Chapter 353: Is Xingchen Motors’ fourth car about to start development?(1/2)
Autohome's crash test has opened up a new situation in the confrontation between China's own brands and joint venture giants.
Each OEM is showing off its own unique skills and working hard to prove its own capabilities, while other companies cannot.
As the biggest promoter of this matter, Nanshan Group has begun to discuss other matters internally.
"Mr. Cao, the development work of Xingchen 2 and Xingchen 3 is now on the right track. The development of Xingchen 2 has been completed, and there is only some finishing work left for Xingchen 3."
"The new model project team discussed it and decided whether we could consider starting the development of Xingchen 4 so that our new model project development team can maintain an efficient development state."
In the past year, the team of Xingchen Automobile Research Institute has continued to grow and develop. The personnel engaged in R&D work in the entire Nanshan Group account for about 30% of all personnel.
This ratio is definitely high.
To maintain such a large scale of R&D personnel, the number of related projects must not be small.
For Xingchen Motors, it is necessary to introduce several new models.
According to Rao Yongxiang's idea, it is almost possible to buy an SUV and a sedan.
It's best to have a model that can support sales.
"Now the competition between domestic independent brand car companies and joint venture car companies has become a lot more intense."
"Although we are mainly targeting Volkswagen now, it will definitely affect our cooperation with other car companies such as Ford Motor and General Motors."
"In this case, in addition to promoting the development of independent brand car companies, it is also necessary for Xingchen Motors to increase its own sales."
"Otherwise we will always have difficulty getting rid of the situation of being led by the nose."
"Although the relationship between independent brand car companies and us is very good now, in the future after their own technical level improves, they will definitely have some other ideas."
"You are Party A, and sooner or later you will return to the status that Party A deserves."
Zeng Tingting also added next to it.
The Nanshan Group's ministerial meeting is held every week.
This occasion is an important opportunity for various departments to communicate on cross-department projects or company projects.
Obviously, Zeng Tingting and Rao Yongxiang had talked about new models before.
I even mentioned this topic to Cao Yang.
It's just that today it's officially brought up for discussion.
"In the next two to three years, the auto parts business should continue to grow."
"But in three to five years, independent brand car companies, whether it is BYD, which has a close cooperation with us, or Changan Automobile, which only started in-depth cooperation this year, will definitely find a way to produce their own engines, at least in the engine business."
"Some other large and important parts may also be produced by ourselves."
"I heard that BYD has established two new business units internally, specifically responsible for the research and production of auto parts."
"So it is indeed very important to increase the sales of Xingchen Motors as soon as possible so that a virtuous cycle can be formed within our group."
As the general manager of Nanshan Engine, Cheng Tao is obviously worried about the future.
Ordinary esp and other parts, along with the increase in sales of independent brand car companies, Nanshan will definitely benefit.
But the engine is hard to say.
Among all the businesses of Nanshan Group, the engine business may be the most vulnerable to impact.
Even for the gearbox business, due to the higher technical threshold, there will not be much impact in a short period of time.
The engine is different. If it can't even produce engines, it will always give people the feeling that this OEM is not strong enough.
This is also the component that all OEMs care about most.
"Judging from our recent procurement dealings with various OEMs, there has indeed been a subtle change in everyone's attitude towards us."
"This change has both good and bad consequences. There is indeed no harm in our group making some internal preparations."
Zeng Tingting added a further piece of news.
The purchase of auto parts is a little different from ordinary items.
This is a long-term project that will last for many years.
Whether it is an early quotation or a later mass production supply, it is not a one-shot deal.
Therefore, the relationship between parts suppliers and OEMs is quite special.
Cutting also takes a certain amount of time.
"There is definitely no problem in developing new models."
"Now that everyone feels that the time is ripe, we should determine the positioning of the new model as soon as possible."
Naturally, Cao Yang would not have any different opinions from everyone on this matter.
In fact, he already had some big plans before.
It's just that there are some things that I didn't tell the people below so early.
Now that the people below have taken the initiative to propose it, it can be said to be an effort by everyone.
"In terms of model positioning, the sales department has also had some preliminary communication with the research institute."
Zeng Tingting glanced at Rao Yongxiang and then began to introduce him.
"According to the current market situation, sedans are still the mainstream, but the growth rate of SUV models is much higher than that of sedans."
"And for models of the same level, the price premium of SUVs is also very obvious."
"So for our next car, we think it is more appropriate to launch a five-seat SUV."
"Now, whether it's Great Wall Motor's H6, BYD's S6, Chery Tiggo, Honda's CRV and other models, the sales are pretty good."
"The performance of the BMW x5 is also relatively impressive around the world, and even the Porsche Cayenne is selling better than everyone expected."
"These are also important reasons why we propose that our next car be a five-seater SUV."
Zeng Tingting said while watching Cao Yang's reaction.
Although this topic was mentioned in front of Cao Yang before, it was not discussed in detail.
She also gradually felt that Cao Yang wanted to hear everyone's thoughts on the new model planning matter.
Otherwise, she would not have raised this topic directly at the ministerial meeting.
"The launch of a 5-seater SUV model has no problem with its positioning."
"But how to define the competitors of this model and how to define the price range? Have you considered this aspect?"
Taking this opportunity, Cao Yang also wanted to test the level of the company's senior executives.
Whether a car is successful or not is actually half decided in the early planning stage.
Just like if you plan a traditional feature phone five years from now, no matter how thorough your planning preparations are, the outcome will not be much better.
"We have also discussed this. The BMW x5 and Porsche Cayenne are our main benchmark models."
"However, we feel that domestic consumers still prefer larger cars. Under the same circumstances, making the car larger may make it more popular."
"For example, some models of Volkswagen and Audi have been launched in China as longer versions, which have been more successful."
"Even Mercedes-Benz and BMW will adopt this plan when they arrive in China."
"Our cars are newly developed. Unlike theirs, it would be very difficult to increase the length, width and height."
"So the sales department's proposal is that our SUV should be larger, longer and wider than the BMW X5 and Porsche Cayenne, and the starting price range should be around 1 million."
"Our low-end version can be equipped with the V8 engine that is being studied, and the high-end version can use the W12 engine like the Xingchen 2."
"In this way, in the future, we can form a high-end SUV model with the price range of 1 million to 1.5 million, or even 1 million to 2 million with Xingchen 2."
When Zeng Tingting said this, Cao Yang couldn't help but nodded.
This idea seems similar to my own.
Even Cao Yang has already thought about which car model the appearance of Xingchen IV will be based on.
If they regard Porsche as their main benchmark company, they will naturally follow Porsche's path, leaving them with nowhere to go.
Ziweixing has already occupied the position of the Porsche Panamera, and the Cayenne already has one.
But the Cayenne currently on sale is anything but elegant in style.
I took the appearance of the Cayenne from later generations, enlarged the size appropriately, and made it into a luxury top-end SUV with five seats.
By then, it will be able to form a similar front face style to Ziweixing, which will make people want to say that Xingchen Automobile copied Porsche, but they won’t be able to say it out loud.
"There is no problem with this general direction."
"According to your plan, some of the chassis parts of Xingchen 4 can be considered to be shared with Ziweixing."
"In the future, we will slowly form our own model platform to further reduce the model development cycle and launch more models faster."
"I hope to launch this model as soon as possible in the first half of 2008."
"It would be best if we could advance it to the end of 2007."
The engine and gearbox basically do not need any development.
To be continued...