Automotive Black Technology Chapter 245: ：The dilemma of retail parts companies
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Since everyone came to ask for help, they were ready for bloodletting.
Facing the silent Li Fanyu, everyone broke out in cold sweat. Now that Zhengxin has successfully launched two models in a row, it has become a major financial backer in the eyes of suppliers. In the current automobile industry, Zhengxin’s orders are recognized as the fattest among suppliers!
It’s not because of the high price, but because... there are benefits to working for Zhengxin! Their quality inspection department will provide process opinions on unqualified products, which is something that is worth a lot of money.
Li Fanyu also felt the same way in his heart, so now he took advantage of this opportunity to repair them.
What is the saying?
A small tree will not grow straight if it is not repaired, and a person will chirp if it is not repaired!
When you guys stuck my neck, do you know how cold my heart was?
Looking at the bitter faces in front of him, Li Fanyu felt unhappy.
Here I have to talk about the current situation of the auto parts market; according to different applicable objects, the auto parts market is generally divided into two parts: complete vehicle supporting and after-sales parts. Among them, the complete vehicle supporting business accounts for more than 80% of the market demand, and all suppliers that cooperate with Zhengxin are included in this list.
However, companies that engage in vehicle supporting business are also divided into different levels. According to the supply relationship between vehicle manufacturers like Zhengxin, they can be divided into three levels.
The simpler the parts supply situation is, the lower the technical content, and the lower the level.
The third-level suppliers can only make single parts, the second-level suppliers can make combined parts, and the first-level suppliers can make a leap in quality. Some even do not produce themselves, but use patents and technology to make their best efforts. Leave it to second- and third-tier suppliers and make money by providing solutions for complete vehicles.
Because of the special nature of the automobile market, this matter sounds quite complicated. To put it simply, if you are able to supply higher-quality components to OEMs, you will be closer to the upstream of the supply chain.
But China's automobile market has been dominated by foreign companies for a long time. Those small businesses that rely on labor to make a single part can live a prosperous life by relying on the advantage of cheap labor.
However, these companies that are getting bigger and closer to the upstream are getting caught in the middle and are becoming more and more miserable.
What's the reason?
Patent barriers.
Let me say it, in fact, the dividing line between first-tier and second-tier suppliers lies in technology.
The world is constantly changing, but the only thing that remains unchanged is that brain power is always more valuable than physical strength.
However, in the face of patent barriers created by foreign companies, many Chinese auto parts companies can only remain as second-tier suppliers and are disappointed with the huge high-end auto parts market.
With the gradual prosperity of China's automobile market, foreign spare parts companies have followed up in all aspects and established a foothold in China. The first level, which is the link closest to the OEM, occupies the vast majority.
These companies that cooperate with Zhengxin generally start from small workshops and factories, and gradually accumulate strength bit by bit to form some scale.
Although Li Fanyu is obsessed with making money, he still has feelings. When I decided to make my own car, I considered partnering with domestic spare parts suppliers.
When A4 was in the procurement stage, Li Fanyu specifically told the procurement department to prefer domestic suppliers with a certain scale and provide them with some technical guidance when necessary.
The first reason for making this decision is that Zhengxin owns all the technical patents of A4 and does not have to go to the Internet to rush to deliver business to foreign companies. The second is to have a supportive mentality and give opportunities to domestic suppliers so that everyone can make money together.
However, the attitude of these people during the previous A6 purchase process really chilled him.
After several suppliers said a lot of good things to no avail, they had no choice but to come up with their trump card - cutting the meat.
The prices of spare parts in the previous two links have naturally dropped again and again.
Conscience of heaven and earth, Li Fanyu did not bargain - he just sat silent and sneered at any quotation.
Ahem, it’s that simple.
Looking at the few people talking for a long time, Li Fanyu let go of the hand on his chest and waved it casually.
"Come on, I'm not trying to hit you. I know you had no choice but to do so. I'll write down what happened this time. Later, I'll ask the purchasing department to study the price with you. First, let's talk about what Xu Guangsheng was at the time. What did I tell you?"
Everyone, look at me and I look at you, feeling speechless for a moment.
A few days ago, we all agreed to come together to ask for help because we saw that Xu Guangsheng’s promise of a promise could not be fulfilled, and the promised high-price purchase could not be fulfilled.
