Chapter 341 Shanghai Auto Begs for Mercy
"According to an old classmate, the Santana inventory at Shanghai Auto has been overstocked since the beginning of the year, and now exceeds 60,000 units.
As for the price, the current news is that Volkswagen's opinion is to set it at 7 yuan, which is basically five times the cost.
However, Zhang, the factory manager of Shanghai Auto, wanted to set the price at 16 yuan, as the issue of pricing has been deadlocked for several months.
Moreover, this matter has already been brought to the attention of the ministry, and now everyone with a different opinion has his or her own reasons.
At this point, price is not the most critical point.”
Ji Pengwei held a thick document in his hand and kept flipping through it.
“First of all, most of the parts cannot be produced domestically by Shanghai Auto.
After all, the newly-acquired machine tools and equipment were first supplied to FAW, Second FAW, and BAIC, which has a closer relationship and a closer location.
Later, GAC started the project and the main support was placed on us, so the equipment of SHAC has never been considered good.
This situation was exacerbated by Volkswagen's requirement to use custom-made machine tools and equipment imported from Hans.
Then comes the after-sales service. Currently, domestic cars are basically supplied to government agencies, enterprises, institutions and the military.
These units have cooperative or their own auto repair shops, so daily maintenance, servicing, and repairs are very convenient.
This time Shanghai Auto is planning to completely open up sales to the whole country, so maintenance, servicing and repair will be a big problem.
After all, we are dealing with the whole country, and it is impossible for cars from all over the country to be sent to Shanghai for repair.
Next is the gas station.
This is more troublesome than maintenance and upkeep.
In previous years, fuel was controlled by the state, and tickets were issued according to demand for refueling.
If the policy is relaxed and everyone and every vehicle in society is allowed to refuel, it will have such a huge impact and workload considering the current number of gas stations in the country.
It cannot be supplied in a short time.
Not to mention that the level of oil extraction and refining in our country is very poor.
The Dongfeng and Jiefang models of FAW and Second FAW often have problems, and the carburetors are always breaking down, which is closely related to the oil quality.
Moreover, if they are sold at a low price, with so many cars suddenly appearing in the country, it will be a big problem whether there will be a shortage of fuel.
Finally, Shanghai Auto must be aware of the conditions of the vehicles produced by our factory.
They are worried that while we are attacking him, we will also destroy the foundation they have laid. So far, we have not come to a conclusion yet. "
Soon, Ji Pengwei explained clearly the reasons why Shanghai Auto was delaying its listing.
In fact, Fang Xiang is very clear about these things.
But Fang Xiang always believed that this was not the reason why Santana was sold at a high price.
That's why there was such a big reaction when we heard that Shanghai Auto was going to form a joint venture with Volkswagen.
These reasons are actually easy to explain. After all, there are objective factors here and we can understand them to some extent.
But Fang Xiang was extremely indignant at the fact that Volkswagen had taken so much money from the country.
I have worked hard for so many years and earned so much foreign exchange from abroad.
And then you, a member of the public, make all the money? Am I not the one who got taken advantage of?
"The inventory of Hongguang and Beidouxing, which we are planning to sell in China, now exceeds 50,000 units.
Originally, the financial pressure was quite great, but a while ago, we transferred 100 million yuan from abroad, so now the funds are not a problem.
Should we continue to wait?"
Seeing Fang Xiang still holding the tea in silence, Ji Pengwei couldn't help but ask a question.
"Well, no hurry, keep waiting.
A Santana is not a big deal. Gas stations and after-sales service are actually a bigger plate.
The department is probably also having a headache over this issue, even more than over pricing.
Just wait and see. "
Fang Xiang shook his head.
At the beginning of the year, he kept a series of cars including Hongguang that were ready to be sold in China, waiting for Santana.
That’s right, Shanghai Auto’s worry about being sniped by GAC is not groundless imagination.
Fang Xiang really planned to do so.
However, although the car is easy to sell, the series of subsequent problems are the big problem.
Moreover, the department was also aware that Fang had been keeping the car but had not sold it.
Only Shanghai Auto was kept in the dark.
