I want to be emperor

Chapter 1062 Fierce Competition

Liaodong Machinery Company has developed an electronic ignition system with independent patent rights, which has an extremely huge impact.

Because their company already has a complete set of basic patents for internal combustion engines, and other technologies for gasoline engines are already available. Even other corresponding technologies for automobiles are either successfully developed by themselves or have partners.

It can be said that in a whole car, except for the key system of electronic ignition, which has not been developed before, the rest have basically been developed or can be purchased.

As the saying goes, everything is ready, all it needs is electronic ignition!

In order to solve this key problem, Liaodong Machinery Company cooperated with Xuzhou Electric, one of the three major electrical companies in China, and mobilized a large amount of manpower and material resources to form a specialized project team to carry out technical research.

After trying more than 20 technical solutions, we finally came up with this electrical ignition system, and it did not infringe on Tangshan Machinery Company's patent.

This means that a second electronic ignition gasoline engine supplier has appeared in the Dachu Empire... This will greatly stimulate the market and further promote the rapid development of the automobile industry.

At the same time, Liaodong Machinery Company is also the third supplier of gasoline engines... Before them, Hekou Machinery Company actually launched a gasoline engine to the market, but it did not use electronic ignition, but heat pipe ignition... Hekou Machinery Company was in the heat pipe market The technology accumulation in ignition is very deep, and most of the technology patents are stuck. Currently, only their heat pipe ignition technology is the best on the market.

However, the heat pipe ignition technology is always inferior. The reliability of the gasoline engine produced is relatively low, and the performance in all aspects is also relatively poor. Therefore, even if their heat pipe ignition gasoline engine is sold cheaper, it is far from being comparable to that of Tangshan Machinery Company. The competition of electric ignition engines...the market share before was less than ten percent, as long as it dared to enter the industrial market in some specific fields and the low-end agricultural machinery market.

Hekou Machinery Company knew that its own gasoline engine was not as good as Tangshan Machinery Company's, so they set a path for the heat pipe ignition gasoline engine to enter the mid-to-low-end market from the beginning, and created a small agricultural tractor.

In addition, in addition to selling agricultural machinery and tractors with gasoline engines, they also produce and sell civilian cars, buses, and trucks... Although they don't sell much of each type, but again, they are expensive...

Hekou Machinery Company is following the path of this small tractor. They have launched several small and medium-sized tractors ranging in weight from 200 to 500 kilograms... equipped with their small hot-pipe ignition gasoline engine, although the performance is relatively poor. , but it is small...and it is a gasoline engine anyway, so the power is actually pretty good.

In the past era of steam engine power, an agricultural tractor often weighed several tons, but a gasoline engine could weigh only a few hundred kilograms.

This has to mention the advantage of the gasoline engine, which is that it can be made very small and can significantly reduce the size and weight of various mechanical equipment.

Just sell a few hundred units and that's hundreds of thousands of dollars in revenue.

This number would scare people to death... Why is this?

Under such circumstances, while the agricultural gasoline tractors from Tangshan Machinery Company often cost seven to eight hundred or even thousands of yuan, their small gasoline tractors only sell for two to three hundred or even more than one hundred yuan. A small profit but quick turnover, forcefully seizing the market...

At the same time, they also supply various core component systems and patent authorizations such as gasoline engines, gearboxes, steering wheels, and even brakes to cooperative manufacturers, mainly several cooperative manufacturers that develop and produce engineering equipment as well as defense manufacturers of the five major weapons companies. I also make a lot of money.

There are many wealthy people in Chu State who are pursuing novelty. In addition, various research institutions and even teaching institutions will purchase them for research.

Because their electronic ignition engine is exclusive and the price is extremely expensive... Compared to the high selling price, their production cost is actually very low... so there will be a very amazing gross profit.

Tangshan Machinery Company, which monopolizes 85% of the profits of the entire market, has achieved revenue of more than 8 million yuan in the thirty-seven years since Chengshun alone, and its gross profit has reached an astonishing more than 5 million yuan... …

So behind the seemingly profitable Tangshan Machinery Company, in fact, a large number of industrial equipment suppliers, especially several top domestic industrial equipment suppliers, are full of success.

