Chapter 460 The Spring of Reform is Coming

Compared with the exclusive interview of China TV, the reporting speed of news channels and various newspapers is obviously faster.

The production and sales volume of 102 million vehicles is impressive even on a global scale.

Therefore, within a week after New Year’s Day, news about the BMW Group spread rapidly throughout the entire automotive industry and throughout China, led by the China Television News Network and followed closely by the XX Daily.

“Director, the export ratio of BMW Group’s various models is really too high.”

“I think the export business of Hongqi A6 can be further strengthened.”

Zhao Guangming and Geng Weidong naturally also saw the relevant news reports.

The number of 102 million is definitely a huge stimulus.

The entire FAW, whether it is its subordinate Jiefang trucks, Hongqi BMW, or FAW Toyota and FAW-Volkswagen.

The total production and sales volume is only about 200,000 vehicles.

The gap between us and BMW Group is getting bigger and bigger.

The key point is that almost all of these 20 vehicles were sold domestically.

The faster the economy develops, the importance attached to export and foreign exchange earnings has not decreased, but has increased.

Because economic development inevitably requires cooperation with many international companies.

Whether purchasing equipment, technology, or raw materials, foreign exchange is required.

The exchange rate of RMB against the US dollar has also been moving towards depreciation.

This will definitely be good for exports, but it is not a good thing for imports.

The same equipment will cost more to buy back.

Therefore, the importance of foreign exchange becomes even more important.

Zhao Guangming naturally hopes that FAW can have some outstanding performance.

“Well, Hongqi A6 is very strong and has the conditions to expand into the international market.”

“I will personally visit the heads of relevant overseas institutions to see if they can provide us with some help.”

Geng Weidong could naturally understand why Zhao Guangming was so interested in exporting the Hongqi A6.

The same is true for himself.

“BMW Group is very flexible in its export-oriented foreign exchange earning methods.”

“In the United States, they cooperated with General Motors to sell their products through OEM production.”

“I think Hongqi A6 can also consider such a solution.”

“We will develop some of the market ourselves.”

“For some markets, we may consider exploring them together with our partners.”

“For example, we already have a good cooperative relationship with Volkswagen or Toyota.”

“If we can sell our Hongqi A6 through them, I think it will be great.”

After Zhao Guangming said this, Geng Weidong immediately became interested.

Before, he was only thinking about how to sell the Hongqi A6, but he had never considered the idea of ​​OEM sales.

But what Zhao Guangming said makes sense. If the BMW Group can do, they can do it too.

If Volkswagen, Toyota or other car companies could sell the Hongqi A6 under their own brand name, and the monthly sales volume could reach tens of thousands, the situation would be completely different.

By then, the combined sales of Hongqi and BMW at home and abroad will exceed 20 units, which is definitely a huge achievement.

The annual export earnings can reach a very exaggerated figure.

By then, the amount of foreign exchange earned from exports by FAW over the past few decades combined may not be as much as it will be in one month.

“This plan is very good. I think it can be implemented immediately.”

“You arrange for someone to collect detailed information about the cooperation plan and results between BMW Group and General Motors of America.”

“Then we will discuss internally and see if we can cooperate with Volkswagen and Toyota.”

“If that doesn’t work, we can ask BMW Group to help us, or we can continue to cooperate with General Motors.”

Anyway, for Geng Weidong, as long as the production of Hongqi A6 can be increased and sold overseas, everything is acceptable.

As for who to cooperate with, that is a secondary issue.

Zhao Guangming was very excited when he saw that his proposal was adopted, and he immediately started working on it.

……

“Director, I think the newspapers are full of news about the BMW Group.”

“In fact, our sales of Shouqi Zhiguang, BJ212 and BJ310 combined last year reached more than units.”

“In the passenger car sector, we are a well-deserved second.”

“This achievement can definitely be used to promote it.”

“Especially since we will further launch an SUV similar to Shouqi Zhiguang this year, the sales volume will be even higher then.”

Although Lu Jianqiang also admires the BMW Group’s awesomeness, he thinks his own company’s performance last year was also not bad.

At least the company has come out of the declining sales situation in the past few years and is back on the rise.

This is a very rare achievement.

“We really didn’t do enough in terms of marketing and publicity.”

“We need to strengthen it in the future.”

Chen Qi was naturally envious of the various reports in the newspapers.

In this era, government agencies and state-owned enterprises must subscribe to all major newspapers.

