Chapter 62: The Future of the Automobile Industry

Hello.

Welcome.

The guard at the door took the invitation from Zhang Wen's hand, examined it carefully, and then returned it to Zhang Wen.

Just go in through the main gate.

The guard kindly reminded him.

Okay, okay, thank you.

After responding, Zhang Wen pushed open the door.

He saw that there were already two people in the room.

The person sitting in the main seat, upon seeing Zhang Wen,

then said: "You're really young, Factory Manager Zhang Wen."

Zhang Wen quickly shook hands.

Who are you?

I am Deputy Minister Yuan Rui'ang of the Industry Department.

This is the factory manager of First Automobile Works, Ma Yufan.

Then he introduced himself to Zhang Wen.

Hello, hello.

Zhang Wen shook hands.

So you're Zhang Wen indeed; reputation doesn't do you justice. You're truly young and capable.

Ma Yufan stood up, shook hands with Zhang Wen, and said.

Zhang Wen was startled inside.

This person is currently the leader of the automobile market.

The current domestic situation is that joint-venture automobile enterprises dominate, and the First Automobile Works before us is the automobile enterprise with the most joint-venture brands.

Its annual output is measured in millions.

But how could I possibly attend this meeting?

Behind them are Second Automobile Works, Third Automobile Works, up to Sixth Automobile Works.

Moreover, basically every province has its own automobile enterprise.

If we line up by output, Zhang Wen's turn would never come.

However, for now Zhang Wen can only suppress his doubts.

You two have come quite early.

Yuan Rui'ang said.

Let's just chat for a bit.

Yuan Rui'ang said.

You're both in the automobile industry; one is a state-owned big factory, the other is an industry rising star.

What do you think of the current automobile market?

Yuan Rui'ang raised a question.

Currently, joint-venture cars dominate the market; imported cars occupy only a small portion.

Domestic cars can only occupy a small portion.

Ma Yufan said.

Although First Automobile Works is the automobile enterprise with the most joint-venture brands.

Ma Yufan is clearly dissatisfied with foreign capital.

My view is similar.

Zhang Wen said.

If we stretch out time, will there be any changes?

Yuan Rui'ang asked.

Even if we stretch out time, there will be no changes.

As long as the country continues to recognize their patent technology for even a day, there will be no changes.

Zhang Wen said.

Ma Yufan said indignantly:

Yes, patent fees are the main manifestation of low profit margins for domestic cars.

In a car, the profit from patents accounts for the largest share.

If a car costs 1000 yuan, 400 is patent fees, 500 is manufacturing cost, 50 is workers' wages, only the remaining 50 becomes the enterprise's profit, and even that 50 profit will be taken half by foreign capital.

So now automobile enterprises can only rely on government subsidies for R&D and updates.

So whether now or in the future, we have no chance.

Ma Yufan finished speaking.

Yuan Rui'ang furrowed his brows.

Then has our policy of exchanging market for technology failed?

Or should we be more radical?

I want to hear your opinions.

Yuan Rui'ang said.

I think it's not wrong.

Zhang Wen said.

Using the market to exchange for technology is a helpless move; the automobile industry is a heavy industry that can be counted in human history.

Its industrial chain is the longest, covering the most personnel.

This is a characteristic that other industries do not possess.

A single automobile company can support countless parts suppliers.

And the orders of those parts suppliers can support countless mining and smelting enterprises.

And the tertiary industries that serve all those workers and engineers are innumerable.

The state cannot abandon this industry.

After all, industries that can support so many other industries are few.

Give up one, and you lose one.

This is also why exchanging the market for technology is not wrong; no matter what, the automobile industry must be developed.

Moreover, the key point is that before, no one knew how automobiles were manufactured, but now they can provide us with many experienced engineers, skilled workers, and corresponding institutions.

This is also what the development of the automobile industry lacks most.

After Zhang Wen finished speaking, Yuan Rui'ang's eyes lit up.

