Chapter 3519

Ye Chen strongly agreed with He Yuanjiang's idea.

He did not want to be a profit-driven businessman, nor did he want to be a kind-hearted person who violated business logic; he hoped to achieve a win-win with consumers, produce good products, and at the same time ensure that his products had the highest cost-performance ratio on the market.

If based on this original intention, then the profit margin of all Changying Automobile products must be guaranteed at a relatively low level.

What He Yuanjiang advocated was precisely controlling the profit margin.

On this point, the two could be said to have arrived at the same conclusion independently.

Thus, Ye Chen said to him: "Professor He, do as you think best—make Changying Automobile into a national brand that makes our people proud!"

He Yuanjiang nodded emphatically and said sincerely: "I will spare no effort to live up to the automobile named after your father's name, and not disgrace his lifelong reputation!"

Having said that, he said to Ye Chen: "Young Master Ye, please give our new car model a model designation. Competitors have models starting with M, S, L, and E, each with its own logic; we also need different designations to distinguish different types and vehicle models."

Ye Chen smiled and said: "I'm not really professional about this either; you should handle it."

He Yuanjiang said: "Young Master Ye, actually this isn't about being professional or not—it's just a name, and any casual name will do. Many competitors use a single letter plus a number, and some use two letters plus a number."

Ye Chen thought for a moment and said: "Since we are naming it after my father's name, let's use the initial letter C from Changying. We plan to make sedans and SUVs, and possibly later business cars and microcars, so the numbers at the end cannot be just one digit—at least two digits are needed."

Saying this, he paused for a moment and said: "Let's do this: sedans get odd numbers, SUVs get even numbers. The first model is a mid-to-large car, so it shall be named C07. If we later launch a larger model, it will be C09; a smaller one would be C05; an A-class car would be C03; a microcar would be C01."

"As for off-road vehicles, the same logic applies: if the next model is also a mid-to-large SUV, it shall be called C06; a higher level would be C08; a lower level would be C04 and C02. If we also launch business cars, they can be named C10."

He Yuanjiang nodded: "Good! Simple and clear, logical and straightforward—then let's do as you said. The first model shall be called C07."

Having said that, he made a gesture of invitation and smiled: "Young Master Ye, let me introduce to you several key technologies of our first model's body-in-white."

Ye Chen asked him: "What does body-in-white mean?"

He Yuanjiang said: "It can be understood as the skeleton of this car. We first build the body-in-white skeleton framework, then based on the skeleton we add the flesh and blood. The dimensions of the body-in-white, like a human skeleton, determine this person's longitudinal dimensions. We will later install the doors, front and rear hoods, and anti-collision beams—this becomes the car's final dimensions. The technology, materials, and rigidity it adopts determine its collision resistance and safety factor. The integrated die-cast battery tray at the bottom determines how large a battery it can accommodate. Once the body-in-white is finalized, the main framework will not be changed again; only minor adjustments will be made later."

Ye Chen nodded and asked him: "Are there any breakthrough technologies here?"

He Yuanjiang replied truthfully: "In the automotive industry, if we talk about breakthrough technologies, there currently aren't any. What we can do is ensure sufficient material solidity and sufficiently advanced craftsmanship—only then can the car be sufficiently safe. Therefore, our body-in-white main framework currently uses integrated aluminum alloy die-casting. We have upgraded the original production line of Gao Heng, and the die-casting machine we currently use is the most advanced 16,000-ton die-casting machine domestically and even internationally;"

"Moreover, our body welding entirely uses the most advanced robotic arms internationally. The assembly process and painting process adopt the best international solutions for integration. The hardware and software adaptation team is also the best domestically. So, once our vehicle goes into mass production, its completion level will far surpass that of competing products at the same price point."

Ye Chen curiously asked: "So, in this sense, car manufacturing is actually about competing in resource integration capability."

"Yes." He Yuanjiang nodded and smiled: "Resource integration capability determines the product's technical ceiling. If we can integrate the best individual technologies available on the market, the overall level will not be poor."

"Besides, there is another very important capability: supply chain integration capability."

"Because the core logic of car manufacturing is the assembly and reproduction of countless parts and solutions—from aluminum and steel materials, to motors, batteries, seats, steering mechanisms, suspensions, tires, and even the inconspicuous wire harnesses hidden inside the body—all must be screened and integrated from the supply chain."

"This capability determines the product's cost floor, just like different restaurants preparing the same dish: even if the raw materials and cooking level are the same, costs cannot be the same, because everyone's bargaining power differs. Large chain restaurants, due to their volume, have lower procurement costs for all ingredients than ordinary restaurants, so when they make the same dish, their cost is lower. But if a restaurant can find an authoritative expert in the vegetable supply sector—someone with great influence and high status in that field—then when that person steps in, they might secure prices even large chain restaurants cannot obtain. In short, one needs strong bargaining power to make suppliers willing to earn a little less from us."

Ye Chen asked him: "How are our capabilities in these two aspects?"

He Yuanjiang replied: "Young Master Ye, regarding resource integration capability, we can say we are number one in China's automotive industry, because your maternal grandfather has significant influence in the global trade market, and with his involvement, we can obtain equipment and technology that many other manufacturers cannot."

Continuing on this point, He Yuanjiang said: "As for supply chain integration capability, based on our current negotiations, we dare not say we are far ahead, but we can maintain a position in the first tier. Suppliers are optimistic about Changying Automobile's future development, so although we have not yet launched mass-produced vehicles, they are still willing to provide us under the conditions of top-tier OEMs."

Ye Chen pondered for a moment and asked him: "Do we still have room to further lower prices with our main suppliers?"

He Yuanjiang said: "Currently, the largest single cost of vehicles is the battery power system. Your maternal grandfather and second uncle have already begun laying out the production business for power batteries. Once that is built and operational, it will definitely be tied to us for deep cooperation. Other suppliers are widely distributed, mostly domestic manufacturers. For semiconductors, it's Qualcomm and NVIDIA; vehicle safety systems are mostly supplied by German suppliers; tires come from French suppliers; braking systems come from Italian suppliers; and European suppliers overall have limited bargaining room."

Ye Chen smiled faintly: "Whether bargaining power is high or low depends on who is doing the bargaining. If you go, or if I go, those Europeans probably won't give us face. But I happen to have a friend who can help mediate. If he steps in, I believe European and American suppliers will definitely agree."

He Yuanjiang curiously asked: "Mr. Ye, if you know such a capable person, why not let him join Changying Automobile to take charge of our supply chain?"

Ye Chen smiled and said: "I plan to let Steve Rothschild, the heir of the Rothschild family, help us with bargaining. This guy is indeed quite capable—helping us privately is no problem, but if we let him join Changying Automobile, that would be a bit too fantastical."

He Yuanjiang exclaimed: "The heir of the Rothschild family?! My goodness, among those foreign suppliers I just mentioned, half are actually industries controlled by his family. This is no longer just a capable person—this is a truly great capable person!"

"Is that so?" Ye Chen suddenly said delightedly: "Then this is wonderful—Comrade Steve Rothschild has finally found an opportunity to shine! I'll call him later and have him step in to greet those suppliers."

He Yuanjiang said joyfully: "Excellent! Excellent! If we further reduce costs and lower prices, the car's cost-performance ratio will be even higher—we might truly be able to produce several national divine cars!"