Siheyuan: Heavy Industry Revitalizes the Country
Chapter 345 Patriotic Capitalist
"Mr. Fang, our cars have just been shipped to North America and they are selling like hot cakes!"
Huo Zhenting's voice came from the receiver.
"Wait a minute, speak slower, what's going on?!"
Although Huo Zhenting's words just now were simple and did not contain much information, they were undoubtedly like a bomb in Fang Xiang's ears.
He must have known whether the car he built was good or not, but Huo Zhenting sold it out with just one sentence.
But he was not mentally prepared at all.
“This batch includes 5,000 Legends, 5,000 Ideals and 10,000 Pathfinders.
I went straight to North America.
Originally, the price was set to match that of Japanese cars as you said.
The Legend sells for $4,000, the Ideal sells for $6,000, and the Pathfinder sells for $8,000.
But I didn’t expect that I hadn’t built a sales outlet yet, and I just put a newspaper advertisement in Los Angeles and San Francisco.
It wasn’t even shown on the radio or TV, it was immediately sold out by sellers who flocked to it!”
Huo Zhenting's voice was full of excitement.
"..."
Holding the receiver, Fang Xiang couldn't believe his ears.
This price was something Fang Xiang decided after struggling for a long time.
The cost of the Legend is about four thousand, and the ideal cost is five thousand. The cost of the Pathfinder small off-road vehicle is actually not high, less than six thousand.
Just following the inertia of selling BMWs before, the cost was directly converted into US dollars, and it became the suggested retail price.
Fang Xiang was too lazy to calculate the foreign exchange rate, but he would not lose money after all.
Moreover, he had an agreement with the Huo family that he would only take 10% of the profits.
That is to say, Legend makes $400, Ideal makes $600, and Pathfinder makes $800.
As for the rest, there is no doubt that it must have gone into the pockets of the Huo family and the Bao family.
But that's what they deserve to earn.
Not to mention the time, money and risk required to ship from Hong Kong Island to North America.
In North America, GAC was a completely new brand, or as later generations would say, a little-known brand.
No one can guarantee whether it can be sold or not.
But now, someone has actually found out, so he deserves to make the money.
“Twenty thousand cars were sold out in less than two weeks.
Now there are still many people who call or come directly to order a car.
Mr. Fang, you have to ensure the production volume!"
After waiting for a while, seeing that Fang Xiang didn't say anything, Huo Zhenting couldn't help but say another sentence.
"Okay, I see. How much are you going to take this time?"
Fang Xiang took a deep breath and asked after digesting Huo Zhenting's words.
"The more the merrier!"
Huo Zhenting was also full of confidence at this time, wishing that Fang Xiang could give him another 20,000 units! No! 40,000 units were not enough for him to sell!
Of course it was Han Xin who selected the soldiers, the more the better.
“As for the Tundra, I believe the North American market will like it very much.
People here like big cars, especially in the countryside and the central regions.
Pickups, trucks and high-powered cars are simply their favorites!
If necessary, I have communicated with the Bao family and they can help us order ten production lines.
It depends on how much you want, Mr. Fang!"
Huo Zhenting's voice continued to come from the receiver.
This time, his tone was no longer limited to being full of confidence, it was even a little too arrogant.
"Have you ever understood why our cars sell so well?"
Fang Xiang hesitated for a moment, and after Huo Zhenting was sure that he had stopped talking, he slowly asked.
“I understand!
One is that our cars are indeed cheap in the North American market.
The best-selling cars in the North American market now, such as several Ford models, have a starting price of basically $6500.
Japanese cars are slightly cheaper, but still over $5000.
And this is still a car as small as the Legend.
Any car that is a little bigger, like the Ideal or BMW 8000 Series, will cost no less than $.
Secondly, the configuration of our cars is also higher than that of Japanese cars.
Not only is the interior appearance more beautiful, but the layout inside the car is also more user-friendly and modern.
