industrial overlord

Chapter 520 Don't give the Chinese a chance

"My opinion is that we should take countermeasures against the competition from Chinese companies. Indeed, their labor is cheaper, so they have a cost advantage. But we also have our advantage, that is, strong financial strength. If we want to lower prices Promotion, the time we can support will definitely be longer than them." A young director named Eiji Tanaka said impassionedly.

"Are you saying that we should lose money to fight the Chinese?" Another old director named Takashi Hashiguchi asked rhetorically.

Tanaka Yongji said: "The loss is temporary. As long as we squeeze the Chinese, other companies will retreat. At that time, we can restore our original market and double the profit. A strategy like this, Haven't we used it before?"

"That was in the past." Kei Hashiguchi said, "The company was weak at that time, and shareholders were willing to bear losses temporarily in exchange for long-term profits. However, we are now a mature enterprise. If we continue to loss, so where is the value of the shareholders investing in us?"

Hashiguchi's subtext did not come out: Nima, I am in my 50s, and you still let me suffer losses temporarily, can I afford to wait?My wife and children are still waiting for me to take the money back.If Xihu Company is still alive like this, I will get rid of the stocks in my hand.

Eiji Tanaka insisted: "We can explain to shareholders that this is the last time, and they will understand when it comes to issues related to the fate of the company."

"The last time?" Hashiguchi snorted, "Tanaka-kun, are you sure this is the last time?"

"Uh..." Tanaka Yongji was speechless, but anyone with a normal mind would probably not believe that this kind of battle was the last time.This Hanhua Heavy Industry, which is currently putting enormous pressure on Xihu Company, was just a small unknown company ten years ago, but now it has developed into a giant beast.So, among the tens of thousands of small businesses currently dormant in China, how many will become new behemoths in ten years' time?Even if Xihu Company is desperately suppressing Hanhua today, in the next step, new Chinese companies will still squeeze Xihu Company. Is it necessary to let shareholders lose money forever?

"Last year we had a loss on the books, and the general meeting of shareholders was very dissatisfied with the management. If we asked shareholders to continue to bear losses, they would abandon us." Osawa said, "This year, the entire Southeast Asian economy has experienced an avalanche. Japan The economy is also very difficult, and in this situation, I am afraid we will not be able to explain it to disappoint our shareholders."

"Let's consider speeding up the development of new products." Seeing that his views were supported by Osawahiko, Hashiguchi was quite satisfied, so he threw out his own ideas, "The competitiveness of our Xihu company comes from our Technology, as long as we can maintain our technological advantage, at least we can protect ourselves? I think we should not entangle with the Chinese on low-end products, and we should focus on developing cutting-edge products.”

Hearing the topic of technology, Shoji Ryase, the head of Xihu Research Institute, quickly reported: "As far as we know, American GM, Ford and other automobile companies are considering updating their automobile shell stamping production lines, which is our traditional Advantageous products. However, with the wave of technological updates in the global automobile manufacturing industry, GM and Ford have also put forward many new requirements for the stamping production line, which mainly involves the further improvement of automation. At present, our technical department is Hurry up and carry out the design in this area, and next month will be GM's bidding meeting."

Osawa knew about this matter. He looked at Shoji Ryose and said: "In terms of stamping production lines, our competitors are two companies from Germany and the Netherlands. Their advantages are not great. I think we should can win.”

"The news I heard is that Hanhua Heavy Industries seems to intend to participate in this bidding." Matsushita Yongzo threw a blockbuster bomb, which blew up everyone until they were scorched on the outside and tender on the inside. uproariously:

"Why does this Hanhua Heavy Industry want to intervene in everything?"

"Can they have this strength? This is a highly automated production line, and they have just mastered the CNC technology, right?"

"That's right, we're going to crush them on this product and make them lose everything."

"..."

Matsushita Yongsan looked at the arrogant directors with disdainful eyes, and said: "Currently responsible for the development of this stamping production line is the Hunbei Forging Machine Tool Factory that Hanhua Heavy Industries acquired in Northeast China two years ago. The company has decades of production experience in stamping equipment, and its quality control and cost control capabilities are very strong. Hanhua Machine Tool Co., Ltd. has also fully participated in this project, and their contribution mainly lies in providing technology in CNC and machining parts. In addition, Hanhua Heavy Industry has also united with a series of Chinese universities and scientific research institutes such as Huaqing University. It can be said that almost the whole of China is competing with us.”

