Invincible Smart-Guy System

C332 He Was Plotting Against a Tiger



C332 He Was Plotting Against a Tiger

For General Motors, a world-class Manufacturing Enterprise that was once glorious, the General Motors that had been around for more than a decade... It had gradually entered the difficult situation of a hero's downfall. Ever since it applied for bankruptcy protection, the entire company seemed to have its soul taken away. For a long period of time, it was as if the company's soul had been taken away. This business was wandering around the border.    

    

The biggest problem with the general market was that there were too few innovations, and the subtlety and subtlety to the market were not high enough. In this aspect, the Japanese Enterprise was always the most meticulous and professional. This was also why Toyota was able to kick Universal out of the altar and become the world's top overlord with its head held high.    

    

Be it Buick, Chevrolet, Kadiak, or even the small group of GMC and Sabo, with so many brands under General Motors, there was no model that could truly obtain high sales and reputation in the global market. The reason was simple, their products had long lost their souls.    

    

General China had previously launched several middle-end and low-end models to confuse the public, relying on the market promotion. They had obtained good sales, such as Chevrolet Cluz, who had been at the peak of popularity for a long time. And the low-end minivan launched by the Wuling brand. This type of product... However, if it was in China, it could be considered to be in line with the market rules. However, in the global market, it would be very difficult to have enough competition.    

    

Now, the general porcelain country was already hard to continue. The mainland of North America had suffered the impact of Dong Chen crossing the ocean, and it was not long before it completely collapsed.    

    

It was also because Carter had nowhere else to go that he decided to use the method of subduing the market and the hegemon. He no longer stood on the opposite side of Dong Chen, but rather cooperated with Dong Chen. This was the only way to become Dong Chen's helper in the siege of North America. He would be able to get a certain amount of profit for himself instead of continuously losing money.    

    

Due to Zhang Yunfeng's fluent English, it had far exceeded Carter's expectations. Therefore, the English translation that he had prepared in advance did not come in handy, and Carter wanted to show his sincerity. This time, he did not bring any negotiation assistants, although there were some company executives who accompanied him to China. However, at the negotiation table, he hoped to do it alone with Zhang Yunfeng.    

    

Zhang Yunfeng was also very interested in Carter. He did not expect that as soon as Dong Chen entered the North American market, there would be North American companies seeking cooperation. And the method of cooperation was the lowest level of production cooperation: contractor.    

    

A contractor was a walking corpse with no soul, no matter how big he did it. It was also the same. He was just a body, a body that listened to others and worked for others. As long as it's a great company, none of them would put a substitute in their core business. Just like Apple, Apple was basically only responsible for the development and design of any of their products. Then, they would pass the production process to a world-class contractor factory, such as Fu Youkang.    

    

Fu Yankang produced more than 90% of the Apple Phone in the world, but how many people would give a thumbs up to this company? How many companies would praise this company? When people talked about the Apple Phone, they would always talk about the Apple. Only when there was a problem with the equipment in their hands. This was the key to the company's soul.    

    

In the beginning, Carter had a very sincere expression. He said to Zhang Yunfeng, "Mr. Zhang, Dongchen's sales in the North America market has set a record of any foreign brand entering the early stages of North America. This makes me believe that Dong Chen's next step will be to develop in the North America market in a more long-term way. Although we are both competitors, I have to say one thing. The Dongchen Automobile is really a great company. It has created a new era in the automotive field. "    

    

Zhang Yunfeng smiled humbly and said, "Mr. Carter, you flatter me. Dong Chen is just an ordinary private company that has been developing. He is just a little lucky."    

