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Chapter 544: The Dream of Building a Car in Jiangnan Province

Jiangnan Province had the idea of ​​building cars before, but state-owned enterprises had to undergo strict approval for car manufacturing, and the technical reserves were not up to standard. In addition, the state had very strict control over car companies some time ago, so there were no car companies in the province, but there were several tractor factories with good benefits.

There is nothing wrong with wanting to build micro cars in Jiangnan Province. At least the development conditions in Jiangnan Province are much stronger than Wuhu, which founded Chery Automobile. Not only does it have any problems with funds, but it is also relatively convenient in raw materials. The only engine problem that is more difficult to solve can be directly provided by Fan Automobile Manufacturing Company at this time, and the price is not more expensive than imported engines.

Various convenient conditions can ensure that the car manufacturing industry in Jiangnan Province can develop rapidly in a very short time, but Fan Wubing also has a concern, that is, if the microcars are launched now, can they be really accepted by the majority of users?

You should know that when Chery's QQ first appeared, it was questioned by many people before entering a period of rapid development. If you do such a project, you also need to go through this level. Therefore, Fan Wubing considers that he should make some efforts in the model and strive to directly build the microcars in Jiangnan Province into a classic model. At least everyone can be willing to accept it when they first look at it.

It should be said that competition in the field of automobile manufacturing has never stopped. Especially since the 1990s, competition in this field has become increasingly fierce. Traditionally strong cities such as Changchun, Shanghai, Wuhan, and Xi'an in China have had a long time of manufacturing experience, but Jiangnan Province used to only build tractors. If you want to compete with them, you must come up with some of your own new things.

Fan Heng talked about this with his son. He used to be a military-industrial enterprise, so he was naturally very familiar with these automobile manufacturers that were originally born from military-industrial enterprises in the 90s. Therefore, when he talked, he was still a little worried.

"If Jiangnan Province is engaged in cars, wouldn't it be? It started too late? Needless to say, it is impossible to compare with joint ventures, even with some old domestic automobile manufacturers." Fan Heng said to his son.

"That's not necessarily." Fan Wubing naturally had his own insights on this. He said to his father, "The competition in the automobile manufacturing industry is obviously very fierce, so the most clever competition is to avoid competition. We have to do something our own, which is something that others don't have, so we can naturally occupy the market. As long as there is a market, the remaining things will be much easier."

When talking about building a car by itself, Fan Wubing gave an example, "Great Wall Motors did a good job. Their pickup trucks sold very well and they were all sold abroad."

As the pickup truck king in the domestic automobile manufacturing field, Changcheng Automobile was just a small township factory that was modified in the rod field. They had almost modified all the models, vans, station wagons, and light trucks that could be seen in China at that time, but this was not a long-term solution. Around 1993, Great Wall Motors also tried to rely on modified cars to enter the car market, but after the introduction of the automobile industry industry policy, such modified cars could not be licensed in many places, so they had to stop.

Later, after inspecting the US and Thai markets, they discovered that pickup trucks are a fashionable model in the United States, what really gave them the opportunity was the best-selling pickup trucks in Thailand. Both China and Thailand are developing countries, and the Chinese market is much larger than the Thai market. Models with markets in Thailand must not be wrong in China.

Although some state-owned small and medium-sized enterprises in China began to produce pickup trucks, the prices were high and the technical level was relatively poor, so the people did not buy it. In order to be prepared, Great Wall Company conducted an extremely detailed investigation of the pickup truck market, and then adopted a one-step pricing strategy to lower the price so that Chinese consumers can afford it.

When most domestic pickup trucks sold for more than 90,000 yuan, Great Wall pickup trucks dropped to 80,000 yuan and quickly gained a foothold in the market. Great Wall pickup trucks, which are affordable and cheap, quickly emerged in the industry. This year, production and sales reached 7,000 vehicles, becoming the leader of the domestic pickup truck industry.

Fan Heng is quite familiar with Great Wall Motors. When he was at Panshi, he had paid attention to the development of Great Wall Motors. If he had not come to Jiangnan Province to take up his post, or if he had also imitated Great Wall Motors and established an automobile manufacturing factory in Panshi.

