Rebirth 99 to become a car giant.

Chapter 438: Xingchen Automobile’s strategic change arouses doubts

For the auto market, the Golden Nine and Silver Ten are a very important period.

Many car companies will try their best to launch new models at this time.

This period is also a busy time for various automotive media.

There are several new car launches and test drive events almost every week.

However, for Xingchen Motors, no real new models have been launched in the past few months, and the sales department's task is mainly to develop marketing plans based on the existing ones.

However, for Xingchen Automobile Research Institute, the situation is different.

Xingchen [-] and Xingchen [-] are under intensive development.

In this case, Cao Yang called the main leaders together and prepared to announce a big strategic decision.

"BYD F3DM was launched some time ago. Although the sales data are not ideal, the fuel saving effect is really good."

"Compared with various FHEV models launched by Toyota, the fuel saving effect can reach more than 30%. Especially when driving on congested roads in urban areas, the fuel saving effect is even more obvious."

"In the future, I hope that Xingchen Motors' new car insurance will have hybrid derivatives, giving consumers one more choice."

The emergence of F3DM gave Cao Yang a sense of crisis for new energy vehicles.

It is now September 2008, and the era of electric vehicles is coming soon.

It is impossible for Xingchen Motors to passively launch related models when the proportion of electric vehicles is already relatively high.

So it is necessary to plan ahead and launch some models to slowly transition.

However, his plan is not exactly the same as BYD.

Although the fuel-saving effect of plug-in hybrid vehicles is more obvious, when charging is inconvenient, it is actually better to directly use FHEV, a hybrid that does not require charging.

After the production of the first generation of products is completed, it will be five or six years later.

At that time, PHEV, a version that requires charging, will be launched at the same time, allowing FHEV and PHEV to dominate the world at the same time.

When the next generation of products comes out, electric vehicles will begin to become popular.

Of course, this rhythm must be adjusted according to market changes.

For example, when it comes to electric vehicles, you can consider testing the waters with other brands first, or even set up a separate electric vehicle brand.

"Mr. Cao, the fuel saving effect of hybrid models is very good, but consumers who can afford Xingchen cars are not particularly interested in the topic of fuel saving."

"They care more about power performance and brand influence."

Zeng Tingting did not directly oppose the launch of hybrid cars, but she felt that the input-output ratio of this thing seemed a bit low.

Just find one or two models to launch a hybrid version to test the waters. If every model has a hybrid version, it seems to be a bit expensive.

"From a technical perspective, the hybrid systems of different models are similar. It's just that the power control system and motor can be adjusted, and the impact on research and development is not that big."

"And launching more models is good for reducing R&D amortization."

This time, Yao Yongxiang's point of view is different from Zeng Tingting's.

With more new models, the institute's business can become more diverse, its scale can become larger, and its influence can be further expanded.

So he very much supports Cao Yang's plan.

"Currently, the hybrid battery from Nanshan Battery has been developed and has been in small-scale mass production on the production line for two or three years."

"There are currently no problems with the hybrid system installed on the Starry Sky Sports Car."

"As long as some appropriate changes are made, it should be able to better meet the needs of various models in the future."

As the general manager of Nanshan Battery, Lin Cheng naturally hopes to see the battery business expand.

Just the little hybrid battery on the Star Sports Car cannot support the factory's production capacity at all.

In the past two years, Nanshan Battery has worked with Nanshan Equipment to jointly research the equipment needed for large-scale mass production lines of batteries, and now has the relevant equipment production capabilities.

But whether to formally build a large-scale battery factory needs to be planned based on the demand for batteries.

If Xingchen Motors doesn't launch a few models with batteries, Nanshan's battery production won't be able to increase, so the construction of a new factory has naturally been stuck in the planning stage.

“We have invested a lot in research and development in the past few years, especially in the hybrid system, from the engine to the gearbox, as well as the power control system, battery, high-voltage distribution box, battery management system and other parts. We have made great achievements. A major breakthrough.”

"It is indeed necessary to make good use of these achievements, so that everyone can once again see the strong technical strength of Nanshan Group."

Dai Hanbiao, as the general manager of Nanshan Auto Parts, naturally supports Cao Yang's point of view.

In recent years, a lot of Nanshan Group's R&D investment has been in Nanshan auto parts.

