Chapter 3520 is considered a capable person

Ye Chen strongly agreed with He Yuanjiang's ideas.

He doesn't want to be a profit-driven businessman, nor does he want to be a good person who goes against business logic. He hopes to achieve a win-win situation with consumers, produce good products, and ensure that the products he produces are the most cost-effective on the market.

If based on this original intention, the profit margins of all Changying Automobile products must be kept at a relatively low level.

What He Yuanjiang advocates is to control the profit margin.

On this point, the two of them agree on something.

So, Ye Chen said to him: "Professor He, do as you think is right. We must make Changying Automobile a national brand that the Chinese people can be proud of!"

He Yuanjiang nodded heavily and said sincerely, "Since the car is named after your father, I will definitely do my best to live up to his lifelong reputation!"

After that, he said to Ye Chen: "Master Ye, please give our new car a model name. Our competitors have models starting with M, S, L, and E. Each has its own set of logic. We also need different model numbers to distinguish different types and models."

Ye Chen smiled and said, "I'm not an expert in this either, so you guys should do it."

He Yuanjiang said, "Master Ye, actually, this doesn't matter whether it's specialized or not. It's just a name, so you can choose anything you want. Many of our competitors just use one letter and a number, and some use two letters and a number."

Ye Chen thought for a moment and said, "Since it's named after my father, let's use the initials C of Changying. We're going to make sedans and SUVs, and very likely commercial vehicles and minivans in the future, so the last digit can't be just one, it has to have at least two."

He paused for a moment and said, "How about this: sedans use odd numbers and SUVs use even numbers. The first car is a mid-to-large car, so we'll name it C07. In the future, if we release a larger car, it'll be C09, a smaller car will be C05, an A-segment car will be C03, and a microcar will be C01."

"The same goes for off-road vehicles. If the next model is also a mid-to-large SUV, it will be called the C06. The next level up will be the C08, and the next levels down will be the C04 and C02. If we also launch a commercial vehicle, it could be named the C10."

He Yuanjiang nodded. "Okay! Simple, clear, and logical. Let's do as you say. The first car will be called C07."

After that, he made a gesture of invitation and said with a smile: "Master Ye, let me introduce to you some key technologies of the body-in-white of our first car."

Ye Chen asked him: "What does body in white mean?"

He Yuanjiang said: "It can be thought of as the skeleton of the car. We first build the body-in-white (BW) framework, and then fill it with flesh and blood. The size of the BW, like the human skeleton, determines the longitudinal dimensions of the person. In the future, we will install the doors, front and rear hoods, and anti-collision beams, and that will be the final size of the car. The technology, materials, and sturdiness of the BW determine the car's crashworthiness and safety factor. The one-piece die-cast battery compartment at the bottom determines the size of the battery it can accommodate. Once the BW is finalized, the main framework will not be changed, with only minor adjustments made later."

Ye Chen nodded and asked him: "Is there any breakthrough technology here?"

He Yuanjiang said truthfully, "In the automotive industry, there isn't any groundbreaking technology yet. What we can do is ensure that the materials used are strong enough and the technology is advanced enough to make the cars safe enough. Therefore, the main frame of our body-in-white is currently made of integrated aluminum alloy die-casting. We have upgraded Gao Heng's original production line and the die-casting machine we currently use is the most advanced 1.6-ton die-casting machine in China and even internationally."

"In addition, our car body welding is all done with the most advanced robots in the world. The assembly and painting processes are all integrated with the best international solutions. The hardware and software adaptation team is also the best in China. Therefore, when our car goes into mass production in the future, its completion will be far ahead of products of the same price."

Ye Chen asked curiously: "So, making a car actually depends on the ability to integrate resources."

"Yes." He Yuanjiang nodded and smiled. "The ability to integrate resources determines the technical limit of the product. If we can integrate the best individual technologies on the market, then the overall level will not be too bad."

"In addition, another very important capability is the ability to integrate the supply chain."

"Because the core logic of car manufacturing is the assembly and reproduction of countless parts and solutions, from aluminum and steel to motors, batteries, seats, steering gears, suspensions, tires, and even the inconspicuous wiring harnesses hidden in the car body, all need to be screened and integrated from the supply chain;"

"This ability determines the lower limit of product costs. For example, different restaurants can make the same dish, even if the ingredients and service quality are the same, but the cost will not be the same. This is because everyone's bargaining power varies. A chain restaurant with large volumes has lower procurement costs for all ingredients than an average restaurant, so the cost of making the same dish is lower than that of an average restaurant. However, if a restaurant can find an authoritative figure in the vegetable supply field, who has great influence and status in the vegetable supply industry, then they may be able to get a lower price than even the big restaurants can. To put it bluntly, it requires strong bargaining power to convince suppliers to take a lower profit from us."

Ye Chen asked him: "Then what are our capabilities in these two areas?"

He Yuanjiang said, "Master Ye, regarding resource integration capabilities, we can be said to be number one in the domestic automotive industry. This is because your grandfather has a great influence in the global trade market. With the An family's help, we can obtain equipment and technologies that many other manufacturers cannot."

At this point, He Yuanjiang added: "As for our supply chain integration capabilities, based on our current discussions, we wouldn't say we're far ahead, but we can maintain our position in the first tier. Suppliers are very optimistic about Changying Auto's future development, so even though we haven't had any mass-produced cars roll off the assembly line yet, they can still supply us with the same conditions as top OEMs."

Ye Chen thought for a moment and asked him: "Major suppliers, do we still have room to lower prices further?"

He Yuanjiang said, "Currently, the largest single cost item for a vehicle is the battery power system. Your grandfather and second uncle have already started planning the production of power batteries. Once they are completed and put into production, they will definitely cooperate closely with us. Other suppliers are too diverse, and most are domestic manufacturers. For chips, they are Qualcomm and Nvidia. The body safety systems are mostly provided by German suppliers, the tires come from French suppliers, and the brake systems come from Italian suppliers. Overall, the bargaining power of European suppliers is not very high."

Ye Chen smiled slightly: "Whether the bargaining space is high or not depends on who is negotiating. Whether you go or I go, I'm afraid those Europeans will not give us face. However, I do have a friend who can help mediate. If he comes forward, I believe that European and American suppliers will definitely agree."

He Yuanjiang asked curiously, "Mr. Ye, if you know such a capable person, why not let him join Changying Automobile and take charge of our supply chain?"

Ye Chen smiled and said, "I plan to let Steve Rothschild, the heir of the Rothschild family, help us negotiate the price. This guy is indeed a capable person. It's definitely okay for him to help us privately, but if he is asked to join Changying Automobile, that would be a bit too magical."

He Yuanjiang exclaimed, "The heir to the Rothschild family?! Oh my God, half of those foreign suppliers I just mentioned are actually industries actually controlled by their family. This is no longer just a capable person, this is a very capable person!"

"Really?" Ye Chen suddenly said in surprise: "That's great, Comrade Steve Rothschild has finally found an opportunity to show his talent! I'll call him later and ask him to come out and say hello to those suppliers."

He Yuanjiang said happily, "That's great! If we can further reduce the cost and lower the price, the car's cost-effectiveness will be even higher. Maybe we can really create a few national masterpieces!"