My Lord, you need to stand up!

Chapter 975 The Flow of a Hundred Boats Competing
Of course, the price charged by the contract manufacturer cannot be calculated in this way.

Products manufactured by Apple's computer suppliers have never appeared in the Chinese market.

After all, it was a contract manufacturing agreement, with 200,000 units shipped every month, and Apple paid for and picked up the goods.

Chrysler has always been planning to open up the mainland market by replacing outdated products with newer ones.

They came to underdeveloped areas to set up factories and do business.

Therefore, in this industrial chain that was transferred and relocated without compensation, 50% of the property rights belong to state-owned assets, which are the China National Automotive Industry Corporation and Shanghai State-owned Assets, where Lao Cheng was previously transferred.

49% of the ownership belongs to Chrysler.

Wei Dong was given a symbolic 1% stake.

In addition to serving as chairman for almost life, he also obtained the operating rights and all sales rights specified in the agreement.

Even after paying for the entire relocation, all the factory buildings he constructed were owned by him.

The state-owned assets acquired the production line ownership.

Therefore, the ownership of the entire Shanghai Automotive Industrial Park is another matter entirely.

Therefore, the cars produced must theoretically be sold freely in mainland China.

But it's obvious that selling like this would bankrupt all other manufacturers.

They are mostly CDK (Completely Customizable) models; no other manufacturer that assembles with imported parts could possibly offer such low prices.

As for those cheap, domestically made, tinkered models, compared to these fully mass-produced vehicles, can they even be called cars?

It's just a piece of scrap metal with four wheels.

They can't even achieve the cost price of fifty or sixty thousand.

The current cost of over six thousand US dollars is because some parts are still imported. The more complete the delivery technology, the lower the cost.

Currently, the biggest cost savings are in employee costs. Once the localization rate exceeds 85%, the savings will come from various steel and component raw materials.

It's definitely possible that it will cost more than five thousand US dollars.

Dongying Motors has managed to keep costs down to this price by optimizing its supply chain across the entire country.

But once you start rolling it up, who can out-roll the Super Curl King?

So sitting in the factory's open and bright conference room, the shareholder negotiations, which even Lao Cheng wasn't qualified to participate in, were very relaxed.

Finally, it was determined that the domestic price of this sedan, which was already rolling off the production line, would be 128,800 yuan, with the Shanghai Municipal Government and the China National Automobile Industry Corporation each receiving 50,000 yuan as an industrial development fund!
The export proceeds do not include this 50,000 yuan.

In reality, the factory price is approximately $50,800, the fund takes $50,000, and the remaining $28,000 is Chrysler's profit.

Even if Weidong sells it to Southeast Asia, he can still pay Chrysler 28,000.

That's around four thousand dollars!
They previously sold for over $8,000 in North America, so it was absolutely impossible for them to make half of that profit.

They also have to deal with complicated production processes, sales systems, and management costs.

Therefore, the return on investment is absolutely satisfactory.

Needless to say, Shanghai-based companies and state-owned enterprises can earn foreign exchange even through exports.

This is even more important than the industrial development funds that were sold domestically.

However, the problem is that the current consumption capacity in mainland China is limited, and the road capacity is even more limited, so achieving annual sales of 100,000 or 200,000 is a pipe dream.

There is a need to increase sales in other regions, and Chrysler's global sales network can focus on promoting this car.

The Shanghai factory will vigorously promote sea freight to ensure global sales.

People in Shanghai's state-owned assets sector nodded in agreement.

Only the foreign executives raised the question of why this industrial development fund should be collected.

Wei Dong explained matter-of-factly: "Go drive around outside and you'll see. The roads are full of potholes. If you don't spend money to repair the roads, you'll only be able to repair the cars. Who will do that? Of course, we must establish such a fund."

Fortunately, Americans don't have that fixed mindset of privately building highways to charge tolls; large countries needing to undertake large-scale infrastructure projects is something they've experienced before.

Approved.

I was also a little puzzled about where the chairman's profits came from.

The chairman paid for all the relocation costs, construction costs, and even the start-up working capital.

Qin Yuye, who was translating for her husband, also helped to explain simply: "It's about sales revenue. There's a sales commission of 1,000 yuan per car. Of course, this commission is distributed among the entire sales system. We are confident that we can make this a century-old industry and support the common development of Chrysler and Shanghai."

People were amazed, saying, "Your total sales cost is less than two hundred dollars. How much money can you make after selling the car?"

Both the state-owned assets management company and Shanghai Haikou remained silent.

Because Sister Qing, as the project assistant, participated in the entire process alongside the boss's wife.

She suddenly realized again: if they produce 100,000 vehicles a year, wouldn't that be 100 million in sales revenue?!

But these hundreds of millions of dollars are just small change in the automotive industry!

The marketing company I mentioned before was so profitable; at this moment, I can completely forget about real estate.

Finally, let's observe together the current mainland actresses filming TV commercials.

It's similar to the white suit Zou Huimin wore before, but this one is more business-like, with a trendy style of padded shoulders. Yu Xiaoqiu even styled Qing Jie's hair into a rooster-comb style that sticks up on her forehead.

She immediately exuded the aura of a successful businesswoman of this era.

None of them went to the old villa streets with distinct Shanghai characteristics.

In the white-walled, black-roofed international community, we chose a corner of a villa surrounded by lush greenery.

