Chapter: 6413

Lei Chen nodded slightly; 30 billion US dollars was indeed not much, equivalent to a drizzle to him, even less significant to An Family.

Just then, He Yuan Jiang couldn't help but ask: "Mr. An, is the new energy vehicle company you're talking about High Heng?"

"What?" An Ke Feng was surprised and asked: "Professor He knows this company?"

He Yuan Jiang nodded slightly and said: "I've heard rumors about it - they got into debt crisis and their sales have been bad for a long time. They even shut down their production line, thinking they could only sell out to save themselves."

Lei Chen added at this point: "Professor He has done very in-depth research on the domestic new energy market. Last time we had a brief chat, his many views really impressed me, especially what he said about 'bending around corners'. I was deeply impressed by it. Originally, I wanted to wait until Professor He's wedding before arranging for us all to meet up, but it was so urgent that I quickly arranged it as soon as you two returned."

An Ke Feng said: "Since Professor He is so knowledgeable about new energy, I really want to hear his analysis of the current new energy situation and get some guidance from him."

As he spoke, An Ke Feng added: "To be honest, An Family has rarely ventured into manufacturing. This time we invested in power batteries, invested in whole vehicle manufacturing, invested in domestic chip research and development, as well as commercial aerospace. Most of it is manufacturing-related, mainly hoping to make some contributions to the Chinese manufacturing industry if possible. If we can hatch out a good company that can bring economic returns, that would be even better."

"But to be honest, I'm still unclear about how to operate a manufacturing business that employs thousands or tens of thousands of people. Especially when it comes to whole vehicle manufacturing, this is a high-risk project we fully acquired. After they handle their debt issue and equity transfer issues, we will need to invest more capital to start production. But for now, I haven't considered it well - whether to keep the original team running for some time or just get rid of them all and replace them with new ones. Do you have any high-level insights from Professor He?"

He Faren thought for a moment before saying: "The problem with Gong Han is that it's about product positioning. The main products rely on constant replenishment to increase their value, but the customer prices are too high, so sales will naturally be limited. Moreover, in the high-end market where there is intense competition from traditional luxury cars, if our products can't keep up with the pace, it'll be hard to break into the market."

"Moreover, their product design isn't that mature either. Once we get trapped in a small circle of consumer preferences, we will inevitably further compress our survival space."

"But you mentioned Reme just now, which is completely different from Gong Han. Their positioning is quite precise and brutal, and their product design is also top-notch, excluding the issue of whether there's anything to learn from them, their products' exterior design does indeed match mainstream aesthetics."

He Faren paused slightly before continuing: "So if I had to make a personal judgment, I tend to think that you should split Gong Han's team into two - keep the production end intact to ensure that the production line can operate at any time, but for design, marketing, and market-oriented aspects, it would be best to replace everything completely, including the brand. Although we bought Gong Han, we can't continue to use its brand anymore because it went bankrupt and its brand value has become negative."

An Ke Feng asked again: "What do you think if we were to recreate a new brand? How should our main products be positioned?"

He Faren said: "Of course, that would have to be by grabbing the market share of the product with the highest sales volume."

As he spoke, He Faren continued: "Many people start businesses to reduce stress and increase their chances of success. They like doing vertical, niche markets, thinking that it's easier to do e-commerce platforms, making a small store or program, focusing on maternity, wine, and cosmetics. Once they do this, they'll never be able to create a large platform, let alone survive for a lifetime under someone else's ecosystem - cars are the same."

"Almost every car-making enterprise thinks that the most competitive market is in electric vehicles above 20,000 yuan, with foreign giants like Tesla selling tens of thousands of units per year. Some companies target the lower-end market, while others aim to enter the mid-to-high-end market. As long as you hold this mentality, although you may be successful in a niche area, it's unlikely that you can surpass Tesla."

"At the time when Tesla reached its peak, its market value exceeded $1 trillion. Even today, with the concept of new energy cooling down, its market value is still over $5 trillion. The combined market value of all domestic forces is currently lower than that. I'm not saying I'm flattering foreign companies or think Tesla is amazing - I just think many enterprises say they're stronger than it in their annual reports, but deep down, they're still avoiding its shadow."

"As we get to this point, He Faren spoke very seriously: 'An Jia has its own capital strength, Leaf Chen and his family's funds are far from those of domestic new energy car companies. Leaf Chen also has Isuzu Shipping at hand, with large numbers and volumes of container ships in the world, now An Jia has already set up power batteries and acquired Gao Han Automobile. Given this, why not consolidate resources and truly make new energy a major industry?'"

An Jia people showed intense interest in He Faren's perspective.

Car manufacturing, power batteries, were not really intended to make money for An Jia; they just wanted to invest in manufacturing industries in China, considering it as a contribution to the development of Chinese manufacturing industry.

But He Faren's perspective gave them new expectations again.

If they could turn this industry into something like Tesla, where would be immense business opportunities and profits. And the help and boost that would bring to Chinese manufacturing industry and domestic automotive supply chain would be enormous.

The giant in manufacturing and the giant in the internet have the biggest difference: the latter more often dominates an industry before forming a dominant position, releasing benefits and even lavishly subsidizing terminal markets. They will only stop when they have gained enough users and made users extremely dependent on their services.

In the past, they subsidized online ride-hailing at one point, where passengers might only pay five yuan for a ten-kilometer ride, while drivers could get ten yuan. Now, for the same route, passengers may need to pay thirty yuan, while drivers can only get eight yuan.

Moreover, internet companies tend to use minimal positions to create the maximum output and gain the greatest profits by squeezing upstream and downstream." JrNovels.com