Chapter 739: The goal of becoming Asia's No. 1 auto sales company
Chapter 739 The goal of Asia's No. automotive retailer
"That's true in theory, but the cost of building channels in the automotive industry is very high. Sending British cars to Asia is not just about sending the cars. There must also be various after-sales support and brand promotion. These are not easy to do well." Yang Wendong shook his head and said, "Besides, Mrs. Thatcher also knows the situation of the Japanese automotive industry. In Southeast Asia, Japan's car sales and popularity are very high. I'm afraid British cars don't have the strength to defeat them head-on."
Not to mention the UK, even German and American cars are now dregs in front of Japanese cars, especially after the oil crisis;
In the United States, Japanese brands began to scramble for the market. In the 60s, German Volkswagen was almost driven out of the US market. In fact, it was the Japanese brands that did that. Now even the three major US auto capitals can’t hold on to the market.
In Asia, Japanese cars are even more powerful. Southeast Asia was basically the back garden of Japanese cars in the past, and it was difficult for other brands to enter.
That is to say, Volkswagen is special. It relied on chance and foresight to cooperate with the mainland early on, and finally successfully occupied the world's largest automobile production in the future. Otherwise, Volkswagen would probably not be ranked in the top five in the world.
Only BBA is a little special. Relying on its high-end brand advantage, it has almost no rivals in the world. Even Japanese brands find it difficult to surpass BBA in this regard.
Thatcher sighed and said, "You are right. This is definitely not a problem that can be solved by having channels. The decline of the British automobile industry is indeed a pity."
"Yeah." Yang Wendong didn't say much;
The automobile industry is a top priority industry for any developed country. It can be said that if a country wants to maintain its development, it is very important to have its own automobile industry.
In the past, Japan and Germany were able to establish themselves as developed countries simply by relying on the automobile industry. A large part of a country's income came from automobiles, and the number of jobs indirectly created was even greater.
If there is no automobile industry, then after 2025, Japan may really only be able to make a living by relying on the special film and television industry. If Germany loses its automobile industry, it probably won’t be much better.
Thatcher then asked, "Mr. Yang, the automotive industry has a very high demand for capital. You have never participated in it before, so it is best to do some research before making a decision. I also hope that your investment in the UK will be successful."
"I understand. I know what I'm doing." Yang Wendong smiled.
It is almost impossible to save the British auto industry. At most, the sales chain in Asia can provide some help.
But no one knew that the mainland would be about to reform and open up in the future. After the reform and opening up, the mainland would have special demands for the automobile industry and urgently need foreign-funded automobiles to build factories in the mainland for production. If it acquired a British automobile company, it would have this opportunity.
Of course, in terms of technical strength and quality, all the British cars combined cannot compare with Volkswagen, but this is not a multiple choice. Even if Volkswagen goes to Shanghai, it can also go to other cities. There are so many opportunities in such a large mainland market.
He also never thought about replacing Volkswagen. He hoped that he could gain a certain fame and status in the early days of reform and opening up, and then wait for the mainland economy to take off, which would be enough to support a medium-sized automobile industry.
Thatcher nodded and continued, "Investment in the automotive industry is also a matter of a long time in the future. We should still consider current matters, Mr. Yang?"
"It's possible to increase investment in the UK, but I can't say whether it can guarantee employment for 3000 people. It depends on the market demand and local policy coordination." Yang Wendong thought for a moment and replied.
If investing in a factory in the UK can create 3000 jobs, it is equivalent to building a factory with employees in Asia. With such a large investment, he will naturally be cautious.
In fact, the market has always existed, but he does not believe in the production efficiency in the UK.
Thatcher thought for a moment and said, "How about this? You can advertise the investment in batches. The first batch will guarantee employment for 1,000 people, and the next two batches can wait until later."
"That's fine." Yang Wendong agreed readily.
After all, this is the need of the future British Prime Minister, and he will definitely give face.
Thatcher then asked: "What kind of factory is that? I hope it involves high technology, which will be more attractive."
Yang Wendong replied: "As for high technology, I can invest in a wafer fab and integrated circuit processing plant in the UK, using the latest American technology, but it may be difficult to meet so many employment needs by relying on this alone; I will also invest in some electrical appliance factories."
