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Chapter 111 Negotiation Plan

The province's foreign trade and trade brought Lyon and his group to visit the automobile factory. The person they sent this time was Deputy Director Zhou Jianjiang, who was responsible for the supervision of the negotiations and also reported to the central and provincial governments in a timely manner.

Director Lin Xiangrong has served as the deputy general manager of the automobile company and will also participate in negotiations with foreign parties.

There is really limited talent in the local area, and the superiors didn't choose anyone who was familiar with the automobile industry and made them feel very at ease.

The familiar ones they were still negotiating with the Germans at SH, so they had to transfer a deputy factory director named Li Gang from FAW to serve as the general manager of Bincheng Automobile Factory.

Li Gang graduated from Tsinghua University's major in automobile and automobile manufacturing and joined the army. He went to the Soviet Union to participate in the FAW working group of the Ministry of Heavy Industry. After returning to China, he served as an engineer of the FAW Engine Branch, head of the Technical Section, deputy chief engineer and director of the Planning Office, and deputy director of FAW.

Li Gang was transferred from a large factory with a population of tens of thousands to a small factory with less than 2,000 people, without any complaints. He actively learned about the situation in the factory to Lin Xiangrong, and also introduced the Toyota production system currently being implemented by FAW, hoping to build this factory into a national key automobile factory in the future and achieve the rise of the motherland's car industry.

Lin Xiangrong was also very happy. He transferred an old senior from the automobile industry to the top, which would definitely play a great role in promoting the development and construction of the factory. His confidence and spirit have also increased a lot.

Lyon and his group visited the engine factory, machining workshop, body stamping workshop, and assembly workshop of the automobile factory. The three of them were surprised along the way. Muke nodded and said with a thumbs up: "It is amazing to develop this under the situation of blockade around the world!"

Lin Johnson has introduced the technical status of the factory in advance, so several foreigners have also been very mentally prepared. In fact, what they saw is much better than they imagined. At least some semi-automated equipment was seen in the factory. The workers are familiar with the process of assembly line production. Each worker is only responsible for one task, so that proficiency can quickly come.

After hearing his son's translation, Lin Xiangrong also showed a hint of pride on his face. He looked at his son, then looked at a few foreigners, and said with a smile: "This is a production line we have figured out with the teachers and students of Harbin Institute of Technology. It is still incomparable to your company's technical strength!"

The automobile factory currently produces stable cars at about 5,000 per year. This scale is at the level of a modification factory abroad, but it is the second-ranked car manufacturer in China. The first place is more than 5,000 SH cars, and the second place is Bincheng Automobile Factory. There are no more than two sedan manufacturers in the country.

Barr holds a small notebook and a calculator in one hand and a pen in the other. He estimates the annual output value and total value of the factory. Although this scale is useless in the face of huge amounts of foreign investment and technology, this is also a habit of him as a negotiating analyst.

"Although this factory has installed some semi-automatic manual production assistance facilities, it is still technically in the late 1950s. To reach the current world's advanced level, it will cost at least $100 million! These production equipment can be left behind. For new companies, their value is equal to zero. We have to spend money on handling old equipment!" Barr said while calculating as he watched the workers assemble the car.

When Lin Qiang-sheng translated, the expressions of Chinese personnel were a little awkward and ugly. However, what they said was true. When they thought that foreign investors said that investing in equipment technology costs 100 million US dollars, everyone became melancholy again.

Zhou Jianjiang smiled and said, "Please ask foreign businessmen to the conference room. Let's talk about the negotiation expectations and content first?"

After Lin Johnson and Lyon and others talked, the group went to the small conference room of the automobile factory.

Lyon handed over a negotiation content plan to China, which wrote down the details of the negotiation. The foreign businessman's plan was very detailed, and there were two negotiation contents in total, one was investment cooperation with the automobile factory, and the other was investment in the construction of an automobile spare parts production base. The two negotiations were held at the same time, saving time.

This was planned by Lin Johnson behind the scenes. He fully learned the lessons of the SH Automobile Negotiation Group and Germany Volkswagen Company for six years of negotiations. He wrote this plan in detail. While the central leaders were all here, he would first explain some issues, which was also to reduce the trouble and reduce the time for negotiation.

The central government hopes that the automobile joint venture will produce at least 150,000 cars per year, and the superiors also hope that these cars can earn foreign exchange for national exports, requiring 80% of the production to be exported.

The issue of output and export foreign exchange earnings alone has encountered a lot of trouble! They themselves think they have no experience at the beginning, and the investment in producing so many cars is heavy; and the state stipulates that 80% of the output is exported, which makes SH feel difficult to complete. The German side also disagrees that 80% of the output is used for export, and they are worried that it will impact their overseas markets.

Both sides of the country and the outside world had concerns, and they had a dispute with the German side for two years on these two issues. Until the conditions changed in 1980, SH privately reduced the annual output, and the 150,000 volume was reduced to 30,000 vehicles. Two years of hard negotiations became useless efforts and were all invalid.

With the lack of confidence, the slap with the German side, and the triple blow that the central government did not understand, SH made great compromises on quantity and export issues.

On the contrary, for Lin Johnson, nothing is wrong!