In particular, hybrids, plug-in hybrids, and parts related to electric vehicles have taken a lot of manpower and material resources to achieve breakthroughs. If they have not been invested in large-scale mass production, it will be difficult for everyone to realize the need for these R&D investments. sex.

The Finance Department also always feels that Nanshan's R&D investment in auto parts is too high and wants to reduce a certain proportion.

When everyone realizes the output of these inputs and the significance they bring to the group, attitudes should change.

"Until now, Mercedes-Benz, BMW, Porsche, Ferrari and Lamborghini have no hybrid or electric models."

"Our Xingchen Motors has finally established a high-end brand image. I am worried that the launch of hybrid vehicles will not only fail to further enhance the brand image, but will instead give everyone a not-so-good feeling."

The whole is not opposed simply for the sake of opposition.

If she didn't really have some scruples, how could she stand up and oppose Cao Yang's proposal?

"Minister Zeng's concerns are justified."

"So, not all of our new models will be hybrid models, but we will only introduce hybrid models while retaining the fuel models, so that consumers have more choices."

"Some people want to buy luxury cars, but they think they are a bit expensive to maintain."

"Hybrid models can meet the needs of this group of consumers to a certain extent."

"In addition, the acceleration performance of hybrid models in the starting stage is better than other models."

"To a certain extent, the power performance of hybrid models with the same displacement engine has improved."

"This is definitely a good thing for foreign consumers who pursue driving performance."

Cao Yang was very considerate and gave Zeng Tingting a step down.

Everyone is thinking about the company, and there is no need to put her in the wrong position just because she made suggestions.

Sima Yi once said: Look at a person's shortcomings, and there will be no one in the world to be friends with; look at a person's strengths, and everyone in the world will be my teacher.

It means that if you only see the shortcomings of others, then there will be no one in the world to interact with; if you can see the advantages of others, then everyone will be my teacher.

These words may not be particularly appropriate in today's context.

But it can be regarded as Cao Yang's attitude towards his subordinates.

Everyone has their own strengths and weaknesses, as long as they make full use of their strengths, that's enough.

"The main reason for the failure of F3DM is actually that the cost is too high, which makes plug-in hybrid models 8 yuan more than ordinary models."

"Originally, it was an economical car that relied on low prices to generate sales. After the price increased by 8 yuan, naturally no consumers were interested."

"But our Xingchen Automobile is different. No model has a price lower than 50."

"The cost has increased by RMB [-], but there is still enough room to absorb it in terms of price. Consumers' price tolerance is also relatively high, and they will not give up this model because of the tens of thousands of yuan difference."

"I even think that if the cost is 10, it shouldn't be a big problem if our hybrid version is directly sold for an additional 20."

"After all, in addition to low fuel consumption, hybrid models also have better driving performance and better quietness. This is something consumers can intuitively feel."

Yao Yongxiang once again added his own point of view.

Judging from his appearance, he wanted to fully implement Cao Yang's new strategy in today's conference room.

"If all new models in the future will be hybrid, then I think the company should simply announce a future strategy and hype up the concept of hybridization first. Only then can the maximum marketing effect be achieved when the new models are launched. "

Zeng Tingting felt the opinions of Cao Yang and various departments, and knew that hybridization must be done, and there was no point in continuing to raise different opinions.

So I quickly changed my perspective to think about the follow-up progress of this matter.

"Publicity work is very important. It is indeed necessary to change some consumers' concepts through various channels."

"The future strategic release will be left to the sales department and the general manager's office to handle."

For something like this that was obviously good for the company, Cao Yang naturally agreed without much thought.

All kinds of technical information are readily available, and Zeng Tingting has rich publicity experience.

So two days later, Xingchen Automobile's future strategy was officially announced to the public.

As the most dazzling automobile company in China, any movement of Xingchen Motors will attract the attention of many car companies.

This is even more true with the release of future strategies.

"Phillips, Xingchen Motors will focus on hybrid models next, which is completely different from our company's strategy."

"Do you think we need to mention the development of a hybrid system to the headquarters?"

BMW now regards Xingchen Motors as its biggest competitor in China.

So after seeing the future strategy released by Xingchen Automobile, we immediately organized manpower to analyze the meaning behind this strategy.