Therefore, the publicity of the above news content is very wide.

When one reaches Chen Qi’s level, he will inevitably think about things related to honor.

“Yes, with this kind of overwhelming publicity, I think BMW Group’s sales in China will increase significantly this year.”

The media these days still has a lot of influence and credibility.

No matter what the media says is good, many people will think that this thing is really good after reading it.

Therefore, the next ten years or so will also be the golden age of the advertising industry.

Any advertisement can have a very good effect.

The winning bidder of Hua Xia TV has set various records.

Of course, their results are also very significant.

A mediocre drink became the most expensive one and was immediately sold out.

If this happened in later times, it would be completely impossible.

Consumers are not that easy to fool.

“Before, the BMW Group would hold various events every now and then and invite various media to participate.”

“I think we can organize more activities in this regard this year.”

“Anyway, if we just invite the media to eat, drink and have fun, it won’t cost much.”

“But the publicity effect it brought was very good.”

Although Lu Jianqiang is engaged in research and development, he is now increasingly involved in sales-related matters.

Chen Qi has promised him that he will be allowed to serve as deputy factory director this year and then take over his job in the future.

So his motivation is getting stronger and stronger.

“Well, this is a good suggestion. We can give it a try.”

“Especially for the new SUVs launched this year, we need to do a good job in marketing.”

In the future, every company will realize more and more the importance of sales.

In the past planned economy era, no one cared whether sales were made or not.

But after the reform, the influence of the market economy has continued to increase, and the importance of sales has changed.

……

“Passenger cars, our passenger car business must be accelerated.”

“Otherwise, we will be surpassed by more and more car companies in the future.”

As the factory director of Second Automobile Works, Chen Liangrong naturally also saw the relevant reports of BMW Group.

Compared with the sales volume of 102 million vehicles, Second Automobile Works’ performance is totally not good enough.

Throughout 1988, their sales did not exceed 10 units.

The sales volume of FAW and Shouqi ranks ahead of them.

Even the overall sales of Shanghai’s automobile manufacturers will soon surpass them.

How could Chen Liangrong not be anxious?

“Director, we have completed the blueprint drawing for our passenger car and are now entering the sample preparation stage.”

“If we work hard, we can still launch it by the end of this year.”

Zhang Fan is also under a lot of pressure now.

The truck business in the factory did not develop very smoothly. The products of Jiefang Truck and Ligong Special Vehicle Factory were like two huge mountains pressing down on Second Automobile Works.

So that they can’t see any hope of transcendence.

In this case, it is understandable that the factory wants to catch up in passenger cars.

Especially since the superiors now support the development of the passenger car industry, Second Automobile Works will naturally respond well.

Otherwise, one automobile factory after another will leave Second Automobile Works behind, and Chen Liangrong will lose face.

“In addition to the models currently under development, other new models should also be considered.”

“We definitely can’t just produce one product, we need both sedans and SUVs.”

The template for the BMW Group is already there.

Now Capital Automobile Works and FAW are taking action, and Second Automobile Works cannot fall behind.

At least the process of hard work should be reflected.

Even if your efforts yield no results, at least you will have information to report to your superiors.

“Well, I will arrange it as soon as possible and try to report the overall plan to the factory after the Spring Festival.”

Zhang Fan knew that there was nothing wrong with Chen Liangrong’s instructions.

But this puts very high demands on their design department.

This pressure is still a bit overwhelming.

……

Geely Refrigerator Factory was also affected.

Last year, the factory manager Li Shufu discussed with the deputy factory manager Li Dagui about entering the automotive industry and producing a product similar to the BMW and Shouqi Sunshine.

At that time, we will quickly gain fame through our absolutely advantageous prices.

Afterwards, Li Shufu took action quickly.

The sign of Geely Automobile Manufacturing Plant was erected next to the Geely Refrigerator Factory.

However, since the founding of FAW in 1953, when China’s automobile industry officially started, the country has carried out unified planning and layout of automobile production.

The construction and production of an automobile factory requires the approval and support of relevant departments and certain conditions such as funds, technology, equipment, etc., that is, the corresponding qualifications are required to produce automobiles.

Until now, this is still the requirement.

Without the approval of the relevant departments, you are not allowed to produce cars in theory. Of course, if you develop locally on a small scale, even if you don’t have the qualifications, it won’t be a big problem.

