Rebirth 99 to become a car giant.

Chapter 175: Taking stock of 2001, the controversy came out

When all aspects of China's domestic stamping industry were in a fuss because of a paper written by Cao Yang, Cao Yang, the initiator, was quietly listening to the summary reports of various departments in the company.

2001 was a good year for Nanshan Technology Co., Ltd.

This year, not only did the 6AT gearbox achieve fruitful results, but the press and CNC system also gained fame and prestige.

The smooth commissioning of its Nanshan Industrial Park has enabled the rapid expansion of Nanshan Technology Co., Ltd.'s production capacity.

Originally, the bearing industry was only focused on hub bearings, but now it is in full bloom.

Not only are driveshaft bearings used in automobiles, but they have also flourished in the machine tool industry, becoming the main bearing manufacturer for most of the manufacturers in the Arhat Factory.

As for the most traditional nut plate, it has entered the supplier system of most European and American OEMs.

For Ford, Volkswagen and General Motors, more than half of the nut plates are produced in Nanshan.

This alone has brought Nanshan a turnover of more than 4 million yuan.

Even though this part is small, the profit margin is much higher than that of bearings with higher turnover.

It can be said that in 2001, of Nanshan's 12.5 billion turnover, nut plates only accounted for one-third, but they contributed half of the total profit of 1.8 million

If this data were released, it would definitely shock many people.

"Mr. Cao, I think it is necessary to launch the second generation of wheel bearings as soon as possible."

"At that time, we can take advantage of the opportunity of product upgrading to increase the profit margin of bearings."

"Especially wheel bearings, there was almost no profit in the beginning."

"Although the profits from other bearings have brought the profit margin of the entire bearing business to a positive number, it has also been delayed."

“We can’t overturn the original price of 50 yuan each.”

"Now that steel prices are falling, it's hard for us to apply for a price increase in the name of rising material prices."

"But if the products are upgraded and we want to increase the price, then it is natural."

Dong Shengnan was a financial expert introduced by Xiang Changle's wife. He previously worked as a financial manager in a large state-owned enterprise.

Because I couldn't stand some of the practices of state-owned enterprises and didn't listen to some special instructions from the boss, I chose to change jobs.

After entering Nanshan, she naturally hopes to make some achievements.

The financial department of a company is a very important department.

In addition to paying everyone's wages and collecting and shipping payments, the Finance Department is also responsible for budget management, cost control, and profit improvement.

Obviously, in Dong Shengnan's view, the profit margin of the bearing business is holding the company back.

This needs to be changed as soon as possible.

"Your suggestion is very good. The current wheel hub bearings are not easy to install and replace."

“And it’s also prone to some wear and tear.”

"We will be able to launch a lifetime maintenance-free wheel hub bearing next year. After combining the bearing and matching bearing seat into a small assembly, we can supply it to the OEM."

"There should be many OEMs interested by then."

Using continuous upgrading to maintain price stability or increase prices is what many industries are doing.

For example, Apple’s mobile phone, how much does an iPhone 3 cost?

When the iPhone 15 arrives, how much will it cost?

Similarly, many other products also use similar methods.

This approach naturally exists in the automotive industry as well.

For example, Bosch's ESP is constantly being released with successive generations of products.

Otherwise, it will always be the same product, and it will have to cooperate with the price cuts of the OEM every year. After a few years, there will not be much profit margin.

This is certainly not a situation that parts companies want to see.

Now that Nanshan is working on wheel bearings, it is only natural that he has this method.

"I think in the field of bearings, our technology upgrades can be done slowly."

"First make it difficult for the bearing giants that have entered the country to survive, and then consider increasing the added value."

"Of course, technical reserves must be made, and they can also be promoted in conjunction with new models from the OEM."

"But compared to this matter, I think it is more important to drive bearing giants such as SKF and NTN out of the Chinese market, or to let them only guard a limited one-third of an acre of land."

Zeng Tingting expressed her opinions beside her.

As the head of the sales department, she naturally pays more attention to sales.

If Nanshan increases prices through technological upgrades, people will definitely ask you to explain various reasons.

Obviously, it is difficult to explain the price increase due to normal specification differences.

This will bring a lot of trouble and pressure to the sales department.

"SKF and parts giants such as NTN and NSK all have their own traditional cooperative customers."

"For example, Toyota Motor's bearing business is very difficult for us to capture."

"Some other companies have similar situations."

"Now that our mid-to-high-end bearings have become the leading market share, profit margins can no longer be ignored."

Dong Shengnan insisted on his opinion.

As a result, everyone focused on Cao Yang.

"It is better to use your remaining courage to chase down the poor bandits, not to be a famous academic overlord. To deal with those international giants, we must hit them as hard as possible. There is no problem in this direction."

"However, this does not conflict with our product upgrades and can be promoted at the same time."

"Nanshan takes the route of relying on technology to win orders, and needs to launch some new technology parts every year."

"In the future, I plan to choose a time and fix it every year as Nanshan's technology exhibition day."

"Let everyone see our strength."

Naturally, Cao Yang would not unilaterally support Zeng Tingting or Dong Shengnan at this time.

Currently, among the company's directors, except for the director of the Human Resources and General Affairs Department, who is female, there are only two women, Dong Shengnan and Zeng Tingting.

And the work between them is bound to have some conflicts.

There is a conflict between the finance department and the sales department. This is actually what the boss is happy to see.

As long as it's not too much, it can be tolerated.

Otherwise, the finance department, the purchasing department, and the sales department are all on good terms, and they won't even know that the company has been sold.

"Mr. Cao's proposal is very good. We really need to consider how to build a platform to showcase our technical strength."

Deputy General Manager Pan Jinxing immediately stood up and expressed his agreement.

After staying in the company for more than half a year, he has a deeper understanding of Nanshan's strength.

This kind of technology exhibition is completely feasible.

"We can also participate in some exhibitions starting next year to let more people see our strength."

Ji Hua, who usually doesn't talk much, rarely expressed his opinions.

The atmosphere of this summary meeting finally calmed down.