As a mid-size car, the cost of Santana is actually only a few thousand dollars, which is just over 10,000 yuan in RMB.
But in the world, it is considered high-priced. More expensive than the BMW 3 Series!
There was once a rumor in China that Santana was sold for $5000 abroad, but sold for more than $ in China, which was a bloodsucking business.
But in fact, this matter is really unfair to others.
Santana also sells knives in the United States, okay?
Of course, it is also true that Americans don’t buy it.
After all, BMW's current selling price is the same worldwide.
就比如115基础款售价就是5000刀，320基础款是9000刀，530基础款是刀。
Yes, now that Reagan is in power, a large amount of US dollars have been over-issued, and now international money has gradually begun to depreciate.
Correspondingly, prices began to rise, and BMW was no exception.
But in fact, BMW's cost is far lower than the selling price. If converted into RMB, it would be like this.
But who can blame BMW for being a luxury brand now? Why is it so hard to get one?
As for the price increase?
This is not a first for China. BMW is now increasing prices all over the world, but how much depends on the conscience of local dealers.
Therefore, in Fang Xiang's eyes, as long as he dared to sell Santana for more than yuan, he would be stealing money.
Because the factory price of BMW 320 is only over 8000.
Converted into US dollars, according to the official exchange rate, it is only 4000 US dollars. It is sold for 9000 US dollars abroad, which means the profit is doubled.
Of course, Second Automobile Works certainly cannot make that much money. The bulk of the profits still go to agents and dealers, who earn about 30 to 40 percent.
In fact, the profit margin of Second Automobile Works is only a dozen points.
In previous domestic purchases, Fang Xiang always added a small profit on top of the ex-factory price.
The main purpose is to earn foreign exchange.
Therefore, no matter how much Santana sells for now, it is a project and product that is doomed to fail.
As for the talk of attracting investment and setting an example, Fang Xiang actually scoffed at it in his heart.
It’s okay to attract investment in other industries, but it’s the automotive industry that’s being neglected.
Isn't this equivalent to waving a sword in front of Guan Gong?
"Ring ring ring..."
Just when Ji Pengwei was looking at Fang Xiang and wanted to say something.
The phone in front of Fang Xiang suddenly rang.
"Hello, is this Xiao Fang? I'm Lao Yang."
After picking up the receiver, it turned out to be Yang Bu from the Ministry of Machinery Industry calling.
"Mr. Yang, how come you have time to think of me?"
Fang Xiang made a gesture to Ji Pengwei and then put on a smiling face.
Although they were asking questions, Fang Xiang and Lao Yang knew in their hearts that the company was talking about Shanghai Auto.
"Hahahaha, there is something I really can't get around you. I can only reluctantly be a peacemaker."
Mr. Yang laughed first, then went straight to the point without further ado.
"Look at what you said. I'm staying in Guangzhou, driving my car honestly. How can I block anyone's way?"
Fang Xiang also laughed. Look, Mr. Yang called to discuss the terms.
Of course, we should still be humble when we need to be humble.
“Hey!~
It would be fine for other people, but Xiao Fang, you are a great Buddha now.
Who among those working in the automotive industry in China doesn’t know you?
Speaking of which, Shanghai Auto has been arguing with me for several months now.
There is really no other way, I can only beg you for mercy, right?"
Mr. Yang actually knew that Fang wanted to know, but he couldn't say that.
Even if we ignore the people behind Fang Xiang, Fang Xiang himself is a big rock that cannot be ignored.
If Shanghai Auto wants to continue according to their ideas, it really needs Fang Xiang’s approval.
However, no one else has the right to say these words to Fang Xiang.
Mr. Yang had no choice but to go up by himself.
"Mr. Yang, you think too highly of me. How can I be so capable as to stop Shanghai Qi?
They can do whatever they want, and the most I can do is just take advantage of their opportunities and ride on their coattails."
Fang Xiang was no longer a child, so he nodded and gave way obediently at Yang's words.
If he doesn't give some benefits or spits out a mouthful of blood, wouldn't Fang Xiang be wasting the 10 billion investment? !
joke!
