In 1994, the state issued the "Automotive Industry Policy", which listed a total of 61 measures.
The first of these is that the state guides automobile industry enterprises to make full use of domestic and foreign funds, strive to expand and develop domestic and international markets, and adopt a large-scale and multi-variety production method for development.
In 2000, the total output of automobiles should meet more than 90% of the domestic market demand, the output of sedans should reach more than half of the total output, the output of motorcycles should basically meet domestic demand, and a certain amount should be exported.
This means that domestic automobile companies can utilize foreign capital and exports are encouraged.
Then, some supportive policies are introduced. For example, Article 10 stipulates that the state will focus on supporting automobile, motorcycle and parts manufacturing enterprises or enterprise groups that have independent product and technology development capabilities and a certain production scale and market share.
How is it supported?
For enterprises with an annual production capacity of more than 300,000 vehicles, annual sales of more than 200,000 vehicles, and funds allocated for technology development of no less than 3% of annual sales, the state will support their development towards the goal of an annual production capacity of more than 600,000 vehicles.
Similarly, the annual production of 150,000 vehicles will develop to 300,000 vehicles, and 100,000 vehicles will develop to 200,000 vehicles...
The next step is to use internationally unified automobile emission standards.
The country is negotiating with the WTO, so some standards must naturally be aligned with international standards.
Wan Feng spent the whole morning understanding these regulations.
He thought about it for a long time and found that there was really not much that could be useful to Nanwan Group.
It’s like the preferential policies given by the state after Article 10.
1. The fixed asset investment direction adjustment tax is zero tax rate.
2. Give priority to the issuance and listing of its stocks and bonds.
3. Banks provide active support in lending.
4. Give priority to the use of overseas funds in the foreign investment utilization plan.
5. Appropriate arrangements will be made for policy-based loans for economy cars, key car parts and moulds, and casting and forging projects.
6. Financial companies within enterprise groups may expand their business scope with the approval of relevant state departments.
Among these six policies, apart from the first one which has some effect, what are the uses of the others?
Nanwan Group has no intention of going public, so the second clause is meaningless. As for loans, it's hard to say whether Nanwan Group will need them in the future, but there's no need for them now.
All the group's projects are profitable and have sufficient funds. Why do they need to take out a loan?
As for foreign capital, why would he use foreign capital if he doesn’t have domestic funds?
As for the last point, the group's financial department can expand its business scope. Does this encourage you to engage in finance?
Although finance makes money quickly and has high profits, it also carries high risks. This is not the area Wan Feng wants to play in.
When he first started his business, he had no intention of developing in this direction. One reason is that finance relies on manufacturing, and without manufacturing to support it, it is nothing.
Another reason was that he was really unfamiliar with this field. In his previous life, he was almost as ignorant as an idiot when it came to the financial field.
Therefore, this article is of no use to Nanwan Group.
Wan Feng read the regulations on loans, listing and joint ventures in this industrial policy once and did not read it a second time.
He also has no intention of establishing a joint venture with foreign companies.
If foreigners can open up their expired technologies, Wan Feng has no objection to forming a joint venture with a manufacturer. But if foreigners keep their expired vehicle model technologies hidden from you, what do you want them to do?
I would rather do it step by step by myself than have a joint venture that has no benefits other than making money.
This policy also includes a policy to encourage individuals to buy cars.
Starting from 1995, private cars will begin to appear on a large scale.
Although policies have been relaxed a lot, they have also been tightened a lot.
For example, Article 58 stipulates that entities undertaking new, expanded, renovated, or Sino-foreign joint ventures, cooperative ventures, or technology-introduced passenger car, light vehicle, and complete vehicle engine projects must be state-supported enterprises that meet the requirements of Article 10 of this industrial policy. All such projects, regardless of ceiling or ceiling, will be subject to state approval. Other complete vehicle and engine projects will be approved according to procedures specified in the relevant state approval authority regulations. Projects approved by all regions and departments must be filed with the State Planning Commission, the State Economic and Trade Commission, and the Ministry of Machinery Industry. The state will not approve any new passenger car, light vehicle, or complete vehicle projects before the end of 1995.
It will be extremely difficult to open a new car factory between now and the end of 1995.
Another thing is that pickup trucks are expectedly categorized as trucks.
In terms of industrial scale, although Nanwan Automobile is one of the four smallest among the three largest and four small enterprises in the country, Wanfeng can now proudly say that Nanwan Automobile is no worse than FAW and Second FAW. As for Shangqi, a company specializing in the production of cars is really not qualified to compare with Nanwan Automobile.
Nanwan Automobile now produces more than 300,000 vehicles a year, and most of them are its own products. There is no reason for the country not to support such enterprises, even though they are private enterprises.
So after Wan Feng learned about this policy, he threw it aside and didn't study it much.
But some adjustments are necessary.
Since pickup trucks have become trucks, they will naturally be marginalized, but the production and research and development of pickup trucks will not stop, because Juchuang Trading has opened up a trade route in the Middle East, and pickup trucks are the products recommended by Wanfeng to open up the market first in the Middle East.
Great Wall's sales in the Middle East were terrible back then, so there was no reason why Nanwan pickup trucks couldn't sell well.
With pickup trucks marginalized, sedans naturally became the top priority.
Didn’t you see the first point that by 2000, sedans will account for more than half of the production.
In addition to the micro sedan being tested externally, the 1.3L small car designed by Nobuyuki Asada will increase its R&D efforts, and the teams researching the 1.6T engine will also increase their investment in R&D efforts.
We will strive to produce a prototype of the 1.3L car and conduct a simple road test by the end of the year.
The 1.6T engine has been under research for a year and a half, and it’s time to reveal its true colors.
If Chen Dao can develop the electronic fuel injection engine for motorcycles this year, he will immediately start researching electronic fuel injection and direct injection car engines.
One by one, the automotive plans emerged in Wan Feng's mind and were put on paper for implementation.
Nobuyuki Asada's team received strong support from the group, with both people and money provided. The progress of his 1.3L small factory was greatly accelerated.
Since the engine of this small car is ready-made, the main research and development aspects are the torque changes of the gearbox and drive system. After about a year and a half of research and development, this car is already half-completed.
The processing workshop has begun to process parts according to Asada Nobuyuki's drawings, and once these parts are completed, the prototype car will be assembled.
Although the emergence of this policy has caused Wan Feng to shift a lot of his attention to automobiles, he has not forgotten what the top priority of the group's work this year is.
Naturally, it is the 2G mobile phone named HG1001.
This is the brightest star among the group's stars this year.
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