2003: Starting with Foreign Trade

Chapter 712 When things get ruthless, he'll even hit himself!

It has to be said that consumers in a dominant market are truly enjoying themselves.

Toyota recalled eight models at once, dating back to 2005, and quickly offered a compensation plan. Toyota's speed in admitting defeat in the North American market is truly remarkable.

"Damn, this compensation method is really good. If it was bought in 2005, it's like giving them a free car replacement."

"Yeah, they're really rich."

The compensation plan mainly includes extended warranties for specific vehicle parts and free installation of the BOS system on vehicles recalled due to floor mat issues.

In addition, direct cash compensation will be provided to some customers of the recalled vehicles, with the total amount of this compensation reaching as high as US$16 billion.

Newlywed Zhang Xupeng didn't return until after the Lantern Festival on March 1st.

After bringing wedding candy to some acquaintances, Zhang Xupeng came to the company to find Tan Jincheng. The commotion caused by the Toyota recall was far greater than expected. Even though Zhang Xupeng wasn't in the automotive industry, he still knew about it back in his hometown.

In modern terms, it went viral.

"They are indeed rich. Geely only spent 18 billion US dollars to acquire Volvo, so they could buy a Volvo with this money."

According to inside sources, Geely and Volvo are very close to signing a contract. If all goes well, the handover should be officially completed this month. Three years of negotiations will finally come to fruition, and the deal is worth 18 billion US dollars.

Three years ago, the average exchange rate of RMB to USD was 6.95, and now it's 6.77. Damn, in terms of exchange rate, we've actually made a profit.

The acquisition is now being described as a snake swallowing an elephant, and that's certainly true for Geely. Geely has been really short of money in recent years, and Mr. Li raised the $18 billion through various means.

Many media outlets and professionals are not optimistic about this acquisition.

However, from a later perspective, acquiring Volvo for 120 billion yuan was an incredibly profitable deal for Geely, as Volvo's technology alone was enough to reshape Geely.

However, as things stand, the acquisition of Volvo is indeed very risky. It has almost exhausted all of Geely's cash flow and financing channels, and if things go wrong, Volvo could directly drag Geely down.

From an acquisition perspective, among the many domestic automakers that have acquired foreign automakers, very few have ultimately succeeded.

For example, Saab, which was acquired by BAIC, was never mentioned again. Similarly, Zhongtai's acquisition of Fiat's domestic factory can also be seen as a loss-making business.

Geely's path to success was also arduous. It took them many years to digest Volvo's technology, and they only began to exert their strength in the era of new energy vehicles.

Tan Jincheng is very envious of Volvo, but he wouldn't dare to acquire it. He could scrape together 120 billion, but he wouldn't take the risk of a full acquisition.

Volvo was perfectly managed by Geely, but it might not be so easy for them to succeed under Geely.

To be honest, Tan Jincheng's involvement in the production of gasoline-powered vehicles is more of a "speculative" endeavor, while in the field of new energy vehicles, he is most likely following the internet-based car manufacturing route, but it is somewhat different from internet-based car manufacturing.

It would be more appropriate to describe it as a combination of traditional and internet technologies, using capital to drive progress, using investment funds whenever possible, and minimizing bank loans to increase debt ratio.

"Toyota is so generous in North America, I wonder what kind of treatment they will receive in China? If the difference is too great, then there will be a lot of public pressure."

"Haha, just watch, it'll definitely be much different. They recalled eight models in North America, but currently only the RAV4 is being recalled in China."

Weilai has actually been secretly releasing some press releases, questioning why only one model is being recalled in China. According to Weilai's public relations department, other manufacturers have also raised similar questions.

Zhang Xupeng sighed and said, "Sigh, this discrimination is terrible. Our consumers are really suffering."

"This is something we can't change, but we can profit from it. Aren't big brands in the clothing industry the same?"

Things might get a little better in a few years, but the situation will basically remain the same, including our own brand.

This is determined by the market.

"Speaking of which, Mitsubishi is really unlucky. I guess they won't be able to achieve their sales target of 12 vehicles this year."

The good days of 2009 were not enjoyed, and in 2010, they were ready to make a big splash, but they ran into a terrible teammate. This incident affected not only Toyota, but also the sales of the entire Japanese brand in China.

The impact on Mitsubishi's sales also affects Tan Jincheng's profits, which is truly distressing.