Ryose Akiji said: "The whole of China's numerical control technology is just in its infancy, especially in the field of numerical control electronics. There is a gap of at least 20 years between the Chinese and us. This gap cannot be made up in a short time. Our The research institute is confident that it will maintain an advantage over the Chinese in the competition for this product."

Matsushita Yongsandao: "The problem is that they have the support of the United States and our Japanese electronics companies. In the United States, it is Spischer. As for Japan, it is KHN Electronics."

"KHN? How can they help the Chinese?" Sato Masamori questioned with raised eyebrows.

This time, everyone looked at the old Zuo Teng with sympathy. Have you forgotten the story that Matsushita Yongsan just told?Didn't we also listen when Nihong told us not to help the Chinese people? What KHN does is just the same as what we do.People all over the world are bustling for fame and fortune, who cares whether it is Chinese or Japanese who pay?
"Mr. Ryase, in your opinion, if the Chinese get the support of KHN, is it possible for them to gain an advantage in the stamping production line? So as to squeeze us out?" Osawa asked Shoji Ryase in a calm tone. road.

"This question is more complicated." Ryose Akira replied dully, "Compared with our products, there must be a gap between Chinese products. But if they can get the CNC system provided by KHN as support, then this If there is no intergenerational gap between us, from the perspective of customers, we will care more about the cost performance of products, and if we want to compete on cost performance..."

He didn't say what he said later, but everyone understood.As a company in developed countries, there is absolutely no advantage in comparing prices with companies in developing countries.

"In fact, KHN has always been the supplier of Hanhua's CNC system. Our CNC machine tool products have encountered resistance from Chinese machine tools in the Chinese market. Most of the control chips used by Chinese machine tools are provided by KHN and some other Japanese electronics manufacturers. Compared with American chips, Japanese CNC chips have more advantages in price." Eizo Matsushita reported what he knew objectively. As the sales director in China, his information work is still very solid.

"Is there no way for us to prevent KHN from providing chips to the Chinese?" Masamori Sato asked, "We have been partners with KHN for many years, and they should cherish the relationship with us."

Eiji Tanaka sneered: "Their relationship with the Chinese is also very good. What they value is the business opportunities provided by the Chinese market. Unless we can provide them with an order of the same size, otherwise they will not be willing to offend the Chinese. .”

"Panasonic, have you ever found out how much Chinese machine tool companies headed by Hanhua Heavy Industries purchase chips from KHN each year?" Osawa asked.

Matsushita Yongsandao: "This data is confidential. However, I calculated from the shipments of CNC machine tools in the Chinese market. It is estimated that the total number of various chips they purchased from KHN should be more than 10 pieces. These chips are several times cheaper. Hundreds of dollars, expensive tens of thousands of dollars, I roughly calculated, the total amount is estimated to be around 1 million U.S. dollars."

"1 million US dollars..." Osawa silently calculated in his heart, and then said: "If it is only an order of around 1 million US dollars, I think I should be able to convince Chairman Seinosuke Uno, this amount is very important for KHN In terms of turnover, it is not a big figure, if our Xihu company agrees to increase the price and quantity of purchasing KHN chips, I think I can at least persuade Uno to reduce the number of chips sent to China."

"It would be great if this is the case!" Matsushita Yong San said in celebration, "Chairman, in fact, there is no need for KHN to completely suspend the business to China, as long as they delay the delivery a little bit and properly control certain chips, I will We are fully confident in recovering the Chinese market."

"Well, I'll take care of this right after the meeting." Osawa said confidently. After finishing speaking, he turned his head to Ryase Shoji and said, "Mr. Please, we must win this order from GM. You must know that the automobile manufacturing industry is currently shifting to China, Vietnam and other countries, and they urgently need to purchase various automation equipment. GM's tender is symbolic, and it shows Whether our Xihu company can still maintain its advantages in the complete set of equipment for automobile manufacturing is a major matter related to the survival of Xihu company."

"Hi!" Ryose Shoji stood up, bowed solemnly to Hiko Osawa, and then bowed to other directors, and replied: "Everyone, don't worry, we will definitely come up with World-class design, we will not leave any chance for the Chinese.”

(End of this chapter)