    

Carter smiled and said, "Mr. Zhang, I never believed that any Automobile Enterprise could form a monopoly in this industry. However, Dong Chen showed me the possibility of this day coming. The enthusiasm of the consumers toward the Dongchen Automobile was too high. It was beyond everyone's imagination. In front of Dong Chen, all the brands of cars have lost their ability to survive and competition. "    

    

Carter said, "Our General Motors Company once compared Dong Chen's model with his own brand. We have our own cost-effective evaluation plan. The lowest is 1, the highest is 10. The higher the number, the higher it is. The higher the cost-performance ratio, the higher the model of all the cars under our General Motors Company. The cost-performance ratio was no more than 5. However, Dong Chen was able to make use of this evaluation plan. Obtained 8. The average score of 9 points is much higher than ours. "    

    

"Toyota has always done better than us on this point. After our evaluation, their cost-performance ratio is about 5.7, and we have tried to get close to Toyota's cost-performance ratio. However, due to different ideologies and different development directions, compared to Toyota, what we lack is not just ideology. More importantly, Donghu's persistence and possessiveness towards the world's economy... When we thought that there was no need to waste too much money on the research and development of models, Donghu did not do so. They introduced as many models as possible, and the classification of the market level was extremely detailed and precise. The coverage was also very wide, but their efforts also received outstanding results. When we came to our senses and began to try to make a detailed classification of the market, Donghu has already seized the initiative, and we have increased the investment. However, he dragged our company into a predicament that we could not extricate ourselves from. "    

    

Zhang Yunfeng asked curiously, "I wonder what kind of procedure and method your company's cost-effective evaluation plan is going through?"    

    

Carter explained, "We have a lot of data to measure. For example, compared to the sales price, what is the ratio of the power of this car? Compared to the sales price, what is the ratio of the fuel consumption, control performance, and safety performance of this car? In comparison to the power and fuel consumption of this car, the actual cost of using it was also compared. Based on the price of the subsequent maintenance of this car, he calculated the average cost of using it every kilometer or every mile. Finally, through a complicated formula, he calculated all the results. What we got was a comprehensive cost-performance index. "    

    

Zhang Yunfeng nodded and said with appreciation, "This is the first time I have heard of this kind of calculation method, but it sounds very reasonable."    

    

Carter nodded and smiled. "Reasonability has been tested. Currently, other than the Dongchen Automobile, the most cost-effective car in the world will not exceed 6. 2, domestic brands of cars were generally more cost-effective. However, the biggest problem was that the brand reputation, expansion, and investment ability were too low. Therefore, their high cost-effective ratio could only be exchanged for a certain market share in the local market. However, for a company like Dong Chen, if the brand recognition and branding ability were added, the overall competition index is something that other companies cannot surpass within ten years."    

    

After saying that, Carter continued, "We have once evaluated that if we want to achieve a cost-effective ratio of 5.5, if we can achieve Toyota of 5.7, in other words, not only can we not build a car with such a high standard as Dong Chen's, our profits will also drop to freezing point. I don't have the ability to lower the price to enough to compete with Dong Chen in terms of cost-effectiveness, but I can still maintain a certain amount of profit. Unless we sell the low-cost Cruise to below 40,000 RMB. Otherwise... We can't even get a higher cost-performance index, I think... If that's the case, then if we continue to stick to the current situation... If we fight against Dong Chen, it will be like hitting an egg against a rock. Therefore, I think that if we work together with Dong Chen... It will be a win-win situation. "    

    

Zhang Yunfeng smiled and said, "Dong Chen did not expect that the North American market would react so well. This will allow us to plan the output of three to four million cars a year. It seems that the entire North American market is not strong enough. Moreover, these three to four million cars... It was all the production capacity that Dong Chen currently had that could be used in the overseas market. If we invest all the remaining production capacity into the North America market... Then, the other markets will not be able to take care of it. Therefore... Dong Chen also wanted to look for foreign companies to cooperate in production. In this way, this will increase Dong Chen's total production capacity to a greater extent. "    

    

Carter smiled and said, "This is great. After all, our Universal Motors' annual production capacity exceeds ten million units. To Dong Chen, this is definitely the best choice for cooperation."    