However, after analysis and analysis, Aimoha, the general manager of China District, became even more clueless.

So I threw this problem directly to Phillips, the president of the Asia-Pacific region.

"It cannot be said that hybrid models have no future at all, but the market response is just like that."

"Toyota launched mass-produced hybrid models more than ten years ago, but until now, their sales have continued to increase, and it is not the contribution of hybrids."

"I don't think the company has any interest in developing hybrid models."

Phillips knows the big guys at the headquarters quite well.

BMW technicians are proud of themselves.

It will not easily follow the designs of other car companies.

Otherwise, we would have developed hybrid technology long ago.

"If other models besides Xingchen Automobile announce their own hybrid strategy, I wouldn't particularly care."

"But Xingchen Automobile is different from ordinary companies. They can always bring something unexpected."

<divclass="contentadv">"I am worried that hybrid models will bring about some huge changes in Xingchen Automobile in the future, the kind of changes that are not good for us."

I have to say that Aimoha has been in China for so many years and has a very keen sense of the market.

From this action of Xingchen Automobile, he could feel the crisis.

"Don't deify the Star Car."

"They just have some unique technical advantages in engines and gearboxes, coupled with good model appearance and marketing plans, so they have achieved their current results."

"This situation may not last forever."

"After all, to be a luxury brand, you still need to look at the foundation."

"Otherwise, American car companies would have surpassed us long ago."

Phillips said with some disdain.

This made Aimoha not sure how to refute.

After all, what Phillips said is not completely unreasonable.

The same conversation is also happening inside Mercedes-Benz China.

"Yang, what do you mean by Xingchen Automobile? Why did you suddenly announce such a strange future strategy?"

As soon as August saw the news, he called the sales director Yang Ming to him.

He wanted to find out the true purpose of Xingchen Car.

"Xingchen Motors' Starry Sky Sports Car has already used Nanshan Group's unique hybrid technology. For Xingchen Motors, hybrid technology is not a completely new thing."

"There are now rumors that China will promote the reduction of comprehensive fuel consumption of automobiles and encourage various car companies to launch models with small displacement and low fuel consumption."

"Perhaps Xingchen Motors has received some news in advance, so it wants to make some efforts on fuel consumption."

"After all, the fuel consumption of hybrid vehicles can basically be reduced by more than 30%."

"This is quite meaningful for Xingchen Automobile."

Yang Ming explained his views from another angle.

In his view, all actions are for better development.

If Xingchen Automobile will formulate such a future strategy, then the other party must think that developing according to such a strategy will be more beneficial to Xingchen Automobile.

"I have indeed heard about this matter. It is estimated that it will be officially announced within this year."

"However, the models produced by Xingchen Automobile have a minimum displacement of 3.0T. I think the policy announced by China this time will not suppress Xingchen Automobile too much."

"Small displacement should be encouraged, but large displacement may not necessarily result in additional penalties."

When August said this, Yang Ming couldn't help but nodded.

Logically speaking, this is indeed the case.

If Chinese car companies cannot produce large-displacement engines, these engines will all be imported.

In order to encourage the downsizing of vehicle engine displacement, the relevant consumption tax and other taxes on models equipped with large-displacement engines will definitely be much higher.

But now that Xingchen Motors is China's largest large-displacement engine manufacturer, China's attitude will definitely be different when formulating policies.

You can't do anything like swinging a knife into the palace, right?

This is not about killing a thousand enemies and doing a hundred and eighty losses to yourself.

"So under this circumstance, Xingchen Motors announced its future strategy and expressed the company's efforts to reduce fuel consumption."

"This can also be regarded as an explanation to China."

The more Yang Ming talked, the more he felt that his initial view was correct.

There must be a reason why Xingchen Motors announced such a future strategy so suddenly.

And if this reason is related to some policies that will be announced soon, the logic seems to make sense.

"Xingchen Automobile has put a lot of manpower and material resources into the direction of hybrid systems, which is the first good thing for us."

"The rate of technological advancement of their engines and gearboxes will definitely drop by then."

"Even the research and development of some new technology parts will be affected to a certain extent."

"The most important thing is that after spending a lot of manpower and material resources, hybrid models still can't be sold. That would be interesting."

August couldn't help but smile on his face when he thought of this.