However, we can't worry about Mitsubishi right now. When it's time to stab someone in the back, we have to do it without hesitation. Our top priority right now is to keep the RAV4 firmly under control. If we can take this opportunity to challenge the sales of the CRV, that would be even better.

This month, the Yuechi A1 sold 7895 units, maintaining its second-place ranking. Unfortunately, the CRV performed poorly this month, with the RAV4 taking the top spot with 8146 units sold.

There's no such thing as a dishonest businessman. The RAV4, which has never been the top-selling car in a single month, suddenly sold so many units during the month of the recall, especially during the Spring Festival. Nobody would believe there wasn't something fishy going on.

Of course, it's not necessarily Toyota's doing; it could also be the dealers and 4S stores doing it, because if the cars don't sell, they'll be stuck with them.

"Is the impact really that big?"

“It’s huge. Just you wait and see. The compensation plan will definitely not be satisfactory. There are already nearly 10 vehicles being recalled. If so many people cause a disturbance, it will be no small matter.”

Zhang Xupeng had always believed in Tan Jincheng's predictions and therefore had no doubts.

After pondering the underlying conflict of interest, Zhang Xupeng laughed: "Speaking of which, you're really lucky. You're going for the SUV route, and just one year later you've run into such a suicidal competitor."

Tan Jincheng was speechless. Haha, he really hadn't expected that. He definitely remembered it, but he wouldn't deliberately think about it in that direction.

The reason for choosing the SUV route is simply because the competition in this market is relatively less intense. Although the competitors are currently the extremely strong Japanese brands, the price doesn't need to be as competitive as it is for sedans.

"You were a bit lucky. By the way, how's the honeymoon going? You didn't just stay home all those extra seven days off, did you?"

“What else can I do if I don’t stay at home? I rarely get to go back to my hometown, and I have a lot of social engagements.”

Zhang Xupeng rarely goes back to his hometown. He prefers to go back to Tan Jincheng's hometown with him rather than his own. Tan Lihua has many brothers and sisters, and Tan Jincheng also has many brothers and sisters of his generation.

Going to Tanjiacun is more fun than going back to his hometown.

Now that he's successful, Zhang Xupeng goes back to his hometown even less often. If his parents hadn't insisted on having a banquet there, he wouldn't have planned to go back at all.

The village, town, and county probably know this too; if they don't take this opportunity to get closer to him, they might not have many more chances in the future.

After becoming wealthy, Zhang Dafu only donated some money to schools and government agencies in his hometown and built a few roads. He didn't bring any industries to the county and maintained a relatively distant relationship with the county. One reason was that, like Tan Jincheng, Zhang Xupeng grew up in the city and didn't have the same emotional attachment to his rural hometown as his father's generation.

Secondly, Zhang Xupeng also understands his own position. Jinpeng Industry is his, but in the end it still belongs to his good brother. When it comes to setting up industries and factories, it's best not to overstep his bounds.

In addition, from the perspective of the garment industry, Tan Jincheng's hometown does have obvious advantages. A large part of the people in the county are engaged in the garment industry, and setting up a factory in Wangjiang is more in line with the trend of enterprise development.

"Haha, you really went all out?"

Tan Jincheng understands these people all too well. To be honest, he can't blame them; that's just human nature. A large part of the reason he doesn't want to go back is that he doesn't want to be entangled in these messy affairs.

If you encounter a sensible person, that's fine, but it's not uncommon for some unreasonable people to take advantage of their so-called 'family' status to make exorbitant demands.

Given Tan Jincheng's current status, the level of reception he receives when he goes to a city for a public inspection is quite high. He really doesn't want to get involved with these people. It may seem harmless, but he just feels a little uncomfortable.

"Of course, never mind, I'll just go back less often in the future. Now I understand what you meant by 'being unable to control one's own destiny'."

Two years ago, he was not well-known. His hometown folks only knew that he had made some money with a good friend, but they didn't know exactly how much. According to these people, how much money could one earn working for someone else? Making millions was probably the limit.

Zhang Xuhui, the eldest son of the Zhang family, said his salary wasn't high, even though he's a college graduate. And the car they drive isn't exactly luxurious either.

Zhang Xupeng was happy for the misunderstanding to continue, but last year's Forbes rich list made it impossible for him to keep up the pretense any longer.

Since then, he's had a lot more trouble, and this time when he went home, it all came out in full force.