    

Zhang Yunfeng asked, "Mr. Carter, may I know how much of the General Motors we are going to reserve for Dong Chen?"    

    

Carter smiled bitterly and said, "Our production line is being squeezed by Dong Chen until it is on the verge of collapse. In the two largest markets in China and North America. We no longer have the ability to compete. However, in a short period of time, Dong Chen... We are still unable to fully cover the whole world, so we are prepared to reserve 30% of our production capacity. It will be used to cover the markets that Dong Chen has yet to touch. In other words, we dare to use this 30% of our production capacity before Dong Chen comes to compete. Let's make the last profit."    

    

Zhang Yunfeng nodded slightly. Carter was right. Dong Chen did not have the strength to push down the global market, but the global market was a huge plate. In order to maintain the operation of this large plate, at least 70% of the production capacity must be used effectively and create practical benefits. If the production capacity was lower than 70%, it would be affected by the idle production capacity. This company would probably gradually be in trouble. General use now had a portion of the production capacity. It can earn money in other markets, but the biggest problem is... The idle production capacity was too great. It was like a person's four limbs could only be used with one arm. It was too difficult to use one arm to move the entire body. It would collapse sooner or later, but if the other parts were to be used... Then, not only would he have thirty percent of his own production capacity, he would also be able to make a profit. Seventy percent of his production would also be profitable if he cooperated with Dong Chen. At the very least, he would be able to maintain the operation of this huge plate.    

    

Seventy percent of the production was about seven to seven million five hundred thousand cars. The economy had risen in recent years. The annual sales of the North American market was about 14 million cars. If Dong Chen cooperated with the general market... The total number of cars that could be sent to the overseas market every year would exceed ten million, about eleven million cars. But if all 11 million cars were sold to the United States, perhaps the United States government would not agree. Therefore, Dong Chen's current output of 3-4 million cars in the North American market was already at its peak. However, if he were to cooperate with the general market, then Dong Chen's own productivity of more than 3 million cars would be higher. He could take them back and send them to other markets. Then, he used half of the general productivity to cover the North American market. Then, the other half can also be invested in other markets. For example, Europe.    

    

Thinking of this, Zhang Yunfeng said, "Seventy percent is still very reasonable. I have no objections."    

    

Carter heaved a sigh of relief and nodded with a smile. "Then let's talk about the cooperation model and the specific profit distribution."    

    

Zhang Yunfeng smiled and said, "Dong Chen does not intend to have a profit distribution cooperation with the Trade and Commerce Department. We will follow the actual production cost of the United States. We will make the cost of each model locally produced in the United States and give them a certain amount of production cost. For example, the cost of manufacturing an S1 in North America is 10,000 US dollars. Then, we will raise the cost of manufacturing to $11,000. We will pay the total cost of manufacturing the S1 according to the cost of manufacturing the S1. "    

    

Carter smiled awkwardly, but his heart was filled with bitterness.    

    

If they really followed Zhang Yunfeng's model, then the generalized products would become a pure contractor. It could not even be considered a joint venture. When Universal Units had previously collaborated with Zhonghai Automotive Industrial Group in Zhonghai, Universal Units had become a joint venture company in Zhonghai. Both sides would invest 50%, and then split the production profits by 5: 5. Now, Dong Chen did not allow General Manager to interfere in the profit sharing process. It was just that General Manager had decided to process a car for Dong Chen. How much could he get for the processing fee? This... In this way, how could General GM still be a company that was once the overlord of the automotive field? It wouldn't even take long for people to forget the word 'General'. Because General Motors produced Dongchen Automobile, and not a joint venture model like General Dongchen.    

    

Carter was unwilling to accept this. Why did General and other foreign brands enter China in the first place? When Dongchen wanted to enter North America, they had to go through the joint venture mode. Why did they use a pure contractor mode? Was it because the two countries' market opening was different, or was it because the gap between the two brands was too huge?    

