Intelligent Industrial Empire

Chapter 29 The Olive Branch of Deere Company

Numerical control technology, whether it is in the United States, Germany, or even any country in Europe, is not comparable to a small Chinese private enterprise.

Therefore, after visiting the CNC workshop of Qingfeng Machinery for a while, the leader of the delegation, Smith White, asked Yunfei to take them to the ordinary machining workshop of Qingfeng Machinery.

White's attitude made Wang Qingfeng and Ren Zhiguo of Kmart, who had worked hard enough to make foreigners recognize their CNC workshops, and Ren Zhiguo of Kmart Corporation were frustrated.

During this period of high-precision parts processing, Kmart and Qingfeng Machinery have earned a lot.Therefore, they all want to get more orders for high-precision parts processing from foreigners and earn more dollars, but they did not expect that the purpose of White and his team is not to process high-precision parts, but to process low-precision parts. Rough machining link.

Yun Fei had a clear understanding of this.Foreigners, if it were not a last resort, high-profit jobs would definitely not be produced in China, a market that they have not yet deeply understood.

While Yun Fei introduced the general machining workshop to the members of the delegation, he led them to the machining workshop.

"Our factory currently has 54 high-precision ordinary horizontal lathes of various models and two vertical lathes, capable of processing various rotary parts with a diameter of 0.5mm to 5000mm, with a maximum processing length of 10 meters. Twenty-two sets Lifting table universal milling machine, three high-precision turret milling machines; eight radial drills, ten high-precision internal and external cylindrical grinders, and eight surface grinders. We are about to establish the second machining workshop, and various equipment has been contracted with the manufacturer. In June this year, these equipment will be installed in our newly established second machine shop..."

Yun Fei's words made Ren Zhiguo of Kmart Company stunned.In dealing with Wang Qingfeng every day in the past few months, he has never heard of such a plan.This person Wang Qingfeng, Ren Zhiguo knows too well and does not have too strong purpose in doing anything. His processing factory can grow to such a large extent, to a large extent, it is still less than 20 years old in the past six months. Young people.

Wang Qingfeng was even more stunned. Yun Fei had never mentioned this plan to himself. Before today, he had not even meant this.However, in front of the foreigners, he did not reveal anything, and buried everything in his heart, waiting for Yunfei to explain to himself after these foreigners left.

"Mr. Yun, we have learned about the scale of your company in detail before coming here. Could you please introduce your company's technical level and your company's processing cost?" Maksim finally asked himself. Hold the question.German technology belongs to the top in the whole world.However, their processing costs are also top in the world.

"That's it. Because our ordinary equipment is divided into many processes in the process of processing mechanical parts, if it is a large quantity of medium and low difficulty parts processing, our total cost is only three-fifths of the international average. Even less. Among them, labor costs are only one-third of Europe and the United States. Highly difficult, high-precision parts processing, due to our equipment resources, the cost is only about 20% lower than the international level, and some even Higher than the international level..."

For these foreigners, Yun Fei definitely can't tell them his bottom line, otherwise, when bargaining with these foreigners, he will have to work his nose, and then he will be exhausted and unable to make any foreigners' money.

"Mr. Yun, you are not very honest. As far as we know, the cost of your company's difficult and high-precision parts processing is less than one-third of the international level..." Carlos heard that Yunfei directly said The production cost was reported high, and Yun Fei hurriedly interrupted.The Germans can't negotiate, and the Americans have to get ahead.

"Mr. Carlos, you did know the situation. Eight months ago, our costs were indeed like that. But now, our costs have risen a lot. Because of the expansion of the factory, our management team is the same as before. Several times, other related departments have been established. To be honest, the increase in labor costs is not too large, mainly due to the expansion of the factory scale and the increase in management costs. I don’t know how I explain it, can you understand? "

As for Carlos's mind, Yunfei, who was a human for two lives, may be better than himself.It seems that now the other party has the intention to cooperate, but his own side does not have the slightest understanding of the other party.And the management cost is an unavoidable problem in any country or region in the original time and space.

This is a major disadvantage in this age when there is no aunt.It is difficult to determine the bottom line of your opponent.

Ren Zhiguo gave Wang Qingfeng a questioning look, but he was also confused.

Yun Fei silently thought about the identity of this investigation group that mixed Germans and Americans.Regarding the introduction of ordinary machine-processing workshops, there are also some absent-mindedness.Logically speaking, in the early 1990s, it was difficult to encounter a delegation with personnel from several countries.

Seeing that Qingfeng Machinery divides most of the products in the entire workshop into countless detailed processes, even the work steps are very detailed.A group of foreigners couldn't help but open their eyes and mouth wide.You know, even in assembly line production, the process steps are not so detailed.After a large number of CNC machine tools, most of the processes began to be concentrated.

This shows the backwardness of machining in China!

In foreign countries, because there are CNC machine tools instead of senior operators, assembly line production is more popular.In North America and Europe, two industrially developed regions, although they have begun to pursue humanized management.However, with a large number of CNC machine tools instead of high-quality skilled workers, the production line is more perfect.

