Rebirth 99 to become a car giant.

Chapter 112 Ford and General Motors encounter Nanshan

The Hilton Hotel in Detroit is located next to a small lake in the suburbs, with beautiful scenery.

When Cao Yang and Zeng Tingting got off the plane, Austin drove an Escalade to pick them up.

This treatment made Cao Yang a little flattered.

Through this detail, Cao Yang also fully felt the cost pressure faced by the General Motors Procurement Center.

As the world's number one automobile company, General Motors has been in this position for too long.

Inevitably, it comes with a lot of historical baggage.

For example, its workers’ treatment is notoriously good.

General Motors has always provided workers with very good lifetime pensions and medical benefits.

As the American baby boomer generation (Americans born around 1950) gradually begins to retire or is close to retirement, this problem begins to become more and more serious.

It is said that the average medical treatment at General Motors is US$1800 per car.

What is this concept?

A mid-level car can only be sold for more than 2 US dollars in the United States.

The most troublesome thing is that the unions in the American auto industry are very powerful.

Even if they force the company to collapse, they will not easily compromise on salary and benefits.

A worker can earn about $70 an hour.

What is this concept?

A day's wage for most white-collar workers in China is not as high as an hour's wage for automobile workers.

Not to mention workers.

If you work for a month, your salary is about the same as someone else working for a day.

Under such circumstances, it's surprising that General Motors is having an easy time.

Ford's situation is very similar to General Motors'.

In this context, their purchasing director naturally wanted to find a solution to significantly reduce costs.

"Cao, you can definitely surprise us this time."

"right?"

On the way from the airport to the hotel, Austin didn't say a word about work.

He just enthusiastically introduced the local customs and customs along the way.

But after Cao Yang checked in and Chris, Ford's purchasing director, came over, Austin immediately switched the conversation to work.

"In the first quarter of this year, total automobile sales in the United States reached 430 million units, leading the world."

"Japan's major automobiles alone account for a quarter of the market share, setting a record high in 10 years."

"Relying on their price advantage, Japanese car companies are unique in the American market."

"What's even more troublesome is that Honda opened a new factory in Alabama last November, and next year Toyota and Nissan will also open new factories in Alabama and Mississippi respectively."

"This will further put Ford and General Motors into a passive position."

"Cao, if you can really reduce the procurement costs of our two companies significantly, then we will never treat Nanshan Technology Co., Ltd. badly."

Chris's attitude today was also extremely sincere.

It is not at all like the attitude that the purchasing director of the OEM and the general manager of the supplier should have.

"Japanese manufacturers have increased their profits by relying on the depreciation of the yen, and they are also able to inject large amounts of capital into research and development."

"The parts they import from Japan are virtually reducing their prices."

"In the first quarter of this year, the total profits of Japanese car companies have been equal to those of our American car companies."

"This is very detrimental to us."

Austin was also deeply touched when he heard Chris complaining about Japanese car companies.

This year the yen has reached a level of 1 US dollar = 130 yen against the US dollar.

All Japanese car companies are conquering cities and territories in the United States.

"Chris, Westin, don't worry, I'm here specially this time because I have a win-win plan to share with you."

"As long as it is implemented well, there is no problem in reducing the procurement costs of General Motors and Ford Motors by 5%."

"It is not impossible to achieve price reductions of more than 10% for some parts."

Hearing the two big guys Chris and Westin complaining there, Cao Yang felt very happy.

Let you international giants dominate China.

Now it's time for you to beg me.

"Reducing procurement costs by 5%?"

"Cao, are you sure it's the entire purchase cost, not a certain part?"

Chris and Westin looked at each other, feeling quite shocked.

Taking Ford Motor as an example, their sales in the first quarter were US$1 billion, net profit was US$424 billion, and the net profit margin was only 10.6%.

This is totally unworthy of being the second largest car in the world.

If you can reduce procurement costs by 5%, then the net profit margin will look good.

With this credit, Chris has every hope of moving up the ranks within Ford.

It is even possible to become the next CEO in the future.

"That's right, that's all the purchasing costs, not the nut plates or wheel bolts or wheel bearings."

Cao Yang smiled and gave an affirmative answer.

This made Chris and Westin's curiosity immediately peak.

"Cao, as long as this goal can be achieved, Nanshan's wheel hub bearings can be installed on various General Motors models immediately."

"I dare not say that it will be used 100% of the time, but there is absolutely no problem with a 50% share."

"And I can promise that whenever Nanshan launches new products in the future, General Motors will give priority to using Nanshan's products under the same circumstances."

Americans like to pay attention to interests most.

Austin is certainly no exception.

So he first drew a cake for Cao Yang.

Seeing that General Motors had taken the lead, Chris felt a little regretful.

If I had known, I would have gone to the airport to pick him up today.

"Cao, our cooperation with Ford Motor Co., Ltd. and Nanshan Technology Co., Ltd. has always been very pleasant."

"Last month we also established a joint venture with Changan Automobile in China. In the future, both Changan Ford and Ford Global will consider using Nanshan parts to the maximum extent possible."

In Chris’s opinion, Nanshan only has a few products now.

Even if there is an increase in the future, it will not increase much.

Among them, nut plates and bolts have already begun to be used, and now it is nothing more than including bearings in the procurement scope.

At this price, he can definitely make the decision.

Of course, if Cao Yang lets them go and the cost reduction plan he talks about is completely unreliable, then naturally they will not be able to eat this pie.

Seeing that General Motors and Ford Motors were so active, Cao Yang felt confident.

This time, SKF was doomed.

All bearing manufacturers involved in the Keng Meng Nanshan Technology Co., Ltd. will suffer the same consequences.

Even other international giants must first experience the lessons that the United States, the world's largest auto market, has taught them.

"Chris, Austin, before I tell you the specific plan, I have a small request."