Rebirth 99 to become a car giant.

Chapter 165 Strategic Partners

A hero with three gangs.

Whether it is Nanshan or BYD, if they want to develop rapidly now, they definitely hope to have several relatively stable partners to jointly develop.

Ford, General Motors and Volkswagen are now Nanshan's key customers.

In addition, Cao Yang does not want to give up domestic independent brands.

Changan Automobile, Great Wall Motors, Geely Automobile and Chery Automobile, plus BYD, which is now coming to the door, are basically Nanshan's key expansion targets in the country.

Therefore, he naturally would not refute what Wang Fu said casually, but instead expressed more approval.

"It's true as you said, a good product also needs a good platform."

"Otherwise, the pearl will be dim and will not receive everyone's attention and recognition."

"In this regard, we at Nanshan are also looking for some strategic partners to strengthen cooperation between the two parties."

When Cao Yang said this, Wang Fu immediately felt that the opportunity was coming.

"Mr. Cao, to tell you the truth, I have been thinking about BYD's next development direction in the past two years."

"In the battery business of consumer electronics, BYD has become the strongest in the country and the leader in the world."

"But now we have reached a development bottleneck, and we want to further expand our product types."

"With the rapid development of China's economy, I think the development of the automobile market will also enter a blowout period."

"Compared with developed countries such as the United States and Japan, our car ownership is still very low, and our potential is very huge."

"So after careful internal discussions, BYD is preparing to enter vehicle manufacturing."

"According to our plan, we will officially start the car manufacturing project this year and strive to launch BYD's first model by the end of 2003."

Wang Fu said while watching Cao Yang's reaction.

BYD builds cars. Regardless of what outsiders think, there are also many people inside who don't understand.

Therefore, if Cao Yang sneered at this, Wang Fu would be mentally prepared.

However, Cao Yang's answer surprised him.

"Mr. Wang has a good vision. The automobile industry is indeed a sunrise industry for China. The development prospects in the next 20 years are very bright."

"Today, in the domestic passenger car market, all available products are produced by joint ventures."

"Even for so-called independent brands, most of the core parts are the technologies of international parts giants."

"This situation requires more manufacturers to work hard and change it."

"Nanshan is willing to assist domestic companies that are interested in developing complete vehicle production to break through the shackles of General Motors, Ford, Toyota, and Honda, and seize our own market."

Although other people had a bigger reaction to BYD's car-making, Cao Yang was not surprised at all.

Isn’t this something you already knew?

"Mr. Cao, do you also think that BYD's entry into the car manufacturing industry is a right choice?"

"After all, we don't have any accumulation in the field of auto parts, let alone complete vehicles."

Although Wang Fu is a very perseverant person, it is obviously false to say that he has no guilt at all when he chooses to build a car.

Now he was quite excited to see that Cao Yang, a rising star, recognized his judgment.

“It’s not scary to have no accumulation, as long as you are willing to try.”

"When Japan was making cars, they were learning from European and American giants."

"I don't think there is any shame in BYD taking this path when it first started."

"Find a domestic best-selling model, let the R&D personnel measure the dimensions of the car part by part, and then reverse-engineer it and find a suitable supplier to produce it. It is not necessarily that difficult."

"For example, Yangcheng Honda's Accord is very popular now, but the price is very expensive."

"If BYD produces a model similar to the Accord, but the price is only 10, do you think you need to worry that no one will buy it?"

Anyway, BYD is going to follow the path of learning and imitating, so Cao Yang thought it would be better to just push it behind the scenes.

In this way, Zibia's car sales will improve, and its business of providing them with parts will be more promising.

BYD's first model, the F3, was originally based on Toyota's Corolla.

This car is not bad, but Cao Yang thinks it is not as suitable as the Accord.

Chinese people still like to buy bigger cars, and when it comes to car manufacturing, the cost difference between a larger car and a smaller car is actually very small.

In other words, for BYD, the cost of imitating the Accord and imitating the Corolla is about the same.

