Chapter 366: Producing cars

Han Songlin looked at the two men carefully, and at this point he remembered what the Trumpf company actually did. A machine tool company in the Hans country, it has a high level of expertise in laser cutting machine tools.

In order to improve the quality of its products, Fuxing Power has a great demand for mid-to-high-end machine tools and has been constantly purchasing machine tools.

'Hello!'

'Hello, Chairman Han!'

They exchanged greetings and pleasantries before the two men left.

'Are they here to sell their products?' Han Songlin asked curiously. In the 1990s, domestic machine tool companies were having a hard time, not because there was no need for machine tools in China.

Rather, it was because foreign machine tools were entering the country on a large scale. Faced with foreign machine tools, domestic machine tool companies were much inferior in terms of technology and simply could not compete with them.

They could only rely on price to retain a market in the low-end machine tool market.

The low-end machine tool market means that no matter how many machine tools you sell, you won't make much money.

And not making money means that there will be insufficient investment in research and development.

This creates a vicious circle, and it is very difficult to break out of it.

Rong Hongshun: 'Well, I don't know where they got the idea that we needed a batch of machine tools, but they came over anyway.'

Han Songlin pinches his chin. For domestic machine tool companies, these foreign machine tool agents are the most annoying, constantly helping foreign companies to seize their market share in China.

But for Fuxing Power, it is impossible to say that they will buy domestically made machines just to support domestic manufacturers; they will naturally use whichever products are good.

To put it bluntly, if you want to win the market, you still have to rely on your own technology.

You still have to be good at what you do.

Anyway, Han Songlin has rarely seen any company that has developed completely through support. Many companies rely on support, and they will always have to rely on support to survive.

Only companies that compete fully in the market are competitive.

As for Han Songlin, he wants to acquire Changxing Machine Tool and invest heavily in research and development because he knows that high-end machine tools cannot be bought with money.

'Like hyenas, they come when they smell blood!' Han Songlin doesn't care about this. As a salesperson, he is always on the lookout for information, afraid of missing every piece of relevant information.

Sales are profitable, but they are also difficult.

Rong Hongshun laughed a little, 'That's true.'

'How is the production of motorcycle engines going?'

Rong Hongshun's face was full of a smile, 'We have just satisfied the domestic demand for engines, and now foreign orders are coming again. Production is still unable to keep up.'

Han Songlin smiled. Is this considered happy trouble?

It is indeed happy trouble. Rong Hongshun is busy every day, but he is very happy!

In the past, Rong Hongshun was busy, busy going to the city to ask for money and support. He spent his days in the city hall, and his time was a complete waste.

Now, every bit of Rong Hongshun's busy work is helping Fuxing Power grow and develop.

His favourite thing to do is to walk around the factory with his arms folded.

A lot of the old factory buildings have been demolished or converted for other uses, and now all production has moved to the new factory buildings.

The new factory building has been specially designed and planned to be more suitable for production.

The various types of equipment are also more complete.

'In Southeast Asia, the motorcycle market is huge; now foxi is not only constantly seizing the Southeast Asian market, but also developing towards the Indian subcontinent. The Indian subcontinent is a huge market with a population of over one billion, so the future is quite promising.'

Rong Hongshun listened and became a little restless.

'So, how much production do we need to be able to meet foxi's needs!'

Han Songlin shrugged: 'I don't know!'

When will the domestic motorcycle market reach its peak?

Han Songlin really doesn't know. In the past, who would have cared about this!

Of course, even if the market declines after reaching its peak, the domestic market is so large that annual motorcycle sales can still reach tens of millions of units.

In China, don't talk about sunset industries.

The so-called sunset industries can support several companies in the Chinese market, with a market value of hundreds of billions of yuan; so there are no sunset industries, only sunset companies.

'So we continue to expand production capacity?'

Han Songlin: 'Of course we have to expand. Not only the production capacity of motorcycle engines has to be expanded, but also the production capacity of other engines.'

'By the way, what about car engines now?'

Rong Hongshun is full of helplessness. Car engines are not selling well.

Fuxing Power sends engines to domestic car factories, but they don't even take a look, and they just think that your engine doesn't work.

They don't even give you a chance to try.

At this time, the production of civilian vehicles was highly monopolised by a few state-owned car companies, all of which cooperated with foreign car companies in exchange for technology. The predecessors of the future major private car companies had already appeared, but none of them had yet entered the field of car production.

'Right now, none of them have been sold.'

The most popular engines sold by Fuxing Power are, needless to say, motorcycle engines of various displacements.

As for diesel engines, single-cylinder and two-cylinder diesel engines sell quite well.

There are now quite a few tractor enterprises in Jiangzhong, more than ten in total, most of which produce transport tractors.

Fuxing Industry has already discontinued its tractor business, and is even preparing to stop producing agricultural vehicles.

It will focus on producing vehicles like the Fuxing Dali Shen.

As for four-cylinder and six-cylinder diesel engines, Fuxing Industry wants them.

They are also sold externally, but the quantity is not too large.

Han Songlin frowned slightly. It would be a bit of a problem if the products were made but couldn't be sold.

'Let me think!' Han Songlin frowned, and produced cars on his own?

That would definitely work.

The country had a list of car manufacturers, and logically, companies that weren't on it couldn't produce cars.

Fuxing Industry didn't have the qualifications to produce civilian cars either.

But couldn't they really produce them?

Several major private car companies started production without obtaining the qualification.

Rong Hongshun: 'Boss, why don't we just start producing cars ourselves!'

'It's good to produce cars ourselves, but the state has restrictions.'

'Haha, the state only restricts the production of two-axle, three-box, five-seat sedans, and it doesn't say that other cars cannot be produced.'

Han Songlin looked at Rong Hongshun in disbelief. Is this a rule?

Can't you produce sedans?

What is a sedan?

A sedan has an engine, a driver's seat and a trunk.

If it doesn't have a trunk, it's a hatchback.

Is the trunk important?

It is, after all, you can put things in it.

Can you do without the trunk?

You can, you can make the back seats of a hatchback fold down, so you can put things in it, and it doesn't matter whether you have a trunk or not.

By the way, Han Songlin seems to remember.

Geely Motors was building cars at the time, and they did it like this: the state did not allow private enterprises to produce sedans, so I produced hatchbacks.

They simply exploited the loophole.

But after exploiting such a loophole, will there be problems?

There really won't be.

As long as there are no major problems, the state allows enterprises to try various things.

This is what it means to feel your way across the river.