The Industrial Giant Reborn

"Sole proprietorship?" Qiu Ke said after a moment of silence: "I can't decide this matter, but I can report it. If it doesn't involve foreign exchange issues, I think it shouldn't be a problem."

"This is the best. The parts factory supplies SAIC-Volkswagen. Unless some raw materials need to be imported, it should not affect the foreign exchange balance, but the demand should not be very large. I think SAIC-Volkswagen should be able to solve this problem. After all, local production costs a little foreign exchange, which is much less than imported parts." Chen Zhiwen said with a smile.

In fact, it is very simple to solve this foreign exchange balance problem, just transfer some from anywhere. However, Chen Zhiwen is not prepared to do this. He built the factory himself just to save foreign exchange for SAIC Volkswagen and Shanghai Municipal Government, and it is not A little bit, the cost of importing auto parts from Germany is very high, and it all requires foreign exchange. And if your own factory can produce parts, so what if you spend a little foreign exchange?

As for the issue of sole proprietorship, after 1984, strict control has actually begun to be slowly relaxed. Especially cities that have opened up have the right to make their own decisions. As long as they are projects that can save the country foreign exchange, that is fine. There is no need to consider foreign exchange balances. Of course, the scale cannot be too large. If it is too large, it will need approval from the central government. However, Chen Zhiwen does not know what the critical line is.

Although it is possible to repurchase shares after the country allows sole foreign ownership in 1986, it would be more troublesome to do so. There are hundreds of factories, which is too much trouble. Especially if SAIC Volkswagen's business is better, then the repurchase will have to pay a certain price. , maybe it will also delay time. Even if it is a little troublesome now, they still need to get things done. Anyway, they are currently solving a big trouble for the Shanghai Stock Exchange. They should also find a way to solve their own requirements.

Yanjing's side was an early stage investment. At that time, it could only be a joint venture, and there was no way to change it. And if Yanjing's side hadn't invested so early, then I wouldn't have the opportunity I have today. I wanted to take orders from the public and invest. It’s a small matter. The large number of technical talents, management talents, and quality talents that Yanjing City has cultivated over the past few years are more important and are more recognized by the public. Otherwise, even if the public does not invest, the Shanghai Stock Exchange can completely support it on its own. Companies in your own city come to take orders, but this process is too time-consuming and energy-consuming. The German side may not be willing to accompany you to constantly review the quality and technology. And before the German side agrees, the country needs to fully import parts and components, so It will cost a lot of foreign exchange, maybe hundreds of millions of dollars.

Under this situation, no matter how much the Shanghai Stock Exchange wants to take care of its own companies, it cannot do so at the expense of hundreds of millions of dollars in foreign exchange. In this case, it can only invite companies from Yanjing that already have enough experience.

"This can also be discussed." Qiu Ke nodded and asked: "Mr. Chen, the companies you invested in Yanjing are also joint ventures, right? Then if they come to the Shanghai Stock Exchange and are sole proprietors, will they belong to you personally? Will there be any problems in this regard?”

"This is my business. After leaving Shanghai in a few days, I will go to Yanjing and we will resolve this matter together." Chen Zhiwen said with a smile.

Although supplying goods to the public is more important, it is nothing compared to the several things he will go to Yanjing to discuss. Besides, even if it is alone, he can still handle it, and he can do it by himself in Shanghai. If we set up a separate company and then send people to study in Yanjing, or transfer people from Yanjing for training, those joint ventures still dare to refuse?

"Okay, let's make the most basic preparations for the follow-up, and then we'll see how to arrange it." Qiu Ke nodded and said.

For others to invest in Shanghai, given Volkswagen's demand for many large parts, the other party will have to invest at least tens of millions of dollars. Naturally, such an investment cannot be decided immediately, and some of the other party's requirements require the approval of the Shanghai Municipal Government. , part of which requires the consent of Germany, which is not easy to achieve.

"Okay, I also hope that we can cooperate happily." Chen Zhiwen said with a smile.

How high can Yanjing Jeep’s future achievements be in China? Chen Zhiwen is not sure. At most, he said that it will be stronger than before in history, but it is hard to say how much stronger. Even if a car production line is introduced in the future, or even the British Mini is introduced if the acquisition is successful, then the most successful one may be A small part of the market can be obtained.

But it is very difficult to achieve the achievements of later generations of the public. If you can achieve only half of it, you will be very successful. Moreover, Jeep models are currently in demand and are even more practical than Santana. But when the domestic economy improves and the roads change, After that, the demand is reversed. Even in Europe and the United States, off-road vehicle enthusiasts are still a niche group.

Therefore, although Chen Zhiwen has ambitions for the domestic automobile industry, he is not arrogant enough to want to reach the level of household appliances or electronic products. Therefore, the auto parts industry is his top priority.

Among the world's top 500 companies in the future, the automobile industry will not only consist of OEMs, but also many auto parts companies. The most powerful of them can even compete with automobile manufacturers. Even if there is a quality problem, I will not admit it. For example, Bosch I once cheated Honda.