I followed the boss's wife and the executive director from Hong Kong to North America with the film crew, shooting a bunch of North American travel programs. Now I'm making a cameo appearance in an advertisement shoot. With a small bag slung over my shoulder, I gracefully stepped out of the villa's courtyard, opened the car door, got into the driver's seat, and waved to the outside with a smile.

Lighting and positioning, OK, one take.

The photoshoot lasted less than the makeup session; we wrapped up.

Chrysler executives were stunned. They would spend a long time planning, demonstrating, shooting, and adjusting an advertising campaign.

The most famous advertisement was when the president himself appeared in front of the Dodge 600.

By using phrases like "Every Citibank employee drives this car, ensuring that imported cars don't waste a single drop of OPEC gasoline," they've managed to make this car a shining example of Chinese-made products.

The final tagline is, "Eagles will always spread their wings and soar; you must believe that!"

Wei Dong sensed a familiar feeling from what followed.

Like Big Mouth Brother, raise your arms and shout to support domestic products.

That's how Chrysler turned the tide throughout the 1980s.

So you think it's that simple?!

The Shanghai authorities remained silent, only smiling.

While shaking hands to congratulate Comrade Wei Dong on the successful commencement of the joint venture car factory, it was announced that the Shanghai plant's output for one week would be purchased first, which would be a subsidy to the city's taxi company. Each Dodge sedan, priced at around 100,000 yuan, would become a citywide taxi.

This isn't even considered support; it's just grabbing it first!
Those thousand-plus vehicles that were shipped on the ship earlier, we would have tried to steal them if they weren't in front of foreign businessmen.

The claim of limited purchasing power is meant for foreign businesses.

In such a large country, with two or three thousand counties and cities, each province receives a few hundred or even tens of thousands of vehicles.

The domestically produced American car that Sister Qing advertised can be considered to have the added halo of Citibank on top of the celebrity halo.

I just want to ask if this car is hard to sell.

According to the aesthetic standards of 30 or 40 years from now, Wei Dong felt that the Santana at this time was slightly more streamlined and had a more modern feel than this Dodge 600.

But people don't see it that way; at least everyone within Weidong thinks the Citizen is more impressive.

Santana is a bit rat-like.

The Dodge 600's design truly embodies the smugness and arrogance of the wealthy in the 1960s and 70s.

It has sharp, angular features and is quite robust.

In short, the national sales branches held a sales conference in Shanghai before the Spring Festival and visited the car factory, and they have been eagerly waiting for it.

It doesn't matter whether Sister Qing shoots the advertisement or not, we're just waiting for the price to come out.

What does 128,800 yuan mean? Nowadays, apart from Eastern European cars, any imported European or American sedan costs more than 200,000 yuan, and often reaches 300,000 or 400,000 yuan!
It's still unavailable.

Eighty-six years ago, China basically did not produce cars.

Only the Shanghai-Haikou license plate is available to the government, costing 20,000 to 30,000 yuan per vehicle, but you need to be at the county level or above and have to wait in line.

You can't see a single car in the entire county.

Therefore, the 212 Jeep is the only small car that can be seen in the county.

That's why so many small factories modify cars using the 212 chassis.

Currently, only a few models such as Santana and Peugeot are in mass production, all of which are assembled with imported parts, and the prices range from 160,000 to 200,000 yuan.

The hatchback Xiali, priced at around 100,000 yuan, has not yet been launched.

Even someone who knows nothing about cars can tell the difference between a Xiali and a Dodge 600.

The misunderstanding in China that all hatchback cars are classified as low-end vehicles started with the Xiali.

In short, this is the only sedan-class car priced at 12.88 yuan that even county leaders wouldn't look bad riding in!
Originally, it was mainly aimed at the group of people who "got rich first" after 1985 and had tens of thousands of yuan in income.

But everyone understands that even if it's not specified what level of car it can be equipped with.

There are definitely various ways to circumvent the rules and buy a bus.

This is a rigid demand in various regions.

Especially as various regions begin to implement reforms.

Some state-owned factories, construction companies, hardware companies, home appliance companies, and even hospitals and banks that have caught the wave of this trend have started racking their brains to allocate official vehicles.

This is much more reliable than trying to buy imported cars or ZS cars all over the country.

Moreover, 50,000 of that was taken by the government, which Wei Dong interpreted as the government indirectly collecting a regulatory tax and Shanghai collecting land prices.

So the price was just announced to all the sales companies and branches.

Buyers from the Yangtze River Delta region immediately came to Shanghai to wait!
There were no advertising costs, marketing expenses, or transportation fees. The style of the 1980s was simply to find a source of goods and pick them up yourself!

We'll wait at the factory gate. Once you've paid, you drive to the gate, and we'll take the driver and drive away ourselves.

Qingjie was once again stunned by the spectacular scene of the car sale.

I used to think it was awesome to work my ass off doing ten or eight shows a day, earning a thousand or two per show.

Compared to that boss lady who spends her days shopping, drinking tea, traveling, and screaming at night, while over there she's busy selling cars, cosmetics, and clothes—she's practically a beast of burden!
So on May 5th, Wei Dong and the others accompanied Chrysler executives to Beijing for the ribbon-cutting ceremony to mark the completion of the Cherokee.

Sister Qing has already registered an advertising and marketing company in Shanghai with Yu Xiaoqiu, Zou Huimin, and Jenny.

It's like taking over her business operations.

Using Hong Kong capital to restrict her business is also to protect her highly volatile commercial value.

Early 1990s price quotes
(End of this chapter)