Rebirth 99 to become a car giant.

Chapter 260 An unexpected assist from Modu General

Yue Rui and Tian Rong have been very busy during this time.

As a headhunting company that works closely with Nanshan Group, they have a bunch of big orders waiting for them during this time.

"Mr. Tian, ​​I think we should go to Korea and Japan to find some companies to cooperate with and ask them to help dig out some chip talents from Japan and Korea."

"Especially for the Chinese people who work there, I think there is still hope of poaching a few people back."

Yue Rui is now very interested in chip talents, and the treatment of these people is very good.

As long as you successfully recommend someone to join Nanshan Group, you can get very considerable returns.

After all, headhunting fees are not cheap at all.

The more high-end the talent, the higher the benefits obtained by the headhunter.

"You have a good idea. We can also mobilize the talents we have recommended before and see if they can help introduce some colleagues and classmates."

"As long as the referral is successful, we can also use part of the fee to motivate them."

"Talent in the chip field is still in short supply in China, especially high-end talents, who are basically located overseas."

"It's really difficult for us to do it alone."

Tian Rong also rolled up his sleeves and was personally involved in recruiting chip talents during this period.

These headhunting companies have their own specialized channels, otherwise the HR of each company would not have to spend a lot of money to hire them to recruit people.

After all, there are some positions where you just can’t wait for others to take the initiative to submit resumes.

"We have recommended people to SMIC before, and we have already recruited two people through this person."

“If you dig too many people in one place, it’s easy to cause a backlash.”

"I feel that in the future it is necessary for the company to set up a dedicated chip talent pool in order to provide customers with better choices in a timely manner."

"If the talents of various chip companies can flow frequently, they will provide us with a lot of business virtually."

"If everyone establishes a trusting relationship, it will be much easier for us to do business in the future."

When Yue Rui said this, Tian Rong was immediately moved.

China's current chip industry is very weak, but it will definitely continue to develop in the future.

This also means that the demand for talents in this industry will become increasingly strong.

This is a very big gold mine.

Like this time, if a sufficient talent pool has been created before, there is no need to share the cake with other headhunting companies.

My whole family ate it directly.

"Your proposal is very good, I will leave this task to you!"

"When the time comes, you will definitely have a place as a partner in the company."

In the headhunting industry, it mainly depends on who has more resources.

Therefore, it is relatively common for headhunters to change jobs.

As a boss, you certainly don’t want employees with a lot of resources to leave, as that would directly take away a batch of resources.

……

In May 2004, when China's auto market continued to develop in full swing, GM suddenly launched a strategic action of "Buick Breakthrough 5".

This action is actually a price reduction to put it bluntly.

Modu General Motors has comprehensively lowered a series of prices for its mid- to high-end products, the leading Buick brand.

The prices of Buick Regal series sedans and Buick GL8 land-based business class have been reduced by an average of 8%, with the highest reduction being more than 11%.

In future generations, this kind of decline would be like waving a sword in the palace.

It can also be seen from the side how high the profit margin of automobiles was before 2004.

This price cut by Modu General Motors was like a rainstorm in early summer. It came suddenly and with such ferocity that many people did not expect it.

Consumers are happy.

In the past few years, the prices of Huaxia cars were too high.

The 30 Accord and the 30 Mondeo are both normal.

This is naturally unsustainable.

However, in the Chinese auto market where price cuts have become the norm, although Buick's price cuts are reasonable, compared with its hot sales situation, such price cuts actually have their own considerations.

在今年1～4月，魔都通用的销售同比增长117%，市场份额由2003年底的9.8%提高至11.5%。

Obviously, Modu General has greater ambitions.

As the world's largest automobile company, GM naturally hopes to become China's largest automobile company.

魔都通用全面进军中级车市场，在仅靠两款凯越车型持续月平均销售超过8000台的情况下，乘势推出售价为12.98万元和15.98万元的1.6升和1.8升舒适版别克凯越，将其中级车产品扩大至4款。

As a result, it will naturally bring huge pressure to a series of competitors such as Modu Volkswagen, Spring City Volkswagen, Yangcheng Honda, and Changan Ford.

Similarly, it also puts a lot of pressure on the purchasing departments of various companies.

The selling price has dropped, but the company's desired rate of return naturally does not want to drop that much at the same time.

"Minister Zeng, we agree to your chip change proposal from TCU on your 6AT automatic transmission."

"But I hope you can cooperate with this year's annual price reduction."

