Chapter 102 If he wants to fight, we will fight (Update 5)

Author: Rabbit who loves drinking black tea

Chapter 102 If he wants to fight, we will fight (Update 5)

The automobile industry is a fully competitive industry.

However, there are many situations where competition is insufficient in the supply chain of the automotive industry.

As a parts supplier for an automobile company, priority is given to group-affiliated enterprises. This situation exists in almost all companies.

This problem exists whether it is foreign-funded enterprises such as Toyota Motor and Honda Motor, domestic joint ventures such as Modu Volkswagen and Shenlong Automobile, or state-owned enterprises such as Modu Automobile and Xifeng Motor.

On the one hand, if you don’t use the products of your own affiliated companies for some core parts, you may not be able to find a suitable manufacturer to produce them.

On the other hand, for some large amounts of money, if you don’t use the products of affiliated companies, the group will cause trouble for you.

The most typical one is the seat.

It becomes clear just by looking at how many joint venture seat manufacturers such as Faurecia and Lear have established in China in later generations.

So when Zhang Fugui heard the information from Xifeng SKF, his first reaction was that Nanshan's future bearing order from Shenlong Motors was out of the question.

Even if you can still get some orders, they will be picked by others.

"It will take some time for their joint venture to go from establishment to mass production."

"We must try our best to diversify our bearing customers and open up the international market during this period of time."

Cao Yang knew very well that Zhang Fugui's worries were justified.

It is inevitable that Shenlong Motors will give priority to Zephyr SKF products in the future.

However, it is impossible for Zephyr SKF to produce all products, and Nanshan does not have any chance at all.

But this feeling must be very bad.

Cao Yang also wanted to be tough in the future.

Don’t eat the food that comes to you!

"What I'm worried about now is that SKF has also formed a joint venture with Modu Automobile Group and Spring City Automobile Group. Then our bearings will not have much future in the domestic automobile industry."

The more Zhang Fugui said this, the more he felt that what he said might become reality.

"No!"

"Even if SKF does establish several joint ventures, the bearing orders will not simply depend on the Chinese side."

"Just like Spring City Toyota, do you think SKF can win bearing orders from JTEKT?"

"Another example is Yangcheng Honda. Even if SKF and Yangcheng Automobile Group form a joint venture, do you think the other party can defeat NTN?"

"This is obviously impossible."

"If this was really possible, then SKF would not need to take the lead. A bunch of other manufacturers would have already rushed ahead and used this routine."

Cao Yang is not so pessimistic.

Of course, this is also because he knows that SKF's trick will at most have some effect in China.

The biggest business of Nanshan Technology Co., Ltd. is exporting parts for General Motors, Ford and Volkswagen.

In the next few years, export business will continue to be an area of ​​focus and development for Cao Yang.

"Mr. Cao, SKF's approach is obviously aimed at us."

"If we do nothing, will other manufacturers think we are easy to bully?"

Zeng Tingting also listened to Zhang Fugui's explanation.

Her concerns are obviously justified.

If a company is perceived as easy to bully, other customers will take advantage of you, intentionally or unintentionally.

On the contrary, people will be a lot more timid.

The most obvious one is Bosch.

Many OEMs know that Bosch is not easy to mess with, and when they take some measures, they often make special cases for Bosch.

For example, Geely's payment policy and the annual price reduction plans of many OEMs.

There is often a situation where the weak is bullied and the strong is afraid of the strong.

The easier you are to bully, the higher the goals will be set for you.

The harder you are to mess with, the lower the final price reduction rate will be.

"Your concerns are justified."

"SKF is a major international manufacturer, and we are a local private enterprise."

"Others don't have the confidence to provoke SKF, but we at Nanshan are not afraid."

"If he wants to fight, we will fight."

Caoyang aspires to be the world's number one auto parts company.

This is the goal for at least the next ten years.

Then a conflict with an international giant, with the two sides fighting back and forth, is almost inevitable.

"Mr. Cao, how are we going to fight?"

Zhang Fugui's heart trembled.

I had a battle with Aida, an international press giant, before.

Are you going to fight against the international bearing giant SKF so soon?

It's a lot of pressure.

Although the parameters of Nanshan's wheel hub bearings are very good, Zhang Fugui definitely does not think that Nanshan can be more powerful than SKF in the bearing industry.

So seeing Cao Yang being so aggressive, he felt guilty.

"We are currently only producing wheel hub bearings. We originally planned to start production of other bearings after the new factory in the industrial park is built."

"But SKF is now pulling some automobile groups to form joint ventures, hoping to monopolize bearing orders from the source."

"Then we will first make a batch of standard bearings, and at the same time contact various OEMs to try to get some quotation opportunities for other bearings."

"At that time, as long as the bearings imported by SKF are willing to use our products, the price can be reduced by 30%."

"I think the procurement of various OEMs should be very interested in this matter."

When Cao Yang said this, Zhang Fugui couldn't help but frown and said: "To produce other bearings, technically speaking, it is not a big problem."

"But it will take some time, especially the testing of subsequent products and the issue of material ordering during mass production."

"I think it is unlikely that we will be able to get orders from various OEMs immediately in a short period of time."

Zhang Fugui felt that it was better to pour cold water on Cao Yang, otherwise the sales department would be under great pressure.

"It doesn't matter. Whether it's Modu Volkswagen or Shenlong Automobile, even if they receive our quotation, they won't switch immediately."

"They will definitely talk to SKF first. They will only start reviewing the switch if the other party has no way to lower the price."

"But if we do this, even if we can't get orders, at least we can disgust SKF and force them to make some price cuts."

When Cao Yang said this, Zeng Tingting immediately couldn't help but say: "Isn't this becoming a thankless task, harming others but not benefiting oneself?"

"That's not necessarily the case!"

"By then our Nanshan Bearing's reputation will at least be established."

"The automobile group that has a joint venture factory with SKF may not use us, but other automobile factories may bring us new opportunities."

Cao Yang couldn't believe that Nanshan was so busy in the bearing industry that independent brand automobile companies such as Great Wall, Geely, and Changan would have no movement at all.

You know, there are many places where bearings are used in a car.

If the price of each bearing could be reduced by 30%, the price reduction would be at least several hundred yuan.

"If we do this, I guess SKF will find other ways to deal with us."

Zhang Fugui did not deny the benefits of Cao Yang's plan.

However, he raised a new concern.

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Chapter completed!