2003: Starting with Foreign Trade

Chapter 676 Ideas from Luzhou

It's quite normal for Luzhou to have such ideas. Based on the current sales forecast for Yuechi A1, the total sales volume next year will be at least around 80,000 units or even more.

With a total sales volume of 8 vehicles, the industrial output value would be at least 60 billion yuan!

Furthermore, according to data released by Yangzi Pickup and the China Association of Automobile Manufacturers, Yangzi Pickup has also emerged as a dark horse in the niche market of pickup trucks this year.

The "Cars to the Countryside" program, the trade-in program, and the subsidies offered by Yangzi Pickup itself, coupled with the recent popularity of the Yuechi A1, have all contributed to its success.

In November, Yangzi Pickup achieved sales of 2813 units, setting a new monthly sales record since its establishment. The current sales volume of 22730 units also represents Yangzi Automobile's best year in terms of sales since its inception.

Yangzi Pickup has had a tumultuous history. By the time Weilai Automobile took over, it had already changed hands three times, gradually being stripped away from a large group company until only the pickup truck business remained.

Originally, the company had the capacity to produce SUVs, and it produced a batch of SUV models. However, after Weilai Auto took over, it stopped production, and the remaining inventory of several hundred vehicles was simply not sold.

When Weilai Automobile took over Yangzi Automobile, its attitude was very tough. Tan Jincheng personally oversaw the situation, and it used drastic measures against those who disagreed, which caused great controversy in Chuzhou and even reached the provincial level.

The acquisition of state-owned enterprises by private companies is inherently controversial. It's not that you have the final say just because you put money in. Tan Jincheng's swift and decisive approach to resolving legacy issues has drawn intense attention from both the local government and the provincial authorities to Yangzi Automobile.

Fortunately, the promised investments have been made and the newly established marketing channels have also played a role this year. It must be said that when it comes to real market operations, private enterprises are more flexible.

Yangzi Motors had changed hands twice without being revitalized, but after Tan Jincheng's reorganization, it was completely revitalized. Yangzi pickup trucks have consistently ranked among the top six in sales this year, truly stunning the automotive industry before the Yuechi appeared.

In other words, the pickup truck market is too niche. Last year, the total sales of pickup trucks in China were only 18.11 units. This year, the sales have increased significantly, but compared to the booming sedan market, this small market receives far too little attention.

"Mr. Tan, is it possible for Yangzi Pickup to achieve sales of 10 billion yuan this year?"

"I haven't looked at the financial report this month yet, but sales of 10 billion should be no problem. Chuzhou City Investment should know about it."

Today, Tan Jincheng was met with the leading official in charge of the automotive industry in Anhui Province. The intention was to encourage Yangzi Automobile to achieve sales of over 10 billion yuan this year, and Tan Jincheng understood.

However, this requirement is not high. The sales figures by the end of November should have already exceeded the target, so there is no need to fabricate any sales data.

"That's really impressive. You've managed to revitalize the company in just your first full year. You young people are truly daring and hardworking."

After such a huge uproar last year, the SUV production line was completely cut off, leaving only the niche pickup truck that sells a few hundred units a month. Nobody expected that the Yangzi Automobile brand could revitalize itself this year by relying on the niche market.

"Oh, you flatter me, sir. We just happened to be in luck this year because of favorable policies; otherwise, we wouldn't have sold so well."

With several policies combined with the discounts offered by car manufacturers and 4S stores, the discounts on a pickup truck are quite substantial. In order to open up the market and establish its brand, Yangzi Pickup has offered significant discounts to its dealers.

With high profit margins, distributors are naturally interested.

For consumers, a pickup truck with a market guide price of 5.98 yuan can get a discount of up to 5000 yuan. With other preferential services from the 4S store, the final price is just over 5 yuan.

At this price, it's incredibly cost-effective for a pickup truck that's extremely practical in suburban, rural, and industrial areas.

"Don't be modest. Just look at the Yuechi A1, a model you designed yourself. You can tell that your company is ambitious. With such ambition, you are still willing to preserve the Yangzi brand and do it well. The province and Chuzhou are grateful to you."

When most companies acquire another company, they usually shelve the original company's brand. Changfeng did the same after acquiring Yangzi Automobile, wanting to replace the Yangzi brand with their own.

From a business perspective, this is perfectly understandable and there is nothing to criticize. After being acquired by Wei Lai and undergoing Tan Jincheng's reorganization, Yangzi Automobile was prepared to have its brand shelved.

For example, the production line for the Feiyang series of SUVs was completely cut off, but the feelings that an old brand has for the locals are irreplaceable. Unless there is no other way, everyone wants to preserve the brand.