Yu Xing, the purchaser of Modu General Motors, specially made an appointment with Zeng Tingting to the company to integrate this year's price reduction.

"If Yu Gong can cooperate with us in reducing prices, we will definitely cooperate fully."

"However, a 5% price reduction is really too high. We in Nanshan always provide the most cost-competitive prices from the beginning."

"I will not be like some of my friends who quoted a high price at first, and then slowly and continuously lowered the price, as if the price reduction was very cooperative."

"And once parts like gearboxes are finalized, the cost reduction work that can be carried out is very limited."

"All our materials have been domestically produced, and all parts and components are produced in-house or purchased domestically. There is no room for price reduction."

"But I also know the difficulties faced by workers, so this year I can provide you with a 2% rebate like last year."

Zeng Tingting will not compromise on price easily.

Although Nanshan will engage in price wars when it enters new fields.

But I couldn't do it after getting the order and then committing suicide.

"If you provide a 2% rebate every year, it is actually equivalent to just reducing the price by 2%, and then not reducing the price even once."

"Mr. Zeng, you must know the difference between this plan of directly reducing unit prices and providing rebates than I do."

"We require a 5% price reduction. If it is provided in the form of rebates, from the perspective of the entire life cycle, it is actually equivalent to a price reduction of less than 2%."

"This requirement is actually not high at all."

Although Yu Xing has a good relationship with Zeng Tingting, his butt determines his head, so he will not let go easily.

Even he knew that Nanshan would not have any additional price cuts in the end, but this negotiation process was necessary.

Otherwise, he would not be able to communicate within the company by then.

"What you said, Yu Gong, is indeed very reasonable."

"But you also know that parts such as the 6AT gearbox are different from parts such as the front grille, headlights and aluminum wheels. They need to be produced for ten years or even longer."

"For parts such as front grilles and headlights that are revised after two or three years of production, their entire life cycle is actually reduced in price once or twice."

"Even if the price is reduced by 5% at one time, it will not be reduced much throughout the entire life cycle."

“Then the parts would be changed to completely new specifications, re-quoted, and everything would be back to square one.”

"But the 6AT automatic transmission is different. Our specifications will not change much. If the price is reduced every year, we will lose money in the end."

"In the past few years, our production costs have actually been rising, and employees' wages have also been increasing every year."

"At the same time, our company also invests a lot of manpower and material resources in quality assurance and new product research and development every year. A 5% price reduction is really too much pressure for us."

Zeng Tingting continued to argue with Yu Xing there.

In negotiations, whoever backs down first usually loses.

Nanshan 6AT is not only supplied to the public in Shanghai. If the price at a certain store drops too much, it will directly affect all customers.

This is unacceptable to Nanshan Gearbox.

"Rising labor costs are a common problem faced by the entire industry. Everyone, including Modu General Motors, is in the same situation."

"So this problem needs to be borne by everyone along the entire industry chain."

"In fact, your company's gearbox business has developed very rapidly in the past two years. It has become the largest gearbox manufacturer in China, and various amortization expenses are definitely declining."

"In this case, we don't see much of an incremental effect."

"When you go to the wet market to buy vegetables, the prices for one pound of pork and ten pounds of pork are different."

"Whether it is the number of gearboxes we purchase from your company or the total number you produce yourself, there is a relatively obvious increase in quantity."

"I hope your company can show some incremental effects this year."

Yu Xing immediately followed suit and put forward his own point of view.

This kind of thing must be justified by the public opinion and the mother-in-law opinion.

No one will compromise easily.

"Our output is indeed increasing, but in order to ensure that all products can meet quality requirements, we have also invested in a large amount of automated equipment in the past two years."

"In fact, compared with the original quotation, our current equipment amortization expenses have not declined, but have actually increased."

"When you are free, you can come to our site and take a look. The latest automatic transmission production line is obviously different from its original appearance."

"Our company has borne this part of the investment ourselves and has not asked customers to increase prices."

Zeng Tingting was also a veteran of the martial arts world, and she immediately defused Yu Xing's offensive.

Every year, she negotiates price reductions with many OEMs, and she is very familiar with the commonly used tactics and viewpoints.

Even within Nanshan, all sales staff have a unified set of words.

"Before, the bearings and gears used in Nanshan's gearboxes were generally made of special steel purchased from outside. Now they have basically been switched to Nanshan Special Steel's own production."

"But can this part of the price reduction effect be reflected?"

If one method doesn't work, change it immediately.

Yu Xing was not discouraged at all.

