Because of the questions posted by Manager Zhou and Li Mingde, the Q&A session ended quickly. Manager Zhao no longer has a proud look on his face as he walks off the stage.
“Old Li, I know you are unhappy that this conference is not held in Bing City. But you should not fall out with Manager Zhao openly.” Wang Donghui, a leader in the Industry Bureau and the Chairman of the Automobile Industry Association, said.
“Chairman Wang, I might be mad, but I will not do this because of losing the bid to host the conference. Their figures are clearly wrong, and they refused to admit it. We had given them our figures earlier, and they amended them purposely. How are you going to explain this?” Li Mingde asked.
“This might be a mistake on their part. I will criticize him later.” Wang Donghui tried to be a peacemaker.
Li Mingde sneered and did not say anything. Mistake? Do you really believe this is a mistake?
There are a few dozen automobile manufacturers with their own brands in China, and there are many more spare parts manufacturers.
The automobile industry in China is developing rapidly, and their cooperation with overseas manufacturers helped improve their manufacturing technologies. Some Chinese manufacturers can start producing some precision spare parts now.
But the gap between Chinese and overseas automobile manufacturers is still wide from the figures alone. Just Toyota’s annual production and sales are doubled of all of China’s manufacturers.
Bing City Machinery Manufacturing Group and other Chinese manufacturers had collected information about the overseas brands. But the other Chinese manufacturers are only concerned about their own improvements and did not see their differences between them and overseas manufacturers.
If the Chinese manufacturers celebrate this small success, they will be forever lagging behind those overseas brands.
After lunch, the conference continued. But this conference has another purpose. It is for the smaller spare part factories to mingle with the manufacturers and try to get some orders.
Even Bing City Machinery Manufacturing Group does not produce all the parts themselves. They also need to outsource some of them. But not many factories are unhappy doing their orders as the price is low.
Although there are still profits to be made, the profit is much lesser than other companies. No matter what the smaller factories said, Bing City Machinery Manufacturing Group will not increase the prices.
You all don’t want to take this order? Never mind. Many others are waiting to work with us. This price includes profits, and what else do you want?
If it wasn’t for Bing City Machinery Manufacturing Group’s orders are huge, those factories would have stopped working with them. But big orders are beneficial to small factories, as they will provide a stable income for them. If the raw material prices increase, Bing City Machinery Manufacturing Group will also increase their prices.
During the conference, some small factories approached Li Mingde but are rejected. Bing City Machinery Manufacturing Group’s spare parts suppliers must also be of a certain scale. These small factories’ productivity levels are too low.
“Manager Li is so imposing and didn’t even care about these small factories.” Manager Zhao walks over and sarcastically said.
“Since you think they are worth cooperating, then why don’t you let FAW give them some orders?” Li Mingde retorted.
Manager Zhao smiled and did not say anything.
These small factories do not have the skills, and their production levels are too low. Furthermore, they are located too far away, and the transportation cost will be too high. It’s not worth giving them orders.
Although the higher-ups had asked the State-owned enterprises to take care of these smaller factories, they could not suffer losses just to take care of them.
“Old Li, I think we can go into cooperation together. For example, we can exchange technologies, sales channels, etc.” Manager Zhao said.
Li Mingde gave Manager Zhao a glance. “Exchange technologies? I don’t think FAW have any technologies that our company lacks.”
“Eh, Old Li. You must admit that we are better than you all in certain areas.”
“For example?”
“Tires and chassis materials’ technologies. Our piston technologies are also better.”
“Oh, then which of our technologies are you interested in?”
“I think your company’s engine technologies are quite good. How about we exchange that?” Manager Zhao smiled.
Li Mingde looks at Manager Zhao with disdain. Use our engine technologies to exchange for your useless technologies? You are asking for too much!
That’s right. You all might have more advanced technologies for those things, but we can buy them at a low cost as those are also not confidential. It is more expensive and harder to develop engine technologies.
“Exchanging is impossible. If you all are interested, we can sell you the authorization rights to use it. But the price will be according to the market price. Don’t forget that you all cannot even buy this technology from other companies.” Li Mingde replied with a smile.
Overseas had imposed technology blockade on China, especially industrial technologies. This is also why China had gone into diplomatic talks with Japan to improve their relationships and asked them for some of the western technologies.
Although the blockade is not that serious now, some of China’s industries, like the automobile industry, are still lagging.
The smile on Manager Zhao’s face disappears after he heard what Li Mingde said. Buy those technologies? Who knows how much it will cost, and what if those technologies are older or even obsolete technologies?
“Old Li, you should not say this. We are brother units and should not keep talking about money. Talking about money will harm our relationship.”
Li Mingde looks at Manger Zhao. “If we talk about relationship, it will harm our company’s interest. I must be responsible to the company, shareholders, and all of our employees. A good manager should never mix personal feelings into their work.”
Manager Zhao almost cursed out loud. It’s fine if you don’t want to exchange, but who are you to lecture me?! You are not my leader, and what’s there to be so arrogant?!
“Old Li, I heard you have some suggestions for this conference. We are the organizer, and with our support, your suggestions will be approved easier. You must think of the bigger picture.”
“I am talking about money with you because I am thinking of the big picture for my company. As for my suggestions, you don’t need to worry about me. I am confident it will be approved!”
