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

Chapter 5 Supply Chain Negotiation

“I have considered the issue you raised. Who said we need to replace the lithium battery?”

Xu Yi was amused.

Buying a licensed four-wheeled electric vehicle with a lithium battery for 20,000 to 30,000 yuan is a "feat" that will only be possible a few years later when the battery industry has developed.

Moreover, this is even with the addition of government subsidies.

In today's world, that would be clearly impossible.

"I've already come up with an alternative. Since the original lead-acid battery pack can't power both the motor and the compressor simultaneously, I'll simply add another small-capacity lead-acid battery pack..."

"By using two batteries to supply power separately, we can avoid the problem of limited power output."

Xu Yi tapped his fingers on the table.

"Secondly, the compressor doesn't need to be that big. 1kw-2kw of power is too high. That's for automotive compressors. We're making a low-speed electric vehicle, why would we need such a high power?"

"Just find a cheap, durable 500W small compressor. The cooling capacity is enough. As long as it can lower the temperature, it doesn't have to be 16 degrees."

……

It's a joy for the elderly.

At this price point, you should be grateful if they even give you air conditioning. If it explodes, you'll be praising how loud it is. What more could you ask for?

The user will adapt.

To put it bluntly, you can do as much as you have the money.

With such a limited budget, it's impossible to pile on the highest quality. If we can produce a decent "assembled car," that's already pretty good.

However, in Xu Yi's opinion, the current design and quality of the old man's car are far from meeting the ultimate standard for this price.

Other competing products on the market are at best bread boxes with four wheels attached.

Looking around, all I see are a bunch of people who are just trying to sell their wares.

As a result, the domestic market for elderly recreational vehicles has grown to an astonishing size of several billion to tens of billions of yuan.

Xu Yi smiled slightly.

The solution he proposed is one of the classic solutions that led to the mature development of recreational vehicles for the elderly in later generations.

There is never a shortage of great masters among the common people.

Even before the elderly people's cars had air conditioning, some people started working to solve the related problems.

In the end, they actually came up with a complete and feasible solution for them.

This dual-channel lead-acid battery power supply is one solution.

Another approach is to directly implement a hybrid system by forcibly inserting a diesel engine to generate electricity for the battery, which can also solve the problem.

to be honest.

How much space is there in the carriage of an old man's car?
Isn't it enough to just have a cool breeze?

Without requiring absolute cooling.

The internal compressor of a small chiller is sufficient for its needs.

These small compressors are less technologically advanced and less expensive, typically costing only three to four hundred yuan. If a factory makes a bulk order, the cost can be even lower.

Upon hearing this, Wang Jingming was taken aback.

hiss……

Dual power supply?

This plan actually seems feasible!
In practice, implementing this is not difficult.

It just requires redesigning the powertrain, which will take some extra effort.

Strictly speaking, this type of solution is not difficult; the challenge lies in the fact that such ingenious designs usually require a professional team to execute.

It can have a formal R&D team.

Who would want to focus their attention on recreational vehicles for the elderly?
Recreation for the elderly —

It has always been synonymous with shoddy workmanship and low quality!

Using the term "industrial waste" to describe it is an understatement.

At least their "industrial waste" follows modern industrial standards!

What principles does the "old man's car" follow?

A car body shell that would fall apart at the slightest touch, or a power system that could malfunction and catch fire at any time and has almost no industrial safety?
wrong.

After thinking about the outrageous appearance of the new car project, he quickly felt relieved.

If they can even pull off an exterior like the "Porsche Calami," then adding some clever design elements to the powertrain wouldn't be out of the question.

In today's automotive industry, their company might not even be considered a small fry.

But if we compare it to other manufacturers of electric vehicles for the elderly across the country, it's an absolute game-changer!

At least the body shell and power system they designed aren't the kind of junk that would fall apart at the slightest touch!
Think about it this way.

Wang Jingming was even a little excited!
……

With the overall vehicle appearance and core powertrain system finalized, the company directly entered the vehicle development stage, with complete plans for the procurement of related parts and the adjustment of stamping and welding equipment.