It's good to have a car production of 150,000 vehicles! Lin Johnson wants to have a car production of 300,000 vehicles. It's better to have a car export! Lin Johnson also wants to have a car export, and of course he will work hard to export. But if he can't, he can set up a joint venture and make a car.

The matter is because of humans! He doesn't believe it, and the superiors will force him to export it with guns. In the later generations, many domestic large automobile companies clamored to export it. As a result, the news was reported for a while, but it ended up leaving nothing and nothing happened.

Moreover, Lin Johnson knew that after the reform and opening up, especially in the 1980s, after the opening of the country, governments at all levels needed a large number of office vehicles, and wealthy households of tens of thousands of yuan began to pursue owning a car.

From 1983 to 1984, the number of imported cars reached more than 340,000 each year. With such a large number of cars imported, the country may not be willing to let it go, not to mention that there are hundreds of thousands of smuggling cars every year!

In fact, if you stipulate this thing, one is said above and one is made below. When he really sells cars in China, can he still get stuck on it?!

SH is a person within the system and negotiates with the German side. When they encounter certain problems, they have to go to the central government to ask for instructions. There are more than a dozen running departments alone. If one department says they don’t agree, they have to talk repeatedly and report repeatedly. The rules are very big and complicated!

And everyone above wants to say a few words on this big project, but no one says anything. The above sentence makes the people below break their legs. Another thing is that they are the first to negotiate with foreign investment in China. They think they are crossing the river by feeling the stones, so they are trembling as if they are walking on thin ice and are extremely careful, which leads to a negotiation, which lasts six years.

After reading the foreign negotiation content plan, the Chinese negotiation team was shiny, especially Li Gang and two central foreign trade supervisors.

Lyon also said that if China has anything to add to the supplement, it can be supplemented at any time. The foreign side's attitude is very good, sincere, and very tolerant, and can talk about anything, which is unexpected by Chinese personnel.

When foreign trade personnel reported to Gu Mu and Rao Bin, they were both very surprised.

Rao Bin asked in surprise: "The French side agreed to the annual output of 150,000 cars and 80% of the export?"

The foreign trade and trade person smiled and said, "Yes! The French people came from the same place with a very good attitude, and they are much easier to talk to than the Germans in SH. We didn't expect it!"

The foreign-business plan not only agreed to China's production and export earnings requirements, but also agreed to use Chinese laws to resolve disputes arising from the two parties in the future.

You should know that SH has not yet discussed this issue. Moreover, the German negotiators are very determined and have very big differences with China.

Lin Johnson knew that the negotiation process on SH, production and exports could be entangled for two years; then the German side demanded the use of the German joint venture law to resolve subsequent disputes, and the legal issues were entangled for another year or two; then the basic agreement first or the contract was signed directly, and then another year; then the sales issue.

The German side raised the problems one by one, solved the old problems and raised new problems. China was exhausted and the two sides repeatedly negotiated and negotiated. In six years, SH, Beijing, Germany, and the SH negotiation teams in these places all went all out. Six years later, they figured it out themselves, bypassing the central government and the German side to take action first and then report to successfully sign the cooperation agreement.

After such a long negotiation process, even the central government’s foreign trade and trade people said, “With this time, you might as well develop yourself!”

In fact, the reason why Lin Johnson thought it was his own in SH after talking to the German side for six years was that they took the German side too seriously and took it too much.

Gu Mu flipped through the negotiation plan and said, "Since the attitude of foreign investors is so good, we should seize the favorable opportunity to promote this cooperation as soon as possible. Let's study the plan provided by foreign investors now."

The cooperation proposed by France is divided into two items. The first one is to be a joint venture with the automobile factory. Foreign investment and technical equipment occupy 50% of the joint venture. This is also the bottom line of the central government, but this bottom line must be reported upward and nodded above.

The foreign party’s plan to invest in an automobile spare parts production base in the provincial capital is even more attractive to the country.

Rao Bin listened to the content and said with his eyes lit up: "Can foreign guests put this investment in the coastal areas and make it more convenient for future export plans?"

Gu Mu nodded interestedly and said, "There are many benefits in the coastal areas. Haven't you suggested to foreign investors?"

Foreign trade personnel looked at each other and shook their heads at Gu Mu and Rao Bin at the same time. One of them said: "We said it, but foreign businessmen said they would not consider other regions."

Rao Bin smiled and said, "I don't think you have fully explained the benefits of doing this with foreign investors. We should talk to foreign investors again and build the spare parts base on the coast. They should also understand that it is beneficial to do this!"

"We have all explained to foreign businessmen, but they are very firm in their attitude and say they will not consider other places!" The foreign trade and trade person still shook his head and said.

They were also puzzled, why did foreign commerce go far and set up factories in the mainland?!

Rao Bin said incredibly: "How is it possible? Don't foreign businessmen know that building factories in the mainland will increase costs?!"

Gu Mu said: "I am also optimistic about building the production base on the coast. This will not only save a lot of manpower and material resources, but also be consistent with our country's future development plan!"

Everyone discussed it with each other, and they all tended to talk about this issue with foreign investors.
Chapter completed!
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