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Chapter 2 Stop paying if you don't pay

"Mr. Xiao, the sales director of the doctor, has just sent a letter. If we don't pay the payment in advance within this week, they will be cut off!"

In the office of the general manager of Nanshan Automobile Co., Ltd., Xiao Hui had just returned from the R&D center, and the procurement minister Wang Fugui came to report the latest supply situation with a tough bullet.

"Our payment cycle is two months. The parts delivered this month will be paid next month. Why do they ask us to pay the goods in advance?"

After hearing this, Wang Fugui couldn't help but complain in his heart.

Nanshan Automobile's monthly sales have dropped to three digits, and its cash flow is already very tight. There are all kinds of rumors outside. Don't you know what to do?

"Miche Tire's Bu Defan just called me and said that if the payment has not arrived, the supply will be reduced from next Monday."

“What is a reduction in supply?”

"If our order requires one hundred tires, they will only supply some of them."

“Which supplier has any other request to pay in advance to be willing to supply the goods?”

"Uh...this..."

Wang Fugui was a little confused. He was worried that the young general manager would make any uneasy decision in anger.

If he offended one or two suppliers, he, the purchasing minister, could find a way to deal with it.

If all the suppliers supplying key components are offended in one go, Nanshan Automobile will be discontinued immediately.

There is no way, the level of domestic suppliers in the world is really very different from others.

Parts like ESP and ABS are all monopolized by international giants.

Except for some parts that are white and interior and exterior decorations in cars, domestic manufacturers can produce them, almost all other functional parts have been monopolized by parts giants such as PhD and Dianzhuang.

Many car companies with independent brands have suffered losses due to these reasons.

But there is no way. If you want to build a car, you can't live without them.

This feeling of making Party A into Party B is definitely very uncomfortable.

The most important thing is that if the model of the independent brand is sold well, there will be suppliers that are "insufficient in production capacity" immediately, and they will not provide you with enough supply if you add more money.

Various "bottleneck" measures have completely refreshed Xiao Hui's three views.

"What's the amount? You're constipated!"

Xiao Hui was very unhappy and called him over.

It has been more than a week since he came to this world, although he has basically accepted his current identity and situation.

But I still felt very uncomfortable when I saw a car company being ridden on my head by a foreign-funded parts company.

In his previous life, he was a programmer at Warwick. He has been in the Middle East and Africa and has witnessed the scene where Warwick defeated the so-called international giants.

Now that I have come to this specious world from my previous life, it is still difficult to accept that my company is bullied by the so-called parts giants.

"In addition to Dr. and Miche Tires, more than a dozen suppliers such as ZEE Group and Dianzhuang Group have also made similar claims.

Mr. Xiao, I actually think if it really doesn’t work, it’s not unacceptable to sell the company. We all understand the situation of the company.”

Wang Fugui glanced at Xiao Hui, and saw that he was not going to be angry, so he continued to express his opinion.

"At present, we are just tight in cash flow, but we have no other liabilities except for the payment for parts.

When the director of the Reform Commission came to inspect yesterday, he clearly stated that if our car sales this year are less than 10,000 units, our production qualifications will be cancelled."

"With our production qualifications still available for 200 million to 300 million, I think it's better to take action as soon as possible."

Wang Fugui grew up watching Xiao Hui grow up, otherwise he would not dare to say such words.

Xiao’s father started his business by relying on trade in his early years. In the 1990s, he was once the largest trader of polar bears and made a lot of money.

I don’t know who was fooled by the words of “saving the country through industry”. In the late 1990s, Xiao’s father devoted all his wealth to the automobile industry in one breath.

The newly established Nanshan Automobile Co., Ltd. actually built an advanced factory at that time with an annual production capacity of 300,000 yuan.

And the models launched are all mid-to-high-end routes, wanting to become the Benben and Baby of China.

The result can be imagined...

The development of the automobile industry in this world is very different from what Xiao Hui experienced in his previous life.

China's automobile industry policies are completely different.

Without foreign-invested enterprises investing in China, the regulations that the shares cannot exceed 50%.

The regulations related to various automobiles are also very different.

However, what is surprising is that other places except the automobile industry are similar to those in their previous life in 2005.

In recent years, Huaxia feels that there are too many domestic auto brands and wants to expand and strengthen the automobile industry, it has begun to compress the number of automobile companies.

For automobile companies with annual output of less than 10,000 units, their production qualifications will be written off.

On the one hand, it restricts new enterprises from obtaining production qualifications, and on the other hand, it writes off the qualifications of old enterprises, which leads to the value of production qualifications becoming more expensive.

"When they brought their father to Nancheng to invest, that wasn't what they said. What? We started to change our faces when we saw that our sales this year were not good?"

"Mr. Xiao, they set the rules, and we can only adapt to them."

"Okay, I know the situation. You can let the Minister of Finance come in."

Xiao Hui was very unhappy, but he also knew that it was not the fault of Wang Fugui.

But now he doesn't want to continue saying anything to Wang Fugui.

There are several ministers behind the office waiting to meet him.

"Mr. Xiao, the payment for the goods of Dr. Michiti..."

"If they are willing to cut off their offerings, they should cut off their offerings, but tell them that if they cut off their offerings today, they will never think about providing them to us again!"

Wang Fugui was very anxious when he heard this and said, "Owning a business is not about playing house, you can't act irritably, Mr. Xiao..."

"You go out first!"

Wang Fugui:...

The arm could not twist the thigh, so Wang Fugui had to leave the office.

"Mr. Xiao, there are only two million left in the account, and I will not be able to pay my salary tomorrow!"

As soon as Minister of Finance Li Jinming came in, he brought another bad news to Xiao Hui.

"How is it like looking for a bank loan?"

"Unless we take out the production qualifications to mortgage it, no bank in Nancheng will be willing to lend us money."

"Our factory is as big as a factory, and the equipment alone is worth hundreds of millions. Isn't it enough to be mortgaged?"

"The factory was transferred to us for free at that time by the Nancheng government, and we had no ownership rights.

The equipment has been in use for seven or eight years, and most of it is time to update.

The most important thing is…”

Li Jinming wanted to speak but stopped, obviously there was something inconvenient to say.

"What? It's all this, what else can I say?"

"Mr. Xiao, the Leilei Group of the Gaul Kingdom, wants to invest and build a factory in Nancheng. It is said that it has been almost the same as the Nancheng government, and now it is one less productive qualification.

This time we are so difficult to find a bank loan, it is obviously related to Leilei Group."

"Can their company in Gaul affect our Chinese banks?"

"Thunder Lei Lei is not good, but the Nancheng government can do it."

Xiao Hui was speechless when he heard this.

This situation will occur, which is also related to China's automobile industry policies in this lifetime.

Now, in order to encourage mergers and reorganization of automobile factories, Huaxia is unwilling to approve the qualifications for automobile production.

There are only two domestic companies in Nancheng that have this thing, so it is easy to understand the difficulty of loans.

"If the bank has any conditions, I will agree to them first, but I will mortgage at least 300 million yuan to come back!"
Chapter completed!
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