All round car designer

Chapter 191 Pros and Cons of Joint Ventures
Zhou Fei's ability to answer like this already shows that he is seriously thinking about this matter in his heart. This is already sending out a positive signal to Futong Motors, so Johnson did not continue to press the question.

"Since this is the case, then I can also hope that Mr. Zhou can think about this matter carefully. We, Futong Motors, will definitely be your best friends." Johnson stood up and said to Zhou Fei with a smile.

"Okay, I will give you a reply as soon as possible, then we will see you tomorrow morning."

After seeing off Johnson and the others, Zhou Fei came back with a pensive expression, followed by Li Jianneng and Zhang Xiang.

"Mr. Zhou, you don't really want to introduce the golf car to the European and American markets through a joint venture, do you?" Zhang Xiang asked with some concern.

Obviously, Zhang Xiang doesn't agree with the way of joint venture. After all, he is in Huaxia, and Zhang Xiang is very clear about what kind of joint venture exists. The reason why Huaxia's automobile industry is like this is "joint venture" This model should take at least half of the responsibility!

It can be said that success is also a joint venture, and failure is also a joint venture!

"Brother Xiang doesn't agree with the joint venture with Futong Motors?" Zhou Fei stopped and turned around to ask.He is also very entangled in his heart now, just in time to hear what other people think.

"It's not that I don't agree with joint ventures with Fotong Motors, but that I don't agree with joint ventures with any car companies! Mr. Zhou, you should know the virtue of joint ventures. These foreign car companies have always had bad intentions. It is said to help us open up the European and American markets, but in fact, I think it is just taking advantage of us."

Zhang Xiang paused, and then continued, "If we choose to form a joint venture with Fotong Motors, then we have to share half of the profits of this car with the other party. Why? I think we would rather slow down and enter the European and American markets. We can’t be fooled by Ford Motor Co., because our brand will become a tool for them to make money!”

Zhou Fei nodded silently. One thing Zhang Xiang said is correct. The reason why Futong Motors proposed to form a joint venture with Feichi is definitely not as kind as it seems on the surface. There must be their own small calculations behind it.

Although Futong Motors is better than Dafeng Motors, in essence, everyone is just using each other, and there is no real friendship.

Just imagine, if Mercedes-Benz hadn't made a big splash at the Geneva Motor Show this time, and golf sedans hadn't become popular all over Europe and the United States, how could Futong Motors have so kindly proposed to form a joint venture with Mercedes-Benz!
"I think we might as well try the method of joint venture." Li Jianneng on the side put forward different opinions.

Zhou Fei didn't speak, but looked at him, motioning for Li Jianeng to continue.

"I think Xiao Zhang is too one-sided in thinking about the joint venture. It is true that if they enter into a joint venture with Forton Motors, they will indeed take half of the profits, but have you ever thought about it? At the same time, do they have to pay half of the cost? Whether it is management costs or labor costs, the two companies have to share equally."

"Old Li, keep talking." Zhou Fei didn't express his opinion, but asked Li Jianneng to continue.

Li Jianneng nodded, and then continued, "For our Mercedes-Benz company, the most lacking thing now is resources. This resource includes not only funds, but also manpower, sales channels, etc., and these, Futong Motors can just make up for it. us!"

Zhou Fei nodded approvingly. Li Jianneng's analysis is very reasonable. For Feichi, which is just four years old, what it lacks most is all kinds of resources if it wants to grow rapidly. It can kill Zhou Fei.

If I followed my original idea to build a production base overseas, the cost would be too high. With Zhou Fei's thinking that several major industries are going hand in hand, at least within this year, Feichi Company will not be able to spend so much. Funds for the construction of overseas production bases.

What's more, after the construction of the production base is completed, Zhou Fei needs to consider labor costs and management costs. All these things cannot be separated from one word, money!

Without money, no matter how many ideas Zhou Fei had, he couldn't realize them all at once.

In addition, even if Zhou Fei can solve the funding problem in a short period of time, the development of sales channels also requires Zhou Fei to put in a lot of effort.

The European and American markets are no different than the domestic market. There are many car manufacturers here, and the competition is already fierce. The market is firmly controlled by the three giants. It is not ordinary difficult to build a Mercedes-Benz company's sales network here.

However, if we cooperate with Futong Motors, all problems will be solved. The two parties will jointly invest in the construction of factories, which will greatly reduce the financial burden of Mercedes-Benz. Moreover, Futong Motors has been rooted in Europe and the United States for many years, and its sales network has already been densely distributed in major European and American markets. City, with its sales channels, golf can be sold everywhere quickly!

Feichi Company can also take this opportunity to quickly increase its brand value in Europe and the United States, and at the same time cultivate its own sales channels. This is definitely killing two birds with one stone!

At least for the current Feichi company, the advantages of a joint venture outweigh the disadvantages.

"However, I always feel that relying on this method to quickly occupy the European and American markets is a suspicion of drinking poison to quench thirst. Once we become dependent on these resources of Futong Motors, it will not be so easy to withdraw. Futong Motors can also If we take the opportunity to ask for more conditions, then we will be in trouble?" Zhang Xiang said with some worry.

It's not that Zhang Xiang hasn't considered the advantages Li Jianneng mentioned, but in his heart, no amount of benefits can lower the disadvantages he mentioned.

"Didn't Johnson say just now that we don't have to follow the inherent joint venture model? All the conditions can be brought up on the negotiation table. If you don't try it just because you are worried, it will be a bit choking. Suspected, when Dafeng Motor entered the Japanese market, didn’t it also rely on the joint venture model?”

Li Jianneng patted Zhang Xiang's shoulder with a smile and said.

When Dafeng Motors entered the island country market for the first time, it took the form of a joint venture, but it was not a joint venture with Benma Motors, but a joint venture with another local car company in the island country. However, the joint venture between the two parties did not last long. After setting its own goal, Dafeng Automobile directly established itself and established its own production base in the island country.

This experience of Dafeng Motor is really worth learning from Mercedes-Benz.

Zhang Xiang scratched his head embarrassingly at Li Jianneng's words, he was indeed a bit afraid of wolves and tigers.

"Well, let's study this matter internally first to see what kind of conditions are worth trying for a joint venture, and then bring these conditions out to negotiate with Fotong Motors. Whether it can be achieved in the end depends on the outcome of the negotiations what kind."

After some thought, Zhou Fei said this.

(End of this chapter)