed easily.

Besides, there is only one spot for a joint venture vehicle manufacturer.

You must think carefully about who you want to cooperate with.

It also allows potential partners to compete with each other.

"Then let's proceed in the direction you said."

"In general, I agree to set up another joint venture to produce mid- and low-end products."

"But there's no need to rush this matter. Let's wait until the situation stabilizes."

"In the past, we could export our products through OEM, but the market for this will surely shrink in the future."

"Other people's car exterior designs are also constantly improving. Even if we do a good job, we may not be able to keep up with the times like in the past."

Jiang Hui did not expect that this kind of OEM cooperation could continue forever.

That's unrealistic.

Relying on the advantage of appearance, we can reap the benefits for about ten years.

Any longer and it would be difficult.

Future development will ultimately depend on the rapid development of China's automobile market.

Otherwise, it will not be easy for BMW Group to continue to increase its sales quickly.

Fortunately, China's economic development is very rapid, and the number of rich people is also increasing.

Therefore, domestic automobile sales are also increasing rapidly.

BMW Group will definitely be able to get a big piece of the pie.

However, the domestic market will definitely have greater demand for mid- and low-end products in the future.

When the BMW Group cooperates with others, it can only produce by itself.

At that time, it will easily affect the luxury of the Land Rover and Mercedes-Benz brands.

This is something that needs careful consideration.

Chen Chenxing naturally fully understood this.

……

"Boss Geng, I heard that many domestic companies, including Second Automobile Works and Shanghai Automobile Works, are looking for BMW Group to discuss the establishment of a new joint venture."

Zhao Guangming came to Geng Weidong's office a little nervous.

FAW has enjoyed too many benefits from the Hongqi BMW project.

According to the cooperation agreement signed with Volkswagen, it is a foregone conclusion that Hongqi BMW's annual production will exceed 30 vehicles.

Whether it can go higher depends on subsequent performance.

According to this data, the combined sales of FAW Toyota, FAW Volkswagen and even the Jiefang brand are not as good as those of Hongqi BMW.

The key point is that a large part of Hongqi BMW's sales volume is generated by export earnings.

Even if the car does not have the Red Flag logo overseas, the amount of foreign exchange earned from exports is real.

These are all political achievements.

Now that other car manufacturers want to break this situation, it would be strange if Zhao Guangming was not worried.

"We have already communicated with Mr. Jiang that we will expand the scope of cooperation between Hongqi and BMW."

"In the future, we will not only develop three sedans, but also continue to develop more SUV models."

"Under these circumstances, we have no reason to oppose BMW Group continuing to cooperate with other carmakers."

Geng Weidong is quite clear about this.

BMW Group is their partner, not a supplier.

And in this cooperative project, the other party is the one who takes the initiative.

What can they do in this situation?
"I understand this, but if we do nothing, I'm worried that other factories will become our competitors."

"It's so hard to live a comfortable life for a few years. It's really depressing if it's ruined by someone."

Zhao Guangming will retire in a few years.

Naturally, they hope to retire with honor and let their children and grandchildren continue to enjoy the dividends.

"The international auto market is changing very quickly."

"The current export OEM cooperation model may not be sustainable forever."

"BMW's various models are very stunning, and their appearance is definitely being studied by many international auto giants."

"After years of digestion and absorption, they have improved to some extent."

"So the models launched in the next few years will definitely become more and more beautiful."

“It’s even possible that some of our models will be designed to look better than those of the BMW Group.”

"In this case, there is no need for them to cooperate with OEM."

"So even if the BMW Group established a new joint venture with Second Automobile Works or other automobile manufacturers."

"The earliest new cars will be available is 1993."

"As for cooperation with foreign automobile companies, it would probably take until 1994."

"The market environment at that time must have been very different from now."

After Geng Weidong said this, Zhao Guangming felt much better.

Because this is very likely the final fact.

“Should we publicize this situation as well?”

"Especially the risks faced by the leaders of the ministries."

"After all, joint venture projects ultimately need to be approved by the ministry."

Geng Weidong naturally had no objection to Zhao Guangming's statement.

However, no matter how they struggle, they cannot change the situation that BMW Group has become a popular commodity in the eyes of various car manufacturers. (End of this chapter)