From knock-off old-man's electric vehicles to industrial giant

Chapter 235 Strict Hierarchy and Price Gouging for Cars?!
On the drive back, An Jinhui had a new experience.

This time, he was sitting in the second row, the boss's seat. He reclined the seat slightly, turned on the massage function and leg rest, and entered a comfortable reclining state. He could even lean forward slightly to take out a bottle of drink from the car refrigerator to quench his thirst.

The Alphard he used to travel in also had features like a dual-temperature refrigerator and a large screen, as well as independent airline-style seats with leg rests in the back, and the space was even larger than that of the Starry Sky L7.

How much does an Alphard cost?

After the price increase, it will start at least at one million.

In comparison, the Starry Night L7 offers these comfort features for just over 300,000 yuan.

In fact, the technical requirements for these comfort features are not high.

For so many years, the rules have been set by joint venture car companies. Most domestic brands have followed the route of dismantling and benchmarking, and in the end, they still survive within the framework of the rules set by the other party, subconsciously learning the "hierarchical" system.

The entire fuel system's profit model follows other people's templates, and they are unwilling to break through the existing industry model and change.

It has the connotation of drawing a circle on the ground and binding one's own hands and feet.

……

The car drove all the way back to the JAC factory.

A group of senior executives and key R&D personnel couldn't wait to surround the car. They had long wanted to learn more about this new energy vehicle that broke the order record for domestic brands.

An Jinhui shared the results of the inspection with his colleagues. He had been quite hesitant before the trip, but after it was over, he felt more at ease.

Part of his confidence came from the car itself, while another part was that some of Xingchen Auto's concepts truly impressed him and sparked some deep reflections on the industry.

Just then, a phone call came in. The caller was Jochem Heizmann, the CEO of Volkswagen in China.

"President An, yesterday our internal meeting approved the naming system for the new brand Sihao. This name was proposed by you and has a lot of cultural connotations... Uh, regarding the drafting of the technical plan for the next car, I will have Frank send it over later so you can confirm it again."

Of course—during this period, we hope that both technical teams will maintain in-depth and effective communication.

Heizmann said rather politely that Frank is the technical head of Volkswagen's pure electric platform.

The joint venture between Volkswagen and JAC is aimed at developing new energy vehicles in China, with JAC's production capacity and qualifications being key attractions.

The diesel emissions scandal, which broke in 15, cast a shadow over the Volkswagen Group.

After all, the fact that they installed cheating software on diesel vehicles and deliberately falsified low-pollution data in emissions tests was exposed led to a continuous drop in stock price, damage to brand reputation, and the prosecution and sentencing of dozens of senior executives.

This is a tremendous loss.

On the contrary, the mainland market was not greatly affected.

This has increased Volkswagen Group's focus on its business in China, and it now intends to use JAC Motors as a springboard to develop its new energy vehicle business in response to the dual-credit policy.

His tone was polite, but to An Jinhui it sounded like "fake politeness."

The partnership between Volkswagen and JAC was originally considered harmonious.

Although the two parties hold 50/50 shares, Volkswagen still holds the dominant position, given that JAC's identity and status are primarily OEM-based.

There's nothing wrong with outsourcing.

As long as there's money to be made.

In the conventional model, Volkswagen provides technology to JAC, and JAC is responsible for integrating resources and contract manufacturing.

Unfortunately, this technology has not been fully adopted by the public.

The new platform only provides chassis tuning and optimization of the three-electric system, and does not take over the MEB pure electric platform technology developed in-house by Volkswagen Group.

And then there's the brand name.

An Jinhui also had something to say, seemingly showing great respect, even generously handing over the naming rights to Jiang Huai to decide.

But the next car didn't have the Volkswagen logo.

This is rather awkward.

Joint venture car manufacturing, incomplete technology transfer... they didn't even grant the logo license for the first car. Can this be called a sincere joint venture?

The lack of brand endorsement from the general public is also a reason for the lack of confidence within JAC.

of course.

The Volkswagen Group prefers to integrate existing resources first to avoid conflicts with the new energy vehicle plans of SAIC Volkswagen and FAW-Volkswagen in the future.

However, this result is not favorable for JAC Motors.

This is no longer a distinction between legitimate children and illegitimate children.

He didn't even get the treatment of a nephew.

At most, you can just calculate a table!
Anyone would have their own thoughts in that situation.

In contrast, Xingchen Motors is much more generous with its technology licensing for the XI model.

It's obvious who is more sincere!
“Mr. Heizmann, we have no objection to the technical plan for Sihao’s first car. You can decide the general direction,” An Jinhui said nonchalantly.

This casual tone surprised Heizmann.

Previously, JAC had been trying to argue its case regarding the insufficient technology transfer, hoping to secure more core technologies from Volkswagen to improve the competitiveness of its new cars in the market. This led to a disagreement between the two parties, but now JAC has suddenly softened its stance.

"President An..." He was about to say two more words.

"Okay, that's settled then. Let's discuss this further at the next meeting." An Jinhui said dismissively, hanging up after only half-heartedly agreeing.

Heizmann: "..."

His expression was somewhat surprised.

strangeness.

When did Jianghuai become so assertive?

wrong.

This is not what you call being tough.

It's a feeling that's hard to describe.

Just a while ago, I was really envious of Volkswagen's technology.

Why do you seem so indifferent now?

Did something happen here?
Heizmann felt very strange.

