Extraordinary Genius

Li Mingde and Feng Yu reported the good news, saying that the sales in Europe and the United States were fine, and that Madfield had responded, but was also affected a lot. In particular, the profits from Madfield will definitely be lower than expected this year.

But Feng Yu thinks it won't be that simple.

Feng Yu is not worried about reacting to the attack of mad fields, against any company in the world, Feng Yu is not worried, but if those car companies unite, it is serious for Iceland Machinery Manufacturing Group.

Indeed, Feng Yu's worries were not unreasonable. Li Mingde called the next day and told him a bad news.

Crazy Tian further cooperated with Crazy Tian, authorizing two more models of vehicles to be awarded to Crazy Tian joint venture company, while also paying Crazy Tian a sum of cash.

But it was also a ghost, they insisted on not extending the cooperation period, that is, the two cars, still can only bring more than a decade of profit to the mad field, more than a decade later, this joint venture of the mad field, will definitely become a wholly-owned subsidiary.

This condition, for Crazy Fields, is actually a huge loss. It's the equivalent of their constant selling of vehicle technology to joint ventures to help boost their technological capabilities. Although Madfield can also share some profits in the cars produced later, they are too little compared to their joint ventures in Europe and the United States.

When Crazy Fields partnered with Qi, it was planned to capture Huaxia as an emerging potential market by resorting to joint ventures to ring their Crazy Fields brand.

They then rely on exports to Huaxia to make more profits. It would be better if the shares of the joint venture could be raised in the future. If it doesn't work, they'll go on a joint venture with other car companies.

But at this time, Huaxia's leaders called a halt to the new factory joint venture, Huaxia Automobile Enterprise, it is impossible to continue to emerge foreign joint ventures in the past few years.

This, of course, is also the result of Feng Yu's efforts, and he described the disadvantages of this foreign joint venture. If some joint venture plants were to emerge every few years, what would be the point of previous painstaking negotiations? When the contract expired, new joint venture plants appeared over there, and the market was still full of various foreign commodity brands of joint venture vehicles?

If it is to be a joint venture, it should also be for the other party to produce technology, develop new models and retain its own brand. Still using foreign brands, after more than a decade or two, even if the joint venture ended, the own brands were not well known and would be in trouble.

Upstairs, the leader listened, as if Feng Yu was right. But in specific cases, they have to study it. So we suspended the foreign joint venture and decided whether or not to reopen it after they had studied it through.

Anyway, Feng Yu's purpose was achieved. This greatly suppresses the invasion of foreign merchandise brands, even though they have already invaded.

Feng Yu also thought that in this way, major car companies would definitely be instructed to research and develop their own brand cars and mainly push their own brand cars. It is also implied that, if the quality of the vehicles is qualified, some purchase orders for official vehicles can be given as support to these enterprises.

People always have a kind of psychology. It's definitely a good car in an official car! Just like the domestic red flag, the jeep, and so on, and later the joint venture, Pusan, all came into view as businessmen, so they were considered good cars.

In this way, the purchase of official vehicles will create a psychological suggestion and publicity for these state-owned brands.

The leaders are hard-working, but they didn't stop the crazy field. Under the contract, they were required to continue to provide new models to the joint venture, only two years after the original plan and now only ahead of schedule.

For one breath, it is clear that the production of joint ventures is easier, technology is more mature, and less capital is needed. The financial resources needed to independently develop a vehicle are not insignificant, especially after impact experiments.

I didn't expect it to be over. The joint venture companies of other Huaxia car companies were also authorized for new models. Before that, they had to be imported.

These models have also gained some popularity in Huaxia, and after domestic production, the sales price will decrease, but not much. But a lot of people should know that the price of imported cars is about three times the shore price. After the joint venture, there are no tariffs that high, but the price can still be high and the profit can increase dramatically.

In front of these companies in Huaxia, there are two roads, one is the strong production of these joint ventures, which are more profitable, although they have to be distributed to about one-third of the joint ventures. The other is to try to develop your own brand sedan, but also invest a lot of money and give up the high profits of this joint venture.

That's not a small profit, even a lot of cars get 100 percent.

Once a joint venture, they now have new models, and they also cover medium and low-end cars, and when Li Mingde found out about it, he felt troubled.

They can't get those car companies to give up production of joint ventures. After all, the big shareholders are still state-owned shares, and the money earned is also state. If you don't stop suggesting, or even say the shortcomings of a joint venture, you won't like it.

What, your private joint venture can make money, and our state-owned joint venture can't make money? I thought you said you were good at technology. What are you afraid of?

Besides, with the authorization of new models, those companies have also improved some technical skills.

The leader answered, "We can use the money of the joint venture car to research and develop our own car brand, otherwise where does the R&D cost come from?"

After Feng Yu learned about this news, he also felt some headaches. This was the case in the previous generation of Huaxia. If Li Dafu and others hadn't risen, the previous generation of Huaxia would have lost its own brand of automobile.

The red flag car, though there is, is not recognized at all. The technology is backward, the shape is not pretty, the interiors are average, the performance is even more average, the price is cheap, but not many people buy it because not many people are good at fixing this model.

The car is inevitably damaged, even if it is not too bad, it needs to be maintained or something. After-sales service is important. Not to mention the 4S store of Songjiang, which also has a lot of private repair shops. And there are many repair shops for Volkswagen, Crazy Field, Stupid Field, Fut, etc.

But you said the repair shop of the Magic Duo car and the repair shop of the Red Flag car, that's not very common. Even some small bread repair shops are much more than these.

With such a vicious circle, our own brands will fade away. In previous life, Red Flag launched a $5 million concept car, showcasing its own new technology, but Red Flag isn't selling very well yet? The most profitable, the hottest sellers, are the Mad Fields and the public.

“Chief Feng, why don't we announce the real cost of those joint ventures? Forced them to cut the price?” Lee Ming De came up with a tough draw at the bottom of the kettle.

Feng Yu shook his head. This technique is too damaging, and hurts the interests of those car enterprises. It also hurts the interests of state-owned capital. In that way, Songjiang Automobile can become a target.

Think of something else.

……