These more than 20 large-scale electric automated machine tools alone cost more than one million Chu Yuan.

Especially the production line for producing engines, the equipment used is the best that can be found in contemporary Chu State, and many of them are specially customized equipment. The top-notch large-scale electric automated machine tools of Hantian Machinery Company alone are Purchased more than 20 units!

This thing is truly top-notch industrial equipment worth tens of thousands of dollars each.

They have several large factories under investment and construction. The investment in the production of core components such as engines and gearboxes as well as vehicle engineering is very huge, and the equipment used is also top-notch.

A car produced by Tangshan Machinery Company starts at more than 1,000 Yuan, and the customized version for rich people can easily cost several thousand Yuan.

This allows customers on some small and medium-sized farms, and even family farms, to purchase and use these gasoline tractors.

Basically, Tangshan Machinery Company monopolizes more than 85% of the profits in the contemporary gasoline engine and corresponding platform markets, Hekou Machinery Company accounts for about five points, and the remaining ten points are occupied by those cooperative engineering machinery manufacturers and defense automobile manufacturers. It was taken away.

In the end, the total revenue of this Tangshan Machinery Company reached more than 8 million, and the gross profit was super high. Of course... behind the high gross profit, their R&D costs and fixed investment costs are also very staggering.

It’s just that the unit price of their gasoline tractors is too low. Although they have sold a lot of them, they only account for about 10% of the market in terms of revenue...

This is still talking about revenue. If it is profit, it is estimated to be less than five points...

Hantian Machinery Company and Tangshan Machinery Company have successively received orders worth more than three million yuan... Li's Machine Tool Company has also received orders from this company that are close to one million yuan.

There are also companies that specialize in some high-end customized special machine tools and mold business. This one costs hundreds of thousands, that one hundreds of thousands... They all make a lot of money.

In the past few years, Tangshan Machinery Company has spent at least seven to eight million yuan just purchasing various R&D and production industrial equipment.

Not to mention Tangshan Machinery Company, even Hekou Machinery Company, which can only sell industrial gas machines with heat pipe ignition technology, heat pipe ignition gasoline engines, and small gasoline tractors... Although it does not make as much as Tangshan Machinery Company, it is still carrying on. Shun Thirty-seven years ago, the revenue was actually not bad, and the profit was not low. The various industrial equipment ordered in the past few years totaled several million yuan. The internal combustion engine industry these days is a typical high-tech and capital-intensive industry... You can't do it without technology, and you can't do it without money.

If you want to enter the automobile industry, you must be an automobile manufacturer that can produce core parts on its own... Just for the supporting factories, you need to have a lot of supporting factories, and all the equipment must be purchased from the highest quality... Otherwise, you can't even do it. I can't even get an engine out.

The processing technology of contemporary gasoline engines is very high compared to the current basic technical level, and even represents the highest level of mass production and processing in Chu State's current industrial sector... Even if your equipment is slightly inferior, you won't be able to produce it. .

This is why so far, apart from the three traditional internal combustion engine manufacturers that have been engaged in internal combustion engines and have the first-mover advantage, only Lee Iron & Steel has officially entered the automobile manufacturing industry.

This thing is too difficult and too expensive... That is why Li's Iron Steel, which has never taken the ordinary path, has to resist the restrictions of various technical patents and spend millions to fight. .

Other companies, even those very large companies with a market value of hundreds of millions, had to take a breath when they saw the huge investment and uncertainty in the automobile industry...

This thing...not only requires a lot of investment, but it may not be possible to get it done even if you spend the money.

Because the first-mover advantage of the three major internal combustion engine manufacturers is too great, they have already set up extremely thick patent barriers in front of them, and now they no longer license core basic patents.

You can still get around ordinary patents...but you can't get around some core patents...such as four-stroke patents, electronic ignition patents, and fuel injector patents...you can't get around them...because there are These things are considered gasoline engines.

If it was really bypassed, it wouldn't be a gasoline engine.

