Siheyuan: Heavy Industry Revitalizes the Country

When doing business, Chinese people like to follow the trend and engage in price wars.

It is not known when this became a Chinese tradition.

Just like someone saw a new restaurant opened on this street and there were a lot of people.

I thought that since others were making money, I decided to open a restaurant myself.

Others saw this and thought it was easy money, so they opened restaurants all over the street.

Then, looking back, they realized that not only did no one make any money, but everyone also lost a lot of money.

Cao Tianwei is a typical example.

I see others making money by selling at 12,000, so mine is no worse than his, maybe even better, so I will also sell it at 12,000!

Such behavior not only makes you unable to make money, but also prevents others from making money.

In the end, this market was killed.

"Then what do you mean?"

Cao Tianwei saw Fang Xiang counting on his fingers and shaking his head, and asked in confusion.

“Our 115 is selling for !

320, only !"

Fang Xiang pondered for a moment and remembered what the car dealership owner in Hong Kong said.

After thinking for a moment, he gave a price.

"So expensive?!"

Cao Tianwei immediately took a breath of cold air.

“Let me put it this way.

Have you noticed that these cars have something in common? "

Fang Xiang didn't care about Cao Tianwei's shock at this moment.

Instead, he asked a key question.

“Commonality?

The price is high, the car is small and the configuration is low.

Aren’t they all commonalities? What else?”

After thinking for a while, Cao Tianwei gave his answer.

“Displacement!

These are small displacement!

The small one is less than one liter, and the large one is only 1.2 liters.

We need 115, but we all have 1.5 liters!

Not to mention the 320, there is a 2.0-liter one! ”

Fang Xiang revealed the key.

“True, but what does this have to do with pricing?”

Cao Tianwei nodded and agreed with Fang Xiang's statement, but he still did not find the crux of the problem.

“These car sellers are very cunning.

Cars are divided into different grades according to their smaller models and displacement.

Small displacement means cheapness, large displacement means expensiveness.

But do you think the cost is a big difference to us? "

Seeing that Cao Tianwei still had the traditional and fixed way of thinking, Fang Xiang began to explain it seriously.

"Not big."

Cao Tianwei shook his head honestly.

"Then do you know why they price differently based on displacement?"

Fang Xiang continued to guide Cao Tianwei.

"Because of the price?"

Cao Tianwei finally understood what Fang Xiang meant.

In fact, the same is true in later generations.

Are the costs of so-called large-displacement and small-displacement engines really that different?

wrong!

You may not believe it, but the cost is almost pitifully small compared to the entire vehicle.

Unless it is a newly developed new engine, such as a turbocharger.

Or it may reach the level of six or eight cylinders.

The cost of engines of 2.0 and below is actually very low.

The pricing difference is so huge that when you add it up, it’s all profit.

Otherwise, why are there so many car companies in later generations so rich?

And this is under the premise of constant updating and price reduction?

"Yes, differentiated pricing is the key to making profits!"

Fang Xiang nodded.

In fact, this is not a secret in the industry, but the general public is not very aware of it.

"In that case, our car will be much better, with higher configuration and larger displacement.

Then this price is reasonable.

But, with such a big difference, will anyone buy it?"

Cao Tianwei's words fully exposed his lack of self-confidence.

"Do you know Bens?"

Fang Xiang did not answer Cao Tianwei's question directly, but asked a question in return.

"Bens? I know... not much."

Faced with Fang Xiang's question, Cao Tianwei was stunned for a moment.

"How much do you think the cost of Bens is?"

Fang thought that this sentence had actually exposed his inner thoughts.

In the past, people always said BBA, BBA, but they actually meant Mercedes-Benz, BMW and Audi.

In later generations, BMW could compete with Mercedes-Benz.

The information in Fang Xiang's mind is much better than the current Mercedes-Benz and BMW.

Why can’t we create our own luxury brand?

“It’s not that high either.

It would be amazing if it could be twice as good as our BMW.

But their car is big and has a large displacement.

We can’t compare.”

Cao Tianwei pondered for a moment and honestly expressed his opinion.

"What if we make a 530?

Or, make a 740?"

Fang Xiang grinned and smiled silently.

"You mean?!"

Cao Tianwei's eyes widened instantly.

This statement couldn't be more obvious.

The so-called 530 is a medium-to-large car with a 3.0 engine.

As for 740, there is no doubt that it is a 4.0-liter large car, almost on the same level as Hongqi.

“But our 2.0 displacement engine was independently developed thanks to you.

Before, we could only reverse engineer other people’s engines.

Is it too big a step to launch a 3.0 or 4.0 satellite now?"

Cao Tianwei took out another cigarette and lit it for himself.

Speaking of which, Cao Tianwei has been working with Fang Xiang for two years, so it is not certain how capable he is.

But he was able to access Fang Xiang’s most important things, which were the drawings.

Other domestic industry experts may be much more capable than him.

But they may not be able to see Fang Xiang's drawings.

In fact, technology is like this, a layer of window paper that can be broken with a poke.

Until you understand the truth, this is an insurmountable mountain.

But once you break the window paper, you will find that it is nothing more than that.

The same principle applies to mushroom eggs.

“Before, if the conditions were not met, it would be useless to build it.

But now... it’s hard to say.”

Fang Xiang stood up, walked to the window, and looked at the bustling factory area below.

In the past, there was no equipment or the equipment was not adequate.

And there is no such demand in China.

But now that the equipment is available, demand from Hong Kong and overseas has also opened up.

So why not give it a try?

“If you put it that way.

From now on, our country will have not only Hongqi, but also BMW.

Wouldn't this allow us to compete with the most famous international car companies?"

Cao Tianwei knew that he did not have the ability to design a large-displacement engine.

Even if there is, he can't handle other related electrical equipment.

This is a systematic project that cannot be handled by one or two people, or one or two factories.

But this is under the premise that there is no Fang Xiang this monster.

Cao Tianwei had the same idea before, but BMW 115, 120 and 320 were built right under his nose.

The impossible became possible.

Nowadays, not only does it have to sell at the same high price as Mercedes-Benz to make a profit.

The car should also be built to the same level as Mercedes-Benz.

How could this not excite him?

"Yes! We also want to create our own luxury brand.

But don't be happy too soon.

The factory is already too busy to handle it all.

Can you design a new large-displacement car?"

Fang Xiang shook his head and poured a basin of cold water on Cao Tianwei in time.

"call......

Yes, you have to eat one bite at a time, and work one step at a time.

I'm already so busy at the factory that I'm exhausted and can't take care of anything else.

If there are a few more models, I'm afraid I'll be exhausted to death!

Then...wait until next year?"

Cao Tianwei took a deep puff of his cigarette, then let out a long breath and exhaled all the smoke.

Then he nodded heavily.

Obviously, these tasks will have to wait until next year.

Next year, the staff and equipment will be in place.

After getting the work in order, I will have time to develop new cars.

Thinking of this, Cao Tianwei felt full of strength.