All round car designer

Chapter 198 Zhou Fei's Understanding of Joint Ventures

Since the two hadn't seen each other for a long time, they lost track of time as soon as they chatted. The parents chatted for more than 40 minutes, and Zhu Zhijun slapped his head and said with a wry smile,

"Almost forgot the business."

"Mr. Zhu came to see me this time, he really has something to do, right?" Zhou Fei replied with a smile.

"It's not a big deal, it's just something, I want to ask what your opinion is." Zhu Zhijun paused, and then continued, "To tell you the truth, the joint venture between Chunqi Group and Dafeng Automobile will be closed soon. It's due, and we are debating whether to continue to enter into a joint venture with Dafeng, and you have been in the industry for a long time, so I would like to ask what do you think about this matter?"

"Chunqi Dafeng's contract expires so soon?" Zhou Fei asked with a look of surprise. He didn't expect more than ten years to pass in a flash.

"Well, at that time, the two parties signed a valid period of 20 years. This year happens to be No. 19. The contract will expire in June next year." Zhu Zhijun nodded.

"Fred's coming to Geneva this time should be to discuss this matter with Mr. Zhu, right?" Zhou Fei thought about it carefully, and everything would probably be clear.

If it wasn't for the purpose of prolonging the duration of Chunqi Dafeng's joint venture, an auto show of this level wouldn't be worth Fred's own visit.

"Yes, he already had a meeting with me a few days ago. What Dafeng Automobile means is that he wants to continue to cooperate with Chunqi."

Zhou Fei sneered, "Of course he hopes that Chunqi Dafeng can continue to operate. Who doesn't want to have something like lying down to make money?"

The performance of Dafeng Automobile in several major markets around the world, which one can compare with the dazzling Chinese market, more than 30.00% of the sales are contributed by the Chinese market, who would be so stupid as to give up such a convenience as Chunqi Dafeng Tool of"?
Once there is no Chunqi Dafeng, even if the brand of Dafeng Motor has been deeply rooted in the hearts of the people in China, but with a lot of resources, it will not be convenient for Chunqi to be dominant by Dafeng Motor alone.

As the eldest son of the Republic of China, Chunqi has a very special position in China. With Chunqi, Dafeng Motor can easily obtain some policy convenience. Not to mention, once Chunqi withdraws its capital, Dafeng The leading position of automobiles in domestic official vehicles was lost immediately, and was replaced by Chunqi Benma and others.

These are all obvious advantages, and there are also some hidden advantages, all of which are the reasons why Dafeng Automobile cannot lose Chunqi Dafeng.

More importantly, once Chunqi withdraws its capital from the joint venture, Shenqi Dafeng may follow suit, causing a chain effect, which will undoubtedly be a fatal blow to Dafeng Motor.

Once these factors were combined, Fred had to put aside even if he had a big deal ahead of him, and rushed to Geneva to discuss the matter with Zhu Zhijun.

"To be honest, because it is convenient for Dafeng Automobile to make money in China, even our Chunqi Group has been criticized by the people of the country. We feel that the domestic automobile industry has developed to the point where we are today. To be honest, we have a lot of responsibility. I also feel a little wronged." Zhu Zhijun said with a helpless sigh.

A joint venture car company like Chunqi Dafeng is a product of a specific era. In the years when it was first introduced, it did promote the development of the domestic auto industry. As for why it has developed to the present point, it is also caused by many factors. The underdevelopment of the industry is attributed to the existence of joint venture car companies, which is very one-sided.

Zhu Zhijun also wants to start the national auto industry, but one thing must be admitted, the gap between the domestic auto industry and the West is all-round, not to say that you can catch up with hard work, and it also takes time to accumulate just work.

"So, Mr. Zhu means that he is not going to continue to form a joint venture with Dafeng Automobile? Is Chunqi also thinking this way?" Zhou Fei asked curiously.

Whether to continue to engage in joint ventures, Chunqi Group's own ideas are the most important.

"Personally, I tend not to engage with Dafeng Automobile, but the opinions within the group are not unified, and the support and opposition are divided equally. It is the situation where no one can persuade the other, and there is no stalemate. What about you, Tell me what you think?"

"If you want me to express my views on this matter, then I personally support the continued cooperation with Dafeng Motor." Zhou Fei replied with a smile.

"You actually support this matter?" Zhu Zhijun looked at Zhou Fei in surprise. He just heard Zhou Fei's meaning. Didn't he despise joint venture car companies like Chunqi Dafeng? Why do you support it now?

"Mr. Zhu must be very confused. There are so many disadvantages in the joint venture car company. I also made it clear that I hate Dafeng Motor's behavior, but why do I support it?"

Zhou Fei smiled, and then continued, "Personally, or the disgust of any consumer, should not be the reason for Chunqi to give up cooperation with Dafeng Motor. The development of national auto brands has been hindered, but in the final analysis, it is people, not the joint venture system. The system is neutral, and talents are the key. The root cause of the chaos!"

I have to say that Zhou Fei's words had a deafening effect. Even Zhu Zhijun subconsciously believed that the "joint venture" was the reason for the backwardness of the domestic auto industry, but Zhou Fei's words were a sudden blow. After instructing him, joint venture is just a system, and the most critical factor lies in people!

If it's all about joint ventures, then why did the domestic auto industry develop so much in the first few years?
In the final analysis, it was because the joint venture made the company earn a lot of money, and the management did not want to make progress.

"Xiao Zhou, keep talking." Zhu Zhijun said with a serious face.

"What I said just now was just to correct everyone's misunderstanding about joint ventures. In fact, the reason why I support the continuation of joint ventures is mainly for the interests of Chunqi Group itself. Now the two most profitable subsidiaries of Chunqi Group, one is Chunqi Dafeng, the other is Chunqi Benma, your Chunqi car even loses money every year, without Chunqi Dafeng as a source of funds, even if you want to develop your own brand, where will the money come from?"

This is also a very real question. No matter how much Zhu Zhijun hates Chunqi Dafeng, what Zhou Fei said is true. Chunqi Dafeng almost contributes 40.00% of Chunqi Group’s profits. Without such a "cash machine" , If you don't have money, what can you do to develop your own brand?
"Money is the most important factor, and technology is actually another aspect. Although it is impossible for Dafeng Motor to hand over the core technology to you, with such a master, it is also possible to learn a little basic skills. There are many benefits, Zhu The boss must understand better than me, I still say that joint venture is not a scourge, but the imprisonment of thoughts is the real scourge."

Zhou Fei replied seriously.

(End of this chapter)