But it’s really hard to say this to Li Fanyu.
After a moment of embarrassment, Watson's general manager Wang Desheng stood up.
"Mr. Li, we are all here today to beg you to give us another chance. I am not afraid of your jokes. I will tell you the truth. Back then, Xu Guangsheng's grandson promised to pay 3% higher than the market price. We purchased our spare parts at a price of ten. In fact, it was a small amount of money, and I, Wang Desheng, didn’t care about it. But... I’m not afraid of your jokes. There was something wrong with our factory’s sewage treatment. I don’t know where Xu Guangsheng found out about it, so he used it to pinch me. ”
"Mr. Li, we are about the same. Our factory is undergoing power upgrades. According to environmental protection regulations, there is a subsidy for this. But Xu Guangsheng's grandson is now the president of the association, and the quota is in his hands. More than one million, how much does our factory earn in a year? Mr. Li..."
......
Li Fanyu understood all the chatter. Although he despises the dirty work with Xu Guangsheng, the troubles in some factories still make him hate the iron.
He waved his hand distractedly, "What's wrong with you? Why do you rely on these businesses to live? I won't talk about others, Watson's, why don't you improve the sewage of your factory if it's not up to standard? ? Do you have to rely on losing your conscience to save some money? ”
Wang Desheng hesitated for a moment: "Um, Mr. Li, you are a man who is full but you don't know he is hungry! Look at our factory, which is humming. We receive a lot of orders, but to be honest, the profit is too small. Yes! The same sound insulation materials are supplied by foreign companies with advanced technology and large-scale control. The price is almost the same as my cost price. How can the factory survive? ”
"That's right, Mr. Li, you are a complete vehicle manufacturer and you don't usually pay attention to our spare parts. Your Zhengxin spare parts company has its own supply chain and cannot understand our hardships. You don't need to ask for the A6 to still be usable. Our parts, I just hope that Mr. Li can make a living in the future and don’t block the back road. To be honest, with all the work I have done over the years, I just believe that there will be some profit here.
Li Fanyu had a dark look on his face; he could tell that he was really anxious, and he even said these words.
But if it weren't for the bitterness these people poured out, he really wouldn't have expected that the domestic spare parts suppliers would be so miserable!
Although I know there must be a bit of misery in their words, they still seem to be inseparable.
Thinking of this, he couldn't help but feel a bitter snot in his heart; it is said that the spare parts industry is the foundation of the automobile industry system. It seems that the lack of achievements in national automobiles over the years cannot be entirely attributed to poor design and R&D. !
After 0.1 seconds of silence, he waved his hand to silence the crowd.
“I heard that the Shengshi Project is being re-evaluated by the superiors. I don’t know how Xu Guangsheng is doing on this project. But now it seems that the president of this association is not doing a very good job. Let’s do this. The situation we encountered was reported to the association, and your parts will still be used in the subsequent production of the A6.”
Li Fanyu kept Xu Guangsheng’s account in mind! At that time, there were too many things to do and I didn’t take time out. Now that I have the energy, time, and opportunity, I naturally have to take care of it!
As soon as he heard what he said, Wang Desheng's eyes lit up, "Mr. Li, are you serious?"
He has been unhappy with Xu Guangsheng for a long time. Even if Li Fanyu didn't have this request, he was planning to do it!
Li Fanyu glared at him and said angrily: "Really! But you have to rectify your factory's sewage first!"
Wang Desheng choked hard like an eggplant beaten by frost.
Brother, it’s easy for you to say it. The quotation has been reduced to this level for you. If you don’t reduce the cost...
But seeing Li Fanyu sneer again, he quickly nodded: "Chengchengcheng! Xu Guangsheng, drain the sewage. I will take care of these two things when I get back!"
After sending all these people away, Li Fanyu called An Ning over and told her about the current status of the domestic spare parts industry.
An Ning also shook his head: "Domestic parts manufacturers are like this now. Using low profits to grab the market will only lead to greater and greater competition. Someone will always be cheaper than you. In this way, there is no money to invest in technology and research and development. , the profit margin will only become smaller and smaller, eventually leading to a vicious circle of having no scale but no core competitiveness.”
Li Fanyu looked at her helpless face, and seemed to suddenly grasp something in his heart. (To be continued.)