Chapter 1634 [Chasing and beating him to death, completely subduing him]

It has to be said that sometimes luck is unstoppable.

BBA's series of operations almost pushed customers to Xingyu Technology and Tongtai Automobile Group. Many old BBA customers were so angry that they directly ordered one of Xingyu Technology's four major car series or Tongtai Max.

As the saying goes, there is no harm without comparison. When Xingyu Technology's offline stores were hung with banners by old customers, they directly helped to hang the banners, and also gave free meals, water, watermelons, etc. In the end, the customers themselves were embarrassed. After eating, they wiped their mouths and closed the banners and left.

After that, Xingyu Technology quickly announced an after-sales upgrade service plan, and the quality of after-sales service was really amazing.

In contrast, these traditional luxury brands, terminal sales are arrogant in front of customers. The key is that the current products are no longer good, but they are still immersed in the days more than ten years ago.

With this series of operations by BBA, domestic brands such as Xingyu Technology and Tongtai Automobile Group are almost lying down to gain big points.

But then again, luck is one thing, but in the final analysis, it is still necessary to forge iron with strength. If the same situation had happened more than ten years ago, no domestic auto brand would have been able to handle this luck.

But now it is different. The times have changed. Dongda's high-end industrial manufacturing upgrades have exploded, and the emerging domestic brands are chasing foreign brands. Without this hard power, they will not be able to handle the benefits brought by the opponent's stupid moves.

In fact, it is not just in the automotive field, but also in other fields. Whenever foreign brands make serious mistakes, domestic companies have been able to handle the traffic from the sky.

Judging from the current situation in the automotive market, the problem faced by foreign auto companies represented by the BBA series of brands in the Greater China market is: they want to roll but cannot win!

In the current domestic automobile market, when all players are competing for price, configuration, and product strength, the risks for foreign automakers such as BBA to go against the trend are extremely huge. Once the car price is lowered, it is difficult to go back up. Forced price increases will eventually be educated by the market, unless the car model has strong enough product strength and irreplaceable attributes.

But at present, neither the BBA series of cars nor the automobile products of the Korean version have these characteristics.

On the contrary, the products of domestic Xingyu Technology are irreplaceable with its unique global intelligent driving and many innovative technologies, because other car companies are unwilling to hand over the so-called "soul", which gives Xingyu Technology's products irreplaceable attributes.

Although BBA's withdrawal from the price war seems to be to reduce the losses of dealers, the impact of this decision must be beyond expectations.

Even in the early stage of withdrawing from the price war, some consumers who are waiting to buy may place orders in advance to avoid price increases, which may lead to a short-term increase in orders, but this is ultimately a "false prosperity" and will soon be broken by the reality of the market.

With the price increase, the terminal selling price is obviously higher than that of competing products such as Tongtai Max, which will undoubtedly weaken its market competitiveness. It will not only fail to boost the final sales volume, but is very likely to aggravate the loss of market share.

In fact, the BBA brands are not unaware of the interests involved, but there is no way, really no way, it is more like a broken jar, lying flat and letting it rot.

Because they are facing a very typical prisoner's dilemma. If they withdraw from the price war and other competitors continue to cut prices, they will lose their market advantage and sales will decline. However, if they continue to maintain the price war and follow up with price cuts, they will eventually fall into the dilemma of micro-profits or even losses.

In order to solve this problem, cost control ability has become a key factor. There is really no better way besides this.

This is also the reason why Fang Hong wants to beat BBA and other foreign brands to death, and will not give them any breathing space, just to force them to take the initiative to reduce and control costs.

So how to do it?

Of course, BBA laid off employees at the European headquarters, closed factories in Europe, closed factories in North America, and laid off employees in the North American branch, because the operating costs in these places are very high. In short, lay off employees and close factories in places with high costs to save money.

Then what to do?

Of course, they will increase investment in the Eastern giant, build factories here, expand recruitment, and move all the production capacity in Europe and North American to Dongda, because Dongda has low costs. Only in this way can they control costs and reduce costs, and barely have a competitive force.

Otherwise, wait for death!

And they will definitely do this, because if they don’t do this, they will really die, unless they really want to die!

Amei is now increasingly trying to make Da Mao and Er Mao fight each other, so as to prompt European capital to flee to North American, including European manufacturing to North American.

But the largest consumer market is in the East, and the most critical thing now is that BBA and other European car companies cannot do without the Greater China market. If they leave, they will die. Now they are almost dead. Capital in Europe, including manufacturing, is transferred outward, so it is impossible to go to North America, but only to the East.

If BBA goes to North America to recruit workers and build factories, the cost may be higher than in Europe. How can they control the cost? If they can't control the cost, the prisoner's dilemma will be unsolvable. How can they survive in the Greater China market? Now they can't win, so they might as well die.

So Fang Hong's strategy is very clear. First, chase and fight to the death. The more intense the intensity, the more car companies such as BBA will come to Dongda for additional investment, while laying off employees and closing factories in Europe, and then not moving to North China, but to the Eastern giant.

This will inevitably lead to the further hollowing out of the overall industrial manufacturing in the Western countries. As one thing grows, the other shrinks, and Dongda's industrial manufacturing is further strengthened.

Then, let Xiao Dezi's Industry 4.0 become Industry 0.4 and then further become Industry 0.04. In this way, Fang Hong will carry out the next strategy to further squeeze their living space, so that they will eventually have only one way to survive.

At that time, the greater sunk cost investment, in the words of stockholders, is to be completely deeply trapped. Closing factories in the Greater China market and laying off employees is equivalent to the direct bankruptcy of enterprises, because the cost of going to other places cannot be reduced, and the cost will skyrocket after all this tossing.

Even if the factories are all in the Eastern giant and the cost has been reduced, it still won't work, and it will still die, because the products are not competitive.

In the future, the difference between automobile products with or without intelligent driving systems is almost the same as that between feature phones and current smartphones. Who still uses so-called feature phones now?

However, their own intelligent driving systems and new energy technologies cannot compete with Xingyu Technology, and they cannot compete with the companies of the Eastern Power, so they still have to die.

Moreover, they are only hunted in the Greater China market, and they are dying. Later, they have to chase them in the global market. They don’t have to enter the European magnesium market. If they directly take the share of the global non-magnesium Western market, they will have no possibility of survival. It is conceivable that they still have a way to survive?

Only by accepting the so-called "soul" soul handover and introducing Xingyu Technology's intelligent driving system and many new energy technology standard solutions can they survive. This is also a sign that Dongda will give you a meal. There is no choice. If you want to survive, you have to do this, otherwise you will die. There is no third way.

…