But at a similar price, consumers are definitely willing to choose a model of the Accord level.

"What Mr. Cao said makes sense. Originally, I was still struggling with which model to produce, but now it seems that the Accord is indeed a very good choice."

"If we can produce a similar product that costs 10 yuan per unit, or even only 8 yuan per unit, then we will definitely not worry about lack of sales."

Wang Fu felt that his trip to Nanshan was not in vain just because of the information exchanged at this stage.

Although he and Cao Yang were a generation apart in age, he felt that this was his soulmate.

"Yes, if there are no problems with the two key components of the engine and gearbox, even if there are minor flaws elsewhere, this car can become a hit model."

"Not to mention monthly sales of tens of thousands, at least monthly sales of over [-] is not a dream."

Since BYD intends to enter the field of car manufacturing, Cao Yang naturally hopes that Nanshan will have one more big customer.

So I kept helping Wang Fu with ideas.

At this time, it is unrealistic for independent brands to take the high-end route.

Consumers simply won’t recognize it.

So we can only rely on low prices to win and earn some hard-earned money.

Nanshan plans to build cars in the future, but not low-end models.

At least it wasn't low-end models at the beginning.

Brand is difficult to establish, but very easy to destroy.

If everyone thinks you are a low-end car, it will be very difficult for you to change this label.

Later BYD did not tear off its low-end car label until the era of electric vehicles.

Therefore, in recent years, Cao Yang has no plans to build cars.

Isn't it just a matter of one sentence to develop a parts company with peace of mind and build cars in the future?

Even now, the money earned from a car may not be as much as that earned from Nanshan supplying parts.

"Then let me borrow Mr. Cao's auspicious words."

"I think BYD builds cars and Nanshan provides core components such as gearboxes. It's a win-win situation for both of us."

At this time, Wang Fu naturally wanted to formally get into the topic.

Isn't he just looking for cooperation in parts and components when he came to Nanshan today?

After all, BYD at this time really didn't have any accumulation in auto parts.

It is too difficult to do it simply by yourself.

This will affect the launch time of the first car.

It will definitely be a waste of time.

"Nanshan is very willing to form a strategic partnership with BYD and provide BYD with all the parts and components that Nanshan can produce."

"Even if you can't find a suitable supplier for any parts and components, you can come to Nanshan to discuss research and development."

"In addition to glass, seat assemblies, ordinary interior and exterior trim parts, which are relatively low-threshold parts on a car, Nanshan is very interested in other parts with technical content."

"Not to mention the gearbox, we are also studying the engine ECU, the engine's main shaft bearing, the engine's starter motor, oil pump, intake and exhaust control mechanism and other parts."

"BYD can completely hand over these parts to Nanshan for production and concentrate on the design of the entire vehicle."

Nanshan is a company.

As long as it is a company, it is impossible not to consider making money and development.

Cao Yang is not here to do charity.

Now, if we want to support BYD's development, we naturally have our own purpose.

One of the very important purposes is to provide a suitable mounting platform for Nanshan's various new parts.

Otherwise, if you keep saying how advanced your ECU, ABS and DA are, no one will believe you.

"Strategic Partners?"

"Mr. Cao, your proposal is great. I have exactly what I want."

"As long as Nanshan can produce parts and components, BYD will use Nanshan's products."

"Of course, the price of our products is only one-third of the Accord, so I hope Mr. Cao can understand more about the cost of parts."

"We won't let Nanshan do business at a loss, but at least the price cannot be higher than that of domestic counterparts."

Wang Fu is also a very shrewd person.

At this stage, if BYD wants to build cars, many parts companies may not be willing to believe it or cooperate with you.

Nanshan is a leader in the domestic auto parts industry, and Nanshan is willing to cooperate with BYD in all aspects. This is definitely a good thing in Wang Fu's view.

He had no reason to object.

Of course, he was also worried that Nanshan would take this opportunity to blackmail BYD, which would be embarrassing.

So the ugly words have come to the forefront.

But when Wang Fu said this, he was talking about business.

