Becoming a Billionaire after Divorce-Chapter 588 - 202: Baidu Li, President Sun Is Truly Wealthy! (2)
As long as you want to design stylish models, it inevitably gravitates towards that.
The other configurations in the car, the domestic parts factories are now very mature.
In various aspects, all companies’ new energy vehicles are actually not much different from each other.
The difference lies in each company’s ability to integrate the whole vehicle.
Obviously, Weima Automobile’s integration ability is mediocre, not that its performance is bad, but because it has not managed to lower the price.
That’s right, to sell well nowadays, you have to desperately lower production costs.
Because almost all new energy vehicle brands are selling at a loss.
If you can lower the production cost of cars, you will lose less than others and can survive in the market instead of being eliminated.
Where do Weima Automobile’s two bankruptcy crises come from?
They haven’t found the positioning of their cars.
The tens of thousands of US Dollars in price, can’t sell.
No one buys it, naturally, the production quantity doesn’t go up.
In the industrial era, if the production quantity of a product doesn’t go up, naturally its production cost can’t go down.
It finally forms a vicious cycle.
Therefore, any successful new energy vehicle in the market has either benefited from being a first mover (like Weilai, Xiaopeng, and Lixiang), has a significantly higher sales level than other car companies (like Xiaomi), or has its core technology that can attract high-end consumers (like Wenjie and Avita).
The best-selling, of course, is the most value-for-money Xiaomi in cars - BYD.
Weima originally had a first-mover advantage but was buried by its predecessor, Shen Hui.
"So what are your plans? What about Fang Dashan, has he made any suggestions?" Sun Dasheng asked. 𝓯𝙧𝙚𝒆𝙬𝙚𝒃𝙣𝙤𝒗𝓮𝓵.𝙘𝙤𝙢
"My idea is, since we can’t beat Wenjie and Avita in the high-end niche, and we don’t have the black technology from Chrysanthemum Factory—intelligent driving, should we align with BYD, and go for a low-margin and high-volume strategy?"
Zhong Liying slowly said.
"But can you compete with BYD?" Sun Dasheng asked.
"Uh..." Zhong Liying was stuck.
The answer is clear, absolutely not.
They can lower the price so much not only because they have their battery factory but also because they have nurtured their entire supply chain for many years, possessing a considerable procurement advantage.
A different car company going to those companies for parts procurement can’t get BYD’s prices.
This is BYD’s secret to low prices.
Who can beat them on price?
Just like Xiaomi in the phone market.
Seeing her plan being denied by Sun Dasheng, Zhong Liying was not annoyed and talked about Fang Dashan’s proposal:
"He said to try to secure cooperation with high-tech companies. New energy vehicles not only represent an energy update but also an update of various electronics inside, with the most important being intelligent driving. That’s also what most new energy consumers care about the most and the best gimmick and guarantee for sales."
"Does he have a partner in mind?" Sun Dasheng asked.
There are actually only a few high-tech companies in the country.
They can be counted on one’s fingers.
"The current intelligent driving on the market, apart from Huawei, only Baidu is left, the others are not very mature," Zhong Liying said.
"That’s his exact words."
She added.
Sun Dasheng nodded: "He’s not wrong."
"So, does he want to cooperate with Baidu?"
"How did you know it was Baidu?"
Actually, it’s quite simple.
Baidu, which has always been inconspicuous, has recently become very popular.
Because drivers in River City complained online about ’Radishes’, Baidu’s autonomous driving became popular.
Everyone suddenly realized: oh, so Baidu has always been committed to intelligent driving.
Yes, Baidu was actually the first to do intelligent driving domestically.
As early as ’13, a project was initiated, and in ’17, Baidu Li even got a ticket for autonomous driving on the Fifth Ring Road.
However, he did not seize the opportunity during the explosive growth of new energy vehicles in recent years.
The reason being, they don’t have their car-making company.
And the initial target set by the company was too high.
While those new car-making forces were still playing with L2+ intelligent driving, he had already set his sights on L4.
In fact, his autonomous driving technology has long been far ahead.
It’s just that it hasn’t been implemented into specific car brands, which is why it seems ’lonely’.
"Never mind how I figured it out, is Baidu willing to cooperate?"
"He has a classmate in the artificial intelligence department there and has communicated; the other party has this idea, but the requirements are relatively high."
Zhong Liying said truthfully.