"What you mean is that in addition to making micro cars, we can also make pickup trucks?" Fan Heng asked his son.

Fan Wubing shook his head and said, "Of course there is no need for us to compete for business with others. Although pickup trucks are good, they are restricted vehicles in many big cities. How to enter large and medium-sized cities with developed economy and strong purchasing power? What I mean is to do uv directly."

In the automobile manufacturing industry, there is a recognized rule that when a pickup truck manufacturing company develops to a certain stage, it will transition to UV, which has a higher level and a richer profit. More importantly, it can enter the city.

"Now the prices of imported UVs are above 200,000 yuan, and the expensive prices are discouraging ordinary consumers. If you can lower the price like a pickup truck, there will definitely be a market for domestic UVs." Fan Wubing explained to his father Fan Heng, "I thought about it. If we do UVs ourselves, the technology has been fully achieved, but the cost is relatively small. I estimate that it can be done within 100,000 yuan, and the quality will not be much worse than the other party's. If you calculate it this way, the market prospects are very considerable. At least the cars we have created, compared with UVs of the same price in China, have significantly improved energy, structure and appearance. The whole vehicle is also much stronger."

UV is a sports multi-purpose car, mainly referring to four-wheel drive off-road vehicles with avant-garde design and novel shape. UV generally has the independent suspension of sedan models, and the rear suspension is a non-independent suspension with large ground clearance. To a certain extent, it has both the comfort of a sedan and the off-road vehicle's off-road vehicle's off-road vehicle's off-road vehicle. Due to the multi-combination of seats with mpv-type, the vehicle can carry both man and cargo, and has a wide range of applications.

UV has two major characteristics: one is that it is capable of running, not only speeding up quickly and extremely fast, but also high through the Eep Cherokee and strong adaptability. The other is that it can be more capable, which means it can not only carry people, but also have strong comfort, but also has strong cargo capacity and strong traction ability.

The biggest feature of off-road vehicles is that they have strong ability to pass and have certain cargo loading capabilities, but sports and comfort are not outstanding. After strengthening these shortcomings of off-road vehicles, they can be called uv. With the development of cars, there are fewer and fewer purebred off-road vehicles, and there is a tendency to evolve towards uv. Therefore, it is difficult to determine whether a car is uv or an off-road vehicle.

The real founding model of the UV concept is the Cherokee produced by Chrysler in the United States. Its design concept is derived from the concept of off-road vehicles, which only emphasizes the concept of **, mainly improves the comfort of the vehicle, removes the heavy non-load-bearing body of the previous off-road vehicles, references the design concept of the sedan, and replaces it with a light load-bearing body structure like most sedans. However, it does not completely sacrifice off-road energy, and still has relatively strong power. It adopts the 4**4 drive form. The key concept is that it mainly emphasizes comfort.

In the United States, the birthplace of the United States, the UV has always been the first of the best-selling models, all because it is suitable for urban walking and outdoor Mercedes-Benz, and it is very suitable for the new generation of people who pursue ostentatiousness and love to be close to nature.

However, in China, UV has not become popular because of its price. So Fan Wubing thought that since he wanted to build such a low-priced car model, he would not raise the -Piaotian Wenxue a little. Now that he wants to build an independent intellectual property uV, the cost is very low. Fan Wubing estimated that even if it sells for 80,000 yuan, it would have a very considerable profit. The most important point is that he has the skills and does not need to pay tuition from others.

Fan Heng was a little enthusiastic about car manufacturing because he knew very well what the automobile manufacturing industry meant to a province?

No one has ever counted how many industries a car can drive, but there is no objection to the automobile industry's high correlation and economies of scale and driving effect.

Generally speaking, the automobile industry chain mainly includes four aspects. The first is product technology, which mainly refers to product development; the second is the procurement of parts; the third is automobile manufacturers; and the fourth is sales and service.