Therefore, with the exception of Lee's Steel Company, other large companies have tacitly chosen other ways to enter for the time being. For example, entering other supporting industries of the automobile industry, such as tires, is a very good entry point.

Others have chosen to cooperate with these manufacturers, asking them to supply core components such as engines and patent licensing, and then set up their own sites and do some integration. Well, that is what those engineering equipment and defense vehicles do.

After waiting for about ten years, most of the core basic patents will have expired, and then you can directly build your own car.

No matter what, the automobile industry, a new industry, has been noticed by people from all walks of life, and everyone is basically aware of its huge potential, and everyone wants to get a piece of it.

The automobile industry makes money. This is not an empty talk. Just look at the astonishing gross profit of Tangshan Machinery Company.

This is also because the other three of the four major internal combustion engine companies want to develop electronic ignition gasoline engines even though they are trying to sell everything at the same time... Taiyima is making money.

Now, Liaodong Machinery Company has finally done it.

Their engineers had just successfully developed it, and while they were still doing many follow-up tests internally, a large number of companies came to seek cooperation and even investment opportunities.

However, Liaodong Machinery Company is now proud. Anyone who invests money in strategic investment or shares will get out... With the current market size, the gross profit is several million a year. When the market size increases ten times or a hundred times, A big business with a gross profit of tens or hundreds of millions can still let you take advantage of it?

For this matter, the newly established Motor Vehicle Industry Department of the Ministry of Industry convened enterprises in the motor vehicle field directly under the Ministry of Industry and all provinces, held a small meeting, and conveyed the spirit that government-owned assets cannot be sold at a low price!

Especially the three major internal combustion engine manufacturers... These are all serious government-owned enterprises, and they are all enterprises directly under the Ministry of Industry. These shares cannot be given randomly, and intangible assets cannot be sold at a low price... Well, this is what I mean. Patents related to internal combustion engines and even entire automobiles.

These things are worth a lot of money.

It’s also very interesting to say... In fact, among the four major automobile manufacturers, except for Lee’s Power Company, which is special and is a private enterprise, the others are actually enterprises directly under the Ministry of Industry and early pilot support enterprises for the development of internal combustion engines.

But despite the fact that they all have the same higher-level management organization, their competition with each other is so intense...

After all, the three major internal combustion engine manufacturers were formerly the three major agricultural enterprises... They have been competing with each other for decades.

The market is so big, if you eat more, others will eat less, and the one who eats less will have to lay off employees and owe wages. This is directly related to the livelihood of thousands of employees in their respective companies, and there is no room for any soft-heartedness; let alone the relationship between management. The struggle between them is even more clear. If you want to get ahead and get promoted, you have to kill your competitors first.

If you can't beat your competitors, you will be beaten by your competitors... The competition between them is so fierce that it can blow your brains out.

This kind of nonsense is not a joke, nor is it the influence of personal emotions dominated by an individual. It is not even the kind of false competition where they are scolding each other openly but secretly they are still good brothers...

In the 1930s, when the three of them competed for a large steam tractor order from Tongjiang Farm, the largest government-run farm in Heishui Province, people from these three companies had a big fight in Heishui Province... …An accident occurred along the way, resulting in one death and three injuries!

The point is, the bosses don't look at the process, only the results... Anyway, there are only three agricultural machinery companies, and the comparison is also the comparison between the three of you. Whoever does well will be promoted, and the one who does the worst will be sent overseas, and the one who does the job will be average!

The then-general general manager of Liaodong Machinery Company, who finally got the order, was finally promoted due to his excellent business performance. Now he is a director-level boss of the Ministry of Industry... But the then-general general manager of the other two companies did not. What good luck. One of them is still in the Mexican province looking forward to returning to his homeland, and the other is just a supervisor of a fourth-grade machinery factory, waiting for his official career.

This is not only a competition between enterprises, but also an official struggle between officials, which is very fierce.

How can the grievances and hatreds that have lasted for more than 20 years be resolved so easily?

This kind of competition also continued into the automobile age...

(End of this chapter)