After all, for the sake of economic development, local governments generally support the development of automobile factories.

Some places even worry that you should develop the product first and then deal with the qualification issue.

“Dagui, I saw the latest policy document requiring that some state-owned factories be allowed to go bankrupt and be sold to foreign-funded enterprises or private enterprises.”

“See if there are any car factories that are selling at a lower price.”

“It doesn’t matter what kind of cars they can produce. What matters is that they have the qualifications to produce cars.”

Li Shufu naturally does not want his car factory to become an unqualified factory, as it would certainly not be able to grow and develop in that way.

It is very important to buy a shell quickly while there are still many automobile factories in China and there are no private automobile factories in the country.

In a few years, the cost of doing this will be higher.

“I have been working hard, but after seeing the performance of the BMW Group, some factories have started to change their minds.”

“I think what BMW Group can do is worth continuing to try, even if they are not doing well.”

“So the price and conditions of the acquisition have changed a bit.”

Li Dagui reported the latest situation with a bit of depression.

There are actually quite a few companies in China that have the qualifications to produce automobiles.

Of course, most of them have the qualifications to produce commercial vehicles, but not many can produce cars.

“It doesn’t have to be limited to enterprises within the province, companies from outside the province can also do it.”

“As long as you have the qualifications.”

“This matter cannot be delayed any longer.”

“Then it would be best if our new products can be officially launched this year.”

“Even if it’s a small-scale listing.”

Li Shufu felt strongly that the automotive industry seemed to be entering a new era.

The domestic economy has developed rapidly in recent years and the direction of development has become clearer.

If Jiang Hui were to make an evaluation, the economic level of Lingnan Province and other places would have reached the level of around 1995.

In the early days of reform and opening up, the main economic growth came from several provinces along the southeast coast.

With so many emerging forces in Lingnan Province, the impact is naturally huge.

In particular, the rise of self-employed individuals and private enterprises in Lingnan Province has also led to a significant increase in personal car consumption demand.

The situation in the area where Li Shufu is located is quite similar.

These can also be considered as some of the potential impacts brought by Jiang Hui.

Therefore, Li Shufu really hopes that the situation of Geely Automobile Factory can develop as soon as possible. After it reaches a certain scale, some subsequent things will be easier to promote.

Anyway, the domestic automobile industry has developed rapidly under the leadership of the BMW Group.

As long as you are willing to spend money, all kinds of parts can be bought from outside.

Invisibly, this has also lowered the entry threshold for many private automobile manufacturers.

Otherwise, it will take many more years for private enterprises such as Geely and BYD to emerge.

“Okay, then I’ll try to finalize this matter after the New Year.”

Since Li Shufu said so, Li Dagui naturally stopped worrying about it.

Being able to get it done with money is also a good result.

The fear is that even if I spend money, I still can’t solve the problem, which would be really frustrating.

“And the purchase of engines and gearboxes has been finalized, right?”

Li Shufu now personally leads the technical team to develop new products, and the procurement and other logistical work is completely handed over to Li Dagui.

Whether it is the engine or the gearbox, the production difficulty is very high.

Li Shufu is also very clear about this.

So at the beginning, we could only consider purchasing from outside.

Apart from Nanshan Engine Plant and Nanshan Transmission, Geely does not have much choice.

That is the 4MT manual gearbox, and there is also a Capital Gear Factory to consider.

In terms of engine, Nanshan Engine’s 1.5L engine has been selected.

This product is now the most widely used one among domestic automobile manufacturers.

Within the Nanshan Engine system, its output is also the highest.

“We have officially signed a purchase agreement with Nanshan Engine.”

“However, for gearboxes, we chose to purchase from both Capital Gear Factory and Nanshan Gearbox.”

“We will adjust it based on the cost situation at that time.”

Li Dagui is quite confident about the economy car his company is developing.

It is estimated that several thousand units of this product can be sold in cities near the factory.

By then, it will be possible to sell tens of thousands or even hundreds of thousands of vehicles a year.

But there is a prerequisite, which is to make the cost low enough.

The purchase price of a key part like the gearbox becomes very important.

As for the engines, Nanshan Engine didn’t cheat them. The price they quoted was similar to that sold to Capital Automobile Manufacturing Plant.

So even if Li Dagui wanted to bargain, he felt uneasy.

After all, your purchasing quantity is not as good as others, but the price is the same as theirs.

I’m already giving you face.