Cao Yang smiled politely and said: "That's natural. As long as Nanshan provides parts and components, we will definitely not be higher than our domestic counterparts."

At present, the parts Cao Yang chooses are products that domestic companies cannot make.

When comparing prices with international parts giants like Bosch, Denso, and Continental, Cao Yang really wasn't worried at all.

Even if the profit is reduced appropriately, it is still very promising.

Of course, the most important thing is that Nanshan really needs some platforms to prove that there are no problems with its technology.

Otherwise, giants such as General Motors and Ford would not easily cooperate with Nanshan on control parts.

"Besides, I am also a villain and a good gentleman. I have an agreement that I hope Mr. Wang can understand."

As soon as Cao Yang finished talking about the price, he was ready to put a tight spell on BYD.

Otherwise, it would be funny if someone kicks themselves away after successfully embarking on the road of building cars.

"Please speak!"

"As long as BYD can do it, we will fully cooperate."

Wang Fu looked at Cao Yang half-heartedly, and wanted to know what other conditions the other party had.

"Whether it's an automatic transmission or ECU and other parts."

"In the future, after Nanshan supplies BYD, BYD will not be able to build a factory by itself or use Nanshan's drawings to find other manufacturers to open point B."

"I hope this can be reflected in the "Basic Transaction Contract" between both parties in the future."

BYD has entered the field of car manufacturing from scratch. Whether it is in terms of the appearance of the vehicle or specific parts, many manufacturers have become victims of others.

Cao Yang saw this very clearly.

After a supplier chooses to enter BYD, it supplies several models. Later, BYD's technical staff masters your technology and begins to build its own factory for production.

This is difficult for Cao Yang to accept.

He also knew that even with the constraints of the contract, there was probably no way to completely prevent this situation.

But at least BYD can have great concerns and give priority to products from other manufacturers.

"no problem!"

"I completely understand Mr. Cao's concerns."

"As long as Nanshan can continue to provide competitive parts, we at BYD don't have to look for trouble."

At this time, Wang Fu obviously did not expect that BYD would develop so well in the automotive field.

And in the future, he plans to take advantage of BYD's advantages in the battery field to produce electric vehicles or hybrid models.

These are obviously areas that Nanshan is not currently involved in.

That's why he agreed so readily.

"By the way, I think electric vehicles should also be a development direction in the future."

"BYD already has rich experience in the battery field, and among the parts Nanshan is preparing to produce are car smart keys, which also require the use of batteries."

"If we produce electric vehicles in the future, we will also need to develop battery technology."

"So I think the two parties can actually form a cooperative project team to conduct research on battery technology together. What does Mr. Wang think?"

We can't let BYD take away all the benefits, but Nanshan acts like a big fool.

So when Cao Yang said this, although Wang Fu had some concerns, he thought that everyone was already a strategic partner.

It seems a bit unjustifiable if I don’t come up with anything.

So after thinking for a while, he immediately replied: "No problem, I also think electric vehicles are a direction in the future."

"Since Nanshan is interested in battery research, we will form a team to jointly research automotive batteries."

Wang Fu specifically emphasized the word "car".

Obviously, he cannot accept Nanshan's entry into the consumer electronics battery market.

This is BYD's ban.

"No problem. When the time comes, I will arrange for the personnel from the Nanshan R&D Center to connect with the people from BYD."

"List the projects that we need to cooperate on one by one, and combine it with BYD's new car launch schedule to formulate a specific progress schedule for each part."

"We strive to make this model we cooperate with a hit model so that consumers have more choices."

"By then, the cooperation between Nanshan and BYD will also be a classic."

On the first day of the meeting, the two parties finalized the overall framework of the strategic cooperation agreement.

This kind of cooperation between the husband and the concubine is affectionate and the concubine is willing to cooperate, and the initial advancement is the smoothest.

Only after a few years will the conflicts between the two sides begin to grow.

By then, the scale of Nanshan will no longer be comparable to what it is today.

Of course, these are all later stories.

Neither side will mention this matter now.