After all, negotiating price cannot be achieved overnight and is destined to be a protracted battle.

It depends on who compromises first.

"The change you mentioned is indeed consistent with the actual situation."

“But you should also know that the steel properties of Nanshan Special Steel are better than those produced by other companies such as Baosteel.”

"Currently, the price of Nanshan Special Steel for the same one ton of bearing steel is at least 3000 yuan more expensive than that of Baosteel."

"So after special steel is switched from outsourcing to in-house production, the main improvement is actually the quality and performance of parts, rather than cost reduction."

Both sides talked to each other, stating their respective opinions to each other.

But it is destined to be fruitless in the end.

Fortunately, the talks didn't break down. After all, Nanshan didn't reduce prices at all.

It's just that Yu Xing wants to drop more.

……

"Bu Defan, I heard that the sales department is planning to lower the prices of all models to keep up with GM's pace and improve the competitiveness of our products."

"This will put a lot of pressure on your purchasing department, right?"

In a tavern in the magical city, Hassan and Budfan sat drinking and chatting together.

They came to the Magic City Public School in the same year and have a very good relationship.

Now that they have been promoted to directors of the purchasing department and quality management department, they can continue to work in China for another three to five years, or even longer.

In this way, the connection between the two people becomes closer.

After all, there are many business intersections between the purchasing department and the quality management department.

Both public and private, it is necessary for both people to have a good relationship.

"It is also necessary to reduce prices. The price of our models in China is really a bit high."

"The profit rate of a car is more than double that in China. It is simply stealing money from consumers."

"However, the company has to link sales price reductions with procurement costs, which is troublesome."

As the purchasing director, Bu Defan must be responsible for the cost of each model.

Every year, the company sets certain price reduction targets for them.

However, in the past few years, these price reduction targets have been relatively easy to achieve.

After all, the price of the model is relatively high, and when various suppliers first quote prices, they are generally also relatively high.

It is considered to have reserved some room for price reduction.

However, as sales prices fall, profitability will certainly be affected.

As a result, Bu Defan's pressure will definitely increase.

The sales price cannot be reduced, everything should be contributed purely by the income of Magic City Volkswagen.

"China introduced a domestic production rate requirement before. In fact, I think this is a very good means of reducing prices."

"China's auto parts industry has been developing continuously in recent years, and many parts can be found in local manufacturers."

"The most important thing is that the international parts giants have also built factories in China one after another to increase the localization rate of parts."

"As long as you think about the tricks from this aspect, I don't think there is no room for price reduction."

From the perspective of the quality management department, it is natural that all parts are imported from Germany, which is the best. That way it will be very simple for them to manage.

But Hassan is not so selfish and has no vision.

Judging from the price reduction of Modu GM this time and the price reduction that Modu Volkswagen is prepared to follow, cost reduction will definitely be the general direction in the future.

Then it will definitely be necessary to produce more and more parts domestically, or even switch to domestic suppliers.

Hassan wanted to make some achievements in this area.

Only when you have challenges can you achieve more outstanding results.

"You are right. In the middle of this year, we are planning to invite major suppliers to hold an exchange meeting and put forward some new requirements to everyone."

"For those manufacturers that cannot keep up with our pace of development, don't blame us for being rude in the future."

Bu Defan will definitely not put all the pressure on himself.

Passing on the pressure to lower prices to every supplier is what he needs to do.

……

"Mr. Liu, recently various domestic OEMs have agreed to Nanshan's chip change plan."

"In this case, Infineon will probably switch sides soon."

"It doesn't seem to be an option if things continue like this."

At Bosch China, Ren Cai came to Liu Zhenbo's office worriedly.

Some time ago, there was a lot of news on the Internet about the comparison between Bosch and Nanshan Group. It seems that Nanshan Group is already a rival on the same level as Bosch.

Some articles even say that Nanshan Group is more powerful than Bosch. Otherwise, why would Bosch suppress others?

This wave of public opinion offensive has made Bosch a little passive.

Even some of Bosch's new projects have been affected to a certain extent by this.

The current practices of various Chinese OEMs put Bosch in a dilemma.

I thought I had caught the weakness of Nanshan Group, but I didn't expect that I caught a handful of air and a loneliness.

"What kind of action did Buick take to break through 2005? It directly started a wave of price cuts in the automobile industry."

"Now not only the North and South Volkswagen are following the price cuts, but other OEMs are also taking various actions."

"To be more direct, we lowered the market guidance price."

