2003: Starting with Foreign Trade

Chapter 921 Never Forget the Original Intention, Take It Down!
May 7th, the first working day after the Shanghai Auto Show ended.

Musk, who has been active in China for a week, has registered Tesla's Shanghai branch in Shanghai with an initial registered capital of 100 million yuan, preparing for the subsequent establishment of Tesla's Gigafactory project.

Tesla's stock price rebounded for several days, returning above the $300 mark, influenced by Musk's activities in China and the establishment of its Shanghai branch, easing the pressure on Musk caused by continuous short selling.

"Hey, Tan, I didn't expect your factory to be so advanced. This is different from what I imagined."

Automobile manufacturing plants represent the advanced level of Industry 4.0 and intelligent manufacturing. Among the supplier factories that Musk visited, the Chinese factories were relatively backward. With abundant human resources, they tend to prefer to use manual labor.

This is Musk's first visit to the Weilai car manufacturing plant in Ningbo. He had wanted to visit several times before, but for various reasons, he was unable to do so.

The establishment of Tesla's Shanghai branch basically means that Tesla's Shanghai Gigafactory has officially been launched. Coupled with the recent rise in stock price, Musk, in a good mood, decided to take a trip to Ningbo, which is very close to Shanghai.

While we're at it, let's take a look at Tesla's suppliers in Ningbo, including Weilai, Xushen, Top, and others. These are all important component suppliers for Tesla and play a pivotal role in the entire Tesla system.

"Haha, that's not entirely true. What I'm showing you is our most advanced company, which has been continuously upgraded over the past few years. In addition, technological advancements also play a role."

Musk was in a good mood, and so was he.

Let's go back to the morning when he managed to corner Wang Fengying through some means. After several years of pursuit, as Tan Jincheng planned to spin off the Yuechi series into a separate subsidiary and find a new leader for Yuechi, things had reached the point where in-depth discussions were necessary.

Wang Fengying clearly understood these things, which is why she chose to talk to Tan Jincheng alone.

“I am very grateful to Mr. Tan for his high regard for me. Over the years, you have always respected my wife and me. However, there are some things I still need to clarify before making a decision.”

Tan Jincheng's initial desire to recruit Wang Fengying can be traced back to 2010; for eight years, this young and promising entrepreneur has never given up and has always maintained respect for the couple, sending them greetings during holidays and occasionally inviting them and their family to his home for visits.

In addition, Tan Jincheng also values ​​her husband Zhang Li very much, which Wang Fengying can see is not only because of her, but also because of her recognition of her husband's abilities.

Among the senior executives of Weilai, Zhang Li, who is in charge of production and manufacturing, is a behind-the-scenes figure and is not as well-known as CEO Zhang Yong, Research Institute Dean Hu Zhengnan, European General Manager Yu Liguo, or even Lotus CEO Li Xiang.

However, whenever he had the chance, Tan Jincheng would introduce Zhang Li to the media, highlighting his contributions to the production and manufacturing of Weilai's automobiles, and he would also occasionally bring Zhang Li into the spotlight.

Compared to his time at the Great Wall where he was known as Wang Fengying's husband, Zhang Li has now completely returned to his true self, and his current role is General Manager of the Manufacturing Department (Vice President level).

For a man, marrying a capable wife known as the "Iron Lady" is both his fortune and his misfortune.

His wife is too outstanding, and the two work at the same company, so his brilliance is often overshadowed, even though he is equally capable.

Over time, the relationship between the couple will inevitably undergo some subtle changes, which is an undeniable fact. However, since Wei came to prove himself, their relationship has not become strained due to their separation; on the contrary, they have become more understanding of each other.

It can be said that Tan Jincheng made a significant contribution to promoting the relationship between the couple and even the harmony of their family.

In addition, in terms of compensation, with several rounds of equity incentives and an annual salary, Zhang Li's annual income has exceeded her actual income as the number two person in Great Wall, after all, she does not have any shares in Great Wall.

65 shares is the number of Weilai shares that Zhang Li currently holds, with a current market value of over 9000 million yuan and a peak value of over 1.1 million yuan. This does not include other investments he has made with his boss over the years.

Whether it's executives from Flashpoint, Orange, Weilai, or Leichi, they all know their boss's talent in the investment field, and the controlling shareholder of the four companies, ByteDance, is the biggest proof of that.

No one ever thinks they have too little money. Being in a good position, they often follow their boss's investments and have made quite a bit of money over the years.

Recently, some senior executives from Meizu have also joined the ranks.

In fact, this was Tan Jincheng's intention. Corruption is inevitable in large corporations. Any project, even a small leak, can yield a lot of profit, especially in internet companies. The Ali's shopkeeper incident is well-known throughout the internet.

