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Chapter 2613 Sober

After Tianchao Auto's production capacity stabilized, Suning instructed the production department to control monthly output at a reasonable level, avoiding both blindly pursuing higher output and suppressing production capacity.

The three production lines at the Shunyi factory operate on time every day. The four workshops of stamping, welding, painting and final assembly are working together more and more smoothly, and the yield rate has gradually improved to a standard that satisfies Suning.

The commercial vehicle base in Qingdao did not proceed further, mainly because the Qingdao authorities no longer trusted him, and Suning also had its own concerns.

I am indeed a time traveler, but I am not a god and cannot be omnipotent.

If you encounter uncontrollable factors, you'll also feel a headache.

Therefore, at this stage, it is still best to digest the results of the Shunyi factory.

The marketing department didn't relax just because sales exceeded 10,000 units; they continued to invest in advertising, and the dealer network was still expanding into second- and third-tier cities.

But Suning knew one thing clearly: no matter how well China Auto did its marketing, it was impossible for it to catch up with joint venture brands in terms of sales in a short period of time.

This is not a problem with the product itself, but a problem with the times.

In the 1990s, when Chinese consumers had saved up money and wanted to buy a car, what was the first thing that came to mind?

Santana, Jetta, Fukang, and for something a bit better, Toyota, Honda, or Nissan.

Imported and joint-venture cars were not just a means of transportation for consumers at the time, but also a symbol of status.

If someone buys a Santana, your neighbors and colleagues will look at you differently.

If you drive a domestically produced car, even if its configuration is higher and its price is lower than that of a joint venture car, people will still think that you can't afford an imported car and that you're settling for a less desirable one.

This mindset wasn't formed in a year or two, nor can it be changed in a year or two.

Suning understands this very well.

Therefore, Suning specifically discussed this issue with the marketing department and sales team at an internal sales meeting.

During the meeting, a young sales manager asked a question: "President Su, the configuration of our Zhuque Yi is clearly much higher than that of joint venture cars in the same price range. Leather seats, power steering, and power windows are all standard features. Why do some customers come to the store and look around for a long time, but in the end they still buy a Jetta?"

Suning said, "It's not that our products are bad, it's that we're dealing with a consumer habit that's been built up over a decade ago. Think about it, a consumer saves up for several years to buy a car, and everyone around him tells him that the Santana is good, the Jetta is durable, and the Toyota is fuel-efficient. He's never even heard of Chinese cars. When he walks into our store and sees the Zhuque 1, he does think it has high specifications and looks good, but a voice keeps echoing in his mind—Are domestic cars reliable? Are they easy to repair? How much can I sell it for as a used car? No matter how well your salesperson explains these questions, it can't compare to the fact that his neighbor's Santana has been running for five years without any major repairs."

The sales manager said, "Is there nothing we can do?"

Suning said, "There is a way, but it takes time. What Tianchao Auto needs to do now is not to compete with joint venture brands for sales, but to compete with them for brand presence. What does brand presence mean? It means getting more and more people to see our cars on the road. Every Tianchao Auto on the road is a living billboard. People may not look at it at first and say, 'It's a domestic car,' but after seeing it a lot, they will become curious—why do I keep seeing this brand? Once they are curious, they will learn about it, and the quality of the product will speak for itself. After the first batch of people who bought our cars have driven them for two or three years and the cars haven't fallen apart or the engines haven't needed major repairs, the people around them will believe it. This kind of word-of-mouth is more effective than any amount of money we spend on advertising."

Based on this assessment, Suning set very realistic goals for its sales team...

We do not pursue explosive growth, but rather a stable monthly sales growth curve.

Suning had the finance department prepare a three-year long-term sales forecast and then called Manager Sun and Xiao Zhao to the office to discuss it.

The finance department staff spread the forecast sheet on the table. "President Su, we have prepared two plans. One is an aggressive plan, aiming for 30,000 vehicles a year, but the marketing expenses and dealer subsidies will increase significantly. The other is a conservative plan, aiming for 10,000 to 15,000 vehicles in the first year, doubling it in the second year, and doubling it again in the third year. By the end of the third year, the annual sales volume will be around 50,000 to 60,000 vehicles."

Manager Sun said, "I think a radical approach isn't a bad idea either. We should strike while the iron is hot, since the brand is currently riding high."