While communicating with various departments, Xu Yi patiently waited for the engineering vehicles to roll off the production line. Because the standards for the parts procured for the elderly mobility scooters were low, almost any factory could manufacture them, so there were no issues with production procurement.

Moreover, most of the major components can be produced in their own factory.

The power system is an existing solution that is being improved.

Therefore, the entire research and development process is progressing very rapidly.

Just over half a month later, the vehicle powertrain system solution completed its initial internal verification.

The real time-consuming part is the stamping and mold design of the entire vehicle body and chassis components.

Since it's a redesign, there are no universal molds that can be used directly, so the dimensional accuracy of related car door coverings, including doors, hoods, and roofs, needs to be determined.

……

A few more days passed.

Xu Yi, accompanied by two senior executives, went to a motor manufacturing plant for inspection.

To keep costs as low as possible, he personally visited factories in the supply chain for components such as glass, tires, and control circuit boards for the entire vehicle.

The main reason for this trip to the motor supplier was to replace the drive motor with one of higher power versions.

After all, the new car uses a larger chassis and a dual lead-acid battery pack, along with a complete interior and a Porsche-style exterior structure.

The actual weight has increased significantly compared to a regular four-wheeled vehicle, so it's no longer suitable to continue using the original three-wheeled electric vehicle motor.

With current supply chain motor technology, solving this power problem is a piece of cake.

There are also better and stronger motors from major manufacturers.

However, it's difficult to bring down the price.

Previously, the tricycle motor used in Xu Yi's factory was a 4500 RPM permanent magnet synchronous motor, which could accelerate the tricycle to 40 km/h when carrying cargo.

To build a "senior citizen's car" now, the vehicle's weight would almost double, and the required speed for the actual vehicle would be at least 60 km/h.

So we replaced it with a 72V high-speed permanent magnet motor with a speed of 9000 RPM.

Large motors not only have greater power, but also relatively lower noise.

Although it's not a product from a major manufacturer, the quality control and quality are handled by a long-time, familiar partner, so we know them well.

"Mr. Xu, the price of 800 yuan including the control board is the bottom line. If you want to take it for 650, we won't make any profit and we can't do it. There are no cheaper ones on the market."

The owner of Tengda Motor Factory was a fat man in overalls who promptly refused the request.

"Mr. Fu, don't be so sure. Our demand is huge. If all goes well, ordering 10,000 units in the first year shouldn't be a problem. We can definitely get a preferential customer price."

Xu Yi smiled and put his arm around the other person, then skillfully began bargaining.

Upon hearing the number 10,000, Fatty Fu's eyes narrowed. For a small factory, this would be considered a large order.

"But your purchasing agent said the first batch only needs five hundred units, right?"

"Yes, we are still in the trial production stage. Once the trial production is completed and the project is launched, we can quickly ramp up production. Here's the deal: I'll pay you in cash. As long as you're willing to give me a discount, all the motors delivered each month will be paid in cash on the same day. I'll be fair and honest with everyone."

Anyway, let's start by bragging.

As soon as these words came out.

The other party immediately hesitated.

There is no doubt that the profit margin at this price is very thin.

Normally speaking, it would be impossible to agree to that.

However, what the supply chain fears most is not price suppression, but delayed payment terms. Many small factories in the supply chain have been dragged down by excessively long payment terms.

According to the current standard billing cycle, the bills for large customer purchases are already 90 days in.

If it's a major brand making the purchase, the acceptance period for the bill of exchange will be extended, at least to 3-6 months.

Small customers may have short cycles, but their purchase volume is also small.

If Xu Yi's cash payment terms can be met with a substantial annual purchase volume, they would be extremely competitive.

Negotiating the supply chain is quite simple.

To lower prices, you either need to purchase in large quantities or offer cash flow as a bargaining chip.

The costs and profits are laid out clearly; nobody's a fool.

"Sure, how much will the first contract be?"

"Five hundred units."

"Five hundred? Didn't you just say ten thousand?!"

"Sign up for 500 units now, cash payment; sign up for another 3,000 units or more later, cash payment still applies!"

"... "

"it is good."

……

After a struggle.

The cooperation was finally finalized.

(End of this chapter)