Domestic car manufacturing is weak, what does it have to do with our land tanks?

Chapter 4



The next day,

Lu Yan convened a company meeting in his own name.

Although Hongqi is in decline now, there are still a group of old employees and backbones.

The small conference room was already full of people when Lu Yan opened the door.

It can be seen that these few senior executives of Hongqi are all veterans of the company and are the core that currently maintains the operation of the company.

However, most of these middle-aged senior executives have a depressed look.

There are also a few who are whispering and sighing, which makes the atmosphere of the entire conference room a bit bleak. As soon as Lu Yan saw the faces of the people, he knew that the current internal atmosphere of the company has declined to a trough.

The recent series of setbacks have made everyone lose confidence in the future of Hongqi.

“Hello, Boss!”

When everyone saw Lu Yan coming in, they immediately changed their expressions and forced a smile to greet Lu Yan.

Lu Yan nodded and smiled, and responded:

“Well, you’re welcome.……”

“Since you are already here, there is no need to be polite. Let’s talk about the company’s current performance, such as the actual estimated sales volume of the new car this month and how much funds can be recovered in the near future.”As soon as these words came out, the faces of the old people present changed immediately.

The new car was unsalable and the company was facing a financial crisis. It was almost an open problem.

The pressure was too great.

It was imminent.

But for a moment, no one spoke!

For fear of being the first to be exposed.

“Okay, let’s talk. In this situation, the first thing is to solve the problem. I won’t blame anyone. You just need to give me a data.”

Lu Yan said immediately.

Compared with the pressure of everyone, his tone was very relaxed.

He now has black technology and has mastered the capital to turn things around. What he lacks is a lot of money!

The kind of boss who gets angry and vents his anger on employees when encountering a crisis will only make the internal staff dare to flatter hypocritically.

Everyone saw that Lu Yan’s face was very calm, and he did not look emotional or angry.

The faces of several senior executives changed, and they reported:

“Boss, due to the impact of public opinion and the accident storm, the actual delivery of vehicles last month was only 2,500 units.……”

“This month, the news has been clarified, but the market impact is still there. According to the market department’s estimate, the best plan is to deliver only 4,000 to 5,000 units.……”

I have to say that this is a relatively good estimate.

If it is a luxury car, the profit per unit can reach 80,000 or even more than 100,000.

Then 5,000 to 6,000 units is already a good result.

But the”Hongqi EQM5″ car only sells for a little over 110,000 yuan. With the government subsidy, the profit per unit is less than 20,000!

Add in the publicity and other channel transportation costs, and it only sells 4,000 to 5,000 units, which is already a huge failure!!

Other senior executives also began to sigh.

“BYD launched new cars last month, all with a starting price of 130,000 yuan. In terms of configuration, materials and product quality, we can compare with them, and they are even cheaper, but they sell 10,000 per month!!”

“Alas… they have been working on new energy seven or eight years ago, and now they have established a firm foothold. In terms of brand influence in the field of new energy, we are far behind.……”

“If the sales volume continues at this level, funds will be tight and the supply chain will also be tight.……”

Many senior executives.

Some sighed with sad faces.

Some were really angry!!

Their own cars are not bad, but they just can’t sell as well!

When Lu Yan heard it, he knew which car they were talking about.

BYD is definitely the”light of domestic products” in recent years, and it has emerged as a new force in the field of new energy.

A bunch of brands of pure electric vehicles and hybrid vehicles occupy the low- and medium-end market of around 100,000 or 200,000 yuan.

Even if Hongqi’s cars are sold cheaper, a large number of people will choose BYD. This is the brand effect. Even if your product is strong enough, but you have just entered this market, others will subconsciously think you are unreliable.

This is just the competition between domestic cars.

If you go to the luxury car segment, domestic cars can only be extremely eye-catching, so excellent that their brilliance can hardly be concealed!

In order to attract consumers’ attention.

After listening to everyone’s opinions, Lu Yan laughed:

“It seems that everyone is very pessimistic, but don’t worry, the company will not collapse, and I will not lay off a large number of employees because of this.……”

The senior executives were stunned, with complicated expressions.

Then they breathed a sigh of relief.

They had been in the company for so many years, and those who wanted to leave had already left.

Those who stayed all hoped from the bottom of their hearts that Hongqi could stand up again!!

But soon, they began to worry.

This situation… If there are no layoffs, how can the company withstand the current crisis!!

Lu Yan seemed to see what these people were thinking.

Then he said:

“Not only will I not lay off employees, I will not reduce production either.”

“We will even try to expand production, sell all the cars, and recover the funds quickly.……”

As soon as these words came out, everyone present was stunned!!

Several old people almost thought they had heard wrong!

They all looked at Lu Yan with an outrageous look!!

Damn.

Are you sure?

The boss wants to expand production?!!

I have to say.

Lu Yan’s request was very simple.

But it was extremely outrageous!!

Car manufacturing companies, in order to quickly recover funds, must produce more cars and sell more cars, so that there will be money.

But things are not that simple…

Hongqi’s new cars are already unsalable. If the production capacity is expanded, it will immediately cause a large amount of inventory to pile up!!

By then… Hongqi will really go bankrupt!!

Hongqi’s current factory, at full capacity, can produce 12,000 new cars a month, but recently half of the production lines have been shut down because they can’t sell so many cars!!

“Boss…but our new cars are not selling well at all. If we expand production, won’t it be a problem?……”

Someone immediately said, and reminded Lu Yan with a worried look on his face, wondering if the boss was mentally ill and in a trance.

Lu Yan nodded:

“Of course I know that the car is not selling well.”

“But haven’t you heard the saying, there are no cars that can’t be sold, only cars that are not cheap enough!!”

……



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