In the mainland market, which is like a blank slate, the auto parts industry is easier to develop and grow than the automobile industry. If you enter this industry early and have funds and certain R\u0026D technology, it is very likely to grow bigger. Once an industry is formed, After gaining popularity and scale effect, other automobile manufacturers entering the country will definitely prioritize these companies, and competing peers will also find it difficult to compete due to cost.

Of course, you can't eat it alone. There are too many things involved in auto parts, and even a god can't do them all. A part is enough.

If you want to achieve the expected goals, the best model is to rely on automobile factories to develop in the early stages. For example, follow SAIC-Volkswagen and become its supplier in the early stages, seriously solve problems for them, and provide good services. At the same time, he can also supply goods to the public, learn the management model and other advantages of the public, or be guided and reviewed by the public. These will be of great help to his company. These cannot be solved by Chen Zhiwen's money investment.

Three years ago, when AMC was just preparing to invest in Yanjing, Chen Zhiwen was playing this game because he knew that after Volkswagen came to invest in Shanghai, it would be too lazy to do it itself and could provide domestic companies with a supply. The opportunity for the audit is good, and this is the best time to fully enter the Volkswagen supplier. This is impossible overseas. For local German suppliers, a screw has to cost a lot to enter Volkswagen.

As long as this cooperation is successful and supply is stable, automakers such as SAIC-Volkswagen, FAW-Volkswagen and even General Motors investing in China will inevitably give priority to their own subsidiaries when they invest elsewhere.

After the formal discussion came to an end, and then after chatting casually with the senior executives of SAIC Volkswagen for a period of time, Chen Zhiwen left the factory of the future national automobile giant.

After returning to the hotel, Chen Zhiwen called Zhou Jiayang and told him all the previous events.

When he came to Shanghai, the most important thing was naturally to plan cooperation with Baosteel and SAIC Volkswagen in different fields. Even if these two companies did not invite him, he would ask to visit, but it was unlikely because, he I have known for a long time that Baosteel and Hutchison Whampoa have been in contact, and Volkswagen has also communicated with several parts companies in Yanjing City. However, it was just a trial between small people, and the efficiency was naturally low. Now my boss has come to Shanghai in person, Then the probability of these two companies inviting themselves is very high.

Both of these cooperations were related to Hutchison Whampoa, so he naturally asked Zhou Jiayang to come over from Hong Kong, along with Qin Zhihao from Red Bull, because the Red Bull factory is in Shanghai, and there are some things happening later that will involve Red Bull. .

Zhou Jiayang nodded and said: "Chen Sheng, the cooperation with Baosteel is also a good thing for our Christmas Creek Iron Mine. If the contract is signed, we can use this to borrow money from the bank, which can also reduce our costs." financial pressure."

"Rio Tinto doesn't have enough funds to invest in shares?" Chen Zhiwen asked.

"Looking at the entire project, Rio Tinto will have to invest almost US$1.6 billion before and after it takes the stake. However, if you want to develop this mine on a large scale, it may not be enough. Moreover, even Rio Tinto can only borrow such money from banks through loans. Big funds, as far as I know, Rio Tinto is now looking for more customers around the world, because the more customers it has, the more courage it can have and the scale of mining can be larger." Zhou Jiayang explained.

"Well, the mining industry is indeed very capital intensive." Chen Zhiwen nodded. Heavy industries are actually like this. They are extremely expensive. Ordinary companies simply cannot afford so much capital and can only rely on loans from large banks. What is mortgaged is naturally the minerals that can be developed in the future.

"So the more customers, the better. I have recently arranged for people to contact the world's largest steel groups. Even if the discount is higher, it is good to get the order first. Reduce the risk." Zhou Jiayang said.

"Well, okay, try your best overseas, and try your best to maintain good relations here at home. According to my speculation, if the domestic economy develops well, the demand for iron will inevitably increase exponentially. High-quality steel must have high-quality iron. Ore, this is our opportunity." Chen Zhiwen said.

Nowadays, in China, except for Baosteel, which has not yet launched, other places are manufacturing the most basic iron, and the demand for the quality of iron ore is not high. So when foreign exchange is tight, it is definitely impossible to buy overseas iron ore, but With the development of the economy, low-end iron ore cannot meet many requirements. In this case, imported iron ore has become a necessity for economic development, just like oil.

"Okay, I understand." Zhou Jiayang said.

"In addition, I have arranged for people to find suitable private steel mills in China for investment. Please pay attention." Chen Zhiwen added: "If possible, we can support promising local steel mills and arrange loans from Hisense Bank. , help them grow bigger, so that not only will there be investment income, but we can also indirectly cultivate new customers."

"No problem, I will focus on this matter." Zhou Jiayang replied, no matter what the future earnings are, things that the boss is concerned about must be focused on tracking.

"Well, regarding supplying goods to SAIC-Volkswagen, the Shanghai Municipality requires us to build a factory in Shanghai. I am willing to do this. However, to strive for the best interests, you also need to arrange a professional person to be responsible for this. Something." Chen Zhiwen said.

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