She actually came today for this matter.
Although Sun Dasheng said the company is entirely handed over to her management.
But for such a big matter, she still doesn’t dare to decide on her own; she wants to hear his opinion.
....
A few days later.
Sun Dasheng personally took a group of people from the investment department to have talks with Baidu.
Professional matters should be left to professionals.
Baidu’s requirement was already told to him by Zhong Liying that day: Baidu wants controlling shares, meaning 51% of the stock.
Because only for their ’own offspring’ are they willing to contribute their valuable technology unconditionally.
Otherwise, it will be a ’castrated’ version.
The conditions are indeed a bit harsh.
Therefore, Sun Dasheng personally brought people over to discuss it again.
Baidu takes this meeting very seriously.
The President Li Yanhong also appeared in person.
The result of the meeting was not very ideal.
They still insist on wanting control.
"President Li, do you think this would work: Weima Automobile can let Baidu take control."
When the meeting was at a stalemate, Sun Dasheng spoke.
Zhong Liying frowned slightly but said nothing; she knew that there must be a reason why this man said this.
Fang Dashan hesitated to speak.
Li Yanhong finally showed a long-lost smile: "Oh, it’s the best if President Sun is willing to part with it."
"Rest assured, with Baidu’s intelligent driving technology, Weima Automobile will definitely have powerful wings and stand out in the new energy vehicle field."
Baidu Li has actually always wanted to make cars himself.
Unfortunately, Baidu’s financial situation has not been ideal in recent years, with its market value on a continuous decline since its peak of a hundred billion US Dollars, now having only 30 billion US Dollars.
The once glorious BAT, he has completely fallen behind.
It has become a second-rate internet company.
Far exceeded by the latecomer ByteDance.
Therefore, the car-making thing has been delayed all along, until the new energy vehicles flourished, at a great time, and he wanted to enter this industry again. By this time, the licenses had already stopped being issued from above.
The last new energy vehicle license in the Capital was also issued to Xiaomi, having nothing to do with Baidu.
He hasn’t not cooperated with other car companies before, but due to various reasons, it has not made much progress, while the emerging hero Huawei enjoys endless glory.
Launched Wenjie and Avita, the two models sold very well.
He is also envious.
He also wants to make cars.
But those new car-making forces all want to develop their intelligent driving platforms, unwilling to have their lifeline held by other companies.
Weima Automobile coming to him made him see hope again.
This time, he wants to take control and go big.
"I trust Baidu’s technology, of course," Sun Dasheng first affirmed Baidu’s technological advantages, then changed the topic: "But, I have a small request. I wonder if President Li can fulfill it."
"Please go ahead!" Li Yanhong felt a tremor in his heart, knowing it wouldn’t be so easy, but he maintained excellent poise, with nothing visible on his face.
"Can I acquire some Baidu stocks?" Sun Dasheng asked.
This request, however, is quite fresh.
Why?
Because Baidu’s current stock market performance is very average, although ’Radish Go Fast’ had a brief popularity online, it had little impact on the continuous stock market decline, the company now lacks confidence, investor confidence in Baidu’s profitability.
Want to buy stocks, easy to acquire, right? Need to tell me?
"President Li misunderstood, I don’t pay attention to small-scale buying; I want to buy more," Sun Dasheng said with a smile.
"How much more is more?" Li Yanhong asked.
"20% is not too little for me, 50% is not too much," Sun Dasheng said calmly.
What?
Li Yanhong looked at the other with a surprised expression.
"President Li, no need to look at me with such surprised eyes. I am very optimistic about Baidu’s future market; so I want to buy more stocks as an investment, very reasonable, right?"
Reasonable, reasonable... not at all.
I don’t even have the confidence to immediately raise Baidu’s market value, where do you get such great confidence?
AI, artificial intelligence has indeed been Baidu’s key investment all along.
The prospects are naturally grand. Back then, with this concept, Baidu also had a significant rise once.
However, this thing requires continuous large-scale research and development funding every year, while the benefits are far off, which is also why ’Radish Go Fast’ even with a period of popularity, had a cold response in the stock market.
Because ’Baidu,’ this ’playboy’ has deceived them too many times.
Always saying ’soon,’ soon profitable, soon making big money.
But this ’soon’ is just like what a girlfriend says on the phone that she’ll be out soon when in fact, she’s still in the dressing room putting on make-up.
