If you cheat, money will follow

Leda Automobile.

Yu Chengdong held a board meeting to study how to deal with the current trend of sharp decline in sales.

Faced with the severe sales situation and the aggressive moves of joint venture brands, a director proposed at the meeting to keep up with the trend and reduce prices!

"Mr. Yu, if the joint venture brands can lower their prices, we can also lower their prices. By lowering prices, we can not only stabilize the current market share, but also further squeeze their market share. In terms of cost alone, we have enough room to explore profit margins. "

"Yes, Mr. Yu, even if we adopt a price reduction strategy of the same magnitude, we still have profit margins."

There are also directors who strongly oppose it, and for good reasons.

"A price war between leading companies in the industry will lead to strife in the entire industry. It may seem to increase sales in the short term, but it will damage the brand image."

"Simply exchanging price for volume will cause the company to lose the motivation for long-term healthy development. Once inertial thinking and an irreversible wave of price cuts form in the minds of consumers, not only the company will be hurt, but the industry will also be hurt. We not only have to think about ourselves, but also We should consider other independent brands.”

"Moreover, terminal prices fluctuate greatly, which will most likely lead to a strong wait-and-see mood in the market. Whether sales and capital flow can be increased over a long period of time is still unknown. But what is certain is that dealer profits will decline, affecting long-term stability relation."

"Currently, several major joint venture brands are slashing prices. The main reason is to clear inventory and make market space for the launch of new cars. This will not form a long-term practice."

After some discussion, Yu Chengdong expressed his position.

"Everyone, whether the price is reduced or not, it all makes sense."

"It's normal for everyone to have different opinions. However, we must find our own positioning. What positioning? What kind of company is Leda Automobile?"

"I would like to reiterate that when Leda Auto was established, the parent company emphasized that it is a technology-driven OEM."

"The performance, stability and durability of our engines and gearboxes are far ahead of other brands, whether they are independent, joint ventures or imported."

"Our products are widely recognized by consumers around the world."

"In the past three months, we have sold more than 10 cars in Europe, and dealers in Europe are calling us every day to urge us to increase supply."

"Our Leda Racing Team has been reporting frequently in the WRC, winning multiple stage championships in succession. It is already far ahead in the standings, and has formed a concept in the minds of consumers that Leda Motors has technology."

“Our partner, Porsche, is very impressed with our powertrain and has confirmed that it will be equipped with our products in new models.”

"Our sales situation has been at the top of the sales rankings since the launch of the first car Lexing, and later the Lotto and Lotto, and we are far ahead."

"We must be confident, we must be fully confident."

"We are the leading company of independent brands and also the leading company of domestic OEMs."

"Leading companies must have the pride of leading companies and not blindly follow the trend or compromise with popular customs."

"As long as we make good products and use technology well, the market will definitely make the right choice."

"So, no price reduction!"

"But new cars can expand some accessory options based on market demand."

Which accessories?

Sports kits such as wheels, front and rear bumpers, side skirts, sports seats, exhaust, etc.

The function of these kits is mainly to reduce the reverse airflow when the car is driving at high speed.

Further improve the vehicle's aerodynamic performance, reduce air resistance, and obtain a sportier driving experience.

The premise is that there must be a corresponding driving speed.

The biggest function of these kits is to install B!

cherry here.

The cooperation plan provided by Zeng Xi was discussed and debated fiercely.

According to the plan provided by Zeng Xi, once the cooperation is reached, Cherry's core technology will basically be disclosed to Leda Automobile.

Does Cherry have core technology?

Of course there are.

As a domestic independent brand technology leader, Cherry’s focus on technology is obvious to all and has gained a lot.

It is the first OEM to develop and successfully apply engines among domestic independent brands.

As early as 2005, it successfully developed the acteco engine and has all independent intellectual property rights.

During the same period, most other brands were still purchasing 4G Mitsubishi engines.

Chang C is having a great time playing in the field of pickup trucks;

Ji L is struggling with the relationship between the four wheels and the sofa;

BYD's leading product has a Corolla front face, a Fit rear end, and a Vios waistline...

The acteco engine is Cherry's flagship product. It has been iterated for three generations in the past and has been derived from a variety of displacements and models.

In terms of power performance, the 1.6T has a maximum power of 197 horsepower and a peak torque of 290 Nm;

The 2.0T has a maximum power of 254 horsepower and a peak torque adjustable to 390 Nm.

There are also models with more than 400 Nm, which were briefly used by Jaguar and Land Rover.

If it were not for the gearbox restriction, it would not be difficult to break through 400 Nm.

The performance is outstanding. Compared with the high-power engines of Volkswagen and BMW, it does not fall behind and reaches the joint venture level of the same level.

Among independent brands, it is no exaggeration to rank first in the early stage and top three in the middle and late stages.

In addition, Cherry also developed the first independently patented CVT gearbox in China.

In an era when other independent brands are purchasing Mitsubishi gearboxes in large quantities, this is indeed a breath of fresh air and gives hope to the Chinese people.

Unfortunately, due to various factors, Cherry's performance in the "golden decade" was extremely dismal.

Due to lack of funds to continue research and development, this CVT gearbox did not continue to be optimized and iterated.

And due to the inherent defects of CVT, it gradually failed to keep up with the times and was abandoned by the market.

"We cannot accept such a plan."

"Yes, referring to the other party's plan means that the core technology our company has accumulated over the years will be open to the other party for free, while the other party only provides materials OEM, and the conditions are completely unequal and very disparate."

"No matter how advanced the materials are, once dependence is formed, our company is likely to become a subsidiary company, which will greatly restrict our development."

"..."

Faced with strong opposition from engineers, Yin Tongyue said:

"Let's not argue for now. Let me ask a question. Does Leda Auto lack technology?"

"..."

"Let me ask again, judging from their products, do their technologies lag behind ours?"

"..."

"Then is our technology leading the world, or is it leading domestically and irreplaceable?"

"..."

"So are their materials unique to the world and irreplaceable?"

"..."

"Okay, you should understand the answer to the above question even if you don't say it. Now they are not begging us, but we are begging them." Yin Tongyue said:

"There is definitely a price to pay for asking for help. As long as the price is less than our gain, it is advisable."

"Everyone should know my attitude, cooperation!"

"This has only advantages and no disadvantages for our company."

"Being conservative will only allow us to continue to lag behind the market and the times."

If we are unified in thought, we must continue to advance in action.

Cherry chose the second option, which was to establish a joint venture powertrain company with Leda Automobile. The location was chosen to be in the north of Jiangzhou, near the Leda Materials Factory.