Automotive Black Technology Chapter 477: : This industry can no longer be in chaos (fourth update, please subscribe!)

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Li Fanyu has always had a deep dislike for things like regulation, policies, and market bailouts.

Many times, the market has its own rules. Survival of the fittest is also a natural law. One enterprise or one industry cannot do this. If we have to rely on government means and measures to force the pace, it is basically useless.

If a company or industry is on the verge of death, relying on these to survive is like a terminally ill patient relying on stimulants to make himself appear to be able to bounce around.

But they often die faster and more miserably.

So during the phone call with An Ning, he also expressed his thoughts unceremoniously, "It doesn't matter what they do, just come back as soon as possible. If the policy requires them to go on their own, don't get involved. Let's take care of them." Let’s live our own lives first.”

Faced with his attitude, An Ning smiled helplessly and said: "You thought I wanted to take care of it. You are the president of the China Automobile Association, but you are a busy man who is not at home, so the matter falls on me, the vice president. Here,"

Li Fanyu slapped his head; the identity of the president of the China Automobile Association was really hard to remember except when he was cheating money.

At this point, he thought about it as the president of the China Automobile Association, and then said: "Hey, if you ask me, these newly established companies have many purposes that are not pure at all. They are all trying to make money. Those who entered the industry with a lot of thought, rushed into it without preparing anything, and now they are in trouble. Even gods can’t save them."

An Ning thinks so too, but things are obviously not that simple, "Everyone with a discerning eye knows this. But the problem is that this wave of car-making craze has attracted too much capital, and the total amount is a staggering amount." According to the statistics from the association yesterday, the total investment of more than 30 vehicle manufacturers has reached more than 60 billion. Moreover, a considerable part of this capital is involved in factories such as Yunhai and Shuguang. It’s a state-owned asset. With such a huge amount of capital now in this state...it’s impossible for the higher-ups to just sit back and watch.”

Li Fanyu hissed; this is a bit difficult.

Let’s not talk about state-owned assets or not. Let’s just say that a capital of 60 billion is not small.

And from a deeper level, if this bubble really bursts, it will basically represent the complete failure of the last round of government incentive policies to adjust tax rates on imported cars. It will be a devastating blow to the future development of the entire industry.

Although this matter does not seem to have much to do with Zhengxin, fundamentally speaking, if China's automobile industry can flourish, it will be good for Zhengxin.

The overall development of the industry will lead to improvements in materials, processes, talents, etc.

Then again, even Zhengxin is doing well now. But if there really weren’t some miscellaneous fish to attract and contain it, Zhengxin, which is now gaining so much momentum, would sooner or later become the focus of foreign companies’ firepower.

This is the truth behind the saying that there are no complete eggs when the nest is overturned.

If Zhengxin wants to obtain a good development environment, it is impossible to rely on itself. This is like a forest. The surrounding trees are too short, and the trees alone stand out and will be broken by strong winds sooner or later.

It is the so-called tree that is beautiful in the forest, but the wind will destroy it.

From the beginning, Li Fanyu helped Guangqi on the premise of satisfying his own interests. Later, when the industrial park was built, he tried his best to increase the competitiveness of each supporting factory. In fact, part of his motivation came from this starting point.

After thinking about these things, Li Fanyu pondered for a while and asked: "What specific requirements do those factories have now?"

“What else can we ask for? Ask the state to provide policies and projects. Or simply ask the government to provide large amounts of interest-free or low-interest loans.”

"Oh my god, isn't this a dream! We've never enjoyed a large interest-free loan!"

An Ning was obviously helpless, "Yes, what they mean is to use the factories and subsidiaries as collateral to lend money to invest in research and development or market development. But the problem is, these factories are in danger of going bankrupt at any time, who dares to give them loans Ah. National projects are even more impossible. Now even the Eight Banners are trying to find a way to survive on their own. Oh, by the way, there are also factories who have come to me privately and said they want to do OEM work for Zhengxin. ."

Hearing this, Li Fanyu grinned, "Then what did you say?"

"What can I say? In order to seize the opportunity, these factories were all hastily put together. They spent a lot of money to buy some old and outrageous production equipment abroad. Just such a production line, Which car model can you make for us? A4, A6, or A8?"

Li Fan smiled foolishly; "These guys are really forced to the dunghill. Now they can think of any way, regardless of whether it is possible."

"Yes, so I think the government will eventually have to step in to resolve this matter. Maybe some kind of bailout policy will have to be introduced, otherwise there will be no way to end it."

As soon as An Ning finished speaking, Li Fanyu heard someone calling her over there. There was a meeting over there, and Xu thought she took too long to answer the phone.

After talking about the business, Li Fanyu wanted to be bored for a while longer. An Ning over there hurriedly told Zhi Hui to talk later and hung up the phone.

Sitting in Wang Meimei's office, the more Li Fanyu thought about this matter, the more uncomfortable he felt.

Since the wave of car building began, he felt that the policy of increasing tax rates on imported cars was a bit inappropriate. After the reform and opening up, as a free market in China, this policy itself violates the laws of commercial economics.

With the weak foundation of the automobile industry, what the government should do is to strengthen the basic environment of materials, technology, and talents. Instead of relying on adjusting tax rates to squeeze out profit margins for the faltering car companies, they should provide support in the form of stimulating growth.

Now that we are facing a group of companies that have already rushed into the street, if we provide some more policies, the industry will be completely in chaos.

If we carry out rescue and regulation because we cannot bear to skim the oil and remove bubbles, then the automobile industry is likely to become another real estate industry.

Real estate is still the first rigid demand of the people. Perhaps the fate of the auto industry, which continues to inflate bubbles, may not catch up with real estate.

A market environment that is fair and transparent and in which companies develop well because of their own excellent conditions, rather than relying on temporary policies, is most beneficial to Zhengxin.

The Chinese automobile industry in this time and space has been slightly distorted by the existence of the eight state-owned banners. If there is another mess, it is definitely not what Li Fanyu wants to see.

The more he thought about it, the more he felt that this matter might have an impact on Zhengxin.

So after sorting out the current rules and regulations, he put down the teacup in his hand and stood up suddenly.

"Director Li, you..." Wang Meimei was startled by this sudden movement, and she quickly stood up.

Li Fanyu took out his ID card and wallet from the suitcase and said to her in a hurried tone: "Meimei, help me book the nearest flight to Beijing. I have to go out."