novelweb #255 - Nine major automobile companies gather geek technology
#255 - Nine major automobile companies gather geek technology
After all, many things are like this; it's always easy to talk a good game.
But when things really come to a head, especially when the stakes are high,
the vast majority of people will choose their own interests rather than buying inferior products for the sake of patriotism.
This is also why joint venture cars have such high sales, because after all, we're talking about tens of thousands of yuan.
That's money that takes years, or even more than a decade, to save up.
When faced with an important decision, how could they buy a domestically produced car with poor quality and high fuel consumption just because of a 'patriotic' slogan?
Therefore, even if joint venture cars are a bit more expensive, people will still buy them because of quality or fuel efficiency!
This is human nature!
However, while netizens were arguing endlessly, things were far from peaceful at Geek Technology, because visitors had come calling.
April 17, 2013, Geek Technology headquarters, conference room.
This was a few days after Geek Technology massively recruited automotive R\u0026D personnel, which was then exposed by global media.
At this time, nine major automobile companies, including Toyota, Honda, Nissan, Volkswagen, BMW, Mercedes-Benz, GM, Ford, Hyundai, and Tesla, jointly came to their door.
"I wonder what brings you here?"
Gao Nian, sitting in the main seat of the conference room, asked the negotiating representatives of the nine major automobile companies in front of him.
At this time, Tsuda Akina, president of Tsuda Motors, said with a smile:
"Mr. Gao Nian, the automotive industry is already crowded enough, and the profit margins in the automotive industry are relatively low compared to many other industries.
In terms of profit margins, the automotive industry's profit margins are far lower than the smartphone industry, and even lower than the gaming industry and the internet industry. We are here this time to advise you not to enter the automotive industry."
Faced with the well-intentioned advice of Tsuda Akina, president of Toyota Motors, Gao Nian shook his head and said:
"The profit margins in the automotive industry may not be considered high, but sometimes you can't just look at how much money you make, but what it brings.
The automotive industry, as a labor-intensive industry, has a complex supply chain, requires a large amount of labor, and is rightfully called the engine of industry.
Your Western automobile companies monopolize core automotive components such as engines and transmissions, grasping the lifeline of China's automotive industry.
At the same time, you arbitrarily use your power to make us buy expensive cars, enjoy the worst cars and services, and still pay exorbitant prices.
Take Volkswagen, for example. Volkswagen's sales in China account for only 14% of its global sales.
As a result, the profits contributed by our Chinese market reach 80% of its total revenue!
Furthermore, take General Motors, for example. General Motors only makes a profit of $145 for every GM car sold in the United States.
However, in the Chinese market, General Motors makes a profit of up to $2,400 for every GM car sold!
The Chinese automotive market is your cash cow, your private plot. You use the most outdated products, but you earn the most abundant profits.
If that were all, it would be fine, but what's hateful is that you use various overt and covert means to turn our domestic cars into mere badge-engineered factories.
Our domestic cars may bear the name of domestic products, but the engines, transmissions, and other automotive components are all yours!
Under such circumstances, if Geek Technology doesn't stand up, there will be no possibility of domestic cars rising up in ten years.
Because it's better to buy than to build!
Our domestic car companies spend huge amounts of money to develop domestic engines and transmissions.
You immediately lower the prices of engines, transmissions, and other automotive components with the same performance.
Then, you use more mature products to attack domestic engines, domestic transmissions, and domestic automotive components!
Ultimately, this company loses all its capital, and it makes other companies afraid to develop domestic engines, domestic transmissions, and other automotive components."
Speaking of this, Gao Nian's eyes became colder and colder as he looked at the negotiating representatives in front of him, and he became more and more disgusted with President Tsuda Akina of Toyota.
Can only say that the United States played this trick too well?
At this time, Shi Dengke, president of BMW's China branch, suddenly said:
"Mr. Gao Nian, we won't say much about the past. As long as Geek Technology is willing to give up entering the automotive industry,
then we can introduce the latest automotive technology and cars to the Chinese market, so that the Chinese people can use the latest automotive technology and cars."
At this time, Mark Russ, the negotiating representative of General Motors of the United States, also spoke up:
"Mr. Gao Nian, China is a member of the World Trade Organization, and now is the era of global division of labor.
It's completely against the trend of the times for one country to want to produce everything for one product,
and the operating costs are too high.
In the new era of global division of labor, I think our current business model is very good. We produce engines, transmissions, automotive computers, and other automotive components.
Your Chinese domestic car companies manufacture complete vehicles. Ultimately, a win-win model for both parties is the best and healthiest."
Hearing the words of Mark Russ, the negotiating representative of General Motors, a mocking arc appeared on the corner of Gao Nian's mouth, and then he said:
"Continue to be your vassal and keep working for you?"
To this, the people present looked at each other, and then Tsuda Akina, president of Toyota Motors, said:
"Mr. Gao Nian, the globalization of the manufacturing industry is the general trend.
What you are currently dissatisfied with is that we are making too much profit and our components are too expensive.
How about this, as long as Geek Technology stops entering the automotive industry and avoids making the automotive industry even more crowded,
then we can lower the prices of engines, transmissions, and other automotive components, so that the Chinese people can buy cars at cheaper prices."
After speaking, Tsuda Akina, president of Toyota Motors, showed a painful expression on his face.
After all, the profit model of these overseas automobile companies in the Chinese market, in addition to directly selling joint venture cars, another major source of profit is selling engines, transmissions, and other automotive components.
Therefore, the reason why Volkswagen's sales in the Chinese market only account for 14%, but the profit reaches 80% of the total profit is this reason.
The reason why they are now willing to lower the selling price of engines, transmissions, and other automotive components is to avoid Geek Technology entering the automotive industry.
After all, Geek Technology's record is too fierce. These automobile companies know much more about the computer field, the mobile phone field, and the internet field than ordinary netizens, and the more they know, the more they fear Geek Technology.
That's why the negotiating representatives of multiple automobile companies gathered at Geek Technology, wanting to persuade Geek Technology not to enter the automotive industry, and then cause a terrible impact on their market share.
So now the reason why they are willing to cut their flesh is because compared to the terrible impact caused by Geek Technology entering the automotive industry,
lowering a little bit of profit on automotive components now and loosening the necks of the Chinese automotive industry is not unacceptable.
It can only be said that compared to the option of losing more, the nine major automobile companies chose the option of losing the least, as long as Geek Technology gives up entering the automotive field.
Then they will be willing to lower the prices of engines, transmissions, and other automotive components, indirectly making Chinese domestic cars cheaper, so that more people can afford cars.