This is human nature, and it's unavoidable. Apart from making improvements to the system, all Tan Jincheng can do is try to ensure a certain level of purity at the top and prevent corruption at the top, such as the situation with Xiaopeng Motors.

Don't mess around in the company. If I have other ways to make money, I can share some with everyone to keep the upper management pure and less greedy. That way, they can be more flexible in their management.

Tan Jincheng chose to share a portion of the investment returns with the senior management. In addition, there are other methods, and so far the results have been quite good. The senior management of several companies have been relatively restrained.

Of course, it may also be related to Tan Jincheng's youth and personality. The actual controller is in his early 30s and has plenty of energy to manage the company. The senior management is mainly composed of people born in the 70s or even 80s, which is much younger than other companies.

In terms of personality, Tan Jincheng is the kind of person who is willing to make concessions to senior executives, partners, and investors. He has a good reputation among his partners over the long term, and he is also extremely talented in investing.

Besides his generous side, Tan Jincheng also has a ruthless side. When corruption is exposed, he will actually send people to jail. This has happened before at Flash Motors.

If the boss is willing to make money together with everyone, there's no need for him to risk breaking the rules by operating a sewing machine again.

Returning to Wang Fengying's side, Tan Jincheng's appreciation, the long-term separation from her husband, and some changes at the Great Wall gradually made Wang Fengying somewhat tempted.

"If I come to Weilai, what kind of career plan can President Tan give me?"

"Furthermore, Mr. Tan, what do you think is so appealing about Wei Lai compared to Great Wall? Don't even mention the general manager of Yuechi branch. Although he holds a high position and great power, he is not as good as I am now."

Tan Jincheng smiled.

"Mr. Wang, that's a good question. Indeed, the position of general manager of Yuechi Company is not enough to attract you. So let me talk about the situation you are currently facing at Great Wall, as well as your future career plans."

"Don't even talk about retirement. You're only 48 years old. As one of only two female senior managers in the country, you're still a long way from retirement."

"You flatter me. Your wife is also very outstanding."

She certainly knew who the other person Tan Jincheng was referring to was.

"Haha, she's no good, she has no ambition."

Before marrying Tan Jincheng, during the time when they founded Orange together, Gu Qingqing still had some ambition for her career and wanted to progress alongside Tan Jincheng. However, as Tan Jincheng's business grew and they got married and had two children, Gu Qingqing gradually gave up on this idea.

Although Gu Qingqing still goes out to work, she plays more of a supporting role for her husband than a true ambition.

As for another powerful woman, Ms. Dong, she seems to have become increasingly abstract in recent years since her bet with Lei Jun, often making surprising remarks when facing the media, but these are not the most important things.

Rather, Gree's development in recent years has gradually gotten out of control. For example, there was the 500 billion yuan investment in chip manufacturing. The Yinlong project, which was rejected by the board of directors in 2016, was still invested in under her strong insistence. Then, the 130 billion yuan acquisition of Yinlong went bankrupt.

In 2015, Gree claimed that if it made mobile phones, it could wipe out Xiaomi in no time. However, the result was that the Gree mobile phone that year had a picture of Gree herself on the boot screen, which really shocked consumers.

Gree's mobile phone sales were also dismal. The hype surrounding chips, the failure of diversification into mobile phones and new energy, and the fact that Gree, despite its lack of understanding of the internet, repeatedly made shocking statements on the internet have gradually diminished its reputation.

Compared to Ms. Dong's tarnished reputation in her later years, Wang Fengying, also a strong woman, appears much more low-key.

"Alright, let's stop talking about my partner and talk about my understanding of the Great Wall and your location on it."

Interrupting Wang Fengying from saying anything more, Tan Jincheng raised his finger and said, "First, new energy is an inevitable trend, that's undeniable, and I believe President Wang can agree on that."

With the promotion of policies, although subsidies will gradually decrease, if a company still questions the impact of new energy vehicles on the gasoline vehicle market, then that company is probably nearing its end.

In fact, the reason why the development of new energy vehicles in China is so rapid is not only due to policy guidance, but also because of the ever-increasing oil prices. High oil prices have greatly accelerated the development of the new energy industry.

If oil prices remain low for an extended period, no amount of policy guidance will be effective; consumers will simply choose what is advantageous to them.

"However, although Great Wall has increased its investment in new energy, it is clearly still insufficient."

Although Great Wall Motors has started to pay attention to new energy vehicles, Tan Jincheng believes it is still insufficient. Mr. Wei's mind is still on the gasoline vehicle sector. Compared with companies like Weilai and BYD, Great Wall Motors started too late.

If we say that Great Wall Motors truly began to value the new energy vehicle industry, it should be this year. The launch of ORA is what accelerated Great Wall Motors' electrification strategy, whereas in previous years it was somewhat perfunctory.

Wang Fengying was well aware of this.

