2003: Starting with Foreign Trade

Chapter 733 Tanks? I think it's a good idea!

Strictly speaking, the Haval H3 is not a city SUV, but a CUV (rugged SUV).

Before 2009, it wasn't called Haval H3, but rather Safer, or Great Wall. They only changed the name early last year.

This is Great Wall's best-selling SUV model to date, and it's also the domestic brand model that can best compete with the Yuechi A1, consistently ranking among the top five in monthly sales.

In terms of design language, the H3 is not an original model; it was designed by reverse engineering the Isuzu Axiom, which is a nicer way of putting it.

To put it bluntly, it's the same approach that Pony Ma (Ma Huateng, founder of Alex Ferguson) took. However, this Isuzu model was not sold in China, and given the underdeveloped internet at the beginning of the century, not many people mentioned it when it was first launched.

However, the renamed H3 has indeed sold very well, with its sales in the first half of the year surpassing those of the RAV4. Of the two Japanese SUV giants, only the CR-V remains to sell very well.

From January to June, the top three best-selling SUVs were the CRV, Yuechi A1, and Haval H3. In addition, the sales gap between Yuechi A1 and Haval H3 was not large. While you are making progress, your competitors are also racing ahead.

To be honest, Great Wall Motors' entry into the SUV and off-road vehicle market was out of necessity. At the beginning of the century, policies favored joint venture brands, and there were very strict restrictions on domestic brands regarding sedan qualifications.

Take Zhongtai as an example. It initially focused on SUVs. In order to obtain a sedan license, it acquired several bankrupt car companies. This was the case in 08, and it became even more serious at the beginning of the century.

Zhang Yong chuckled and replied, "What President Wang said is a bit difficult, but let's poach her husband first. He is an outstanding talent in his own right."

The boss's poaching plan at BYD Research Institute, with its various outrageous tactics, was the first time he truly understood the meaning of the word "dogish" and it broadened his horizons.

Zhang Li had been paying attention to this for a long time. The expansion of Weilai's production capacity required a strong manufacturing manager. However, he had never really thought of Wang Fengying before, since she was a key figure in Great Wall and the task would be too difficult.

However, inspired by his boss's flamboyant and unconventional approach, Zhang Yong thought it wouldn't hurt to give it a try, even if it failed.

Zhang Li has reached a private agreement with him to join Weilai Automobile at the end of the year as the manufacturing manager and vice president, with stock options as a bonus.

Promotions and raises, along with empty promises about the future, are nothing new. Zhang Yong didn't elaborate on the specifics of how he persuaded them, and Tan Jincheng didn't care either; as long as he could be fooled, that was enough.

"Joining at the end of the year is fine. It's good that you can come. We can take advantage of these six months to reorganize the existing manufacturing system. In addition, we also need to make a sales forecast plan for next year. We should learn from Dizi's experience."

The sales forecast for the Yuechi A1 this year has definitely been exceeded; it has sold very well. The market share of SUVs has indeed increased significantly this year, but it is not enough to make a leap forward in increasing sales forecasts.

In addition, car purchase subsidies cannot continue indefinitely. This program has been in place for two years, and with the introduction of subsidies for new energy vehicles, the government will not be able to sustain it if it continues. The market will eventually return to rationality.

"There's another point. We're actually in a dangerous situation right now. We need to launch new cars as soon as possible. Our current model lineup is too limited. If we encounter any resistance, we're finished."

The pickup truck market is still very small, with only 20,000 to 30,000 units sold per year. Considering the Yangzi Automobile brand alone, with annual sales of 1 billion to 2 billion yuan in small towns, they are indeed doing quite well.

However, Weilai is now a large group. If the Yuechi A1 is blocked by the market, or if it makes a mistake that leads to a decline in sales, a small pickup truck business will not be enough to support the progress of the entire group's business.

Perhaps by then, Yangzi Automobile, which has performed well, will once again be put on the shelf.

