Rebirth 99 to become a car giant.

Chapter 207: Ice and Fire, BYD’s Dilemma

Cash flow refers to the net cash income and expenditure generated by an enterprise through operating, investing and financing activities in the actual operating process.

Compared with the income statement and balance sheet, cash flow is more important to a company because it reflects the company's actual cash position, that is, whether the company has enough cash to meet business operations and debt repayment needs.

Dong Shengnan's opposition to increasing inventory shows that she is fully aware of the importance of cash flow.

In recent years, the JIT model developed by Toyota Motor has become so popular and has been learned by many companies around the world.

It is because the JIT model can make the company's cash flow more abundant.

The core idea of ​​the JIT model is to reduce inventory as much as possible during the production process and achieve real-time adjustment and optimization of production plans through an order-driven approach.

On the production line, each production step is carried out for a specific order, and the products on the production line are only produced in the quantity required for the order and delivered to the customer immediately after production is completed.

This model can effectively reduce inventory costs and logistics costs, thereby making cash flow more abundant.

Cao Yang naturally understood this truth.

However, he could not explain his considerations to Dong Shengnan in detail.

"Dong, what you said makes sense. Under normal circumstances, we shouldn't increase inventory."

“But you also know that [-]% of our current turnover is contributed by exports. Once parts cannot be delivered to customers such as Ford and General Motors on time, they will immediately consider using other companies’ products to replace us. "

"Even if we find ways to recover later, it will be difficult to get back the lost share."

"It could even undermine the good relationships we have with General Motors and Ford."

"Of course, I completely understand your concerns."

"We will take half a year as a deadline and prepare inventory according to the standards I just mentioned before July 2003."

"Should we continue after July, we will discuss it then?"

Cao Yang did not give a direct and blunt order.

That kind of thing will chill the people below.

Although the company belongs to you, it also belongs to everyone to a certain extent.

It's like this year's year-end bonus. Because all goals have been achieved, Cao Yang will give everyone an extra month as promised, and the basic salary will also be increased.

If the 2003 target is not achieved due to Cao Yang's disorderly behavior, the bonuses of all employees will be affected by then.

"That……"

"Then let's implement it for half a year for the time being."

Although Dong Shengnan has a bad relationship with various departments, this does not mean that her emotional intelligence is low.

On the contrary, it shows that she can carry it clearly.

Having already expressed her opinion in front of Cao Yang, she naturally would not continue to insist on her opinion so rigidly.

"Each department has submitted its budget for next year to the finance department, and then it will be left to you to track and implement it."

Seeing Dong Shengnan compromise, Cao Yang expressed his respect for her in a timely manner.

The finance department has offended all departments in the company. If they don't feel the support and trust of their boss, they will definitely feel sad.

When the time comes when people choose to compromise and say hello, me, everyone, to each department, Cao Yang will be in trouble.

"no problem!"

"The finance department of each project will organize monthly reports, and I will follow them personally at that time."

Dong Shengnan breathed a sigh of relief.

It seems that my boss is also a smart man.

……

While Nanshan was busy summarizing internally, BYD was doing similar things.

However, the atmosphere is a little different.

"Mr. Wang, the current engine prototype has been made, but the data in all aspects are very unsatisfactory."

"First of all, the vibration and noise are much higher than the original 2.4L inline four-cylinder naturally aspirated engine in the Honda Accord."

"Then the fuel economy is very poor, far from the level of the original version, and there is even oil leakage."

"In addition, the engine's efficiency is low, combustion is incomplete, it produces a large amount of pollutants, and there are also problems with emissions."

"The most troublesome thing is that parts fail frequently, and they have not yet reached the level of mass production."

"Obviously the size of each part is similar to the original one, but after installation, various problems will occur."

"Especially when doing durability tests, problems will occur after running on the bench for only a few days."

"I think this engine, let alone making it ready for mass production by the middle of this year, may not be able to catch up by the end of the year."

Liang Chuanqing is the head of research and development of BYD's F6 carriage.

Nowadays, other parts except the engine are progressing smoothly, and everyone in the company is counting on the car project to officially enter mass production in mid-2003.

In order to avoid having only input and no output, which will drag down the battery business.

"The threshold for this engine seems to be really high. Can we consider directly producing electric vehicles or plug-in hybrid models?"

"In this way, there is no need for an engine, or the requirements for the engine are greatly reduced?"

Wang Fu did not lose his temper directly.

He also knows that the development of automobile engines is not that easy.

There are so many domestic car companies, but after many years of research, they have not come up with any decent passenger car engines.

It’s not surprising that BYD doesn’t have the foundation to build a car, so it can’t do it in a short time.

"There is no market for electric vehicles at all now, and with our current battery technology, the range of electric vehicles produced is estimated to be only two hundred kilometers."

"This is without turning on the air conditioner and driving in low-temperature places."

"Besides, even the production of electric vehicles involves the research and development of various parts such as motors and electronic controls. Our accumulation in this area is also very weak."

"Mr. Wang, most of the engines of current domestic cars, whether they are Great Wall, Chery or Geely, are purchased from outside."

"How about we also consider outsourcing? Dongan Dynamics has proactively contacted us before, and Aerospace Mitsubishi also expressed its willingness to supply us."

“特别是航天三菱从东瀛三菱引进的4G6系列发动机，跟我们的F6车型还是非常匹配的，2.0L和2.4L的排量都有。”

"This engine has leading technology, low noise, low vibration and low fuel consumption, and can fully meet our schedule."

Liang Chuanqing knew that he couldn't fix the engine in a short time, but he couldn't even come up with a solution, right?

However, it was obvious that Wang Fu was not satisfied with his plan.

"Is there no other way?"

Wang Fu naturally knows about Aerospace Mitsubishi's products.

But he also knew very well that that was Mitsubishi's engine technology from more than ten years ago.

Their latest engines already have variable valve timing and lift technology. If they are selling this model, they can still consider it.

"or……"

"Or we can communicate with Nanshan and see if they have any suggestions?"

"So far, the parts they have given us to study have not caused any problems in engine experiments."

"On the contrary, problems frequently occur with the parts we develop ourselves and the parts we purchase from outside."

"This shows that their technical accumulation in engine parts is much deeper than we thought!"

Liang Chuanqing proposed another very novel idea.