Chapter 119

Audi is a good lesson for the past.

One brand forced all car companies in China to cut prices.

Including domestic car companies.

This is like a butterfly effect. The prices of brands at the top of the pyramid have plummeted, so if the car companies below have the same models in this price range, the prices must also drop.





Otherwise, if there are luxury brands, fools will spend the same money to buy your car.

Fortunately, the price cuts this time are mainly between the B-class and C-class cars.

As for the following A-class cars and the like, although they have been appropriately reduced, they have little effect.

Domestically-produced cars are unable to compete in the B-class and C-class markets.

They are only competing in the A-class and compact SUV market, and the prices are basically below 130,000.

These people are worried that Lin Feng will be a general brand, so with Baoao Group’s urinary properties, they don’t know if it will set off another bloody storm in the low-end car market.

The domestically-produced car, which was already difficult, was completely plunged into the abyss.

Lin Feng thought about it for a while, and then he understood what his uncle meant, and at the same time he knew what the country meant.

That is to let him leave a way for domestic cars to survive.

Otherwise, if he enters the low-end car market, domestically-produced cars that do not have their own core competitiveness will surely die.

“Brother Lin, please be considerate of our difficulties. My brothers have no choice but to ask Minister Ye to go. But rest assured, we know that this will cost you a lot of benefits. Our families are willing to join forces. 10 billion for you to compensate for your interests!!”

Li Dali has guilt on his face. Compared with a huge low-end car market, 10 billion is a fart!

With Baoao’s ability, if you want to get involved in this market, you can earn back 10 billion in less than two years.

However, they are really afraid that Lin Feng will step into this market. In that case, the domestically-produced cars that have been struggling to survive will definitely be pushed into the abyss by Baoao and those foreign brands.

After all, domestically-produced cars do not have their own core technology. They are basically assembled car assemblies and parts. The only thing that belongs to them is the appearance of the car.

In this way, the cost of domestically-produced cars is relatively high, and even if they are sold at a lower price, the profit margin can be lower.

Li Dali talked to Lin Feng painstakingly about the difficulties of these car companies. I hope Lin Feng can understand it.

“Give 10 billion for the market for nothing? This proposal looks pretty good!”

Lin Feng’s face remained unchanged, making people unable to see his expression.

But in fact, he was already happy in his heart.

Because,

From the very beginning, he had no plans to venture into the low-end market.

In a previous life, an old man from a mobile phone and communications company said that although we know that our prices are high, I will not consider reducing prices because I want to leave room for survival for the brands below, because if we reduce prices , Then they will definitely compress profit margins to compete, which will form a vicious competition.

The same is true in the automotive industry. Lin Feng had already decided not to touch the low-end car market when deciding the price of Audi.

but,

Not touching the low-end car market does not mean that he does not want this profit.

So if you don’t sell low-grade cars, how can you get the profit of low-grade cars?

It’s simple!

Learn from Japanese car companies and sell powertrains.

Almost all the powertrains of domestically produced cars are purchased from Japanese or German ones. The high cost of domestically produced cars is inseparable from the expensive powertrains.

Just like when Baoao produced minivans in the past, almost half of the price of a minivan with a cost of 30,000 yuan was used to buy the three major pieces. For the same reason, refer to Zotye, a famous tape-measure car company in the past! It is a typical assembly car factory.

It is conceivable that those auto companies have made much money in China by selling powertrains.

Li Dali and others waited nervously for Lin Feng’s answer. If Lin Feng agreed, then they would be relieved.

If Lin Feng doesn’t agree, they won’t blame Lin Feng, after all, they and others’ requests are a bit excessive.

“Brother Li, let me ask you a question.”



Lin Feng thought for a while and wanted to speak.

“If you ask, my brother, Li must know everything!”

Li vigorously patted his chest to make sure.

Lin Feng smiled: “In fact, there is nothing else, just want to ask, the powertrains of your car companies are all purchased from Japanese and German, right?”

After he finished speaking, the dozens of bosses opposite nodded at the same time 0…

“That’s good, that’s it, I can promise you never to touch the low-end car market, but there is one condition!”

“What conditions?”

The expressions of these people changed, for fear that Lin Feng made any excessive demands, so they didn’t know if they were capable of fulfilling them.

Lin Feng knew what these people thought, so he waved his hand: “Don’t worry, it’s not that you are not asking you to do something difficult to choose. The support of success, no matter what engine displacement and what kind of chassis technology, we can provide, and you can rest assured that the price is absolutely low than you can imagine!”

Selling a car is a fart!

You have to build your own factory, build a 4S shop, and pay so much vehicle tax.

Selling engines, transmissions, and chassis is the most profitable, okay! !

“real?”

I thought that these bosses would struggle and hesitate, but I didn’t expect them to get excited instantly after hearing it.

Among them, Li Dali was the most excited, perhaps because he saw Lin Feng’s doubts, he explained.

“Oh, brother Lin, even if you don’t tell me, we will go to you to buy an engine. We can buy an engine in our own country, and your 3.7 technology is absolutely world-leading. Anyway, you want to buy it. Why don’t you buy our own? Woolen cloth!”

“Brother Lin really deserves to be the conscientious entrepreneur of our car company. I thought you weren’t going to sell engines before!”

“That is, we have long been dissatisfied with the engines sold in Japan. The ones sold to us and the ones used by them are simply two extremes!”

“Yeah, why do our domestic cars have a bad reputation? The machines are always prone to problems. This is a good thing for those black-hearted foreign car companies!”

A topic has caused a scar in the hearts of many car company bosses.

“In this case, that’s it. In the future, Baoao will solve the part of the vehicle powertrain for you, and I promise you that the price will definitely surprise you!”.

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