Unfortunately, this is what every company has to face when it encounters difficulties; the first thing to sell is the most valuable non-core business.

"Yes, our model lineup is still too limited. We need to launch new models as soon as possible. So I suggest we start using the Feiyang brand. This time, let's design something better and go for an urban SUV. What do you think, boss?"

Zhang Yong couldn't possibly be unaware of this, and he was very anxious. However, research and development, production and manufacturing all take time, and no matter how fast a new model is developed, it will still take one or two years to be launched on the market.

Weilai Auto has off-road vehicle technology acquired from Changfeng Auto, a complete set of blueprints for Feiyang SUV, chassis technology for pickup trucks, and experience in producing off-road vehicles.

The sedan market has been fiercely contested, and Weilai doesn't yet have the capability to enter it, but SUVs are definitely worth a try.

Actually, Feiyang's SUV can also be considered a CUV. After all, before the Honda CR-V was launched, there was no concept of urban SUV in the domestic market. All SUVs were more rugged, which meant they were off-road vehicles with reduced features.

We don't expect to sell many, but it can enrich the company's model lineup.

Tan Jincheng tapped his fingers lightly on the desk. To be honest, there isn't much of a line between SUVs and off-road vehicles. You can simply think of an SUV as a stripped-down version of an off-road vehicle, with the added benefit of improved driving and riding comfort.

As the SUV market matures, the popularity of SUVs over the next decade or so is well-known. At the same time, the market for off-road vehicles will also grow larger, thanks in part to tourism marketing.

The hype surrounding things like "everyone must drive the 318 highway at least once in their life" has undoubtedly boosted the sales of off-road vehicles.

"Sure, but if we're going to make off-road vehicles, we need to make them really good. We don't need to go for high volume; let's focus on the high-end."

The SUV or off-road vehicle market is currently quite different from the sedan market. In the sedan market, low-end products sell very well, such as the BYD F3 and Chery QQ.

Sedans priced under 80,000 yuan are very popular, but in the SUV segment, it is difficult to sell SUVs priced under 80,000 yuan. Currently, there are more than 40 low-end SUVs on the market, but only one model, the Zhongtai 5008, sells more than 1,000 units per month.

The once wildly popular Alto 2008 and Alto TT have now faded into obscurity among other car models. The 2008 is still doing alright, selling a little over a thousand units a month, while the Alto TT is completely ignored.

Other models like the Haval M1, M2, and some other low-end SUVs are also not selling well, while models priced above 80,000 yuan, or between 100,000 and 150,000 yuan, are selling very well.

In addition, joint venture brands such as Honda CR-V and Volkswagen Tiguan are particularly popular.

"Want to play something more sophisticated?"

Zhang Yong also fell into deep thought. Weilai Auto had always focused on the mid-range market and hadn't considered models priced below 80,000 yuan. It wouldn't hurt to try something in the high-end market; a legitimate car company would definitely aim for the high-end.

“Yes, if we’re going to do this, we should go for the high-end. The off-road vehicle market isn’t that big, and it’s not realistic to go for high volume. We might as well focus on creating a high-end model. Of course, we can’t go for the very high-end at the beginning, but creating an off-road vehicle priced at over 15 yuan is still an option.”

In his previous life, Great Wall Motors was very good at off-road vehicles. Since Zhang Yong has the ability to poach their manufacturing manager, why not just make the Tank 300?

This rugged off-road SUV boasts professional off-road performance, a chassis perspective function unique in its class, and multiple driving modes, offering a professional-grade off-road experience. Its price range of 17 to 22 yuan also makes it quite affordable.

First, capture the market below 30 yuan, then you can gradually upgrade later; it's a viable strategy.

As for whether the current market can accept hardcore off-road vehicles? Think again. People who enjoy off-road vehicles naturally prefer the tougher the better. Which off-road vehicle doesn't look cool?

