Rebirth 99 to become a car giant.

Chapter 101 SKF is going to make bigger moves (please subscribe~)

Chapter 101 SKF is going to make bigger moves (please subscribe~)

In April in Shanghai, the weather has not completely warmed up yet.Although it is not as exaggerated as Guangcheng's return to the south, the weather in the Magic City at this time is definitely not comfortable.

In fact, no one wants to be bored in the conference room.

However, Xue Wenqiang's words successfully attracted everyone's attention.

"In China's automobile industry, affiliated companies of Spring City Automobile Group, Xifeng Automobile Group, and Modu Automobile Group currently occupy major market shares."

"The joint ventures they have formed with international automobile giants such as Volkswagen, General Motors, Toyota, Peugeot Citroën, etc. are our most important customers."

"As long as we ensure that these customers' bearing orders are given to SKF, we will be able to firmly maintain our number one position in market share."

"In the past, we mainly relied on technology to obtain orders, and completed the work of specifying parts directly at the headquarters of various car companies."

"But with the rapid development of China's automobile market, our bearings are basically imported, which is definitely unsustainable."

"It's better to take this opportunity to form joint ventures with parts companies under various automobile groups."

"In this way, there will naturally be no problems with the relevant orders."

“We can even further expand the market.”

Xue Wenqiang said while observing the reactions of Ovid and Holmer.

Seeing that none of the big guys interrupted him, he felt a little more confident.

"For example, we wanted to use the West Wind Bearing to deal with Nanshan before, but now this trick is useless."

"But we can still consider continuing the joint venture with Xifeng Bearing and giving them a symbolic 20% or 30% stake. They should also be willing."

"At that time, whether it is Shenlong Motors or Xifeng Group's independent brand, can their bearings not give priority to the products of the joint venture company Xifeng SKF?"

"If the other party doesn't use it, we need to take action. Zephyr SKF's Chinese employees will take the initiative to ask for the order."

Ovid felt that although Xue Wenqiang's proposal was effective, it was a bit unworthy. "In this case, wouldn't it mean that 30% of the profits would be given to Xifeng Bearing in vain?"

"That's not necessarily the case."

"Judging from the books, [-]% of Zephyr SKF's profits will definitely be given to Zephyr Bearing."

"But we have many ways to ensure SKF's profits."

"For example, the special steel used to produce bearings is imported from the headquarters."

"When the time comes, we will adjust the import price, and we will be able to transfer part of the profits from the joint venture before we know it."

"For another example, when we sign a joint venture agreement, we can stipulate that all products must pay SKF a 5% technology royalty fee."

"Even through joint ventures, we can make the price of our products higher, so the profitability can also increase."

"So even if Xifeng Bearing takes [-]% of the profits, we at SKF will get more than the original."

When Xue Wenqiang explained this, Ovid was immediately moved.

It sounds like there is no problem at all.

At that time, a joint venture will be formed with Xifeng Bearing, and a joint venture will be formed with Spring City Automobile Group and Modu Automobile Group.

So wouldn’t it mean that all the bearing orders from these groups have been settled?

And then just wait to make money by winning?

"Ovid, I think Xue's proposal is very feasible."

"Although the headquarters has been worried that the joint venture will leak our core technology, given the level of China's competitors, even if we give them the drawings, they may not be able to produce it."

"At worst, we will not produce one or two key components in the joint venture."

"For example, the rollers for bearings are all imported from the headquarters."

"It not only facilitates us to control prices and profits, but also prevents joint venture parties from obtaining our complete technology."

Holm is obviously also inclined to agree with Xue Wenqiang's proposal.

If this method continues, China's bearing market will definitely be dominated by SKF in the future.

His life as a sales director should not be so smooth.

"Holm's proposal is better than what I just proposed, and it can completely ensure that SKF's interests are not harmed."

"We can even take this opportunity to put some pressure on the automobile companies in their group through joint ventures, so that they will not adopt Nanshan Technology Co., Ltd."

When Xue Wenqiang said this, Ovid and Holmer became even more interested.

Of course, they also know that this may not be that easy.

After all, even the joint venture parts companies under the group are not as good as the joint venture automobile factories.

If you want to influence others, to a certain extent, you are usurping the purchasing rights of the joint venture automobile factory.

It's strange that the people in the purchasing department would be happy.

"Xue, please prepare the relevant information. We will have a meeting with the headquarters in a few days to report our plan."

Although Ovid is the president of the Asia-Pacific region, major matters such as new factory investments and joint ventures definitely require the approval of the headquarters.

Otherwise it will be a mess.

In fact, any investment by a foreign company in China or overseas must be reported to the headquarters.

Otherwise, we won’t even know that the company has been sold.

……

Nanshan Technology Co., Ltd. moved quickly.

It has only been a week since the Nanshan Industrial Park plan was presented, and we have already contacted the design company and made a plan for the first phase.

The district also completed part of the approval work at an extraordinary speed and began land acquisition work.

In 2001, Panyu still had a lot of land that could be used to build factories.

To say it is a combination of urban and suburban areas would be a compliment.

It's still quite a suburb.

It's like in later generations, it's hard to get an acre of industrial land worth 100 million.

Now it can be done for 5.

Even Nanshan Industrial Park is tax-free for the first three years, and half of the fees are reduced for the next three years.

Banks that hate the poor and love the rich are doing things very efficiently this time.

You Nanshan want to borrow 2 million yuan first?

No problem, batch!

In this way, after May Day, the industrial park will begin simultaneous construction.

However, Nanshan’s movements are very fast, and SKF’s movements are not slow either.

As the result of the first step, Xifeng SKF signed a joint venture framework agreement with Xifeng Automobile Group on the same day in May [-]st.

This means that SKF’s new China strategy has officially begun to be implemented.

Naturally, Nanshan inquired about the relevant situation immediately.

"Mr. Cao, with SKF's approach, our future orders from Shenlong Motors may be in trouble."

Zhang Fugui reported the latest intelligence collected to Cao Yang a little worriedly.

In his opinion, SKF's move was a bit unexplainable.

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