He is not optimistic about Xingchen Automobile's future strategy at all.

But he will certainly not express this view in front of the media.

The best thing is that Xingchen Automobile can unswervingly develop in this direction, and then the competitiveness will become lower and lower.

However, not everyone in every company thinks the same way as August.

Inside BYD cars, the situation is completely different.

"Mr. Cao's vision is still very good. We only launched an F3DM, but Xingchen Motors announced so quickly that all future models will have hybrid versions."

"This courage is much greater than mine."

Wang Fu naturally also saw the news about Xingchen Automobile's future strategy.

At that moment, he felt a little sympathy in his heart.

There are so many car companies in China, and it seems that except for Xingchen Motors, no other car company has made any substantial moves in the field of hybrid and electric vehicles.

Various so-called electric vehicles are basically experimental or buses.

This property is completely different.

"Mr. Wang, Mr. Cao is so determined to make Xingchen Automobile carry out strategic changes. This basically proves your previous thinking that electric vehicles and hybrid vehicles are the future."

"If we continue to develop on this path, there will be no problem in becoming the leader of domestic independent brands in the future."

Although Wu Huabing did not fully support Wang Fu’s new energy strategy before.

But BYD has already determined this development direction internally, and naturally it can only do things in accordance with this development direction.

Even his thinking changed very quickly, and within a few days he began to think about problems from Wang Fu's perspective.

“Electric vehicles represent the future, and few companies will deny this.”

"But most people believe that the era of electric vehicles will not come so soon. At least within ten years, electric vehicles will not yet have the conditions for large-scale popularization."

"It takes a lot of courage to make a decision to transform under such circumstances."

"It seems that it is not an accident that Nanshan Group can develop to its current scale."

Wang Fu couldn't help but feel a little anxious in his heart.

When no one understands your direction, it feels a bit uncomfortable.

But someone understands my idea, and when someone comes to compete with you, the mood is a bit complicated.

Facing competition from other companies, Wang Fu is confident that he can lead BYD to defeat them.

But if the opponent this time is Xingchen Automobile, his confidence will not be so sufficient.

As both a company in Lingnan Province, BYD pays great attention to Xingchen Automobile.

There are also very close ties with Nanshan Group.

Under this situation, Wang Fu naturally knew that Nanshan Group had invested a lot of resources in the fields of batteries, power control units, etc.

Even Nanshan Equipment already has the production capacity of the equipment needed for the production of batteries and most key parts.

"Mr. Wang, should we find an opportunity to go over and talk to Xingchen Motors to see what their views are on the market for electric vehicles and hybrid vehicles?"

Although Wang Fu has already formulated the next strategy, Wu Huabian actually has many questions in his mind about how to implement these strategies.

If we can find an opportunity to communicate with Xingchen Auto, that would definitely be the best thing.

Wang Fu also understood this truth, and he also wanted to hear Cao Yang's opinion.

So I agreed to Wu Hua Cake’s proposal without much hesitation.

He even picked up the phone directly and made an appointment for tomorrow afternoon.

"Mr. Cao, BYD's response is quite fast."

Mi Ying was sitting next to Cao Yang and heard clearly the content of the phone call from Wang Fu just now.

Star Motor's future strategy has been released for two days, and there must be many people who have questions about this strategy.

But so far, there are no companies like Wang Fu that take the initiative to visit us for exchanges.

"Mr. Wang's vision is still very good. BYD was already doing very well in the field of consumer batteries, but he thought of building cars."

"For BYD, it is completely a second venture."

"After several years of hard work, BYD's car-making business has been considered successful. Mr. Wang quickly mentioned new technological development directions."

"This transformation is still very rare."

Cao Yang still admired Wang Fu quite a lot.

This is a technical expert and business expert who really has a long-term vision.

Although BYD has been able to develop to where it is today, it is definitely not that good in terms of employee compensation and benefits.

However, among domestic companies, it is still very rare for companies to attach such great importance to technology and continuously engage in technological innovation.

"Indeed, I heard that their R&D investment in recent years has been on par with ours, and they want to invest 10% of sales in R&D."

"It's still very difficult."

BYD's shareholders may not agree with Mi Ying's view.

Some investors even hope that BYD can reduce R&D investment and increase net profits.