After discussing the ideas with Zhang Yong, Zhang Yong's mind instantly filled with many feasible solutions; professionals are indeed professionals.

At present, Tan Jincheng mainly provides ideas and model exterior references. The rest is discussed by the R&D department and senior executives. If it is feasible, then we will proceed; if it is not feasible, then we will continue to discuss it.

"If you're going for a hardcore off-road route, then the Feiyang brand won't work; it's not tough enough."

Zhang Yong felt that the market below 30 yuan was worth exploring. Since it wasn't about high volume, even if the technology wasn't mature at the beginning, it could be gradually improved based on market feedback.

"Haha, this brand is indeed not strong enough. In fact, the reason I initially decided to shelve him was because the brand was too abstract."

Although Feiyang has many flaws, it is an SUV developed based on pickup truck technology and Changfeng Motor's off-road technology. In terms of quality, it is not too bad. A large part of the reason why it does not sell well is that the brand lacks distinctive features.

"Let's use the technology that works, and as for the brand, you can think of another one, boss."

"No need to think about it anymore, let's just call it Tank. How about we call our first model Tank 300?"

Boss Tan's perverse sense of humor kicked in again: If it's useful, why not use it?

Zhang Yong was stunned. It felt like his boss had prepared this in advance. Wasn't it him who brought up this topic? He even had the name for the first car model already decided?
"What's wrong? Isn't the Tank brand strong enough?"

Coming to his senses, Zhang Yong replied, "Uh, no, no, it's tough enough, but what does 300 mean?"

I have no idea what 300 means.

"Three, well, three gives birth to all things, representing infinite possibilities. As for why it's 300, it's to differentiate it from the Yuechi series in terms of naming. We can't just call it Tank 3 or Tank 1, can we?"

“That makes sense. Let’s go with this one. I’ll go down and discuss it with the R&D department. Also, regardless of whether we need to use it or not, let’s register this trademark first.”

The prices increase with the range: 300, 400, 500, 700. We'll talk about that later, no rush. Just the Tank 300 alone has been updated and improved over the years, so the first generation of products were definitely not very good.

"Okay, then go ahead and make the arrangements. There's nothing else going on for now. Oh, by the way, I'm going to the US in a few days. President Yu and President Hu will be coming with me. Keep an eye on things at the research institute."

The trip to Tesla in the US is one of the more important events recently. Since Mr. Tan himself doesn't understand the technology, he definitely needs to organize a delegation; otherwise, he'll be ripped off. The research institute is currently in the demolition phase, with the government involved and Wei Lai Group cooperating. Regarding the demolition compensation, Wei Lai Group hasn't been overly demanding, and overall progress is relatively smooth. However, there are bound to be some dissatisfied individuals.

It's understandable. This isn't just about money. The designated research institute site is located in rural areas, and many people there don't want their homes demolished. Imagine living comfortably and then suddenly having your house torn down; it would be a miracle if you could live comfortably.

Fortunately, with the government stepping in to coordinate and with the cooperation of Yu Liguo, an old-school figure in the system, although there were some troublesome issues, the overall progress was relatively smooth.

Zhang Yong nodded: "I understand, it won't delay the progress."

The boss has high expectations for the project's progress this time. According to the plan, the main building of the research institute must be completed within 18 months. This is partly due to the company's planning needs, and delaying it too long would affect the research and development progress.

It's not feasible to keep the R&D team in the headquarters building indefinitely. Besides, the research institute is still recruiting, and if we can't finish that soon, the headquarters building will be too crowded.

As for why it's 18 months? This story goes back to an entrepreneurs' conference that Tan Jincheng attended last time, where he met Lao Wang.

Flash Group's apparel business has a lot of cooperation with Lao Wang's shopping malls. Many GXG stores rent their spaces, so there is some business interaction between the two.

The current Wang is not the same Wang who used to talk about small goals and hundreds of millions. He is no longer the richest man and has not yet competed with state-owned enterprises for projects abroad. However, because of his background, he is still as awesome as ever.

