Reborn Entrepreneurial Giant

Chapter 460 Reducing Costs and Increasing Efficiency

Qiancheng CS6 uses 6AT gearboxes, but the brand is different. The latter is Aisin’s 6AT engine. The engine is Mitsubishi, which is not excellent, but the fuel consumption is low. In history, Haval H6 seems to use Mitsubishi engine and 4AT gearbox. , The good-looking parameters may be the reason why Qiancheng CS8 is so popular.

Qu Li boasted in the video that the development cost of Qiancheng CS8 is 5 times that of a joint venture car. It is not a lie. He also said that a large part of the investment is to establish a positive R\u0026D process, which is regarded as tuition fees, and part of it is for quality and safety. balance with cost reduction. But who cares about these in the promotion, consumers think that more R\u0026D investment is better.

Qiancheng CS8 has no rivals among domestic brands in the same price range. This is a fact. Although it is not sold much in China, Qiancheng can be regarded as top-tier. Many domestic brands that rely on marketing to sell are very troublesome. However, the pricing of Qiancheng Automobile has directly killed more than 100,000 yuan where the joint venture car has an absolute advantage, and Qiancheng geometrically sells for 500,000 yuan. There are not many car companies that are really hostile to him.

Many people are watching that if Qiancheng can break the price ceiling of domestic auto brands, perhaps more auto companies will increase investment in the field of electric vehicles. But Qu Li didn't announce the pre-sale status of Qianqian Geometry, and he didn't know if more than 100 units was considered good.

There are two types of reservations for Qiancheng Geometry: 5,000 yuan and full payment. The more money you pay, the faster the delivery will be. In order not to be defined as illegal fundraising, a supervisory account has also been created. Seeing that there are only about 10 full-paying reservations, I quickly ordered one for myself.

There are many multi-billionaires in Jumei Glory, and Qu Li didn’t ask them to buy Future Geometry. After all, not everyone is interested in electric cars. But the local tyrants of Internet technology companies should be the main force to buy electric vehicles, right?

Compared with the electric vehicle business, which is destined not to sell well in the past few years, Qu Li is more concerned about fuel vehicles. He needs to make money from this, although it is very difficult. After all, the purchase price of a gearbox is more than 10,000. The most cost-effective domestic auto products may not be boasting.

If the cost is high and you want to make money, you naturally have to find a way in other aspects. Cost reduction and efficiency increase are never out of date topics. Great Wall Motors is said to be doing a good job in this area. It is also Qiancheng’s strongest competitor in the SUV field.

At this time, Great Wall Motors is the largest private automobile manufacturer in China, surpassing Geely BYD. This includes their profits. Last year, Great Wall Motors had a revenue of 23 billion yuan and a net profit of 2.8 billion yuan. Geely Auto's revenue has just exceeded 20 billion, and its net profit is only 1.5 billion. At this time, BYD's auto business has an annual revenue of about 21.5 billion and a profit of about 1.7 billion.

The core business of Great Wall, the leader of self-owned brand cars, is SUV, and it also takes the high-quality line. Later, Great Wall Haval H6 sold 300,000 units a year, and its strength should not be underestimated. However, Qiancheng Motors is positioned as smart technology, sporty and fashionable, and only has gasoline engines, and does not plan to produce diesel vehicles and diesel engines.

The reason why Great Wall Motors was mentioned is of course because of the launch of the Haval H6, which made Qu Li feel pressured and a little excited. Maybe domestic SUVs between 100,000 and 200,000 yuan will not have the living space of joint venture vehicles.

"We still need to strengthen cost control..." Qu Li rarely brought up this topic. Qiancheng's explosive model strategy has achieved initial results, but its profit margin is far lower than that of Great Wall. If it keeps relying on blood transfusions, it will inevitably fall behind in the long-term competition.

Controlling costs and increasing profits is not simply a matter of reducing staff wages. Qiancheng only has two cars, which is their biggest advantage at present. There is also a self-operated experience store, there is no middleman to make the difference, and the gross profit margin of a car 4S store is generally between 10% and 15%. If online sales can be popularized and cars can be picked up offline, it will definitely reduce costs and increase profits. Increase sales and administrative expenses.

What Qu Li discussed in Qiancheng Automobile was to reduce internal transaction costs, increase corporate integrity, and "zero inventory". This is because of frequent shortages, and Qiancheng Automobile seems to have achieved it. They really do not have cars in stock now.

Qiancheng Automobile also has a complete informatization, process-based and assessment system. If it is not good enough, it will be pulled out for training or replacement. After Qu Li's big change of blood and the transformation of cutting feet to fit shoes, it can control the spread of corruption within the company to a certain extent. .

"We strictly control labor costs?"

"No, Xingsha's salary level is already low enough, it can only be increased."

Although Qu Li knows that Great Wall is managed by a strict management system, this is incompatible with the corporate culture of Qiancheng Motors. He will introduce elites from Glory and Jumei in the future, and recruit experts in the auto industry from Europe and the United States. Context Not Control, inherited in one continuous line, can't do some out-of-the-box things.

"Cultivating a complete automobile industry chain in Xingsha can reduce costs." This is a good way to shorten the physical distance, which can reduce logistics and time costs

"But Changfeng Group is unreliable."

Everyone knows that many people who were eliminated by Qiancheng Motors went to Changfeng Group, and the slightly better ones got into Cheetah Motors.

"Is there a way to control them?"

Who is so bold, Qu Li looked over, feeling a little angry.

"Now that the state-owned enterprises are being restructured, the demons are going to sell the shares of Jahwa Group. Huxiang also has similar ideas. It may not be impossible to introduce external shareholders for Changfeng."

"It is impossible for Glory Future to pay this amount of money." Qu Li knew that this person was reliable and had a wide range of sources of information, but issues of principle could not be discussed, and he did not want Glory to become the next chrysanthemum factory.

"It's not about paying us, it's about giving us control."

The internal situation of a company like Changfeng transformed from a labor-sharing system is very complicated, but their highest annual sales volume later exceeded 100,000 vehicles. Their team has a little ability, but it is obviously not good enough, otherwise they would not go bankrupt later.

Qu Li does not doubt his influence in Huxiang. Changfeng Group is already within his sphere of influence. Of course, it is no problem to further strengthen its control now, but the favors owed must be repaid. The more owed to the government in China, the more The faster you die.

"Changfeng Group is not special. We have Qiancheng Mitsubishi and Cheetah. It is necessary to strengthen the cooperation between supply chain management." Qu Li

In order to save costs, Qiancheng Mitsubishi is not making fast progress, and it will have to wait until next year to sell a car, so it is possible to strengthen supply chain cooperation, and it is easier for Cheetah to negotiate.

"Pay attention to the cooperation with auto parts enterprises in Hubei and Guangdong provinces." Huxiang is located between Guangdong Province and Hubei Province. It takes one and a half hours from Xingsha to Wuhan High-speed Railway, and about 3 hours to Yangcheng. It is closely connected with Jiangsu, Zhejiang and Shanghai. Economic ties are naturally incomparable, but there is room for cooperation.

"As long as the company is strong and the boss is courageous, we can provide appropriate support, such as assisting them in obtaining loans from the bank..." Qu Li thinks that Qiancheng needs to strengthen the control of the supply chain, and there are many ways to reduce costs, and Changfeng Group is not needed.

Whether it is internal control or supply chain management, the cost reduction and efficiency increase of Qiancheng Automobile is once again strongly promoted by Qu Li, accompanied by personnel changes and position adjustments, making room for the "newcomers" he poached from Europe and America. out of space.

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