Chapter 472 – Hao Haitao’s frustrations
“150,000 RMB per unit.”
“General Gan, are you joking? We did not even sell our cars to Bing City government at this price. We would make losses if we were to sell you at this price.”
Feng Yu was not lying. Songjiang Motors Off-Road’s cost was about 160,000 RMB for both the diesel and petrol models. This was because the Machinery Company’s technologies were not good enough to lower the cost. But if Beijing Jeep were to use these technologies to build the Off-Road vehicles, their cost would be at least 200,000 RMB!
General Gan saw Feng Yu’s attitude and knew that the price he wanted was too low. Although Hao Haitao does not know how much the cost was, his Aviation Factory estimated the value of one vehicle to be about 150,000 to 170,000 RMB. He had told General Gan about his estimation, and he would not get involved with the pricing negotiations.
“Then how much does Manager Feng want for one vehicle?” General Gan asked.
Feng Yu suddenly turned and look at Hou Haitao without saying a word. Hou Haitao looked at himself and then asked: “Manager Feng, why are you looking at me?”
“Director Hou, is the Aviation Factory going to purchase our Songjiang Motors vehicles?”
“No.” We are also manufacturing vehicles. Why should we purchase yours?
“Then why are you still here?” Feng Yu looked at Hao Haitao surprised.
Hao Haitao opened his mouth and looked at Feng Yu. Damn. What’s the meaning of this? This is Bing City’s Aviation Factory, and this is my office! Why am I being treated like an outsider?!
General Gan did not say anything. This meant that General Gan also agreed to speak with Feng Yu privately.
Hou Haitao left his office sulking. At the door, his secretary saw him and stood up: “Director, are you looking for me?”
“Follow me to the workshops.” Damn. I am being chased out of my own office by two outsiders! Fine! I will not get involved in this deal. Don’t blame me if this deal fails!
Hao Haitao’s secretary looked at Hao Haitao’s office. How come Director Hou came out alone? Feng Yu and General Gan were still inside the office?
“General Gan, is the army only going to purchase Songjiang Off-Roads?”
“It will depend on the situation.” General Gan gave a vague answer.
Feng Yu understood when he heard General Gan’s reply. These leaders also wanted other models, but the higher-ups might not approve. Those Off-Roads can be used for military training, but they can’t use the same excuse for the other models. Who will use the other models during wars?
“General Gan, I suggest purchasing our Songjiang Off-Roads Diesel engine. It has more torque and suits many types of road conditions. Also, at the back of the vehicle, you can choose to put passenger seats to increase the capacity or remove the seats to transport logistics. I will sell you this model at a wholesale price of 200,000 RMB per unit.”
China’s diesel quality was not good, and diesel engines need to be maintained regularly. But this was not a problem. The Jeep J2020. Which the army was using now, requires repairs on a weekly basis. The mechanics in the army were well trained because of this reason.
“200,000 RMB? It is too expensive. Your cost is also not that high. I had also heard that the vehicles you sold to CCTV were also not so expensive.” General Gan shook his head.
“CCTV had bought the petrol model, and CCTV also gave me some benefits for our advertisements. In reality, CCTV had paid more than 200,000 RMB.
“But this is also too expensive. The number of vehicles we needed is a lot. With this price, the higher-ups will not approve.”
“General Gan, calm down. I still have not finished. To show our support for the military, we had decided to give one Olympic model, Prestige edition to the army for every 10 Songjiang Off-Roads you purchase. This Songjiang Olympic Luxury version cost more than 200,000 RMB. If you purchase 1,000 Off-Roads, we will add in 100 Olympic cars!” Feng Yu said and showed his index finger.
What? Free Olympic model? Buy 10 free 1?
General Gan looked at Feng Yu. This kid knows what he wanted. All the leaders in the army had wanted to change cars. Most of the leaders in the military were still using the old Red Flag vehicles. There were only a few Audi 100 in the army. Needless to say, there were no Audi 200.
Now, the higher-ups had approved the budget to purchase new vehicles. But if they were to buy luxury cars, they will not be able to answer to the higher ups. Feng Yu’s proposal would solve this problem. The leaders will get new cars, and they will still be able to explain to the higher-ups.
Feng Yu lifted his tea and slowly drank it. This method was not thought up by him. He got this idea from the military leaders from his previous life. Feng Yu had thought this was a joke. But it seems that this joke was really useful.
“Only Songjiang Motors Olympic model?” General Gan asked.
Feng Yu raised his eyebrows. General Gan was interested.
“I can give you other models, including Songjiang Motors Red Star. But it will not be 1 car for every 10 vehicles purchased. We can discuss the details.” Feng Yu smiled.
“Ermm…… I cannot make the decision now. But we will consider your proposal. I will report to my leaders and will give you a reply once they decided.” General Gan thought for a while and reply.
General Gan had not thought of this method. Now, Feng Yu had made this proposal, and he needs to revisit their procurement plans. They might increase the numbers of vehicles because of this proposal. They had plans to purchase more Jeeps later this year. Now, it was confirmed that they will not take Japanese and Americans cars into consideration.
“Then I will wait for your good news. After your confirmation, I will let my factories to increase our production. We will prepare the military orders first.” Feng Yu stood up and shook hands with General Gan.
Hou Haitao had gone to the workshops to make supervisory rounds. He thought the negotiations between both of them will break down. Without him around, one side would try to suppress the price, and the other would try to increase the amount. How can the both of them work out a deal?
But Hou Haitao saw the both of them walked out of his office full of smiles. General Gan had even walked Feng Yu out to the door.
Hou Haitao’s eyes opened wide. What the hell was happening? The both of them had worked out a deal? Impossible. There was a significant difference between the prices in their minds. Their negotiations will also not go on so smoothly even if the talks did not break down. How did they work things out?
“Director Hou, I will make a move first. I still need to return to the Machinery Company to ask them to increase the production.” Feng Yu waved to Hou Haitao and left.
Hou Haitao looked at Feng Yu’s back view and then turn to General Gan in a daze.
“Old Hou?” General Gan waved his hand in front of Hao Haitao.
“Ah…. The both of you had worked out a deal?” Hou Haitao asked. This was unbelievable.
“We still have not finalized the details, but we do work out some things. I still need to report to the leaders before we can confirm this deal. What’s wrong? You seem to be unhappy to hear that we had worked out a deal.” General Gan looked at Hou Haitao. You are the one who introduced Feng Yu to me. Furthermore, your Aviation Factory only manufactures vans. Your vehicles are not suitable for military use.
“No, how can I be unhappy? We will be meeting Deputy Commander Wang from the Provincial Army later in the afternoon.” Happy? What’s there to be pleased about? How come they could work out a deal in such a short time?
“I need to make a call to the leaders to report about Feng Yu’s proposal. Old Hou, lend me your office phone.”
Banged.
Hou Haitao was speechless. Damn, I am lock out of my own office again? Whose office is this?!