He looked down on Flash's business, but he was still somewhat curious about Tan Jincheng. When Tan Jincheng took the initiative to start a conversation, he wasn't overbearing at all.

The development cycle of Lao Wang's plaza is very fast. The fastest is completed in seven or eight months, and the slowest is over 20 months. The overall cycle from land acquisition to opening is about 18 months.

Tan Jincheng lacked expertise in the construction industry and had limited connections, so the early construction period of the factory significantly constrained the development of Flash.

Tesla's Shanghai Gigafactory was completed in less than a year, while their Wangjiang Industrial Park took several years to build. This speed is truly embarrassing.

"Haha, there's a reason behind these 18 months."

Boss Tan was very impressed with the progress of their plaza's construction and sincerely asked for advice, which greatly satisfied Lao Wang's vanity, and he couldn't help but start showing off.

"What do you mean by that?" Tan Jincheng asked with curiosity.

To be honest, although Tan Jincheng was somewhat dissatisfied with the construction progress, he could only put up with it for the time being for the sake of the company's planning. As for the intricacies behind it, he had never dealt with these things in either of his two lives, so he really didn't understand them.

Ultimately, it's because they haven't accumulated enough experience, unlike someone like Lao Wang who comes from a prominent family and is born with knowledge.

"Hehe, let me tell you, the term of office for a typical Party member is basically three to five years. If the project is completed in 18 months, it will be completed and produce results within his term. All the credit goes to him. You understand, right?"

Old Wang chuckled and stared at Tan Jincheng with a knowing look: "Your Wangjiang industrial park has been dragging on for so long. It's lucky that the higher-ups haven't changed and it's your hometown, otherwise we don't know if it could be completed smoothly. Don't do this kind of thankless work in the future."

His backing was strong enough that many projects had to be mindful of local conditions. In his view, Tan Jincheng's investment in Wangjiang was unwise. At that time, Shanchi was still very weak, and if something went wrong with the project, it could be dragged down.

The investment environment in small towns is much worse than in big cities. They promise you a great deal when you go there, but once you arrive, they turn their backs on you.

So what if it's your hometown? If I really wanted to scam you, I wouldn't care about any of that. This kid was lucky; although it dragged on, he managed to finish the project smoothly, and I haven't heard of any problems with the subsequent production.

"Oh, I see. I understand now. Thank you for clearing things up, Mr. Wang."

Tan Jincheng didn't understand many of the intricacies behind the scenes, but he wasn't completely clueless either. He understood immediately after Lao Wang casually mentioned it, and he also understood why some local governments lost interest in certain projects as soon as they heard about the planning timeline of a certain number of years.

Goodness, they know they're going to be transferred and don't want anyone else to reap the rewards.

"Got it? So, if you're going to build a factory somewhere in the future, the first priority is to get the factory structure up and running as quickly as possible. If it can be done in six months, then six months; if it can be done in a year, then a year. The faster, the better."

"I understand, but Mr. Wang, I also want to do it as soon as possible, but I really don't have any resources in the construction industry."

Tan Jincheng couldn't help but smile wryly. He didn't consider too many external factors when investing in projects, only the company's own development. But the faster the factory construction progressed, the better, as it was definitely in line with the company's development.

That would be wonderful if a factory could be built overnight like a miracle, allowing production to begin the very next day and profits to be made instantly.

"Haha, I understand. This industry is very complex. It's understandable that you haven't been in the business for long and don't have many connections. How about this, if you have any urgent projects in the future, you can contact me, and we can talk then."

With his legs crossed and puffing out smoke rings, Old Wang said calmly that his group had this business. Given the current development speed of Weilai Automobile, their industrial bases must be all over the country. Winning this business would make them a lot of money.

"That's great! I'll visit you in Bincheng sometime later and we can have a detailed chat then. What do you think?"