Suning reviewed the two plans and said, "Let's go with the conservative approach. The target for the first year is 10,000 to 15,000 units, the second year is 25,000 to 30,000 units, and the third year is 50,000 to 60,000 units. This growth rate is already leading in the domestic car market. Don't be greedy for speed. Being greedy for speed often results in poor quality, inadequate after-sales service, and dealer inventory backlog, which can ultimately destroy us. We are a new brand, and the reputation of our first-generation product will determine whether the brand can survive in the future. I would rather sell more slowly to ensure the quality of every car leaving the factory and the after-sales experience of every customer."

Manager Sun closed his notebook. "Understood, President Su. Let's proceed with the prudent plan. I'll break down the sales targets to the regional distributors and follow up on them monthly."

……

Now that production capacity has stabilized and sales are gradually climbing, we should strike while the iron is hot and continue to boost the brand awareness of Tianchao Auto.

Many industry peers will hold large-scale receptions and visits during this period, opening their factory gates wide to invite leaders to inspect, media to interview, and industry association inspection teams to come in, take a few photos, and publish news.

But Suning did the opposite.

After the mass production launch ceremony, he politely declined any external visits or inspections.

The first to approach us were some companies with ties to the local area.

A state-owned auto parts factory in Northeast China, through several intermediaries, indirectly expressed its desire to visit the Shunyi factory to learn how China's auto production lines are managed, so that it could improve its own production processes.

Suning asked Xiao Zhao to reply, but he said it was inconvenient.

Then people from all walks of life came looking for them one after another.

Some carried official letters from industry associations, stamped with a bright red seal, with polite wording but a very clear meaning...

The association is organizing its member companies to visit and learn from each other; please cooperate with Tianchao Auto.

Some carried inspection notices from the relevant authorities, saying that a certain leader would be coming to Beijing soon to investigate high-tech industries and hoped to arrange a visit to the Tianchao Automobile factory.

Others called Xiao Zhao and Zhuang Zhuang's landlines directly, each one more powerful than the last.

Xiao Zhao once received a phone call from someone who identified himself as a secretary from a certain ministry or bureau. The caller spoke in a very formal tone: "Assistant Zhao, a certain leader will be visiting Shunyi District next Wednesday to investigate industrial projects. Tianchao Auto is on the itinerary. Please make preparations for his reception in advance."

Xiao Zhao quickly and politely declined, saying, "Hello, could you please fax the official letter over? We need to see the details and schedule."

The other party said, "The official letter will be sent tomorrow, so you should start preparing now."

After hanging up the phone, Xiao Zhao immediately went to Suning's office with a troubled expression: "President Su, that call was from a secretary of a certain ministry or bureau. They said that a certain leader will be inspecting industrial projects in Shunyi District next week and specifically requested to visit our factory. Shouldn't we receive a leader of that rank? What if we offend him and then have things blocked for us in the future?"

Suning, without even looking up from a quality inspection report for spare parts, said, "Have him send over the official letter. If it says 'work guidance,' reply that you welcome the guidance but ask them to schedule a specific time two weeks in advance so we can adjust our production schedule. If it says 'inspection and research,' reply that the company is in the ramp-up phase and doesn't have the facilities to receive guests. Whatever it says, postpone the date until they forget about it." "Wouldn't that be inappropriate?"

"Xiao Zhao, you don't understand! We can't let our energy get caught up in endless social engagements."

Zhuangzhuang, who was organizing documents nearby, couldn't help but chime in, "President Su, some departments are indeed difficult to refuse. The Economic Commission has always been very supportive of us. What if they feel we're not giving them face? Will some approval procedures be blocked in the future? Shouldn't we at least select a few of the most important ones to receive?"

Suning put down the quality inspection report, glanced at Zhuangzhuang, and said, "Zhuangzhuang, remember this principle. The relationship between a company and its management isn't maintained through socializing and hospitality. The best way to maintain this relationship is to build good cars, pay taxes properly, and provide good jobs. The more you socialize, the more trouble you'll cause. Today an inspection team comes, tomorrow a research group comes, and the day after tomorrow a sister company comes to learn and exchange ideas—can your production line still operate? Can your people still get their work done?"

"..." Zhuangzhuang nodded, but there was still some hesitation on her face.