The upstream of the entire industrial chain involves steel, machinery, rubber, petrochemical, electronics, textiles, glass and other industries; the downstream involves insurance, finance, sales, maintenance, gas stations, catering, hotels and other industries. The strength of the automobile industry chain is incomparable to ordinary industries. Because of this, many local governments will cultivate the automobile manufacturing industry as a pillar industry.

Auto parts are an important part of the automobile industry. The procurement cost of raw materials for automobile parts accounts for more than 70% of the vehicle cost. Accelerating the development of the automobile parts industry plays an important role in reducing automobile manufacturing costs, enhancing market competitiveness, further promoting the development of the overall automobile industry and driving the local industrial economy.

In recent years, while the rapid development of vehicle manufacturers such as Great Wall, ZTE, and Changan, a large number of parts companies have also grown up like mushrooms around them. Many companies can produce fully-specified engines, batteries, wheel hubs, rolling parts, wire harnesses, seats, steering machine assembly, frames, gearboxes, interior decorations, stamping parts and other parts required by most automobiles. They have established relatively systematic and complete domestic and foreign marketing systems. Their products can not only meet the needs of local automobile complete vehicles, but also sell them in large quantities across the country and even abroad.

The vigorous development of parts companies has further strengthened the determination of local government leaders to build a complete automobile industry chain. Complete vehicles and parts are the dual-wheel drive automobile industry development model. Putting the parts industry in a more important position is the potential and hope for the development of the automobile industry.

Since Fan Heng heard his son’s suggestion to invest in the automobile manufacturing industry, he has been reminded of these problems and is determined to immediately introduce policies and measures to support the development of the automobile parts industry, attract domestic and foreign parts advantageous enterprises to invest and build factories in Jiangnan Province, and carry out professional cooperation in accordance with the requirements of modern production to achieve a zero-distance and zero-inventory production model, significantly reduce the cost of the whole vehicle, and comprehensively enhance the competitiveness of the automobile industry in Jiangnan Province.

He plans to focus on supporting new maintenance-free batteries, aluminum alloy wheels, constant speed universal joint front drive shafts, nylon pipes, automobile air conditioning hoses, brake pipes, automobile light bulbs and other parts products, and actively support a group of automobile parts manufacturing companies with a certain scale and manufacturing level to develop automobile transmission bodies, clutch shells, transmission gears, tires, internal and external decorations, molds and other products, to complete the automobile industry chain in Jiangnan Province.

After Fan Heng talked about his thoughts to Fan Wubing, Fan Wubing also nodded. He didn't expect that his father Fan Heng had made some noise in this regard. If it weren't for mentioning that he had to spend money on projects today and talking about car manufacturing, he wouldn't have known that his father had so many meticulous ideas in his mind.

Being able to consider issues from the industrial chain of the entire industry is enough to show that my father Fan Heng's vision has improved and he has begun to take up a global perspective to consider issues. This is a gratifying progress. If he was on the rock, he would probably not have thought of so many things.

After hearing his son's evaluation, Fan Heng smiled and said, "Everyone needs to make progress, that's natural. In the past few years, I have also paid great attention to learning in addition to work. I have referenced some domestic and foreign economic models. I have also asked teachers to give special guidance to several key industries, so it is not surprising to know these things."

"However, our main goal in the future will be to foreign markets." Fan Wubing reminded his father Fan Heng.

UV is a high-fuel consumption vehicle. When domestic oil prices are about to enter a continuous rise, their sales will inevitably be impacted. Compared with the domestic market, especially in Russia and the Middle East, oil resources are relatively abundant, and people do not pay as much attention to automobile fuel consumption as domestically. It is an ideal market for exporting large-fuel vehicles such as UV.

However, if you want to occupy the overseas market, you must rely on your strength to speak. For a long time, domestic automobile exports have been stagnant, and an important reason is the lack of core technology.

Taking sedan export as an example, since most domestic sedan manufacturers are joint ventures, their products are basically not developed independently. As an overseas factory of foreign automobile giants, the export of products in China does not count at all.

Therefore, most of the companies that have joint ventures with foreign automobile giants have mediocre performance in automobile exports, which is also an important reason for the slow growth of domestic sedan exports.
Chapter completed!
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