Rebirth in 1989: Creating the Chinese Technology Empire
Chapter 466: A billion-dollar business: setting up a chain trap for Boeing
"Mr. Frank, I'm here mainly for my airline. My China Star Airlines is China's civil aviation company. This time we want to purchase 200 short and medium-range passenger aircraft, your Boeing 737, Airbus' A320 , McDonnell Douglas's DC10 are all targets of our investigation..."
In the conference room, Xu Huasheng spoke first. When Xu Huasheng finished speaking, Frank felt so excited.
"Mr. Xu, our Boeing company is..."
Frank began to brag about the history of Boeing, while also showing off his sentiments, talking about the story between Boeing and China, etc.
In short, there is only one purpose, and that is to get this order. This order must not be taken away by Airbus or McDonnell Douglas.
Now Boeing, Airbus, and McDonnell Douglas are all living the same life, and they are all playing a game to see who can't survive first. The order in Xu Huasheng's hand may be the most important weight in the competition between the three major companies. Whoever can get this order can last longer, and even directly win China's huge market and become a super giant in civil aircraft.
"Mr. Frank, we also have several requirements for this order."
After Frank finished speaking, Xu Huasheng said with a smile.
"Mr. Xu, tell me, we at Boeing will definitely try our best to satisfy you..."
Frank nodded and looked at Xu Huasheng. Xu Huasheng looked at Frank with a smile on his face.
"First of all, this order must be assembled in China. We will establish an assembly company. You will provide the technology and we will provide the labor. For each aircraft, you will pay our company a certain OEM fee..."
When Xu Huasheng made his first condition, Frank immediately became furious.
"Mr. Xu, this is impossible. You Chinese people don't have such capabilities at all. Aircraft assembly is a very sophisticated project, and there is no room for error..."
Frank said directly, his face looked a little unhappy. Aircraft manufacturing is an industry that provides many high-paying jobs.
Boeing's employees have very high wages, which is something Boeing was once proud of. Now Xu Huasheng requires that this order be assembled in China, which is equivalent to giving the salary to the Chinese people. How can this be done?
"Mr. Frank, if Boeing cannot even meet the first condition, I think there is no need for us to continue talking. The reason why we purchased this batch of aircraft is not only that we need the aircraft, but also that we want to Drive employment in China and improve our relevant skills. If Boeing cannot satisfy us, we can only talk to Airbus, McDonnell Douglas or other companies. If all companies cannot meet this condition, then we will stop. After all, these aircraft purchases are not too urgent for us.”
Xu Huasheng said seriously. As soon as these words came out, Frank immediately withered. Now Boeing doesn't have the capital to be arrogant. Xu Huasheng is a customer, and Xu Huasheng is God.
Moreover, the aircraft Xu Huasheng bought was not a military aircraft. It was not even Boeing's most advanced civil aviation aircraft. It was just a short- to medium-range passenger aircraft like the 737. There were many competing products for this product.
At the very least, the product competitiveness of Airbus's A320 is not weaker than that of the 737. With Airbus's stubbornness, Airbus will most likely agree to the conditions that Boeing does not agree to. After all, the competition between Airbus and Boeing is fierce now.
Even if Airbus doesn't agree, McDonnell Douglas will agree. Now McDonnell Douglas has cooperated with Huaxia. The cancellation of the Huaxia Yunshi project is to make room for McDonnell Douglas, whose products have already begun to be assembled in China. It's just that the cooperation between McDonnell Douglas and China has not been very smooth in the past two years.
If Xu Huasheng gives this order to McDonnell Douglas, McDonnell Douglas will definitely satisfy Xu Huasheng with all sincerity. An order of 200 aircraft is not a small amount. What's wrong with letting Chinese people do OEM production? You can also make a lot of profits by flying an airplane.
Frank sighed, looked at Xu Huasheng's serious expression, and finally compromised in his heart.
"Mr. Xu, you can also do OEM and assembly work in China, but the employees must be sent from the United States. And the wages of these employees cannot be lower than their standards in the United States. They also need business travel subsidies and vacations..."
Frank spoke again, and Xu Hua laughed angrily again. This Frank is still holding up his airs. What the hell is Boeing doing now? He is still holding up his airs. He really thinks that his products are not worried about selling now. The supply exceeds the demand.
"Mr. Frank, this is impossible. We have the final say on the foundry company. Boeing can only send some technical instructors to guide our workers. Once our workers master the technology, they must leave. Moreover, the number of people and salary standards must be limited. It should not be much higher than their salary in the United States. The purpose of our founding company is to reduce the purchase cost of each aircraft, not to increase the production cost. Mr. Frank, the customer is God, if you can't even do this now. If it is clear, then I am afraid there is not much hope for our cooperation..."
Xu Huasheng's words made Frank want to punch someone. If it were before, he would not even look at Xu Huasheng. Where is China? In a poor place, can you build a big fly by yourself? Now China Civil Aviation Company still uses a large number of propeller aircraft.
In the past, when China purchased Boeing products, it had to pay several times the price, depending on Boeing's mood. But now, the situation is different, China has become God, and Boeing has become a poor guy praying for orders. In the past, Boeing had a queue of orders, but now Boeing has no orders. The situation has changed.
"Mr. Xu, continue to talk about your conditions..."
Frank said helplessly. Now he can only continue to listen, see what conditions Xu Huasheng and the others have, and finally hold a meeting to discuss it.
"The second thing is that you, Boeing, need to provide us with the technical standards and parameters as well as the corresponding quotations for the parts of the model we are purchasing. These parts are all that our Huaxia company can provide. At the same price, we must use the parts produced by our Huaxia company. Components. But don’t worry about the price. The components produced by us in China will definitely have a price advantage if they are of the same quality, which will actually reduce your cost of producing aircraft..."
Xu Huasheng put forward the second condition.
"no problem……"
Regarding this condition, Frank agreed without any hesitation. Because he knows China's capabilities and technical capabilities in manufacturing aircraft, he does not think China can provide too many aircraft parts. After all, aircraft is a high-tech industry, and the technical requirements for many parts are very high.
With Huaxia's technical capabilities, it is estimated that they can only provide some insignificant parts. They can't even make tires for aircraft, so they won't have any impact on the overall situation.
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