Suning continued, "A company that spends all its energy on entertaining guests is not far from its demise. I've seen too many companies that stop production and clean up as soon as leaders come to inspect, splashing water on the workshop floor until you can see your reflection, and having workers line up like wooden stakes next to their workstations to welcome them. After the leaders leave, not a single problem is solved, and all the work that needed to be done is delayed. Tianchao Auto will not do this. No one will do it."

Zhuangzhuang wrote down what Su Ning said in her notebook.

During the months she spent working alongside Suning, she gradually figured out how he did things.

It's not that Suning is indifferent to social niceties, but rather that it has a natural aversion to meaningless social interactions.

From Mingju Real Estate to Tianchao Auto, Suning has always done things this way...

In formal settings, it's essential to give people the respect they deserve. For example, inviting people from all walks of life to the mass production rollout ceremony, or inviting leaders from ministries and industry associations to a celebratory banquet. These are all necessary ways to save face.

However, Suning refused all the endless inspections and visits required for its daily operations.

These two situations are clearly distinguished: when it's time to open the door, open it generously; when it's time to close the door, close it tightly.

Xiao Zhao said with a wry smile, "President Su, then I'll continue to play the bad guy. Anyway, everyone outside knows that Tianchao Auto has an assistant named Zhao who is in charge of saying 'no'."

Suning said, "Even villains have roles. Do you think it's so easy to be a good person? When you're always smiling and inviting all sorts of people in, and the production line is affected or workshop secrets are leaked, that's when you're the real villain."

Xiao Zhao straightened his collar. "Fine, then I'll play the villain with a clear conscience."

……

The success of the Shunyi factory is like a magnifying glass, clearly revealing the hesitation and wait-and-see attitudes of the past.

After Tianchao Auto rolled off the production line, its sales exceeded 10,000 units in less than three months. Its promotional video in Times Square went around the world's media, and then the mainstream media in China followed up with several rounds of reports. The name Tianchao Auto went from being ridiculed as a "fraudulent project" to becoming a hot commodity on the tables of investment promotion departments in various regions.

Things are alright in Dalian.

Suning left room for maneuver in the beginning, including Dalian in the shortlist for future expansion, and the relationship between the two parties has never been severed.

Deputy Director Ma would call every few days to say hello, and occasionally send a few boxes of seafood from Dalian to Beijing. He was always very polite, maintaining a long-term relationship based on the principle of "even if a deal doesn't go through, goodwill remains."

Mingju Real Estate has also acquired several good plots of land in downtown Dalian and is gradually advancing the development of new residential projects in Dalian.

They also conducted research in Dalian, preparing to invest in an auto parts factory there.

Suning also instructed Xiao Zhao to answer calls from Dalian no matter how busy he was, and to never stop sending return gifts during holidays.

Although this route is not needed for the time being, we will eventually need to enter the Northeast market, and then the role of Dalian Port will become apparent.

……

The most awkward situation is actually in Qingdao.

When Tianchao Automobile initially positioned Qingdao as a commercial vehicle production base, it planned to locate the production lines for Baize buses and Chongmingbird trucks in Huangdao. The two sides even discussed the land planning in great detail.

Later, due to strong external criticism that Tianchao Auto was a shell project used to defraud loans, land, and policies, someone in Qingdao publicly named Tianchao Auto at a meeting and demanded a reassessment of the project's feasibility.

Director Hou was under immense pressure from above and had no choice but to call Tianchao Auto to suspend the project.

It's impossible for Suning not to have any objections. Trust is very difficult to build, and once it collapses, it's very hard to rebuild.

Suning was already worried about the business environment in northern China, but now it has become even more concerned.

Now, three new models have been launched, mass-produced, and sold over 10,000 units. The promotional video for them has been shown twice in Times Square.

Director Hou sent phone calls and official letters to Beijing almost daily, each time with increasingly sincere wording.

"Assistant Zhao, could you please tell President Su that the land in Huangdao has always been reserved for Tianchao Automobile, and they won't give it to anyone else?"

"Thank you, Director Hou! I will report to General Manager Su as soon as possible."

"Assistant Zhao, tell me the truth, why is President Su no longer concerned about the Huangdao factory?"

"Uh? I can't say for sure! Perhaps President Su has her own considerations."

"..." Director Hou immediately had a bad feeling and hurriedly asked Xiao Zhao on the phone, "Assistant Zhao, has President Su decided to give up the Huangdao factory?"

"I'm sorry! I really can't answer that question."

"..."

...(End of this chapter)