Reborn Entrepreneurial Giant.

Chapter 460: Cost reduction and efficiency improvement

Qiancheng CS6 both use 6AT gearboxes, but the brands are different. The latter is Aisin's 6AT. The engine is from Mitsubishi, which is not excellent, but it has low fuel consumption. In history, the Haval H6 seems to have used a Mitsubishi engine plus a 4AT gearbox. , the good-looking parameters may be the reason why Qiancheng CS8 is so popular.

Qu Li boasted in the video that the development cost of the Qiancheng CS8 was five times that of the joint venture car. He was not lying. He himself also said that a large part of the investment was to establish a forward research and development process, which is regarded as paying tuition, and part of it was to improve quality and safety. and balancing costs.But who cares about this in the propaganda? Consumers think that more investment in R&D will be better.

It is a fact that Qiancheng CS8 has no rivals among domestic brands in the same price range. Although not many are sold in China, Qiancheng CS10 can be regarded as top-notch. Many domestic brands that rely on marketing to sell well have a headache about this. But the price of Qiancheng Automobile has directly reached more than 50 yuan, which is the absolute advantage of joint venture cars. Qiancheng Automobile sells for [-] yuan. There are not many car companies that are really hostile to it.

Many people are watching that if Qiancheng can break the price ceiling of domestic car brands, more car companies may increase investment in the field of electric vehicles.But Qu Li did not announce the pre-sale status of the future geometry, and he did not know whether more than 100 units was considered a good thing.

There are two types of reservations for Qiancheng Geometry: 5000 yuan and full payment. The more money you pay, the faster the delivery. In order not to be defined as illegal fund-raising, a supervision account is also set up.Seeing that there were only about 10 full-pay reservations, I quickly ordered one for myself.

There are many multi-billionaires in Jumei Glory, and Qu Li did not ask them to buy Qiancheng. After all, not everyone will be interested in electric vehicles.But tycoons from Internet technology companies should be the main buyers of electric vehicles, right?

Compared with the electric vehicle business, which is destined to not be a big hit in recent years, Qu Li is more concerned about fuel vehicles. He has to make money from this. Although it is very difficult, after all, the purchase price of a gearbox is more than [-]. The future is The most cost-effective car product in China may not be just a boast.

If you want to make money despite high costs, you naturally have to find ways from other aspects. Reducing costs and increasing efficiency is a timeless topic. Great Wall Motors is said to have done a good job in this aspect, and it is also Qiancheng's strongest competitor in the field of SUVs.

Great Wall Motors is the largest private automobile manufacturer in China at this time, surpassing Gigabyte. This includes their profits. Last year, Great Wall Motors had a revenue of 230 billion and a net profit of 28 billion.Geely Auto's revenue has just exceeded 200 billion, and its net profit is only 15 billion.At this time, BYD's automotive business has annual revenue of approximately 215 billion and profit of approximately 17 billion.

The core business of Great Wall, the leader of its own brand cars, is SUVs, and it also takes the premium route. Later, Great Wall Haval H6 sold 30 units a year, and its strength cannot be underestimated.However, Qiancheng Motor's positioning is smart technology, sports and fashion, and it only has gasoline engines, and does not plan to produce diesel cars or diesel engines.

The reason why I mentioned Great Wall Motors is of course because the launch of Haval H6 made Qu Li feel pressured and a little excited. Maybe domestic SUVs priced between RMB 10 and RMB 20 will not have room for joint venture vehicles.

"We still need to strengthen cost control..." Qu Li rarely mentioned this topic. Qiancheng's hot-selling strategy has initially achieved results, but the profit margin is far less than that of Great Wall. If it keeps relying on blood transfusions, it will inevitably fall into a disadvantage in the long-term competition.

Controlling costs and increasing profits is not simply about reducing personnel wages. Qiancheng only has two cars, which is their biggest advantage at present.There are also self-operated experience stores. There are no middlemen to make the difference. The gross profit margin of car 4S stores is generally between 10% and 15%. If online sales can be popularized and cars can be picked up offline, costs will definitely be reduced and profits will increase. However, it will Increase sales and administrative expenses.

What Qu Li discussed at Qiancheng Motor was to reduce internal transaction costs, increase corporate integrity, and "zero inventory." Because of frequent shortages, Qiancheng Motor seems to have achieved this. They really have no cars in stock now.

Qiancheng Motor also has a complete informatization, process and assessment system. If it fails to do well, it will be pulled out for training or replacement. After Qu Li's major change of blood and transformation, it can control the spread of corruption within the company to a certain extent. .

"We strictly control labor costs?"

"No, Xingsha's salary level is already low enough and can only be increased."

Although Qu Li knows that Great Wall relies on a strict management system to manage, this is incompatible with Qiancheng Motor's corporate culture. In the future, he will introduce elites from Honor and Jumei, poach automotive industry experts from Europe and the United States, and have a relationship with Jumei Honor. ContextNotControl is of the same origin, and some unsatisfactory things cannot be done.

"Cultivating a complete automobile industry chain in Xingsha can reduce costs." This is a good way to shorten the physical distance and reduce logistics and time costs.

"But Changfeng Group is unreliable."

Everyone knows that many people who were eliminated by Qiancheng Motors went to Changfeng Group, and those who were better off got into Cheetah Motors.

"Do you want to find a way to control them?"

Who is so bold? Qu Li looked over and felt a little angry.

"Now that state-owned enterprises are being restructured, Magic City will sell its shares in Jahwa Group. Huxiang has similar ideas. It may not be impossible to introduce external shareholders to Changfeng."

"It's impossible for Glory Future to pay this money." Qu Li knew that this person was reliable and had a wide range of information sources, but issues of principle could not be discussed. He did not want Glory to become the next chrysanthemum factory.

"It doesn't cost us anything, just give us control."

The internal situation of a company like Changfeng that was transformed from equal work to equalization was very complicated, but their highest annual sales volume later exceeded 10 vehicles. Their team had some ability, but it was obviously not good enough, otherwise they would not have gone bankrupt later.

Qu Li does not doubt his influence in Huxiang. Changfeng Group is already within his sphere of influence. It is certainly no problem to further strengthen its control now, but the favors owed must be repaid. The more debts owed to the government in the country, the more The sooner you die.

"Changfeng Group is not special. We have a future with Mitsubishi and Cheetah. It is necessary to strengthen cooperation in supply chain management." Qu Li

In order to save costs, Mitsubishi's progress is not fast. If you want to sell cars, you have to wait until next year. Therefore, it is possible to strengthen supply chain cooperation, and it will be easier to negotiate with Cheetah.

"Pay attention to cooperation with auto parts companies in Hubei and Guangdong provinces." Huxiang is located between Guangdong and Hubei provinces. It takes one and a half hours from Xingsha to Wuhan high-speed rail and about 3 hours to Yangcheng. It is closely connected with Jiangsu, Zhejiang and Shanghai. Naturally, economic ties cannot be compared, but there is room for cooperation.

"As long as the company is strong and the boss is courageous, we can provide appropriate support, such as helping them obtain loans from banks..." Qu Li believes that the future requires strengthening control of the supply chain. There are many ways to reduce costs, and Changfeng Group is not needed.

Whether it is internal control or supply chain management, Qiancheng Motor's cost reduction and efficiency increase are once again strongly promoted under Qu Li's promotion, accompanied by personnel changes and position adjustments to make room for the "new people" he poached from Europe and the United States. out of space.