“In the future, we will install doors, front and rear hoods, and anti-collision beams, and that will be the final size of the car.”
“BW technology, materials, and robustness determine the impact resistance and safety factor of the car.”
“The one-piece die-cast battery compartment at the bottom determines the size of battery it can accommodate.”
“Once BW is finished, the main frame will not be changed, there will only be minor adjustments later.”
Charlie nodded and asked him: “Is there any breakthrough technology here?”
Pollard Watt said frankly, “In the automotive industry, there is no innovative technology.”
“All we can do is make sure the materials used are strong enough and the technology is advanced enough to make the car safe enough.”
“Therefore, our current white-body main frame is made of integrated aluminum alloy die-casting.”
“We have upgraded Gao Heng’s original production line and the die-casting machine we are currently using is the most advanced 16,000-ton die-casting machine in China, even in the world.”
“In addition, our car body welding is entirely done with the most advanced robots in the world.”
“Integrated assembly and painting processes with the best international solutions.”
“Our hardware and software adaptation team is also the best in China.”
“Therefore, when our cars go into mass production in the future, the level of completion will be much higher than products at the same price.
Charlie asked curiously: “So, making a car actually depends on the ability to integrate resources.”
“Yes,” Pollard Watt nodded and smiled. “The ability to integrate resources determines the technical limits of a product.”
“If we can integrate the best individual technologies on the market, then the overall quality won’t be too bad.”
“In addition, another very important capability is the ability to integrate the supply chain.”
“Because the core logic of car manufacturing is the assembly and reproduction of a wide variety of components and solutions, from aluminum and steel to motors, batteries, seats, steering wheels, suspension, tires, even the hidden wiring harnesses hidden inside the car body, all need to be filtered and integrated from the supply chain;”
“This capability determines the lower limit of product costs.”
“For example, different restaurants can make the same dish, even though the ingredients and quality of service are the same, but the cost will not be the same.”
“This is because everyone’s bargaining power is different.”
“High-volume chain restaurants have lower procurement costs for all ingredients than the average restaurant, so the cost to make the same dish is lower than the average restaurant.”
“However, if a restaurant can find an authoritative figure in the vegetable supply field, who has great influence and status in the vegetable supply industry, then they may be able to get a lower price than even a large restaurant can.”
“In short, it takes strong bargaining power to convince suppliers to take lower profits than us.”
Charlie asked him: “So what are our capabilities in these two areas?”
Pollard Watt said, “Mr. Wade, in terms of resource integration capabilities, we can be said to be number one in the domestic automotive industry.”
“This is because your grandfather has a huge influence in the global trading market.”
“With the help of the An family, we can obtain equipment and technology that many other manufacturers cannot obtain.”
At this point, Pollard Watt added: “Regarding our supply chain integration capabilities, based on our current discussions, we can’t say we are far ahead, but we can maintain our position in the first tier.”
“The suppliers are very optimistic about Changying Auto’s future development, so even though we don’t have mass-produced cars rolling off the assembly line yet, they can still supply us with the same conditions as leading OEMs.”
Charlie thought for a moment and asked him: “Major supplier, do we still have room to lower the price further?”
Pollard Watt said, “Today, the single largest cost component for a vehicle is the battery power system.”
“Your grandfather and second uncle have already started planning battery production.”
“Once it is finished and goes into production, they will definitely work closely with us.”
“Other suppliers are too diverse, and most of them are domestic producers.”
“For chips, they are Qualcomm and Nvidia.”
“The body safety system is mostly provided by German suppliers, the tires from French suppliers, and the brake system from Italian suppliers.”
“Overall, the bargaining power of European suppliers is not very high.”
Charlie smiled faintly: “Whether the bargaining room is high or low depends on who is negotiating.”
“Whether you go or I go, I’m afraid those Europeans won’t give us face.”
“However, I have a friend who can help mediate.”
“If he comes forward, I’m sure European and American suppliers will agree.”
Pollard Watt asked curiously, “Mr. Wade, if you know such a capable person, why not let him join Changying Automobile and take over our supply chain?”
Charlie smiled and said, “I plan to ask Steve Rothschild, the heir of the Rothschild family, to help us negotiate the price.”
“This person is indeed a capable person.”
“It’s no problem for him to help us personally, but if he were to be asked to join Changying Automobile, that would be too miraculous.”
Pollard Watt exclaimed, “The Rothschild heir?!”
“Oh my God, half of the foreign suppliers I just mentioned are actually industries controlled by their families.”
“He’s not just a good person anymore, he’s a very good person!”
“Really?” Charlie suddenly said in surprise: “That’s great, Comrade Steve Rothschild finally found a chance to show his talents!”
“I’ll call him later and ask him to come and greet the suppliers.”
Pollard Watt said happily, “Very good!”
“If we can reduce costs and lower the price further, the cost-effectiveness of the car will be even higher.”
“Maybe we can really create some national masterpieces!”