"Compared to us, BYD, and even Geely, Great Wall has no advantage in the field of new energy vehicles. Great Wall is the king in the field of gasoline vehicles, but in the field of new energy vehicles, Great Wall has already fallen behind."

"There are also emerging forces. As you saw at this auto show, in a market where gasoline vehicles are gradually being squeezed out by new energy vehicles, Great Wall has reached a very critical juncture and must make changes at this time."

"Just like when we spun off Yuechi, it was also to make changes so that the company could develop better."

After a pause, Tan Jincheng stared at Wang Fengying and said, word by word, "And this is something that the Great Wall lacks, or rather, something that cannot be changed in a short period of time." Wang Fengying remained silent.

Yes, even with increased investment in new energy vehicles, Great Wall still leans towards gasoline vehicles. Wang Fengying is just a manager, not a business owner, so even if she wanted to change things, she couldn't.

In addition, there are some power struggles and policy conflicts involved behind this.

In recent years, Mr. Wei has emphasized technology leadership, and some technically-minded executives such as Mu Feng have gradually risen to power. Wang Fengying's sales-oriented management style is no longer as compatible with the needs of the company in its new phase.

Wang Fengying still holds a high position at the Great Wall, but compared to before, the Great Wall, which is undergoing rapid changes, is gradually becoming quite different from what she had in mind.

In addition, there are two other reasons why Wang Fengying's status at Great Wall Motors is not as good as before. The first is that in the SUV track, which they are proud of, they have long been suppressed by the rising star Wei Lai.

Haval has consistently achieved good sales figures year after year, but it has never been able to surpass the Yuechi series, and has been ridiculed as the perennial runner-up for many years, which is a small blow to the brand image.

Furthermore, the overseas expansion plan she spearheaded has not progressed smoothly due to geopolitical factors, and the company may need to adjust its strategy.

In addition, there is another voice within the company that Great Wall needs a younger team that is more knowledgeable about intelligent electrification to lead their new energy industry, and a change of leadership seems to be what everyone hopes to see.

This year, the boss's daughter's public appearance was a clear signal. Although she cannot yet influence Great Wall's decisions, starting this year, the boss's daughter has gradually begun to participate in some of the company's businesses, specifically in the field of new energy. This is something that is well known among the company's senior management.

Ironically, the reason why there are such calls within the company is partly due to the success of Weilai. Weilai, with its young management team, has a strong impact on the market.

A prime example is Li Xiang, also born in the 1980s. After gradually taking over Lotus, the changes were very noticeable. The Heysel plant continues to produce traditional models, while the Jiangcheng plant is pursuing an electrification strategy.

In addition, Li Xiang was more aggressive in marketing than the previous management team. Lotus, a niche sports car brand, has gradually gained popularity in China.

In terms of sales, Lotus's global sales had long been around 1500 units before Tan Jincheng took over, but by 2017, sales had risen to 3000 units.

The new CEO, Li Xiang, understands the market better than the conservative British.

"From a hero of the era of gasoline-powered cars to a reformer of the new forces, this is your future career plan, Mr. Wang. However, it is clear that there is no place for you at Great Wall Motors. Your existence is very beneficial to Great Wall Motors, but it is also detrimental in some aspects."

"Come on, Wei Lai. There's a place for you here. I don't need to rush to train a successor."

Such a blunt statement made Wang Fengying smile wryly. This guy really didn't know any better. He wasn't much older than the boss's daughter, but how could he be so shrewd?

However, Tan Jincheng didn't say anything. From Mr. Wei's perspective, considering the company's future, at 54 years old, with his daughter now an adult and capable, he really needs to start thinking about the issue of succession.

If she continues to lead the new energy sector, the outcome remains to be seen, but it will certainly limit the growth of her successor to some extent.

"If you, Mr. Tan, were to be replaced by Mr. Wei, what would you choose?"

“I would choose to do the same thing as Mr. Wei, letting my daughter gradually rise to power. But that’s 20 years from now. I might change my mind then. The approach taken by Mr. Wang of Wanda is not impossible.”

Wang Fengying sighed and said, "Yes, this is not a problem that President Tan needs to consider right now."

Twenty years from now, she will be 68 years old, and she won't need to worry about it at all.

"When you arrive in Weilai, in addition to managing the new Yuechi Company, you will also serve as the Senior Vice President of the Group, responsible for optimizing Weilai's supply chain costs and channel system."

"As for the Yuechi series, it is currently mainly based on gasoline vehicles. However, as you have seen, this year not only has the sales of our Yuechi declined, but the sales of your Haval series have also declined. Therefore, your first task after taking over is to promote the electrification of the Yuechi series."

“I can treat the Yuechi series as an experiment to see if a classic model can truly transition from the era of gasoline cars to the era of electric cars and still not be eliminated by the market.”

