Chapter 1599: Bargain Price, High Technical Content
Li Ye and his team stayed in Southwest China for two days, where they had a cordial and sincere exchange with worker representatives. Based on the guidance from above, they finally determined the plan for Southwest Heavy Truck to temporarily "borrow" a license for production.
Southwest Heavy Truck can now produce its own new vehicles, and will "compete" with the KamAZ trucks at its first plant after they go into production.
If Southwest Heavy Truck's new vehicles, after being tested by the market, outperform the Kamaz produced by the First Plant in various aspects, then it would be only natural to hand over the license to Southwest Heavy Truck.
The workers at Southwest Heavy Truck were overjoyed upon learning of the decision, as they were all experts and knew that the improved heavy trucks produced through mass production had unparalleled advantages over the newly launched products.
This is a wonderful result that everyone worked together to achieve, proving the power of unity. As long as the workers are united enough, there is no right they cannot fight for.
In stark contrast to the jubilant workers, Dong Shan was the only one.
After learning that his superiors had also agreed to the decision, Dong Shan knew that he had reached a very dangerous moment, as his supporters above had lost interest in "fighting" for him.
Dong Shan was filled with worry, but he had no choice but to bite the bullet and go to find Li Ye again.
Since this decision has been agreed upon by Ma Zhaoxian and Li Ye, can the nationwide sales network of the No. 1 Factory also accept Southwest Heavy Truck's products?
Because the sales network of the first factory is a "three-party cooperation", it is impossible to discuss it in the group's resolution. Only Li Ye can give his approval.
However, when Dong Shan went to find Li Ye, he was surprised to find that Li Ye and Ma Zhaoxian had left the Southwest ahead of time without even saying goodbye to Dong Shan.
Dong Shan smiled bitterly.
"They really came and went in a hurry!"
On the way back to Beijing, Ma Zhaoxian asked Li Ye in a deep voice, "If Southwest Heavy Truck's heavy trucks can truly improve and mature a year later, do you think there will be any more setbacks?"
Li Ye smiled and said, "You still don't have confidence in our product!"
Ma Zhaoxian shook his head slightly: "No, I just feel it's a pity that we didn't kill him off this time."
Li Ye's smile faded, and he said seriously, "Although I've been in charge of technology and marketing at the first factory for many years, I only have a superficial understanding of technology, but I'm an expert in marketing."
Southwest Heavy Truck's plan is worse than drinking poison to quench thirst. I don't think they can achieve mass production at all because their production costs are too high. They'll probably lose money on every truck they sell. We can just wait until they go bankrupt before we take over their company.
Ma Zhaoxian nodded thoughtfully: "Wait until they go bankrupt before acquiring them? That way, some troubles will be easily resolved."
Ma Zhaoxian is also a seasoned veteran with a deep understanding of both businesses and human nature. The reason why the workers at Southwest Heavy Truck can still be "unconvinced" is because the company is still thriving. But once a company collapses, let's see who dares to argue back.
This is actually very similar to the situation in Hong Kong Island and across the strait decades later.
At first, Li Ye and a group of friends supported the peaceful unification of the other side of the strait, but after seeing the various "stubborn" actions of Hong Kong Island, they gradually changed their opinions and felt that a tough unification was necessary.
Because if you resolve the issue peacefully, the other party won't see you as the victor. Instead, they'll feel that they've "made concessions" and compromised, and therefore they should receive more compensation and rights.
When any conflicts arise later, they will realize that their initial concessions were a terrible mistake.
However, if a forceful approach is used to resolve the issue, this problem will not arise. After all, Britain initially completed its colonization through force, and you couldn't utter a single word of dissent.
Ma Zhaoxian suddenly remembered something and asked Li Ye, "By the way, Li Ye, the straightforwardness of Jicheng Heavy Truck this time was quite unexpected. Do you think they are really that kind?"
Because Dong Shan didn't want to fall into Li Ye's trap, he was not very enthusiastic about the production method of borrowing the license. However, after Qu Si and others made the connection, Jicheng Heavy Truck readily agreed to this production method.
This method of using licenses for production was not uncommon in the 1990s. For example, Chunlan, which had a successful motorcycle business, later ventured into the heavy truck and passenger car markets.
Li Ye wasn't very clear about the situation with the heavy trucks, but their cars were produced using the production qualifications of Dongshan "Black Panther".
In other words, you bought a Chunlan sedan, but the factory nameplate says "Black Panther".
Therefore, Southwest Heavy Truck could have given its new heavy truck a catchy name, but on the factory nameplate, it can only be called Jicheng Heavy Truck.
Li Ye shook his head and said, "Kindness? I think it's unlikely. The sales of heavy trucks in the domestic market are not booming right now. They can't even make ends meet themselves, so how could they support a competitor? I think they are just dumping their own production capacity."
"Not very popular."
Ma Zhaoxian clicked his tongue and asked worriedly, "How long do you think it will take for the heavy truck market to heat up?"
Li Ye laughed and said, "Mr. Ma, we live in a market economy now. There are no trucks that can't be sold, only prices that can't be met. As long as the price is right, the market will be hot tomorrow."
Ma Zhaoxian paused for a moment, then chuckled and said, "Are you going to offer rock-bottom prices again?"
When Li Ye priced the light trucks produced by the First Factory lower than similar products, no one understood why at the time, but now they are indeed number one in the country, so Ma Zhaoxian has no reason to oppose Li Ye's strategy.
Li Ye said calmly, "It's easy to say 'cabbage price,' but difficult to achieve. If it could be done, it would be a magic weapon."
Low prices are an important means of opening up the market, but this means has a very high barrier to entry.
From raw material procurement to product manufacturing and end-user sales, costs at every stage must be strictly controlled in order to survive by offering prices significantly lower than competitors. This is how mainland industry developed decades later.
Some people might see this as internal strife, or a "tug-of-war."
But without nearly two decades of development, how could China's steel companies have captured more than 50% of the global steel market share?
Li Ye, now living in the 1990s, feels this deeply because mainland Chinese steel companies are completely uncompetitive internationally.
Japan currently possesses the most advanced steel production technology and the largest market share in the world, while China's steel technology lags behind, resulting in high costs, severe energy consumption, and low output.
So what do you suggest we do?
If we don't cut costs now, how will we compete with Japanese steel companies?
Baosteel, the most advanced steel company in mainland China, has its entire production line supplied by Nippon Steel. If you were in the top position, what would you do?
In just twenty years, China has not only brought Japanese steel companies to the brink of collapse, but also...
Moreover, Japanese steel companies are doing relatively well; other established steel-producing countries are in a worse situation, with many countries even forced to shut down their last remaining steel mills.
Don't say that certain special steels still have advantages overseas. The steel industry has always been about competing on ordinary products. China's status as the world's largest steel producer and a powerful nation is beyond question.
When the time comes, it will be "the right time." Isn't Australia's iron ore amazing?
Come on, you've been so powerful for so many years, and I've suffered for so many years. It's time for our fortunes to turn around. Starting tomorrow, you'll have to follow my rules.
So if you're number one in the world today, of course you don't have to get involved, but if you're at the bottom, what good options do you have?
Do we really have to give up?
Are you content with being born as a human being?
(End of this chapter)
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