It seems you still have quite a few ideas.

Now let's talk about your electric car.

Can it succeed?

After Zhang Wen listened, he finally understood why he had been invited to this meeting.

It can succeed.

Because of energy.

Having said that, Yuan Rui'ang immediately realized that Zhang Wen had come prepared.

The petroleum consumed by automobiles is the largest expenditure in the country's imports.

Moreover, as the process of reform and opening up accelerates, the number of vehicles will definitely increase explosively.

Once growth occurs, oil consumption will also increase further.

Moreover, aren't people nowadays also paying more attention to environmental protection?

I'm not talking about the domestic situation.

Zhang Wen thought of the mighty environmental protection movement in Europe in the original timeline.

Good, good, good—I didn't expect your vision to be so broad.

Yuan Rui'ang said with a smile.

But you still haven't answered me—what exactly is the electric car like?

Yuan Rui'ang said.

It can, it can completely replace traditional fuel cars.

Zhang Wen said, the battery problem has already been solved by the system's technology; now we only need to develop better motors.

We have already bought your car.

Use it; in some respects it cannot compare to traditional fuel cars.

Yuan Rui'ang stared at Zhang Wen.

I know, but the key lies in the future; the development of motors has not yet reached a bottleneck.

But the engines of fuel cars have already reached that point.

Zhang Wen faced Yuan Rui'ang's gaze calmly.

Hmm, not bad, it's a decent answer.

Yuan Rui'ang said.

More importantly, this time the patents are completely in our hands.

Zhang Wen continued speaking.

This means that electric cars can generate more profit, giving workers higher wages.

After saying that, Yuan Rui'ang finally truly understood what Zhang Wen wanted to convey.

Industrial upgrading.

That is, instead of exchanging hundreds of millions of shirts for one airplane, it becomes manufacturing airplanes ourselves.

Only then did Yuan Rui'ang understand Zhang Wen's ambition.

Good partner, you've given me a surprise.

Moreover, I can make this part of the patents public domestically.

After Zhang Wen finished speaking, the two people present were both stunned.

With such huge profits, you say you don't want them, so you don't want them?

Yuan Rui'ang couldn't help but ask curiously.

Of course, I don't rely on that bit of profit to live.

Qingtian Factory still has military orders.

Of course, just making public a part can let domestic automobile companies embark on this path.

The technology based on this foundation is naturally ours exclusively.

Zhang Wen said this calmly.

Only then did Yuan Rui'ang realize.

This guy, he is indeed still a military-industrial person.

Okay, I thank you on behalf of the country.

This meeting is basically a closed-door meeting.

Afterwards, once FAW produces the corresponding product, we may discuss it on a large scale.

Yuan Rui'ang said frankly.

He must verify the experimental results.

Only if other manufacturers can produce it can we prove this path is viable.

After all, he cannot force Zhang Wen to hand over the patent.

Okay.

Then let's adjourn.

Okay, then I'll go first.

Zhang Wen said, he's still busy going back to work on the airplane!

Okay, take it slow.

Yuan Rui'ang said.

After Zhang Wen left.

Are you sure it really can be done?

FAW plant manager Ma Yufan said: "We have already manufactured an experimental vehicle based on their situation."

But performance parameters and such cannot be compared to theirs.

Especially the battery part.

After hearing that, Yuan Rui'ang looked at him in surprise.

Why not just buy it directly?

Ma Yufan slapped his forehead.

Look at my head.

I understand.

Alright, if the plan doesn't change, carbon neutrality is coming right away.

The dual-credit policy also needs to be implemented.

With a little subsidy from the state, many car companies will surely rush in.

But you and Zhang Wen definitely make up the majority.

But he can focus on manufacturing electric vehicles.

You cannot.

Yuan Rui'ang finished speaking.

Ma Yufan immediately replied: "I understand, Minister Yuan."

Okay.

Walking on two legs, if one leg is missing, it won't work.

Yuan Rui'ang said wistfully.