"To put it mildly, we have increased the discounts offered by 4S stores. In short, car prices are falling."

"As a result, the procurement of OEMs will naturally find various suppliers to reduce prices."

"Against this background, Nanshan's parts share has not declined, but is likely to rise further."

"We really can't continue like this."

Liu Zhenbo naturally understands the current embarrassing situation.

But he was also in a bit of a dilemma and didn't know how to solve it.

"The company has now established a joint venture with Spring City Automobile Group, and will have more and more factories in the country."

"Theoretically, the parts we produce locally in China will not be much more expensive than those of Nanshan Group."

"In this case, should we make an appointment with people from the Nanshan Group and let's sit down and have a good discussion and stop messing around?"

Ren Cai was previously a staunch anti-Nanshan faction.

But seeing the situation not ending well, she flexibly began to change her mind.

Of course, this does not mean that she has any affection for Nanshan.

It was purely forced and there was no other way.

"This is also a solution that is not a solution."

"Our two families will fight over there. When the time comes, old rivals like Denso and Delphi may be secretly enjoying themselves."

"Instead of doing this, it is better to discuss it with Nanshan and we can form a certain tacit understanding."

"Even if we want to compete, we won't make the price a cabbage price."

"VW, BMW, Mercedes-Benz and other models are basically developed in Europe, and the location of many parts is determined directly at the German headquarters."

"Even if Nanshan wants to compete, it won't be able to steal most of the shares in the short term."

Liu Zhenbo was also looking for some reasons to convince himself.

What else?

Previously, Infineon was persuaded to cooperate with Bosch to deal with Nanshan, but personnel from Bosch headquarters were invited to take action.

Now it's like this...

He didn't even know how to report it!

"Then let me contact Zeng Tingting of Nanshan Group first and find out what they say?"

Ren Cai hopes to end the current situation as soon as possible, otherwise it will be Bosch who becomes increasingly uncomfortable.

"Go!"

"When you come out to make money, it's better for everyone to discuss it!"

……

Nanshan Group, Cao Yang watered the dieffenbachia as usual.

Next to the dieffenbachia, there is also a pot of pothos and a money tree, which looks full of life.

"Mr. Cao, Bosch has given in!"

At this time, Zeng Tingting knocked on the door and came directly to report the good news.

"Bosch has given in?"

"There's no need for them to give in to us, right?"

Although Cao Yang is not afraid of Bosch's suppression, he is also very clear that Bosch, the world's number one in the parts and components industry, is not comparable to the current Nanshan Group.

Every industry has its own thresholds and circles.

Even if Nanshan’s QCD of all its products is No. [-] in the world, it is impossible to obtain orders from all OEMs.

There are even times when other developers just don’t want to spend time developing a new manufacturer, so they can directly find various problems and block you out.

For example, your noise is not up to standard, or your durability is not good enough.

Or just say that your quality stability is worrying, your mass production performance is not enough, etc.

Anyway, as long as you want to get stuck outside, there are always many ways.

There is no obligation for people to use Nanshan Group.

"This wave of price reductions caused by Modu General has put additional price reduction pressure on the procurement of many domestic OEMs."

"In this case, they are much more enthusiastic about introducing local manufacturers."

"It is estimated that Bosch also feels the pressure in this regard, so it wants to change this situation."

Zeng Tingting deals with so many customers every day, so she is naturally very clear about the situation in the automobile industry.

"What does Bosch want to do now?"

Although Zeng Tingting said that Bosch had relented, Cao Yang didn't think that the other party would come over and apologize to her.

That is simply an unrealistic request and makes little sense.

"Their sales director, as well as the sales director of United Electronics, want to come over and talk to us."

"I guess the purpose is to discuss our strategies for dealing with OEMs in the future and share a share of the pie so that the competition will not be so fierce."

"Mr. Cao, I think this is not impossible."

“It’s not a bad thing to be able to sell at a higher price and earn more profits.”

"It just so happens that the company is now entering the semiconductor field and needs a lot of profits to support development."

Zeng Tingting was afraid that Cao Yang was young and energetic, so she directly rejected the olive branch offered by Bosch, so she quickly expressed her opinions.

"If they want to talk, let's talk!"

"But in terms of the domestic market, we don't have much room for concessions."

"In terms of the international market, everyone can cooperate well and even share the cake directly."

Cao Yang knew very well that China would become the world's largest automobile market in a few years, and then it would be so powerful that no other country could catch up.

In this case, domestic market share is naturally the most important.