Chapter 3994 His Will Is My Will
Ren Derong was afraid that he would not be able to afford the compensation. Lin Feng's full trade-in plan is indeed the biggest killer of car sales, but the financial black hole it brings is also obvious. He really couldn't think of any way to prevent the company's funds from falling into a financial black hole five years later due to this trade-in activity.
"Mr. Lin, it is feasible to replace a new car at a discount, but it is not possible to replace it with a full equivalent price. This will put Chrysler in trouble again. Maybe the reports will look good in the past few years, but what about five years from now?" Ren Derong wry smile.
Lin Feng chuckled.
"Five years from now? Mr. Ren Derong, how is the automobile market going now?" Lin Feng asked.
"Well, the current automobile giants are mainly Japan's Toyota Group, Germany's Volkswagen Group, and General Motors. However, among them, Toyota and Volkswagen are profitable. Although GM's sales far exceed ours, it does not make money." Ren Derong smiled bitterly.
American automobiles are now in total decline, and have long since lost their glory that once occupied 80% of the global market share. Today's American cars have a reputation but no market. Not only is its sales volume far less than that of Japan's Toyota Group and Germany's Volkswagen Group, but its profits are also far behind. Basically, GM has been losing money in recent years. With the exception of General Motors, there are no American cars among the world's top ten automobile giants. As for Chrysler, the second largest automobile giant in the United States, it can only rank 15th in the world.
"So what do you think the future of Chrysler is under normal development?" Lin Feng asked. .
Ren Derong thought for a while.
"Mr. Lin, under normal circumstances, Chrysler's current situation is to vigorously develop the hot-selling SUV market. However, this market has been occupied by Toyota in advance. The other major car companies are working hard to develop SUVs. The competition in this market is quite fierce. Cruel. It will be difficult for Chrysler to find a way out of this. I predict that the company will remain in the red within five years. Let’s see if it can turn a profit!” Ren Derong said helplessly.
This is not an understatement, but a cruel fact.
"There has been no improvement in five years, and I see it that way, but I am even less optimistic about the results ten years from now. Today's car market is no longer dominated by American cars. For all consumers, they either choose fashionable appearance, Japanese cars that are light and have low fuel consumption can either choose German cars with solid workmanship and good reputation. American cars with rugged style have long been on the rise, and Korean cars are hot on their heels, as well as other European cars. With the national automobile giants eyeing it, it may be difficult for Chrysler to recover its former glory!" Lin Feng said solemnly, "So we must have a breakthrough in the SUV market, but in the direction of women's exclusive cars!"
Ren Derong frowned repeatedly.
He really didn't like this ladies-only car. Does this woman drive a good car? For a man, letting a woman drive his car means being on tenterhooks, because he might not know what the car will look like when he comes back from a trip. This ladies-only car is just a gimmick, hoping to make a profit. This ideal is too good.
"Mr. Lin, let's not talk about whether women's exclusive cars can become Chrysler's flagship product. Let's just talk about the trade-in wave in five years. Women like the new and hate the old. Since they can be replaced at the original price, I believe that they will be replaced by new ones at the original price. There are many women coming to buy new cars! Especially with the 10-year interest-free period, I don’t think anyone will come to buy new cars. Just like if other car manufacturers announced this promotion, I’m afraid all men would come to buy new cars.” Ren Derong! Said with a wry smile.
"I know, you are worried that in five years, people who buy cars today will come back to replace them with new cars. Is there anything wrong with this?" Lin Feng spread his hands, "I think this is a good thing. They will replace them with new cars. It will only get better and better, allowing us to make more and more money!”
Ren Derong looked dull. Lin Feng's logic was too logical. How could this be making more and more money? This is too exaggerated. Indeed, if it is replaced every five years, the company's sales will indeed be very high and it will maintain a strong demand for cars. But what about this old car? What to do with old cars? This is a full exchange at equivalent value, not depreciation.
Assume that a car will sell for $30,000 in five years and the car purchased today will depreciate by $24,000. Then the car owner only needs to pay an additional $6,000 to buy the latest model car. But the cost of a $30,000 B-class car is far from being just $6,000. Then the difference in the middle needs to be filled with the depreciated second-hand cars. This second-hand car is usually sold and will be much cheaper after five years. Although it is not like electronic products, brand-new ones are depreciated by half. After a long time, they can only be exchanged for 30% or even 20% of the original price. The car's value retention rate is much higher, but it can't fill the $24,000 gap.
