“Yes.” He Yuanjiang nodded and smiled. “Resource integration ability determines the product’s technical upper limit. If we can integrate the best individual technologies on the market, the overall level will not be bad.”
“In addition, there is a very important ability, which is supply chain integration ability.”
“Because the core logic of car manufacturing is the assembly and reproduction of countless parts and solutions, from aluminium, steel, to motors, batteries, seats, steering gears, suspensions, tyres, even just the inconspicuous wire harnesses hidden in the body, all need to be screened and integrated from the supply chain.”
“This ability determines the product’s cost lower limit, just like different restaurants making the same dishes. Even if the raw materials are the same, the meal preparation level is the same, the costs cannot be the same, because everyone’s bargaining ability is different. Large chain restaurants have lower procurement costs for all ingredients than ordinary restaurants, so their cost for the same dish is cheaper than ordinary restaurants. But if a restaurant can find an authoritative expert in the vegetable supply field, this person has great face and high status in the entire vegetable supply field, then if he steps in, perhaps he can get even lower prices that large restaurants cannot get. In short, it is to have strong bargaining power, to make suppliers willing to earn a little less from us.”
Ye Chen asked him. “Then how are our abilities in these two aspects?”
He Yuanjiang said. “Back to Young Master Ye, in resource integration ability, we can be said to be the first in the domestic automobile field, because your maternal grandfather has great influence in the global trade market. With the An family stepping in, many equipment and technologies that other manufacturers cannot get, we can get.”
Speaking of this, He Yuanjiang added. “As for supply chain integration ability, from the situation we have negotiated so far, we dare not say we are far ahead, but we can maintain in the first tier. Suppliers are still very optimistic about the future development of Changying Automobile, so although we have not yet had mass-produced cars off the line, they can still give us conditions according to top host factories.”
Ye Chen pondered for a moment and asked him. “For the main suppliers, do we have further space to lower prices?”
He Yuanjiang said. “Currently, the largest single cost of the vehicle is the battery power system. Your maternal grandfather and second uncle have already started to layout the production business of power batteries. Once that side is built and put into production, it will definitely bind with us for deep cooperation. Other suppliers are distributed too widely, most are domestic manufacturers, chips are from Qualcomm and Nvidia, body safety systems are mostly provided by German suppliers, tyres from French suppliers, brake systems from Italian suppliers. European suppliers overall have not much bargaining space.”
Ye Chen smiled slightly. “Whether the bargaining space is high or not depends on who is bargaining. If you go, or I go, I’m afraid those Europeans will not give us face. However, I do have a friend who can help mediate. If he steps in, I believe the European and American suppliers will all agree.”
He Yuanjiang asked curiously. “Mr. Ye, if you know such a capable person, why not let him join Changying Automobile, mainly in charge of our supply chain.”
Ye Chen laughed. “I plan to let the heir of the Rothschild family, Steve Rothschild, help us bargain. This guy is indeed a capable person. He definitely has no problem helping privately, but if let him join Changying Automobile, that would be a bit too fantastical.”
He Yuanjiang exclaimed. “The heir of the Rothschild family?! My God, among the foreign suppliers I mentioned earlier, half are actually industries controlled by their family. This is not just a capable person, this is a great capable person!”
“Is that so?” Ye Chen suddenly said with surprise. “Then this is really great. Comrade Steve Rothschild has finally found an opportunity to perform! I’ll call him later and let him step in to greet those suppliers.”
He Yuanjiang said overjoyed. “Great, great! If we further lower costs and reduce prices, the car’s cost-effectiveness will be higher. Maybe we can really create a few national god cars!”