"The Yuechi series has been on the market for almost ten years, which is a very long lifespan among domestic models. But that's far from enough. I hope the Yuechi series can continue to sell for another ten or twenty years, like those classic European and American models, and remain a long-term bestseller."

Some classic European, American, and Japanese car models are not only older than Tan Jincheng, but also older than Wang Fengying, and these models are still selling well to this day.

"President Tan is quite determined."

To be able to say that the current mainstay of the company, the Yuechi series, is being handed over to her as a "test subject" to promote electrification is truly impressive. At their level, some things are not just casually said.

Furthermore, the other party had even already planned out their position and responsibilities after "taking office."

Extensive experience in sales and traditional automobiles, a determination to transform into the new energy vehicle business, and the ability to reform are all factors that Tan Jincheng values ​​in Wang Fengying.

The Great Wall needs to change, and so does Weilai.

"Of course, when we sold the first Yuechi A1, I said that our goal has always been new energy vehicles. Weilai has always been a technology company dedicated to the new energy industry."

"In today's terms, we call this staying true to our original aspiration. Mr. Wang, you don't need to question my enthusiasm for the new energy industry."
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"It seems to have a lot of resemblance to the BMW Martin-Griffin factory?"

Back in Ningbo, Tan Jincheng was in high spirits. He took Musk, who was also in high spirits, to visit the most advanced car factory in the entire Weilai system on Meishan Island. This company will be built into a benchmark factory for Weilai.

It also undertakes the task of cooperating with the Beicang Culture and Tourism Bureau, and is responsible for attracting some tourists to Beicang. In the future, some production live broadcasts of the Weilai factory will also be transmitted through this factory.

Of course, these are just incidental attempts, a direction for industrial diversification. As for whether they will succeed, the Beicang Culture and Tourism Bureau should be more concerned than Wei Lai.

"Yes, we have been working with BMW for many years and have learned a lot from them in terms of advanced manufacturing concepts."

Wang Fengying, who has earned the nickname "Iron Lady," is not indecisive at all, at least not at work. Since she was already interested in Tan Jincheng and he offered her attractive terms, she readily agreed.

Besides her current situation at Great Wall, what moved her most was that Tan Jincheng had almost completely restructured her career.

The phrase "from a hero of the gasoline-powered car era to a reformer of the new forces" resonated with her.

Yes, if we can successfully transform the Yuechi series, which currently holds a very high position in the gasoline car market, into the new energy vehicle market, wouldn't that be like creating a new brand?

This is even more difficult than establishing a new brand; just look at BYD's F3 series hybrid version.

"It's very advanced. It's clear that you've invested a lot in this factory, Tan. It seems I can trust your batteries even more now."

Tesla's Nevada battery factory is currently the most automated factory in the world, with an automation level of 95%. Due to labor costs, European and American companies have a very high demand for automation.

Musk, a tech visionary, has an extreme obsession with automation. He forced automation into the market when the technology was not up to par, even causing Tesla's production line to crash at one point.

When I visited this benchmark factory, I was impressed by its robot density and level of automation. In a country with abundant human resources, I greatly admired Tan Jincheng's investment in factory automation.

In addition, the Weilai Meishan factory also gave Musk a big surprise in terms of digitalization. Like the BMW Dingolfing factory, it uses AI to predict supply chain risks, enables the production of multiple models on the same line, and also has big data analysis.

Furthermore, the introduction of clean energy sources such as solar roofs, wastewater recycling, and waste reuse has given Musk quite a pleasant surprise.

"Of course, don't forget I also have an artificial intelligence company. We've invested a lot in AI over the years."

Tan Jincheng is also very proud of this factory, not only because it reflects his and Wei Lai's financial strength, but also because it is a combination of his more than 10 years of investment in the new energy, automobile and Internet industries.

Putting aside other things, take the solar rooftop factories that will be ubiquitous a few years from now as an example. In the automotive industry in 2018, only four companies worldwide—Tesla, Toyota, BMW, and WooLan—were doing this.

Although the distributed photovoltaic subsidy policy is being promoted, there are still quite a few companies in China with factories like the Weilai Meishan plant, but they are still not as large as Weilai in terms of scale.

These are the visible aspects, but the invisible digital and AI fields represent Weilai's soft power even more.

“How could that be? I know your business very well. I even know that you own a low-speed electric vehicle company and a mobile phone company.”

"By the way, could you take me to visit your artificial intelligence company?"

Weilai's research and development in artificial intelligence is mainly aimed at the automotive industry. If we were to use a field that the general public is more familiar with, it would be somewhat similar to the solutions developed by Huawei.

The combination of mobile phones, the internet, and automobiles is something Musk is very interested in, and it's another reason he came to Ningbo.

Chinese companies are making rapid progress in the field of intelligent driving, and Weilai has produced an electric car that costs $3.5, which has given Musk a sense of urgency.

(End of this chapter)