Two-stroke motorcycles will be banned by the country after the year 2000. Wanfeng had to cut the production line of AX100 motorcycles in advance. Therefore, in the first two months, Wanfeng consciously leaked the information to direct sellers that it would transfer one or two AX100 production lines.
Rather than saying it's about responding to policies six or seven years from now, it's more about moving to the local level.
The old Nanwan factory currently has three AX100 production lines, three Feiyue 90 production lines, and now two scooter lines. There's not much room left, and in the future, there might not be enough space for the 100 and 125 four-stroke lines.
If he doesn't deal with the AX100 production line, he will either have to find a way to produce more than 300,000 units to reduce the floor space, or expand and set up a factory in another location.
Wan Feng had no plans to expand motorcycle production because the motorcycle industry was about to face chaos.
Now China's four major motorcycle companies, Jialing Light Horse and Jincheng are all expanding, and their factories are almost all over the country. Nanwan will not join them.
In 1994, because the 90CC engine of Beifang Yichu was cracked, 90CC engines flooded the market overnight. Wan Feng was not sure how the Beifang Yichu engine was cracked, because there were several versions popular on the market and there were many different opinions.
Many of the small factories that originally supplied Jialing began to switch to making engines, and then developed into making complete vehicles.
In a few years, there will be more motorcycle companies on the market such as Zongshen, Lifan, and Longxin.
Although these engines are not as good as the original products in quality, they are cheap. Moreover, with vicious competition, the prices have plummeted. The original price of an engine was more than 3,000 yuan, but at the lowest point, the price dropped to 1,800 or 1,900 yuan.
This is almost the cost of an engine.
The cost of a 90CC engine of Nanwan Group is about 1,600 yuan. What's the point of selling it for 1,800 or 1,900 yuan?
As the engine becomes cheaper, the price of the motorcycle will naturally drop as well, which means that the price of a motorcycle that originally cost nearly 10,000 yuan will be reduced by 2,000 to 3,000 yuan.
The biggest benefit is that motorcycles have truly begun to enter the homes of ordinary people.
In his previous life, Wan Feng bought a Dayang 90 motorcycle in 1996 for 6,300 yuan.
During the same period, Changchun Suzuki and Haojue Suzuki also reduced their prices to around 8,000 yuan.
What Nanwan Group can do now is to always keep its products one step ahead in the country and not get involved with these emerging manufacturers.
In a dozen years, when motorcycles are banned in major cities, gasoline-powered motorcycles will gradually disappear from the Nanwan Group and be replaced by electric motorcycles.
Although it seems a bit early to cut the AX100 production line now, Wan Feng feels that he cannot wait until the last minute to make a decision, and industrial adjustments must be made in advance.
Not only does he have to deal with one or two AX100 lines, but he also has to prepare the Feiyue 90 for electric start and disc brake replacement.
We waited until 1995 to launch the electric-start Feiyue 90, so that we could always stay ahead.
At Nanwan Group, Wan Feng saw three faces full of expectation.
These are three faces that look neither young nor old, just three men in their thirties.
After learning that Wan Feng was the CEO of Nanwan Group, the three men shook hands with Wan Feng and introduced themselves.
The leader was called Xie Changju, and the other two were called He Jiayuan and Yan Li.
They are from Shijiazhuang City, Beihe Province.
"Have you eaten yet? If not, shall we go get some food?"
"We ate, we ate right outside your street. I didn't expect it to be so prosperous here, almost like a big city."
It is impossible to catch up with big cities, but it is not an exaggeration to say that Wei is as good as a small county town in the inland.
"Someone from our factory told me on the phone that you want to buy a motorcycle production line?"
"Yes! We heard from the owner of a direct sales store in our city that sells your Nanwan motorcycles that you are going to transfer the AX100 production line."
Wan Feng nodded: "Yes, we are planning to transfer one line out."
"Boss Wan! Excuse us, but why would you want to transfer a product that's selling so well?"
"We want to launch new products, so the production lines of these old products will have to be cut." Wan Feng simply replied.
"Mr. Wan! Perhaps the view varies depending on where you stand. We're having trouble understanding your business philosophy. Why launch new products when one product can generate significant returns nationwide? Isn't it better to rely on just one product to conquer the world?"
Wan Feng smiled. These three people were quite interesting.
"What you said makes sense. Many entrepreneurs in China do the same thing now. As long as the product is profitable, I will continue to work. If there is no profit, I will change my career."
This is exactly what bosses in the south are doing now. They rush into any industry that makes money, and when they see that the product doesn't work, they abandon it and look for the next blue ocean project.
Of course, there are also those who stick to one field without wavering, such as Yin Zhenfei.
"But this is just passively catering to the market, or being forced to move forward by the market. The reason why we don't play this way is that we don't want to be influenced by the market. What we want is to actively cater to the market and let the market change for us."
Xie Changju sighed, "After all, different positions lead to different perspectives. Mr. Wan! Can you take us to see your motorcycle production?"
"No problem!"
Wan Feng and the three of them first came to the first floor of the AX100 first production workshop. There were two AX100 production lines in this building, and there was another line on the second floor.
The workers in the workshop are working hard.
Wan Feng took Xie Changju to see the entire process of making a motorcycle, from engine manufacturing to the completion of the vehicle.
"My production lines here are all capable of producing 200,000 units, including engine manufacturing lines and vehicle assembly lines. Can you handle such a large production line?"
"We want to introduce a production line of about 200,000 units. If we can produce more than that, we will be a bit overwhelmed."
"How much did you know about motorcycle manufacturing when you decided to do this project?"
"We used to build tractors, so we have some knowledge of machining."
This is very similar to the routine I used when I was dealing with Jiang Weigan!
This sentence made Wan Feng feel closer to Xie Changju and the other two.
"What a coincidence! Back then, I also started with small four-wheelers and then moved on to motorcycles. In this respect, we are on the same path."
"real?"
"Of course it's true. The 12-horsepower four-wheel tractor of the Inna River was produced by us, but that was another company, not my current company."
"Inna River's little four-wheeler, I see, so that thing was also made by you?"
While talking, Wan Feng took Xie Changju and the other two to the second workshop to see the production of Feiyue motorcycles.
Xie Changju and the other two were full of envy for Nanwan Group's motorcycle production.
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