“As for the prices of these parts, we can consider signing a betting agreement with the relevant manufacturers.”

“For example, what is the price when our purchase quantity is less than 1 vehicles, and what is the price when it reaches 3 vehicles?”

“If we reach 5 or 10 units, we will offer a more favorable price.”

“This is beneficial to both of us.”

Li Shufu knows that price is crucial for his new products.

If we don’t find a way to reduce costs, it will be difficult to sell the products.

Today’s cars are still too expensive for most people.

“Okay, I’ll prepare a plan first and report it to you in detail when the time comes.”

Li Shufu’s plan was not complicated, and Li Dagui naturally understood it immediately.

However, how to formulate the specific plan obviously needs further consideration.

……

“Xiangyang, your group is still very competitive and has turned around the situation of our domestic automobile industry in one fell swoop.”

“In addition, in the past year, our subordinate enterprises of the Ministry of Machinery and Electronics Industry have started more and more cooperation with Polar Bear.”

“The overall economic situation has improved a lot in an instant.”

During the Chinese New Year, Jiang Hui’s family naturally has to reunite with his father-in-law.

Zhu Jiansheng is now the head of a department, and the Spring Festival holiday does not exist for him.

So naturally, Jiang Hui and his family had to fly from Shenzhen to the capital according to Zhu Jiansheng’s schedule.

The higher the position Zhu Jiansheng holds, the more he understands the importance of choice.

Many decisions, to some extent, are about making choices.

Over the years, Jiang Hui and Zhu Jiansheng have never missed a proposal.

Therefore, Zhu Jiansheng’s trust in Jiang Hui is now very high.

Although they came back to celebrate the New Year, the father-in-law and son-in-law couldn’t help but hide in the study to discuss various important matters.

“This is how the economy works. Once one region develops, it can easily drive the development of the rest of the region.”

“As long as we enter a positive cycle of development and don’t mess around, we will continue to develop in this direction for several years.”

“Our current development direction is completely correct, we just need to continue to improve on some details.”

“In the future, we will try our best to give enterprises more autonomy and further support the development of private enterprises.”

“Then China’s economy in the future will definitely bring huge surprises to everyone.”

Jiang Hui had previously mentioned to Zhu Jiansheng the issue of supporting the development of private enterprises.

Factories under the Ministry of Machinery and Electronics Industry can flexibly adopt various ways to cooperate with outside companies.

This will not only revitalize some poorly managed factories, but also utilize existing resources to further create wealth.

Some resources in the hands of state-owned enterprises not only fail to generate profits, but the situation changes when they are in the hands of private enterprises.

This situation was particularly evident in the 1980s and 1990s.

Zhu Jiansheng also listened to the advice and has been working on this aspect during this period.

From the current perspective, the effect is obviously good.

“I have already communicated your idea to my superiors.”

“It is estimated that after the Spring Festival, the superiors will go to Shenzhen and other places to conduct inspections to further implement various reform policies and directions.”

“Let everyone actively create factories and develop the economy.”

“All the previous rules and regulations will continue to be broken.”

When you are in Zhu Jiansheng’s position, you naturally have access to more information.

Due to various factors, the economic environment of this period is very different from that of the previous life.

The superiors have more confidence in the reform and there are fewer differences.

So the next step is to take bigger steps, roll up your sleeves and get to work.

This is undoubtedly a good thing for the BMW Group.

“Eleven years have passed since 1978. It is time to make a formal decision.”

“Our group definitely fully supports all policies and guidelines of our superiors.”

“Once these new policies come out, our group will further expand its business.”

After Jiang Hui said this, Zhu Jiansheng immediately became interested.

“You already have a presence in motorcycles, cars, equipment production, chip production, and even special steel production.”

“What other fields are you planning to enter?”

Zhu Jiansheng has absolute confidence in Jiang Hui’s vision.

The direction of efforts chosen by Jiang Hui represents, to a certain extent, the future development direction of the industry.

Knowing which industry was more promising, Zhu Jiansheng was able to better judge which plans could be approved and which to oppose when so many factories under the Ministry of Machinery and Electronics Industry were undergoing reform.

As a leader, it is undoubtedly crucial to be able to grasp this information accurately.

This is also a great test of personal ability.

If this kind of work is done well, it will be very beneficial for enhancing personal prestige.

After all, after a few years, it will be easy to verify which direction is right and which is wrong.

(End of this chapter)