318: Chapter 318 The Choice Between Mitsubishi and Mazda

In June, the sky over Shenzhen was as blue as if it had been washed.

On the runway at Baoan Airport, two Gulfstream private jets from Japan landed almost simultaneously.

One was painted with the Mitsubishi logo, and the other with the Mazda logo.

As Takao Kato stepped out of the cabin, he saw a figure descending another boarding ramp not far away.

Akira Marumoto.

The two met in the VIP corridor.

The sixty-year-old Takao Kato had graying hair and a look of restraint typical of Japanese entrepreneurs on his face.

But at this moment, there was a hint of bitterness in his smile.

"Marumoto-kun, we are here to queue up."

The sixty-two-year-old Akira Marumoto sighed.

He had worked at Mazda for forty years, experiencing the glory of the rotary engine and witnessing the ups and downs of Mazda.

But at this moment, he felt a sense of powerlessness he had never experienced before.

"There's no other way; Honda and Nissan have already signed. If we don't queue up now, we won't even get to drink the soup."

The two exchanged a bitter smile and walked into the terminal together.

At 2:00 PM, at the Xingchen Headquarters negotiation hall.

Takao Kato sat on one side of the long table, with Xingchen Auto CEO Gu Yanting opposite him.

This meeting room was the same one used to receive Tatsuro Ueda—no windows, only a huge projection screen and a long table.

The soundproofing material on the walls had a dark gray luster.

Takao Kato got straight to the point.

"CEO Gu, Mitsubishi hopes to establish a joint venture factory with Xingchen. The terms can be the same as Nissan's."

Gu Yanting shook his head.

"President Kato, Xingchen's current semi-solid-state battery production capacity is already booked until 2020. Honda and Nissan add up to 800,000 vehicles, and Xingchen's own brand also needs to use them."

He opened his tablet, brought up a table, and pushed it in front of Takao Kato.

Xingchen Power Battery Production Capacity Allocation (2019-2020)

Xingchen-Honda Joint Venture Factory: 300,000 vehicles (production starts in 2020)

Xingchen-Nissan Joint Venture Factory: 500,000 vehicles (production starts in 2020)

Xingchen Own Brand: 500,000 vehicles (2019-2020)

Other Partners: In Queue

Takao Kato looked at the table, and his expression changed.

"Do you mean... Mitsubishi has to queue until 2021?"

Gu Yanting nodded.

"According to the current production capacity plan, yes."

Takao Kato was silent for three seconds.

He thought of the expectations of those directors at the Tokyo headquarters.

They thought that as long as Mitsubishi spoke up, Xingchen would be as enthusiastic as it was with Honda.

They didn't understand that Xingchen's production capacity was limited, and there were too many Japanese car companies.

Gu Yanting continued: "But Xingchen can provide a tiered cooperation plan."

He tapped the tablet, and a new PPT appeared on the projection screen.

Xingchen-Mitsubishi Tiered Cooperation Framework

Phase 1 (2019-2020): Xingchen authorizes the smart cockpit system and L3 autonomous driving system to Mitsubishi. Mitsubishi can equip its next-generation models with the Xingchen smart cockpit to enhance product competitiveness.

Phase 2 (Starting from 2019): Mitsubishi can prioritize the procurement of Spark Power [Divine Travel 3rd Generation Ternary Lithium Battery] for hybrid models. The annual supply is about 200,000 vehicles.

Phase 3 (After 2021): After Xingchen's production capacity is released, we will prioritize discussing joint venture factory establishment with Mitsubishi.

Takao Kato carefully read every word.

This wasn't the joint venture he wanted, but at least he wasn't returning empty-handed.

"Will Mazda have the same plan?"

Gu Yanting nodded.

"Xingchen treats all latecomers equally."

At 4:00 PM, back at the hotel, Takao Kato immediately connected to the Tokyo headquarters.

On the video screen, a dozen faces appeared—Mitsubishi's directors, the chairman, and several retired elders.

Takao Kato reported the negotiation results in detail.

Silence.

After a long while, someone spoke: "What is this? Are they trying to dismiss a beggar?"

Takao Kato smiled bitterly.

"It's not dismissing, it's reality. Xingchen's production capacity is indeed full. If we don't accept this plan, we won't even be able to get the smart cockpit and autonomous driving. By then, the gap between Mitsubishi's car system and Honda and Nissan's will only grow larger."

Another director asked: "What about the Divine Travel 3rd Generation battery? How much can we get?"

"It can supply enough for about 200,000 hybrid vehicles per year. This is priority procurement rights, not a joint venture, but at least it's better than nothing."

A longer silence.

The chairman spoke. He was seventy years old, with a full head of white hair, and was a veteran of Mitsubishi who had experienced the bubble economy and the impact of the financial crisis.

"Kato-kun, do you think Xingchen will really talk to us about a joint venture after 2021?"

Takao Kato thought for a moment and said: "Yes. Xingchen needs more production capacity, and Mitsubishi needs Xingchen's technology. This is mutually beneficial. But the premise is that we must show sincerity in the first and second phases."

The chairman was silent for three seconds.

"Accept it. At least it's better than Toyota. They are still hesitating."

At 10:00 AM the next day, the signing ceremony.

In the signing hall of Xingchen Headquarters, two agreements were laid out on the long table.

Takao Kato and Akira Marumoto sat at the signing table one after another.

It was not a joint venture agreement, but a technology licensing agreement.

But the flashes still went off, and the sound of shutters still rang out.

When Takao Kato signed, he forced a smile.

When Akira Marumoto signed, he let out a long sigh.

A reporter raised a hand and asked: "President Marumoto, does Mazda's rotary engine still have a future in the electric era?"

Akira Marumoto was silent for three seconds.

Then he said: "The rotary engine has no future. But the cooperation between Mazda and Xingchen has a future."

Off stage, Gu Yanting smiled slightly.

The Japanese car manufacturer alliance officially disbanded. Two companies had joint venture factories, two had technology licensing, and Toyota would slowly weaken in agony.