Chapter 1614 Can they really mass-produce them?
Traditional print media like newspapers still had a great influence in the 1990s. What might have been a very small matter could become known to the whole world through a single newspaper.
So when Qu Si took out that newspaper, the person who had just been strongly demanding that Jingnan Group "break the contract" finally realized that things were not going to go smoothly.
But they didn't give up; they just lowered their stance a bit and replaced their harsh words with the more subtle "discussion."
"General Manager Ma, look at this situation. Although you have your difficulties, we have even greater difficulties. By selling heavy trucks at such low prices, you not only fail to make a profit yourself, but also have a significant impact on everyone else. Therefore, we still hope that you can raise the prices."
"Yes! Everyone's here today for a meeting to discuss issues of common development. We can't let you all eat from the same pot! Your heavy trucks are all over 200,000 yuan, who would buy our medium-sized trucks for just over 100,000 yuan?"
“.”
Back in 1994, the main models used for road transport in mainland China were the 140 and 141, priced between 90,000 and 100,000 yuan. However, the newly introduced flat-head diesel trucks were priced at over 100,000 yuan.
Originally, Jicheng Heavy Truck's heavy trucks sold for 360,000 to 370,000 yuan, which could create a significant price gap with them. After all, the procurement cost of three to four times was enough to deter not-so-wealthy transportation professionals.
However, when the price of heavy trucks drops to 270,000 or 280,000 yuan, those savvy truck owners will be tempted.
After all, a 141-ton trailer can carry 25 tons. Ten tons of freight go to fuel costs, five tons to road maintenance fees, and another five tons to vehicle maintenance, driver's wages, and new vehicle depreciation. The remaining five tons are the freight revenue.
While switching to a heavy-duty truck would significantly increase fuel costs, the net profit would grow even more.
This is similar to the difference between earning 3,000 and earning 10,000. It's not a difference of three times, but rather that after expenses, you can save five or even six times more.
So call it cutthroat competition or disregard for risks, but this is the reality of the transportation market, just like studying hard from elementary to high school to get into the top few of your class.
Life is never easy for most ordinary people, and it is never satisfactory. When will it be possible for ordinary people to have a job that is comfortable, easy, and profitable?
At this time, Li Ye and Ma Zhaoxian were just "ordinary people" in the eyes of Director Hou and others. Although Li Ye had made great strides over the years, the light vehicle company had achieved a brilliant annual production of over 100,000 vehicles and had acquired the "shell" of Jingnan Group, thus gaining a higher level.
However, in the eyes of Jilin Automobile, Hubei Automobile, and even Sinotruk, they are still really "small factories".
Therefore, they only care about their own interests, and they feel it is only natural for Li Ye and Ma Zhaoxian to break the contract for their own benefit.
Director Hou of Jiqi said, "General Manager Ma, this matter is neither a big deal nor a small one. If it can be resolved at this seminar and a larger conflict can be avoided, that would be the best outcome."
The representative from Hubei Automobile chuckled and said, "Actually, this matter has the biggest impact on Southwest Heavy Truck. Although you have already separated, this matter is too obvious. Don't push us to the brink!"
“.”
The two of them spoke in unison, their words filled with threats.
What do you mean by "avoiding greater conflict"? Does that mean if we don't give you an explanation today, you'll escalate the conflict?
And bringing up Southwest Heavy Truck at this time is even more disgusting. They've already gone so far as to split up, and they expect us to think of our past brotherhood and let them off the hook?
"Yes, yes, Director Hou is right. We'll go back and come up with a plan to minimize the impact on everyone."
"It's not about trying, it's about having to. We must find a workaround that satisfies both sides."
【I've got the best of both worlds!】
Li Ye wore an innocent smile, but his mind was filled with ruthless schemes.
You treat us like a small factory, but what is the future of a small factory?
Flexible, quick to react, all-or-nothing, and willing to go all out means there are no win-win situations; only the winner takes all.
Moreover, is Dong Shan's Southwest Heavy Truck qualified to be Li Ye's rival?