Hong Kong actually already has wafer and LCD factories, but they quickly became outdated a few years ago. However, they are still usable because what the industry here in Hong Kong needs is not the highest level;
It is also very troublesome for Hong Kong to continue upgrading. After all, there is a shortage of local talents. Even with the help from the United States, it takes a lot of time to update once every one or two years.
It is also a good choice to place the latest chip production in the UK. There are many semiconductor talents in the UK, and communication with the US is convenient, whether in terms of language, distance, culture, time difference, etc.
At the same time, we also have to consider that if the United States begins to impose restrictions on high-end equipment one day, he will also need a backup factory.
"Chips and home appliances? That's not bad either." Thatcher nodded with satisfaction;
As the Minister of Education of the United Kingdom, she is very clear about the latest technological progress in the world. Chips are definitely a top priority. As for home appliances, they may not be the latest technology, but they are not backward either. After all, with the development of the economy in most parts of the world, the demand for home appliances is still increasing.
Yang Wendong smiled and said, "I'll have someone sort out the specific plan, and I'll send it to you soon."
"Okay, then I'll wait for your good news in the UK," Thatcher replied;
She is also one of the top executives in the UK, so naturally she cannot stay in Hong Kong or Asia for a long time. She came here just to reach some verbal cooperation agreements with some top executives and top wealthy people in some Asian countries;
The specific details of future cooperation still need to be determined in written form. This involves overseas investment and even national investment, so the preparation of documents will of course be very cautious.
After Thatcher left, Yang Wendong called Wang Zhiqun and told him about his conversation with Thatcher.
After listening to this, Wang Zhiqun said: "It is not a big problem to invest in the UK. We are also preparing to look for suitable places overseas to invest in refrigerator and washing machine factories.
These two large white appliances have very low profit margins, but the transportation costs are very high. It is also appropriate to produce them locally in Europe and the United States and then sell them nearby. However, I originally gave priority to some ordinary European countries. "Okay, you can arrange this yourself." Yang Wendong nodded;
If it does not involve new industries or very large investments, he generally does not interfere with the decisions below. He is not very good at company operations management.
Every profession has its specialties. As a time traveler, his advantage is naturally the future development direction. If he intervenes in too many things, it will easily lead to management problems, and he himself will even be very busy and tired. It is completely unnecessary.
Wang Zhiqun said: "Okay, then I will go to the UK immediately to discuss the expansion of investment with Hou Sheng. The specific information will be given to you after it is sorted out."
Yang Wendong said, "Well, also tell Hou Ping that he should try his best to cooperate with Thatcher in future matters in the UK. I will fully support Thatcher. As long as it is not a matter of principle or something that involves too much money, I can agree to it. If you can't make up your mind, tell Hong Kong as soon as possible."
Thatcher could be said to be the first political figure that he had invested heavily in over the years. Now that she was not even the leader of the party, he could be said to be providing timely assistance.
Of course, ZZ people cannot be fully trusted, but those who need to invest still need to invest. Generally speaking, these people will not bite back at investors unless it is absolutely necessary. This is to cut themselves off from both the political and business circles.
And for Yang Wendong, what he needs is a relatively fair investment environment, and when appropriate, he needs the UK as his background to facilitate his international investment. Hong Kong itself is currently half-British, so this request is not excessive. He will also be sensible in international investment and will not invest in some controversial special projects.
Wang Zhiqun naturally understood what his boss meant and agreed, "I understand. Mr. Yang and Mr. Hou will also know what to do."
There are actually many opportunities in the future of Britain, but if you want to seize them, you don’t just need money. When the level of capital involved is too high, it is not just a matter of money.
In this era, Yang Wendong also needs to make the best use of the declining reputation of the "British Empire" and perhaps make some contribution to his career;
Moreover, when the time is right, he will not eat alone, but cooperate with some traditional British companies, perhaps he can also get high returns;
As for the automobile industry, it was just a psychological preparation for Thatcher. Even if she succeeded in taking office, it would not be until the early 80s that she would have the opportunity to get involved in British automobile brands.