    

Damn the American government!    

    

They only knew how to conform to the market, environmental protection, energy conservation, and low cost. They had never thought of applying more restrictions on Dong Chen's entry. Who asked the White House to be held back by the ignorant people?    

    

Thinking of this, Carter suddenly thought of something and blurted out, "Mr. Zhang, actually, Dong Chen's large scale attack on the US Market was not considered by the American government before. However, Dong Chen's momentum is so fierce all of a sudden. I think the United States government will also take action, right?"    

    

Zhang Yunfeng nodded and said, "I have already thought of what they will do. Or, it will be to restrict the import and export procedures and raise the tariffs to force Dong Chen to increase the selling price in the North American market. They will use this to buy space for their own brands to survive. Or, it was the United States government forcing Dong Chen to achieve native production in North America. Otherwise, there would be a restriction on the number of exports and exports, so as to prevent Dong Chen from exporting too much to North America. This caused the unemployment rate in North America's automotive industry to increase greatly. "    

    

Carter was stunned for a moment and said in surprise, "You have already considered these things in advance?"    

    

" Of course. " Zhang Yunfeng smiled and said, "No government will sit by and do nothing. They were like us before. They had underestimated the acknowledgment of the North American market's consumers towards Dong Chen. Now, they were caught off guard by the huge reaction of the market. There are no movements at the moment, but it does not mean that they will never make a move. The United States is a free economy, and I think the White House's biggest possibility is the latter. Forcing Dongchen to produce locally in North America to ensure domestic tax and domestic employment. In the eyes of the United States government, unemployment is the most fatal word. They could not care about the survival of their own companies, but they had to ensure that the unemployment rate in their country did not rise. On the contrary, if Dong Chen could one day develop North America into a production base that radiates the world, to provide a large number of jobs and taxes to the United States government. They said to Dong Chen, they will treat Dong Chen more kindly than their own companies. "    

    

After saying that, Zhang Yunfeng continued, "I also don't want to enter a certain country's market in a purely destructive way. Otherwise... What awaits me is probably a prohibition order. Or many restrictions, a large-scale export to the North American market is just the beginning. Solidifying a large number of products covering the North American market is the most harmonious way of development. In fact, aside from keeping S3C and above and C3C grade and above, Dong Chen also kept SC1 models for domestic production in China. The other models that are exported abroad can be implemented locally in the region."    

    

Zhang Yunfeng had already imagined what kind of restriction the United States government would put on Dong Chen when they came back to their senses. In order to stabilize the economy of the country, there would be such a day sooner or later. Since General Manager came to find him one step ahead of time, he might as well cooperate with the local enterprises in the United States first. Guaranteed local productivity and ensured the employment rate in the local industry.    

    

Carter secretly praised in his heart, shook his head, and smiled. "I didn't expect Mr. Zhang to have already calculated everything. Fine. General use can accept Dong Chen's cooperation model, but I hope to give General use a bigger profit margin. At least, after we throw away all the costs, we can still make a decent profit. "    

    

Zhang Yunfeng nodded and smiled. He said, "That's of course. Dong Chen's cooperation with General use will be Dong Chen's first cooperation with foreign producers. I hope that this first cooperation will be imitated by other producers. It will not be rejected, so General Manager will definitely have a reasonable amount of profit margin. "    

    

Carter finally felt relieved. He knew very well in his heart. There was no room for negotiation between him and Dong Chen. What General Manager was seeking now was... It was a path of survival, not a path of meteoric success. To be able to survive the global nibble plan launched by Dong Chen was already a great success. Carter was also very clear about the cooperation between him and Dong Chen. It was also like asking a tiger for its skin. Once Dong Chen solved the problem of production by himself... General use would immediately be kicked away. However... Before this, it was already extremely rare for one to be able to stabilize a large plate. He had enough time to catch his breath and slowly convert General Motors in the market.    

    


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