Chapter 5: The Gamble of Nanshan Automotive
With the bank loan, Nanshan Automotive's situation temporarily stabilized.
Although production had completely stopped soon after, the employees still received their wages, and their morale remained relatively stable.
Some even secretly wished that these days could continue forever.
"I heard Nanshan Automotive is working on a new model?"
Gao Mu of Denzo's sales department was always well-informed.
They worked with almost all the major manufacturers, so they had a clear understanding of new model plans from each one.
Though Nanshan Automotive was an unimportant client to them, they were still a client.
"That's right. Many suppliers in Nancheng are already preparing parts for them."
Liu Sheng, the sales manager in charge of independent brand clients, knew about Nanshan Automotive's situation as well.
However, he didn't pay much attention to it.
In his view, Nanshan Automotive could never leave Denzo.
Even if they decided not to give any parts to Denzo, they would have to turn to companies like Bosche or Nichi for similar products.
From what he knew, Bosche and Nichi hadn't received any new project quotations from Nanshan Automotive.
"Hmm, your analysis makes sense. They're probably still upset. However, if they want to use this to pressure us, we can't let them think we're easy to deal with. Next time we quote, let's increase our price by 10% on top of the normal price. Let's see what they can do."
Gao Mu, an experienced Japanese manager stationed in China, was very familiar with China's business practices.
At this moment, he combined his past experience of dealing with Chinese manufacturers to make his judgment.
"Minister, you're brilliant! This counterattack will definitely make Nanshan Automotive uncomfortable. Once they realize we're not so easy to deal with, they'll follow our demands."
Liu Sheng didn't see any problem with Gao Mu's idea.
On the contrary, he thought they should be even tougher on Nanshan Automotive.
Denzo was at the same level as Bosche, and anyone who wanted to make cars couldn't avoid them as suppliers.
...
"Xiao Liu, are you sure the production numbers provided by Nanshan Automotive are correct?"
In the Nancheng Stamping Plant, Guo Junfeng, with a solemn expression, chaired a meeting.
"I confirmed it with their procurement officer several times. They assured me these are the planned production numbers, and we should prepare production based on these."
Liu Gui felt uneasy but had no choice but to answer.
"A production plan of 30,000 units per month—shouldn't that be for the entire life cycle, rather than just one month?"
Nancheng Stamping wasn't a major company in China.
Over the years, they had mainly supplied small brackets for various models and some medium-to-large stamping parts for Nanshan and other automakers.
If Nanshan Automotive's project truly reached the planned numbers, it would be the biggest order Nancheng Stamping ever had.
To meet the required production capacity, they'd have to consider introducing new stamping equipment.
Otherwise, they'd have to switch from two shifts to three.
"I thought so too. But after confirming with Minister Wang Fuguo, he also confirmed that the numbers we received are accurate and instructed us to boldly prepare according to the plan."
When faced with Guo Junfeng's doubts, Liu Gui had no better solution to offer.
"Mr. Guo, although they've given us a large number of parts to produce, and even the mold data is with us, if NS1 really sells well, we might not be able to meet the parts supply, which would certainly affect future cooperation."
As the sales manager, Liu Gui didn't want to sour the relationship with a client.
Even though Nanshan Automotive didn't seem like a top-tier client, they were still a client.
"You're right, Liu. But between 10,000 and 30,000 units, there's a lot of money at stake."
"Indeed, if Nanshan Automotive stalls again, Nancheng Stamping will face real trouble."
"You're right, until now, only a few niche car models have ever hit 30,000 units a month. No major manufacturer's model has ever sold that much."
"If they can achieve 30,000 units a month, that's 360,000 a year. If Nanshan Automotive could do that, they'd already be in the top 10 of China's car sales."
"I also think we need to be cautious."
Many people at the meeting voiced their concerns.
However, very few believed in Nanshan Automotive's potential.
"Based on past cooperation, Nanshan Automotive has never wronged us. This time, they're so confident. If we mess up, it won't be good. I heard they've secured a 300 million loan from the bank, likely to prepare for this project. I've decided to take a gamble this time."
Guo Junfeng still had the courage to take risks.
Otherwise, he wouldn't have survived in such a competitive market environment.
"Mr. Guo, please think carefully."
"Asking for everyone's opinions already shows I'm being careful. Alright, I've heard you all. I'm going to take the gamble."