370: Wuling’s Dilemma

Wuling Hongguang's intention was very clear.

Isn't the cost of your battery pack high? As long as I raise the car's selling price, I can still make a profit.

And by leveraging the momentum of Fenglei.

Once the market opens up, Wuling Hongguang's cars will be able to establish themselves in the mid-range market, which will also enhance the entire brand.

Even if it fails, Wuling, with its scale, can afford the loss.

At worst, they can develop another car. These days, car companies frequently launch new models; as long as one or two of them become popular, they can definitely thrive for three years.

Ren Yi looked at the email from Wuling and pondered for a moment.

He quickly had an idea.

At the same time.

Wuling Company Headquarters.

Lu Jun is the current chairman of Wuling Company, and as a post-70s individual, he is considered one of the younger entrepreneurs.

At this moment, Lu Jun was holding a meeting with a group of company executives.

“For the next model, we are targeting a price range of 150,000 to 200,000 yuan. If the reputation is good, we can even take advantage of the situation to launch models above 250,000 yuan.”

“Moreover, we must keep up with the new energy trend and launch pure electric vehicles. I believe everyone knows that, according to the Chinese's intentions and the current major trend in the industry, new energy will definitely be the mainstream in the future…”

Chinese's policies often serve as a guide for enterprises.

Initially, the Chinese heavily subsidized the development of new energy vehicles, but at that time, few car companies took it seriously.

Only BYD and a few other new forces went all in, while traditional fuel car companies with capital, technology, and market share.

Instead, they engaged in fraudulent subsidy schemes and had no intention of developing new energy, believing that new energy would not develop.

As a result, by today, the new energy market share is approaching 60%. By the time they reacted, they could no longer keep up.

Among them, SAIC General Motors is a typical representative.

Without any ambition, it only thought about relying on its old capital.

Later, as sales declined, SAIC also considered making new energy vehicles and tested the waters with Wuling Hongguang.

However, Wuling Hongguang's positioning was simply too low-end, and unlike BYD, it couldn't increase profits by optimizing production and labor.

“The low-end market will only become increasingly competitive. The mainstream of our Chinese's consumers has already moved beyond the stage of ‘just needing a car for transportation’.”

“They want a car with exquisite appearance, rich configurations, and preferably a balance of range, power, and safety, but we don't have any of these.”

“Therefore, whether we can achieve cooperation with Fenglei and catch the last train of new energy depends on this time. This is also Wuling Hongguang's only chance to turn things around…”

General Manager Lu said with profound meaning.

Don't look at Wuling Hongguang's big name in the low-end market; several models launched in recent years have all failed…

There's no other way.

Stuck with an unmotivated parent company like SAIC, he wanted to fight but was powerless to turn the tide.

It's very helpless!

Moreover, BYD has now driven some entry-level models below 100,000 yuan, competing with Wuling Hongguang for market share.

This also created a huge sense of crisis for them. The key is that they can't compete with others in terms of batteries and hybrids, so it's better to do the opposite and go directly upscale.

As long as a more expensive model opens up the market, the company's development will be much better than it is now.

“General Manager Lu, there is now a problem: to enter the mainstream new energy vehicle market, Fenglei's battery pack is the only option.”

“If we also equip it with Fenglei's motor and Zhi Jia System, the cost will be too high, and there will be no competitiveness.”

“It's all the fault of those old fuddy-duddies at the General Motors Company. They could have successfully transitioned before, but they insisted on going against Chinese's policies.

Now look, the domestic new energy forces have basically taken shape, and it's impossible to even get a share.”

“That's not all; those old fuddy-duddies still rely on our Wuling Hongguang to support them every year.”

“I don't care anymore; we must seize this opportunity. If they still want to interfere, we'll just throw in the towel.”

“Exactly, it's impossible to skip Fenglei, this big mountain, if you want to transition to new energy. Foreign technology is simply not on the same level as Fenglei.”

“Let them fawn over foreigners if they want to. Let them give their souls to whomever they please; we'll do our own thing.”

“Yes, rather than being dragged down, it's better to take a chance.”

These high-level General Managers spoke with great emotion.

Their views on the company's development were largely consistent, but the key problem arose.

To enter the mid-range market, they need Fenglei's “Instant Charge Battery” as a ticket, and Wuling Hongguang is currently lacking this.

Not only Wuling, but many joint ventures are also in the same situation.

Speaking of this.

General Manager Lu paused slightly:

“I have already sent a letter of intent for cooperation to Fenglei, and I have adopted a very humble stance. I believe there will be results soon. No matter what, we must strive for it.”

Although General Manager Lu's face was expressionless, it was impossible for him not to be anxious internally.

Ever since Fenglei launched a series of new energy technologies, the entire market has been completely reshuffled.

Currently, there are only two types of new energy vehicles on the market.

One is new energy vehicles equipped with Fenglei technology, and the other is other new energy vehicles.

When prices don't differ much, consumers can easily choose with their toes.

Another senior General Managers said.

In the domestic automotive industry, everyone has been developing for so many years.

The heads of many major brands know each other, and some R&D talents even jump around, so they are all familiar with each other.

As long as they are not mutually hostile companies, they can generally find some connections, and then subsequent acquaintances and cooperation are easy to talk about.

But Fenglei, this company, was not favored by anyone before. When it was down and out, it was even often mocked and publicly stepped on, with no thought of making connections.

By the time Fenglei rose strongly, they could no longer climb up to it.

And Ren Yi, the big General Managers of Fenglei, is also like a “dragon seen by its head but not its tail,” rarely appearing in private, and has not even participated in car circle gatherings.

This makes it difficult for many people who want to find opportunities to get to know him.

“The battery matter can only be left to fate. Everyone, let's first finalize the new car plan and the amount of R&D investment…”

General Manager Lu tapped the table with his finger and said.

The Wuling Hongguang new car project was just approved not long ago. By the time of R&D, engineering vehicle testing, and publicity, at least half a year will have passed.

Therefore, there are many details in R&D and plans, and everyone has expressed their opinions, but the specific plan has not yet been fully determined.

It was at this moment.

General Manager Lu's assistant knocked on the door and entered, looking a bit flustered.

“General Manager Lu, General Managers, excuse me, there's an important call coming in.”

The rhythm of the company meeting was interrupted, and General Manager Lu immediately frowned.

According to regulations, meetings are not allowed to be interrupted.

“What call can't wait? Why report it now?”

General Manager Lu asked with some displeasure.

But upon hearing a sentence from the assistant, the displeasure on his entire face instantly vanished.

“General Manager Lu, it's a call directly from General Managers Ren, the chairman of Fenglei. I didn't dare to delay, so I immediately came to inform you!”

…