Rebirth in 1989: Building a Chinese Technological Empire

Robert Eaton and Xu Huasheng talked. Robert Eaton had great power and could make the final decision on many matters of the group. After all, the current president was about to retire, and many matters had been handed over to Eaton.

During the negotiation, Eaton had almost no bargaining power. Shanhai Automobile Group did not need to get anything from Chrysler.

On the contrary, Chrysler wanted Shanhai Automobile very much. Shanhai Automobile now has many models.

All models of the Baihu brand have been launched. The models of the Baihu brand are series.

A3 for A-class sedans, A4 for B-class sedans, A6 for C-class sedans, A8 for D-class sedans, A5 for mid-size coupes, and A7 for large coupes.

SUV models, compact Q3, mid-size Q5, and large Q7.

There is only one hard-core off-road vehicle, which is the re-shelled car of Land Cruiser, Baihu T90.

There is also an MPV designed based on GL8, called Baihu M6.

In addition to the ordinary version, all cars have S versions, which are high-performance versions. Moreover, the first sports car of the White Tiger brand, the RS8, is also being tested and will soon be launched.

The RS8 sports car is actually the Audi R8 in the original time and space. This car was launched by Audi in 2006. This sports car was very amazing in 2006, let alone now. When this car comes out, it will definitely amaze the whole world.

Of course, this car will definitely not be re-shelled for Chrysler. Sports cars are not used to make money, but to increase the brand's style.

Now the White Tiger brand models, not counting the performance version, the number of ordinary versions is as high as ten. Eaton wants all of these ten cars and is jealous.

These ten cars are so beautiful.

Not only beautiful, but also good in technology, configuration, comfort, driving experience, etc. These ten cars are luxury cars, better than Cadillac, Lincoln, Mercedes-Benz, and BMW. If this thing is brought to the US market, it can definitely compete with Cadillac, Lincoln, Mercedes-Benz and BMW, or even crush them.

In addition to the White Tiger brand cars, Eaton also wants the Black Tortoise brand cars, all of which are good cars. Especially in terms of price.

If the price of Huaxia is sold in the US market, it can directly crush all cars in the US market.

However, Eaton also knows that this is impossible. At this price, it is very competitive in the US even if it doubles.

Take the Black Tortoise Beidouxing for example. It is priced at 16,800 RMB in China. Even if it doubles, it is only 33,600 RMB.

Now the exchange rate between RMB and US dollar is around 8.9. Even if it doubles, it is less than 3,800 US dollars.

Wow, is there a car worth 3,800 US dollars in the United States?

Look at the current car prices in the United States. Toyota Camry has a suggested retail price of up to 23,876 US dollars, which is more than 210,000 yuan when converted into RMB.

What can you buy in China at this price? You can buy a big and fierce Raptor, which is much bigger than Camry.

If it is changed to a sedan, Camry is only an A3-level car compared to the White Tiger. The wheelbase of Baihu A3 is 2630 mm, while Toyota Camry is only 2620 mm.

However, the current price of Baihu A3 in China is only 156,800 RMB.

The price is low, but the configuration is very high. Although Camry is a 3.0 V6 engine, this engine has only 188 horsepower, and the gearbox is a four-speed automatic gearbox.

Let's look at A3. The engine of this car is a 1.5T turbocharged engine. Although the displacement is only half of Camry, the power is 195 horsepower, which is stronger than Camry's 3.0-liter engine. The gearbox used is a 5-speed automatic gearbox. The overall smoothness and controllability of the car are much better than Camry.

According to the price of Camry, A4 can be sold in China. The current price of A4 in China is 219,800 yuan, which is about the same as Camry's price in the United States.

But compared with A4, Camry is simply unbearable. The wheelbase is only 200 mm different. The wheelbase of Camry is 2620, while that of A4 is 2820. The wheelbase is 20mm larger, so the rear space is not at the same level.

Negotiations began, and after three days of negotiations, the final agreement was reached.

Shanhai Automobile Group and Chrysler Automobile Group invested 1 billion US dollars to establish a new automobile company together.

The new automobile company is headquartered in the United States and is an American company, in which Chrysler Automobile Group holds 51% and Shanhai Automobile Group holds 49%.

The new automobile company will adopt a new cooperation model for operation. The sales of the new automobile company will be sold by Chrysler Group, and the vehicles will be sold by the Chrysler Group.The research and development is done by Shanhai Automobile Group.

Shanhai Automobile Group authorized its models to this company for re-branding and sales, and charged a 5% authorization fee of the official guide price for each car.

All vehicles are produced by Shanhai Automobile Group, and the new automobile group is responsible for transportation and sales. As for the benefits between the new company and Chrysler's sales channels, they are carried out in the form of sales rebates, and Chrysler's sales channels can get 5% sales rebates for each car.

In other words, the new company's cars, from factory to sales, at least pay 10% of the cost first.

For example, for a car priced at 10,000 US dollars, you first give the sales channel a sales commission of 500 US dollars, and then give Shanhai Automobile Group a licensing fee of 500 US dollars.

The remaining 9,000 US dollars, after you deduct the cost of the car, transportation costs, taxes, etc., is the profit of the new company.

However, as long as the price is properly controlled, the profit of the new company is still very considerable.

The car sold for 10,000 US dollars is probably priced at 5,000 US dollars at most when it is produced by Shanhai Automobile Group.

After deducting the freight, authorization fee, channel sales, taxes, etc., the profit of the automobile company must be at least 1,000 to 1,500 US dollars.

Even if the net profit is 1,000 US dollars, it is very good. For an automobile company, it is already very good to have a net profit of 10% for selling a car.

After the negotiation, Robert Eaton took his people away. He needs to go back and register the company as soon as possible, complete a series of procedures, and then take the prototype car to the United States for declaration, and finally the car can be listed. This process will take several months.

Such a big cooperation cannot be rushed. A few months is already a very short time for an automobile company.

Eaton is also full of expectations for the new company.

After these competitive products land in the United States, Chrysler's profits will definitely increase a lot, and the profits of the new company may be higher. He can make money for shareholders and he will be more valuable.