However, this timing is very good. The mainland has just started to reform and open up. If I get a British car brand at this time, it will be an opportunity to enter the mainland.
Another point is that it takes enough time to invest in auto retail stores in Southeast Asia. After five or six years, if you control more retail stores in Southeast Asia, it will have an impact on your own auto brand, and even Japanese, European and American cars.
Just like when he controlled some cinemas in Southeast Asia, several major Hollywood film companies gave him enough face, hoping that his films could achieve success in Asia.
Soon it was the end of November. Fang Xianming brought a middle-aged woman to Yang Wendong's office and introduced her, "Mr. Yang, this is Ms. Wu Qinglan. She is currently in charge of the Changxing Auto chain stores in Southeast Asia."
"Hello, Mr. Yang." Wu Qinglan said quickly.
"Hello, Ms. Wu." Yang Wendong smiled and asked, "You are not from Hong Kong, right?"
Wu Qinglan replied: "I am a Malaysian citizen, and my ancestors are also Chinese. Because I work for Changxing Group, I also learned Cantonese. It's just that my pronunciation is not very standard yet, so please forgive me, Mr. Yang."
"It's okay. It's enough to be able to say it so that people can understand it." Yang Wendong nodded, and then said, "I asked you to come here because I want to know about the recent development of the auto retail store business in Southeast Asia."
Changxing Group Automotive has too many businesses. Apart from a few first-tier subsidiary businesses, Yang Wendong doesn't pay much attention to other smaller businesses. He usually looks at revenue or profit when the annual report is released.
However, it also depends on the specific business. When Yang Wendong planned some businesses, he defined them as very high-level, but they were bound to develop very slowly in the early years, so he would not pay much attention to them in the early stage. When the time is right, he will need to take a closer look at how they are developing. If they are not good, he will study why. If they are good, he will continue to invest heavily.
Wu Qinglan replied: "Mr. Yang, we currently have a total of 173 auto retail stores in Southeast Asia. Each store also comes with a professional after-sales maintenance. Basically, we can say that we are the most complete stores in the local area. Many people also tacitly believe that buying in our store has the lowest risk."
"Well, that's good. Let's continue with this business idea." Yang Wendong nodded and asked, "But we sell a lot of different types of cars in our store. Can we handle all the after-sales services?"
Southeast Asia in this era can be seen as the mainland of the 1980s and 1990s. There are very few car sales outlets, and even fewer after-sales services. When customers buy a car, the most worrying thing should be the after-sales service.
So just like Best Buy’s operating model in the United States, the group’s auto retail stores in Southeast Asia all provide after-sales maintenance to ensure customer trust.
Wu Qinglan said: "That's no problem. Cars are basically the same, with only the parts being different. We have the most commonly used parts in our store, and we also have a special warehouse to store some less commonly used parts. If you really come across something very niche, then we can look for the manufacturer. We have a good relationship with them.
The same is true for the technical level. If we encounter a core problem or a problem that cannot be solved, the car factory still needs to send someone over. Even if some of them are not technical problems but involve responsibility issues, they will also be handled by the car factory's dedicated technicians. "
"Well, that's good." Yang Wendong was very satisfied, and then asked: "There are only 173 stores in the past few years, what are the subsequent expansion plans?"
Wu Qinglan replied: "In the past few years, due to various personnel and legal issues, the expansion was relatively slow. Now that we are prepared, the subsequent expansion will be faster.
This year we plan to purchase or build 30 new stores internally, and the pace will increase every year.”
"Okay, we need to speed up a bit and try to increase the number to more than 1980 before 500, covering all the major cities in Southeast Asia." Yang Wendong said: "Automobile retail stores are not supermarkets. They don't need to be overly concentrated in geographical locations. They can just expand separately.
First, gain a foothold in the big cities, and then expand to the surrounding small cities with the big cities as the core. The specific situation depends on the local economic level.
In short, I want to make our group the largest car chain in Asia as soon as possible. Only when the scale is bigger, we will have more bargaining power when facing those car companies. "
Just like a supermarket, having enough stores will give you confidence, and this is also true in the automotive industry.
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(End of this chapter)