Not to mention three, North America likes large displacement. Although our Legend uses a 115 engine, its power exceeds 100 horsepower.
You may not know that many of Ford's 2.8V6 engines only have a power of around 90 horsepower, right?
Not to mention Japanese cars, they have even less horsepower!
Moreover, our fuel consumption is not much higher than theirs.
Although the oil crisis has passed, oil prices have not yet fallen completely, and many people are still concerned about oil prices.
So you see, with high horsepower, high configuration, and the same fuel consumption but cheaper, will our car be hard to sell? ! "
Huo Zhenting immediately started to explain.
You know what, this guy’s summary is quite logical.
Fang Xiang quickly figured out why the products sold so well this time.
"What about the other models? Didn't you take away quite a few of them and not send them to North America?"
After a pause, Fang Xiang asked again.
The last time he came, Huo Zhenting took away more than just these models. He also took away quite a few other cars, except for the Hongguang and Beidouxing.
The almost full inventory was completely cleared out.
“I have discussed with the Bao family about those things and have taken them to Southeast Asia and South America.
Before calling you, I also called the Bao family. Those small cars are also selling very well in Southeast Asia and South America.
Basically no worse than North America.
After all, you know, North Americans are rich and have a large market, which Southeast Asia and North America cannot compare with.
Moreover, these models earn even higher profits in North America.
We have already discussed that the models sold in Southeast Asia and South America are mainly for volume sales.
While ensuring a certain level of profit, our main focus is on North America!
Apart from anything else, the profit of each Legend, Ideal and Pathfinder is almost the same as that of BMW!
If we could add the large off-road vehicle Tundra that we saw in your factory before.
Mr. Fang, believe me, North America will become a hen that lays golden eggs! "
Huo Zhenting became more and more excited as he spoke, and at the end, Fang Xiang could even see Huo Zhenting waving his hands with a beaming look on his face.
"So, Mr. Fang, how many production lines do you need now?"
Soon, Huo Zhenting brought the topic back to the production line.
“You are familiar with the production line data of Ideal, Legend, Pathfinder, X3, X5, X7 and Tundra.
Let's have another production line for each.
We have to make sure this isn’t a fluke. If the next batch of cars are still so popular, we can reduce the production of other vehicles and increase the production of these few models. It’s not too late.”
After Fang Xiang breathed a sigh of relief, he felt that Huo Zhenting was still a very qualified capitalist.
Since there is huge profit, why not make it?
The decision was made immediately.
Although the current operating rate has exceeded 80%, it is not impossible to reduce the production of other models.
The country is so poor now that it needs a lot of foreign exchange to buy advanced products and make domestic investments.
This task has been on Fang Xiang's shoulders for many years.
Without saying too much, hundreds of millions of US dollars in foreign exchange are earned every year through Second Automobile Works.
Now that we have GAC, we must add at least tens of billions of foreign exchange every year, right?
You should know that historically, before the 80s, Rabbit's foreign exchange reserves had always been negative, and it was not until 90 that its foreign exchange reserves just crossed the 100 billion threshold.
Fortunately, with Fang Xiang, Rabbit's foreign exchange has gotten rid of the dilemma of negative foreign exchange. I dare not say how much it is, but it is still tens of billions.
But Fang wants to know that this number is far from enough!
The country is so big, there are so many places that need money.
If he earns more foreign exchange, the people in his country will be able to live a good life sooner.
How could Fang Xiang not be clear about such things?
"Mr. Fang, isn't that a bit too conservative?
By this calculation, there are only 7 production lines, so why not double it!
If the factory can't accommodate it, the money for buying new land and building a house will be paid by our Huo and Bao families!"
Unexpectedly, Huo Zhenting still thought Fang Xiang was being too conservative and directly asked for a doubling of the money.
Not only that, they even said they were willing to pay for the rest.
Is this still a capitalist?
No, they really are, but in the future, we will have to add two more words before the word capitalist.
Patriotic capitalists!
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