Workers, not robots, especially skilled workers.If they are asked to repeat the same actions every day, it is easy to cause mental fatigue, resulting in a reduction in accuracy levels and batch scrapping.It is precisely because of this that the wage costs of the machinery manufacturing industry in the two industrially developed regions of Europe and the Americas have risen to a point where shareholders will soon be unable to bear it.

Due to the slowdown in economic development across Europe, countless companies have set their sights on the increasingly vibrant mainland China.This is not only because China has a vast market, but also because China has low-cost skilled workers.Of course, the foreign-funded enterprises at this time are far from the NB of later generations, and the attraction to skilled workers is not as strong as that of local enterprises.

After visiting the factory, Wang Qingfeng led the group to the large conference room on the second floor of the office building.

"Boss Wang, Director Yun, you can take a look at this contract first." As soon as he sat down in the office, Ren Zhiguo took out two documents from the briefcase held by the secretary beside him, and handed them to Wang Qingfeng and Yun Fei. Two people.He knew that in this factory, the young man in front of him could be the master of Wang Qingfeng. Of course, Ren Zhiguo also knew that this young man was not as easy to fool as Wang Qingfeng.

Carlos, White and others stared expectantly at Yun Fei and Wang Qingfeng, two potential partners they had chosen for a long time.

As soon as Wang Qingfeng saw this contract in both Chinese and English, he had a big head, and when he saw Yun Fei looking at it with relish, he directly threw the documents in his hand to Yun Fei and asked him to take a closer look.Seeing that Ren Zhiguo was talking quietly in English with Smith White and Carlos, he began to rest his eyes on the back of the sofa and closed his eyes.

After seeing the contract, Yun Fei understood the identity of the other party.But after knowing their identities, they became even more confused.

Ren Zhiguo brought this eight-member foreign delegation from Deere, the world's largest manufacturer of agricultural machinery.Deere Company surpassed the International Combine Harvester Company as early as 1958 to become the largest agricultural machinery manufacturer in the United States.After becoming the world's largest agricultural machinery production company in 1963, its position has never been shaken.

Deere's main business in China has always been technology transfer, engineering and technical personnel training, and complete machine export.Now we are actually starting to lay out and build factories in China!

This makes him confused anyway.Deere's company in China is not without a layout, but it does not occupy much market share in the Chinese market.

In the original world, although Deere had business dealings with China in 1978 at the beginning of the reform and opening up, it had to wait until 1995 to establish an office in BJ, and establish the No. 1 in China's agricultural machinery industry with HLJ Jiamusi Combine Harvester Factory. The joint venture will have to wait until 1997.

The contract given by Ren Zhiguo is very simple. It is a joint venture between Deere, Kmart and Qingfeng Machinery to establish an agricultural machinery production company.Kmart is responsible for the market, Qingfeng Machinery is responsible for most parts production, and Deere is responsible for the overall technology, provision of power equipment and after-sales service.The new factory is established in HeN Zhengzhou, responsible for final assembly.

Deere Company invested 5 million U.S. dollars and technology, the new plant's shares in the United States Deere accounted for 51%, Kmart invested 6 million U.S. dollars and market channels accounted for 42%, Qingfeng Machinery provides parts processing and assembly of all skilled workers get 7 %.

The shares of the new factory will be redistributed after receiving new capital injection.Seeing this, Yun Fei smiled.

In the 1980s and 1990s, many foreign companies played such capital games.Due to the imperfect market mechanism in China, it is difficult for wholly foreign-owned enterprises to open the market in China.Therefore, they all seek joint ventures with outstanding Chinese companies, and then inject large amounts of capital into the joint venture company to dilute the Chinese equity.Among them, SH FAW is the most famous example, not only producing most of the skilled workers, but also a lot of land and market share.Later, with the continuous capital injection of German companies, SH Volkswagen was only a subsidiary of German Volkswagen, and most of the profits were divided by German Volkswagen!In the end, not only did he lose his own advantages, but he was also controlled by the Germans.

Many foreign-funded companies use their own technology and capital advantages to find Chinese companies with huge potential for joint shares in mainland China, and finally completely annex each other.

In this regard, the most disadvantaged are state-owned enterprises that are joint ventures with foreign-funded enterprises.Money is needed everywhere for domestic infrastructure construction, and foreign companies have poured into the Chinese market due to the shrinking market.The most obvious example is the foreign capital injection of the joint venture, but the Chinese side uses the HLJ Jiamusi Combine Harvester Plant.From the establishment of the factory in 1997 to the end of 2004, this joint venture has become a wholly-owned company of Deere.

After reading this agreement, Yun Fei was even more confused.Closing the documents in his hand, Yun Fei clapped his hands gently, and when he saw Ren Zhiguo and the members of the Deere delegation looking towards him, he said seriously:

"Everyone, I'm very sorry for interrupting your communication. I have a lot of doubts about this contract. I don't know if any of you can help me."

"Mr. Yun Fei, do you have any doubts about this initial contract of intent?" Carlos asked Yun Fei with a smile.He believes that the company they are looking for will completely agree to such generous terms.

"Let’s not talk about the content of this contract. My biggest question is that you are a giant in the agricultural machinery industry in the world. There are also many manufacturers of agricultural machinery in China. Their scale and technology , Are far more than our newly established machinery processing factory that only makes parts. I want to ask why we choose Qingfeng Machinery."

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