Damn it, it doesn't matter who it's built for. Although Lao Wang is a bit arrogant and pretentious, he was able to extricate himself and land smoothly. Besides his backing, his insight and decisive style are also inseparable.

Look at the belt, look at other real estate companies? Compared to them, Lao Wang's methods are simply amazing.

As Lao Wang said, the construction industry is a very complex and complex industry. Even something as small as a truckload of sand or a bag of cement can be part of a huge industrial chain, and those who can do this job are all ruthless people.

You're an outsider with no experience, thinking you can haul a truckload of sand and a can of cement to a construction site? Dream on.

It's only in recent years that public security has improved and people have become more disciplined in doing business. Ten years ago, you never knew what was in those mud trucks.

He didn't want to get involved in this. He usually handed over the factory to a reputable local construction company and was willing to take a loss. If Boss Wang was willing to take it on, that would be the best outcome, as it would reduce a lot of trouble.

"No problem, we can talk about this later."

Old Wang never expected that a meeting could lead to a major business deal, and also allow him to further strengthen business ties with one of the most prominent up-and-coming talents in recent years.

As for Boss Xiao Tan, he didn't care. There was no conflict of interest between them, and it was good to be able to make friends.

Doing business is all about interpersonal relationships. Make as many friends as possible and as few enemies as possible, and your business will become more and more successful.

He gave Zhang Yong a few more instructions on how to accelerate the development of the new model, to recruit more staff as soon as possible if needed, and to temporarily store the staff at Orange Technology if the headquarters building couldn't accommodate them all.

The Orange Technology headquarters building, which was put into use at the beginning of this year, still has many floors that are still empty.

Orange Technology, Orange Live, Weilai Intelligent Driving, and the newly established TiMi Studio are all located in the Orange Technology headquarters building. The currently empty floors will all be used in the future.

These companies all need a large number of programmers and engineers. TiMi Studio also needs voice actors, illustrators, modelers, and history experts. Don't be fooled by the name "studio"; as it grows, it will have a considerable number of employees.

It's unclear whether there will be any vacant floors in the Flashpoint headquarters building, but the Orange Technology headquarters building will definitely be fully utilized, and may even be insufficient.

Programmers, this is a huge cluster.

The leaders of Beicang District keep a close eye on industrial plants like Weilai Automobile and Shanchi Group. What they don't know is that if Orange Technology were to truly develop, it might not be anything special on a national scale, but it would definitely be a behemoth within the district.

The gaming business group and the e-commerce business group are two very large industries.

"Understood. I will have them speed up the process and work harder to launch more new models next year."

Pickups, SUVs, off-road vehicles, and new energy vehicles are the overall plans of Weilai Auto, and all of these plans must be based on the premise that the gasoline vehicle business remains intact.

Weilai doesn't employ a "car-sea" strategy, but having only one model on sale is definitely not enough. Everything seems to be thriving, but in reality, it's a case of "fire smoldering oil."

The lessons learned from BYD are far from over. At every high-level meeting, the boss uses BYD's example to remind everyone not to let their guard down.

In the boss's words, if it weren't for the F3 still selling well, Dizi would be finished by now.

That's the car industry for you. It's booming today, but it might be completely dead tomorrow. It's really exciting.

Enriching the model lineup, accelerating R&D progress, ensuring sales of the Yuechi A1, and keeping a close eye on the research institute's engineering progress—Zhang Yong has quite a burden on his shoulders.

After Zhang Yong left, Tan Jincheng received reports from the senior executives of each branch company. They all knew that the boss was going to the United States for a period of time, so they had to show their faces in front of the boss and demonstrate their loyalty.

In the following days, Zhang Xupeng accompanied Tan Jincheng whenever it came to matters involving Flash Group's business. Tan Jincheng was also intentionally cultivating his ability to manage the company, not letting this kid have it so easy.

How could the vice president of Flash Group only be in charge of Jinpeng Industrial?
(End of this chapter)