"Ha, it's time you hired a more professional driver and financial advisor. Don't be like this now. You should be more careful than me, you know your father-in-law's status."

"As for the driver, don't you usually only take Brother Li with you? Sometimes you still travel around by yourself. As for a professional financial advisor, that's an option."

“I’m different. Nobody dares to mess with me now, unless they’re suicidal. But you’re different.”

That's quite arrogant of them, but Zhang Xupeng had to admit it was true.

He rolled his eyes, stood up, and said, "I'm not going to argue with you anymore. I'm going to the district."

"About the residential building?"

"Well, let's finalize things first; it's been dragging on for months."

"Let's go together then. I also need to go to the district. I have another meeting this month. I'll leave the company to you to manage then, so you can experience being a domineering CEO."

"Damn it, can't you live without showing off?"

"Haha, I really don't want to brag about this, you know me."

After getting married, Tan Jincheng suddenly had a lot more titles, such as ZX Committee Member and People's Party Representative, which he could no longer refuse.

He is a self-made millionaire, his money came from nothing, and he has also solved a lot of employment and tax problems. He has a good reputation, and even though he is too young, no one would find it strange to have these titles on him.

Everything is real and tangible; you can't refuse it even if you don't want it.

The butterfly effect was faster than expected. By mid-March, while Mr. Tan was busy with meetings, Toyota needed to recall a total of 27.75 vehicles.

However, compared to the compensation packages offered in the North American market, the compensation packages offered in China are simply insulting.

For RAV4 owners in China, Toyota is only offering a "choose one of three" compensation plan. The so-called "choose one of three" plan is that Toyota will arrange a safety inspection, the vehicle's four-wheel alignment will be checked, and the neutral key will be checked.

You will be chosen from three options, and there are no other compensation options available.

The compensation packages offered are worlds apart from those in the North American market. Even if all three were included, it would still be unsatisfactory, let alone having to choose one out of three.

The proposed plan sparked strong protests from RAV4 owners.

On March 14, the Zhejiang Provincial Administration for Industry and Commerce released the "Zhejiang Provincial Consumer Rights Protection Measures" and held a press conference to lodge a clear protest against Toyota, thus kicking off a campaign by government departments to collectively protect the rights of consumers.

It's truly rare for government departments to step in and help consumers collectively protect their rights; at the same time, a legal team of hundreds of lawyers has been formed to fully represent RAV4 owners in seeking compensation from Toyota for their losses.

For a time, Toyota, and indeed the entire Japanese brand industry, was plunged into a huge public opinion crisis.

"This is a headache. Mr. Tan, don't go too far. You also own half of Mitsubishi's shares."

Nagasawa Yu was on the phone with a worried look on his face. He had been closely following the recall incident recently. As soon as Toyota announced its compensation plan in China, he knew things were going to go wrong.

This is 27 vehicles, not 270. Such a huge group. There is an old Chinese saying: "It is not scarcity that is to be worried about, but inequality."

How could such a large group possibly accept a compensation plan with such a huge disparity in compensation?

Yuto Nagasawa could imagine the uproar this proposal would cause, and even if he increased compensation later, his competitors would not let him off the hook.

Sure enough, less than two hours after the news was released, he saw a press release on Yiche.com that directly attacked Toyota and even the entire Japanese brand industry, and it was quickly reposted to major car forums and portal websites.

These press releases came out so quickly, it was as if they were prepared in advance. Who owns shares in Yiche.com? And who could be releasing press releases so quickly?
Anyone who isn't cerebral palsy could figure out who was behind this.

From the beginning of the cooperation negotiations, Nagasawa Yu observed Tan Jincheng. He was quite assertive and had his own ideas during the negotiations, but overall he still seemed quite humble.

However, after arriving in China, through conversations with business people and media reports, Nagasawa Yu learned about another side of Tan Jincheng: besides being very good at marketing, he was also a bit shady in his business dealings.

In the early stages of their business, while excitedly visiting a company to discuss cooperation, they also had their drivers hand out business cards to the company's employees to poach talent.

In addition, some people say that although he appears humble in business, he is ruthless towards his competitors. His two price wars in the two-wheeled electric vehicle market have wiped out many small and medium-sized manufacturers.

This is a ruthless side of Tan Jincheng, but Nagasawa Yu had never felt this way before.

But now I realize that this guy is really ruthless when he starts criticizing Japanese brands; he's even attacking himself.

(End of this chapter)