This feeling is like a licking dog who has been licking you for a long time suddenly changing its nature and stopping.

Imported car manufacturers maintain a strict hierarchy not only at the consumer level but also with their contract manufacturers. Every technological resource they delegate is carefully considered and used as leverage in negotiations to maximize profits. However, this leverage seems to be losing its effectiveness with JAC Motors.

……

at the same time.

Following the initial delivery ceremony of the Starry Night L7, a wave of deliveries began in the first two weeks, and the news was simultaneously broadcast on state media.

Many car companies have been featured on CCTV's evening news, but a car owner who made the news for purchasing a car is truly unprecedented.

Moreover, it was quite entertaining and thus garnered significant online attention.

"Truly befitting a high-class BBA (BMW, Mercedes-Benz, Audi) owner, paying for a new car and gaining fame along the way, so enviable..."

Lu Zhiheng commented below the video.

As an ordinary 34-year-old state-owned enterprise employee, he admires the lives of these BBA car owners. He admires their willingness to spend over 300,000 yuan to buy a new brand of new energy vehicle, and he also envies their good fortune in appearing on CCTV, which is a huge win for them.

But in all fairness.

If it were up to him to choose, even if he had to spend over 300,000 yuan, he would never choose the Starry Night L7.

The thought passed away in a flash.

Lu Zhiheng couldn't help but laugh, because he had actually been facing such a choice recently.

With my eldest child starting elementary school and my second child reaching kindergarten age, I had the idea of ​​replacing our old Jetta to make it easier to pick up and drop off family members.

With the money from the trade-in, plus financial assistance from parents and personal savings, I figured I could afford a car in the 300,000 yuan range.

His new car purchase target is the seven-seater version of the Highlander, which is considered a very respectable family car.

This family of six occasionally travels together during holidays, which is just enough to keep them occupied.

He's past that youthful, impetuous age; now, buying a car is 90% for his family.

With this thought in mind.

Lu Zhiheng went to the Toyota 4S store alone. He had previously looked at the configuration in detail and memorized the car's space, configuration, and power parameters.

"Hello sir, are you looking at a car?"

"Um, I'd like to see the seven-seater Highlander. Do you have a test drive vehicle?"

"Yes, of course, sir."

"I'd like to take it for a test drive."

"Okay, please register your information here..."

……

The 4S store salesperson provided a formulaic and polite reception.

Lu Zhiheng registered his driver's license information, and the two drove around the test drive route a few times. He took the first lap to try it out.

The results were as expected.

For a joint venture car in this price range, the driving experience is naturally excellent and there are no major flaws.

of course.

It's impossible to say it's easy to drive or has great maneuverability.

SUVs are inherently less maneuverable than sedans, let alone a seven-seater like this.
Don't even think about driving aggressively!

During the second lap, Lu Zhiheng had the salesperson drive while he mainly sat in the back seat for a test drive.

Since it's a family car, the comfort and space of the second and third rows are important considerations.

He sat in the second row, where there was just enough space between his legs for a fist. But when he moved to the third row, there wasn't even enough space for a fist.

At 1.74 meters tall, sitting in the third row, with his legs just touching the second-row seats, his posture was very awkward.

This also means that the third row is only suitable for children.

Lu Zhiheng had already seen the results online, and at the same time, he couldn't help but admire the "precise cutting" of the joint venture car companies!
With a length of 4890mm, they made it into a seven-seater car, but they just wouldn't give it even a little more space!
It's not exactly spacious, but it's just right—enough space at the perfect level.

There was absolutely no element of surprise or unexpected delight.

If you want more space, you'll have to go for a more expensive model.

A wave of emotion washed over me.

Lu Zhiheng had the idea of ​​buying it.

After all, while there are other cars to choose from at this price point, the Highlander is considered the "king of resale value" among seven-seater SUVs.

2.0T + 6AT, high reliability, low failure rate.

The third row offers sufficient space, making it suitable for families...

These are the main selling points.

"How much does a two-wheel-drive, seven-seater Highlander cost now? Are there any discounts for optional extras?" he asked, sitting in the reception area.

The four-wheel drive configuration is too expensive, and most families wouldn't choose it. For him, choosing some basic configurations is sufficient.

The words fell.

The salesperson then skillfully pulled out a configuration sheet and began calculating on the spot.

"Sir, the two-wheel drive elite version of the seven-seater Highlander, after simple options, currently has a base price of 34 yuan including purchase tax, registration fee, dealership insurance, and service fee..."

"What? Thirty-something?!" Lu Zhiheng's eyes widened in astonishment.

Isn't this right?

Two-wheel drive is so expensive?
Upon closer inspection of the configuration list, I realized that the salesperson, who had been so polite and enthusiastic just moments before, hadn't given me a single penny of discount. How come there was an extra 20,000 yuan added in service fees and miscellaneous charges?

"Your in-store insurance... is 12,000? And with the service fee and other miscellaneous charges, it'll easily be over 10,000, plus the license plate fee of 2,000."

Lu Zhiheng gasped; this was far greater than he had expected.

Are they slaughtering a pig?
The salesperson politely replied, "Sir, because Highlander sales are so high at the end of the year, 4S stores everywhere are out of stock, so there's a markup for ordering a car at the dealership. 340,000 is a normal price. Besides, even if you buy our models at a markup, they hold their value very well!"

……

(End of this chapter)