Weilai Auto has registered so many car trademarks, all of which can be found in the Trademark Office. They could easily replace the Yangzi trademark anyway, since sales aren't great and it wouldn't be of much value to Weilai.

However, Tan Jincheng did not do that. He retained the trademark and vigorously promoted it to the market, which is particularly admirable. Chuzhou and the province should also be grateful for his help.

“I’m also from Anhui Province. When I was a child, I saw small appliances like Yangzi electric fans in the countryside. They might still be around now. Besides, the Yangzi pickup truck was known as the king of pickup trucks back then, so it’s only right that it’s preserved.”

Mr. Tan is good at making polite remarks, but the real reason is that he's too lazy to go through the trouble. Promoting a new brand is not easy. Although pickup trucks were a very niche market in the early 2000s and the level of branding was not very high, it still cost a lot of money to promote them.

"Haha, we also acknowledge that. President Tan has made considerable contributions to the development of his hometown over the years." It has to be said that although this man is excessively young, his abilities are truly remarkable. Beicang District has really struck gold. I don't know if Yicheng is missing a screw in their head, but they haven't managed to win him over properly all these years.

Not only did they fail to win over this billionaire, they also failed to win over his business partners. Now that he has gained influence, it will not be so easy to win him over.

However, it must be said that he worked very hard for the development of his hometown. In addition to building a huge industrial park in his hometown, he also introduced Shenzhou Group to his hometown. As soon as Shenzhou's factory was established, it became the largest textile industry in the province.

Besides his hometown, he has also invested heavily in Luzhou, with almost the entire power battery industry located there. In addition to acquiring Yangzi Automobile, his industrial layout in the province has extended to Chuzhou.

However, naturally, everyone wants more. With the current popularity of Weilai Auto and the availability of a mature model, expansion is now a necessity.

Luzhou wants to secure even more.

The specific details of this collaboration between Jinshidai and BMW are not clear to the city, but it is definitely related to automobiles.

"Mr. Tan, could you talk about the cooperation with BMW? Of course, you don't have to say anything that involves company secrets."

Having laid so much groundwork, it's time to bring up the tasks assigned to him by the city and the province.

"There's nothing I can't say. The main thing is that BMW wants to purchase a batch of power battery packs from us for new energy vehicle-related projects."

"Power batteries? Is it just about purchasing power batteries?"

This news was somewhat disappointing to the leaders. If it was just about purchasing power batteries, then it only involved specific business areas and there wouldn't be any major cooperation. It seems that it's unlikely that the province will be able to bring in Weilai Automobile.

"Yes, we only purchase power batteries, but the other party has high requirements and attaches great importance to it, so the CEO personally oversees the process."

Tan Jincheng has now realized that the main reason is that the level of the people involved on both sides is too high. The CEO of BMW and the popular boss of Flash Motors Group personally intervened, which caused a misunderstanding in Luzhou.

That makes sense; would buying batteries in the hundreds of liters require such a high-ranking person to come forward?

"Oh, I see. The province thought you had some big plans, so they sent me to investigate."

Tan Jincheng would never lie to them about this. Since he had already made things clear, the other party didn't mind revealing their true intentions.

"Haha, we were too hasty in this matter. We should have informed the province in advance. The cooperation was discussed at the Guangzhou Auto Show, and the time was too short, so we forgot about it."

"We were too hasty. We should have contacted you earlier. But I think Weilai Motors also has plans to expand production, right?"

"Indeed, the second phase of our Beicang production base is under construction and the third phase is also in the planning stage. We must complete the production capacity of 25 vehicles before 2012."

"What about the new models? Surely Wei Lai can't only sell one model, right?"

"They still don't want to give up," Tan Jincheng couldn't help but sigh inwardly.

Well, that's fine. Fortunately, Luzhou has always been an important part of its industrial layout. In addition, Luzhou also has a new energy gene, that is, it has JAC in the field of fuel vehicles, and it is developing very well.

It's fine to tell us about some of the layout details.

"That's right. After the Yuechi A1 is fully accepted by the market, we will start the development of a new model. In addition, our company's strategy is similar to BYD's. Gasoline vehicles are just the foundation, and new energy vehicles are our goal in the future."

"Is this why Mr. Tan values ​​the cooperation with BMW?"

“That’s right. Lithium batteries are a very important component in new energy vehicles, but our focus is different from BYD’s. The investment in ternary lithium batteries is huge, and having a partner like BMW is very important.”

"I see. May I ask what preparations your company has made in the field of new energy vehicles, what factory construction plans you have in the future, and whether you have made any preparations regarding licenses? If there are any difficulties, the province can help you."

To bring in Weilai Auto, some benefits must be offered. Luzhou is willing to offer such benefits in order to attract a new car company.

So what if it's a new energy vehicle? As long as it's a car, it's fine.

(End of this chapter)