Chapter 501: Companies banding together for warmth (Chapter 500~)
"This Xingchen Group has to scare us! In just three years, it has become one of the top five automobile companies in the world! Not only has it completely captured the Chinese automobile market, but its sales have exploded in markets around the world." one shareholder sighed. I don’t know whether it’s admiration or self-deprecation or feeling sorry for my company.
"Yes, many outsiders say that Xingchen Automobile Company will be the end of the era of fuel vehicles! It has indeed shown its powerful fangs."
"The other party's electric vehicle technology really puts us under tremendous pressure, and this pressure is infinite. The gap between our electric vehicle technology and that of the other party is too big."
"How is the implementation of our company's new energy vehicle plan going?"
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"The effect is average. There has always been a huge gap between us and Xingchen Automobile Company in terms of car batteries and car electric motors. We cannot develop technology as good as Xingchen Automobile Company. Even narrowing the gap is a luxury."
"I heard that Xingchen Automobile's profit this year is No. 1 in the world! But sales are not No. 1."
"Oh, tell me?"
"Sato Kojiro, please do some research on the situation of Xingchen Automobile Company."
"yes!"
"This year, Xingchen Motors sold a total of about 10 million Xingchen cars worldwide. The total sales revenue was more than 220 billion U.S. dollars. The net profit reached an astonishing more than 80 billion U.S. dollars!"
"At present, Xingchen Automobile's market is mainly in China, Europe and the United States. The reputation is very good!"
"Nani? The turnover is only more than 220 billion US dollars, but the net profit can reach more than 80 billion US dollars? Did I hear it correctly?"
"Hiss...this, this is impossible! More than one-third of the profit?"
"The other party's cost is so low?"
"The profit is so high? Is it so high that no one has ever done it before?"
This profit ratio is really scary.
At that time, their company sold 10.38 million cars a year, with an annual turnover of US$254.7 billion and an annual net profit of only US$16.8 billion.
Xingchen Automobile Company only has a turnover of more than 220 billion US dollars, but can actually earn more than 80 billion US dollars in profits.
This comparison is too scary, right?
Among many car companies, Toyota's net profit has always been the highest among all car companies. It was widely rumored at that time that the most profitable car company was none other than Toyota.
Because Toyota has seriously reduced parts, profits will naturally be high. Toyota cars are indeed a little thinner than Volkswagen cars in terms of body material selection, but this thinness does not make much difference in terms of driving safety. It is just that the Toyota car is damaged in the event of a collision. The degree is more obvious. Such a large profit gap is not entirely reflected in the choice of body materials, but more importantly, the labor cost and sales cost...
The second is Toyota's lean production concept, which is - if you can reduce one process, you must reduce it to the maximum extent, if you can reduce one position, you must reduce it to the greatest extent, and if you can reduce one screw, you must reduce it. This is why they are so profitable!
But now they are compared with Xingchen Automobile Company. Damn, the comparison between people is really irritating!
But they are very puzzled, why is the profit rate of Xingchen Automobile Company so high? Almost half and half proportions.
In fact, these are all due to Qin Hailang’s intelligent fully automatic production line.
The first automatic intelligent production line only needs to put in raw materials to produce cars. First of all, it saves a lot of money in processing various parts. Because Xingchen Automobile Company does not need to produce or purchase spare parts at all.
For example, after directly throwing in the raw materials rubber, steel, alloy, etc. The production line can produce engine wiring harnesses, tires, plastic interiors, metal parts... and so on. That’s how awesome! It's just so unsolvable.
The second is that it does not require a large number of workers and saves a lot of wages. From this point of view, it also saves costs greatly.
This is why the profits of Xingchen Automobile Company are so high!
"Yes, Xingchen Automobile Company currently ranks first in terms of total sales volume, but it also ranks first in sales volume. Its profits directly rank first in the world!" Sano Kojiro said.
"this……"
"After three years of leading the pack, I'm convinced."
A group of big shareholders sighed and had no choice but to give in.
At this moment, not only Toyota and Hyundai Kia, but also other automobile companies are in a similar situation. Sales volume has plummeted, sales have plummeted, and profits have plummeted. Anyway, they have been greatly affected.
…………
In the morning, Qin Hailang came to the office and listened to Liu Sisi's schedule. Then, as usual, he listened to the Red Queen read him the latest global news.
"Boss, yesterday's list of the world's top 500 companies was released. Do you want to listen to it?" the red queen asked Qin Hailang.
"Well, let's talk about it."
The Red Queen was truly intelligent, and directly picked some key issues to report to Qin Hailang. For example, only companies that compete with Xingchen Group will apply.
"Hyundai and Kia Group have fallen out of the world's top 500 companies! This year, they are ranked 501st! They are just a hair away from the 500th place. But just because of this small gap, this year Hyundai Enterprise Group is no longer the world's top 500 company. 500 strong,” Hong Houhui reported.
"Oh? Interesting, hehe." Qin Hailang smiled slightly. Hyundai Kia must be very depressed now. Just one place short!
"Apple and Microsoft are not in the Fortune 500. They are ranked 536 and 709 respectively!"
"Well, after I hit these two companies a few times, although they did not go bankrupt, their investment in other industries has not improved much." Qin Hailang touched his chin.
"Samsung Electronics dropped from 13th in previous years to 250th!"
"Well, I also hit their integrated circuits and chips. It has not fallen out of the Fortune 500, so it still has some capital." Qin Hailang smiled slightly. But it's hard to say next year.
"Taiwan Electric has also fallen out of the Fortune 500."
"Suzuki has also fallen out of the Fortune 500, ranking 609th."
"Toyota has not fallen out of the Fortune 500, but it has dropped from 8th in previous years to 210th this year."
"Volkswagen has also dropped from the top to 220th."
"Honda has dropped to 315th."
"Ford has dropped to 298th."
...
"Our Xingchen Group ranks first! First in the Fortune 500!" Red Queen said happily.
"Haha, not bad, not bad, first in the Fortune 500, so happy!" Qin Hailang laughed.
I guess those companies that were pushed out of the Fortune 500 by themselves are now huddled together for warmth? Even many large automobile companies have fallen from the top to the middle and lower reaches.
Maybe they will fall out next year too.
