Within these few days, Red Letter Group has responded to EU’s latest machinery treaty as an emergency measure. In the international community, relevant measures have also been introduced.
The first reaction was United States. Three days later, US Department of Commerce introduced a new policy. Up to 405 industrial technologies and equipment are listed as sensitive technologies and equipment, and are prohibited from being sold.
For example, the developed countries that have mastered the precision industrial manufacturing technology have made some changes. For a time, China’s domestic precision industrial equipment and automobile industry imported parts and components began to increase in price to varying degrees, and some began to fall into shortage.
Some industrial enterprises in China, the automobile industry is complaining, their production costs will inevitably increase, and the competitiveness of enterprises and products will naturally decline.
Pengyun Automobile has been affected more and more, the automobile products that are in short supply are facing the crisis of production suspension!
Germany, Stuttgart, Robert Bosch GmbH. This is one of the world’s top precision machinery and electrical engineering companies, and is also the world’s number one auto parts supplier.
Meng Ziping, a business representative from China Pengyun Automotive Group, and several colleagues are visiting Bosch’s Headquarters factory, and they are also negotiating about the latest auto parts supply cooperation.
In an automated factory, sophisticated industrial robots and instruments work in an orderly manner.
“Our machines can accurately measure parts to the nanometer level, and the quality of all parts is the highest in the world!” Bosch executive Fran proudly introduced.
In terms of precision manufacturing, their technology is leading the Chinese enterprise for more than ten years, and every Chinese entrepreneur who came to Bosch will be amazed.
Meng Ziping is no exception. He has been working in the automotive industry for nearly ten years. Before coming to work at Pengyun Automobile, he was the vice president of a Sino-foreign joint venture auto parts company.
Their industrial level, compared to Bosch Group, is simply a shame, not worth mentioning! Even a millimeter-level precision is a huge technical obstacle in industrial manufacturing!
Moreover, there is no such powerful CNC system in China, which can support Systematic industrial production and manufacturing.
“It’s really amazing.” Meng Ziping said with emotion that while he was talking, the smartphone he carried with him had already translated his words into German.
“Mr. Fran, we have always recognized your company’s products. You are the largest auto parts supplier of Pengyun in Germany. This time I came to Germany and wanted to re-determine the supply relationship between us.”
Fran kept smiling and said: “We are happy to provide the best products for our friends in China.”
Having said that, the Bosch Group has not regressed when it comes to specific matters.
“I am sorry, due to the ban, we can’t authorize these ‘sensitive’ technologies. But we can guarantee that the products are still open to you! Just in the price, we need to make some adjustments.” The German attitude is very simple, they are no longer open the technology, but they are very happy to sell products to make money.
“The price increase ratio has reached more than 10%, plus EU’s relevant tariff adjustments, we can’t accept such prices!” Meng Ziping argued.
The German businessman shrugged and said: “Mr. Meng, this is not a problem solved by a small negotiator like me. This is a resolution of European Commission and the regulations have been issued. We must abide it!”
China, Pengyun Automobile Headquarters, a piece of unfavorable news came.
“German Bosch Group rejected five technical support, and the price increase of parts and components reached 12%.”
“The spare parts supply solution proposed by US Johnson Controls Group is 14.8% higher than our budgeted cost!”
“French Faurecia has adjusted the three spare parts that have been supplied into sensitive products and will stop supplying them in the short term.”
“Japan suppliers are not very satisfied with the talks, and their asking prices are not low.”
The impact of these negative news is not only this, but the reaction in the industrial and automotive industries is even stronger.
The automobile industry has already heard news that from the next month, some domestically produced cars will be affected and prices will start to increase, and the price/performance ratio will be lower than that of foreign cars.
The most affected is Pengyun Automobile. The 4S store of Pengyun Automobile has stopped booking new cars. The inventory has been decreasing and the production capacity is decreasing.
This has caused many users to start complaining and questioning the production capacity of Pengyun.
Some experts and media in the automotive industry have also begun to voice their voices.
Car sound media: “Pengyun fully-automated driving car, which has been in hot for less than two months, has encountered Waterloo before it reached its peak. It is reported that the parts suppliers of Pengyun Automobile are affected by the latest automobile regulations such as European Union and United States and Japan. Price increase or out of stock.”
“According to the survey, since this month, half of Pengyun Auto Agents have suspended new car bookings, which will greatly dampen consumer enthusiasm and production supply of Pengyun Auto.”
Experts also analyzed: “In the current form of automotive industry, Pengyun Automobile has only two roads. First, the price increase will completely transform Pengyun into a luxury-class car, away from the consumption level of the general public.”
“The second is to replace the suppliers and low-profile parts, which will undoubtedly lead to lower the performance and grade of the car. According to this speculation, Pengyun is likely to have a new mid-range and low-end car to deal with the crisis.”
The results of this analysis also reached Lu Zixin’s desk. Faced with the established facts, Pengyun Automobile can only actively change. After all, they have no way to force others to cut prices or provide technical support.
“President Lu, there are several new technologies and products. In the domestic automobile brands of China, almost all of us use Pengyun. But every item in it is listed as sensitive technology and products!” Jiang Xunmei said in resentment, she said that the company encountered a stumbling block as soon as she walked towards Broad Avenue, and it was so overbearing and unreasonable that it made her feel uneasy.
In her previous career, she has never encountered or heard of such a thing. A company is actually regarded as a threat by those developed countries, and it is also specifically set regulations to restrict it.
Lu Zixin smiled and said something smug: “Unexpectedly, our Red Letter Group already has such an influence!”
Jiang Xunmei can’t understand his thinking. Isn’t this bad news? The first impact, Pengyun car dealers around the world are asking Headquarters every day, when can supply. Headquarters is also considering how to adjust the supply chain to minimize the losses.
One thing is certain is that car companies will definitely suffer a lot of negative impact.
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