Moreover, used cars are not that easy to deal with. Especially since this is a ladies-only car, its customer base is only women, and women have always liked the new and dislike the old, and have a preference for new things. I am afraid that even fewer of these second-hand cars will be able to accept it. And if you dismantle it and sell it as scrap metal, you will lose even more. In short, what does Ren Derong think and feel is a loss? This loss is too much, too much. What if this policy becomes popular among women all over the world and 10 million units are sold in five years, it will be really fun. If this loss continues, even if Lin Feng has trillions of dollars in assets, it will not be enough to compensate him.
Indeed, with the current policy, all major auto companies think that this is completely self-destructive. It seems crazy, but the orders on the first day of the auto show exceeded 50,000, and the online orders exceeded 100,000. This newly launched car series is very popular, and the world is hotly discussing this women-only car. Especially among women, they are discussing this. But Lin Feng's policy of full depreciation and replacement for new ones has reassured all major automakers. If Lin Feng plays like this, he will kill himself sooner or later.
Therefore, the major automakers are not going to launch some promotional activities targeting surnames. They are now watching coldly, and see how Lin Feng plays in five years. They don't even mind adding fuel to the fire. Anyway, this constellation car is specifically for women, and it does not conflict with their current major car series. What's wrong with them helping Lin Feng? Let him sell more and more, let him be proud for five years, and see how he cries in five years!
"Mr. Lin, I just received news that the total amount of orders for Constellation cars from dealers around the world has exceeded 2 million! And many places are urging us to ship. Conservatively estimated, this year's sales may exceed 3 million, or even more!" Ren Derong's face became even uglier.
This year's orders exceeded 3 million, and it will only sell more and more in the future. In the next five years, the sales volume may be 20 million. This is basically the same as the sales volume of all Chrysler models throughout the year. From the perspective of automobile production lines, Chrysler can definitely handle and meet the needs of the global market. It's just that if it sells too much, it can't afford to lose money!
"Ha, good news. Do we have enough productivity? If not, we will start working at full capacity and let the workers work overtime. In the past few years, the workers have had a hard time. Now that the company is making money, let them make more money." Lin Feng laughed and clapped his hands.
"Mr. Lin, there is definitely no problem with this productivity. If we produce at full capacity, there will be absolutely no problem with its annual output exceeding 6 million vehicles. If we work day and night, there will be absolutely no problem with exceeding 10 million vehicles." Ren Derong was very proud when he mentioned productivity. After all, Chrysler is a century-old factory, and the second largest automobile company in the United States. There is absolutely no problem with its productivity. This is enough to compare with any current automobile giant.
But then, Ren Derong smiled bitterly.
"Mr. Lin, you haven't heard me clearly. The more you sell, the more you will lose in the future. I wonder if this full depreciation and replacement policy is limited to the US market? Or, is it limited to the first year?" Ren Derong suggested.
If it is only the first year, or the US market, then for the sake of promotion, it is no big deal to bear some losses.
Unexpectedly, Lin Feng glared.
"Mr. Ren Derong, do I, Lin Feng, not keep my word! Am I the kind of person who talks in vain! Since I, Lin Feng, have promised, I will definitely do it. Doing what you say is the basic principle of my life. Regarding the full depreciation and replacement, since I have said it, it will definitely be realized! And it is for the world, and there is no time limit!" Lin Feng said with great momentum.
Ren Derong was shocked by Lin Feng. After a moment of hesitation, he looked at Jessica with a frustrated face. To be honest, the president of this company is Jessica, and the largest shareholder is also Jessica. However, you have stepped in and announced such an important decision for the company without notifying anyone. This is not in accordance with the rules. This kind of thing should be discussed at a shareholders' meeting. As a result, as soon as you came on stage, you slipped out with a word, and now you can't take it back. You are still saying that you have the final say. It's too much!
"President, what do you think about this matter?" Ren Derong looked at Jessica, "I think Mr. Lin is just a director and does not hold any position. Why not use this as an excuse to announce to the public..."
"Shut up! Ren Derong, in the company, I am the president and the largest shareholder, but you remember, I am Lin's woman, and my shares are also his shareholders. Therefore, he is the largest shareholder of the company! His words are my words! Remember this! If you are not satisfied, you can choose to resign, but what Lin said, the company will definitely do it!" Jessica shouted coldly.
Ren Derong was dumbfounded. After being depressed for a long time, Youyou asked, "Then Mr. Lin, how are you going to deal with it?" To be continued.
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