Li Ye smiled at Director Hou and said humbly, "Director Hou, I have a question. Southwest Heavy Truck has not yet launched its new car. So, is it inappropriate for us to be so ruthless? What if their new car can't even be mass-produced?"
"Unable to mass-produce?"
Director Hou glanced at Li Ye, a half-smile on his face, and said, "Although their prototype lost to yours in the tests, to be fair, it's still a successful product, so it's impossible that it can't be mass-produced."
"No, I think it's very likely."
Li Ye said very seriously, "We are all insiders and should know that there is still a long way to go from prototype to mass production. Over the years, Southwest Heavy Truck has never had experience in large-scale mass production, so it is still very doubtful whether it can take this step."
“.”
Director Hou frowned, clearly dissatisfied with Li Ye's attitude.
But Director Hou's demeanor convinced Li Ye that he was another manager with an administrative background who thought he was very knowledgeable in technology.
In his previous life, Li Ye was fortunate enough to work with his boss on several general contracting projects, learning a great deal of experience in "fighting" and dealing with conflicts. This experience has greatly benefited Li Ye's work in this life.
Li Ye oversaw the R&D process of light trucks, light buses, heavy trucks, and microbuses at the No. 1 factory, which was actually very similar to his previous job as a general contractor.
Both involve combining a large number of complex components or subcontractors to create a successful product or project.
The more product components there are, the more complex the supply chain becomes. From large components like engines and transmissions to small items like light bulbs and screws, each requires coordination and integration by the production management personnel of a branch factory.
From the very beginning of setting up the first branch factory, Li Ye tried his best to develop the entire industrial chain himself. Therefore, most of the suppliers of the first branch factory were his brothers or companies managed by his wife, and the coordination efficiency and coordination costs were optimized to the extreme.
Even so, the arguments never stopped. If they didn't argue or fight for three or five days, Li Ye would feel that something was wrong.
Because a general contracting or general assembly project is not simply about purchasing two parts from factory A, three parts from factory B, and one part from factory C, and then assembling them into a finished product.
In reality, once you've clarified the final assembly goals, you need to bring together all four units (A, B, C, and D) to coordinate and confirm the parameters of each component.
The confirmed details were varied, including part shape, installation location, size, function, cost, and special requirements for oil and temperature resistance, etc.
Then you'll find that the design goals are flawed, because when integrating these components, they either contradict each other or a supplier fails to meet the overall requirements.
Why did Dong Shan's car break down back in Kunming? It was because the flywheel housing between the engine and the transmission couldn't match the performance of the engine and transmission.
What should we do in this situation?
Let's have a fight!
If you raise the standard of the flywheel housing, and he can't do it, then you reduce the performance of the engine and transmission, and the client responsible for the whole vehicle won't stand for that!
I cannot lower the overall quality of this product (project) because of one person.
Even if a result is achieved at this stage, you'll find that various issues preventing compliance with standards will still emerge during mass production.
Then everyone started arguing again from the beginning. You said it was his problem, I said it was your problem, anyway, it would be best if all of you changed to suit me.
Li Ye had experienced this kind of thing countless times over the years. When Wu Yan's temper flared up, he would slam his fist on the table and berate the supplier mercilessly. Afterwards, Li Ye and Lu Zhizhang would drink with the supplier and comfort him.
Has Dong Shan ever experienced anything like this?
He has never led any major projects. Does he really think that by simply buying a bunch of parts and assembling them, he can make something sturdy and durable, and compete with established car companies?
Dong Shanzhen thought that his parts were exactly the same as those of Sinotruk's cars, and that if they were assembled together, the performance would be the same.
Sometimes the biggest difficulty is not knowing where the difficulty lies.
If people don't tell you some of the tricks of the trade, you won't be able to find a solution, and you won't know who to contact for coordination.
Decades later, why do many inexperienced new car manufacturers have various problems? Why do many seemingly promising projects end up failing miserably?
They all have the same problem.
(End of this chapter)
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