Becoming Rich with Daily Scavenging APP-Chapter 436: Automotive Industry Symposium

"Pleasure working with you."

Chen Yiyang extended his hand and shook hands with Zhang Yuyun.

In fact, this investment was certain from the very beginning.

Since the leaked information confirmed that this company would indeed produce a product in the future, Chen Yiyang’s investment in it was inevitable.

However, the trip wasn’t without extra gains.

At the very least, it convinced Zhang Yuyun to agree to such harsh acquisition terms.

After leaving Jinling and returning to Lin’an, Chen Yiyang barely had time to warm the sofa in his villa.

A phone call forced Chen Yiyang to make another trip to the Imperial Capital.

The necessity arose because there was a government-hosted conference on the automotive industry, hoping that CEOs or top executives of various car companies would attend.

Normally, a small car company like Yiyang Automobile could choose whether to attend or not, but unexpectedly, Yiyang Automobile was specifically named.

So, Chen Yiyang had to make the trip.

This time, the conference level was indeed very high.

Wei Yujun from Longcheng, Uncle Li from Jili, Lei Jun from Rice, Wang Chuanfan from Biya Mansion, Li Bing from Future Automobile, Zhao Feipeng from Fei Peng Automobile, and a bunch of state-owned car company bosses were all present.

"Didn’t hear any rumors about what the main topic of this meeting is?" Chen Yiyang, having a good relationship with Zhao Feipeng, went directly to him upon arriving in the Imperial Capital.

"It’s normal that you didn’t hear anything." Zhao Feipeng said helplessly, "Because this matter originally had nothing to do with you. But I heard it was Wei Yujun who specifically suggested to the higher-ups to invite you."

"What on earth?!"

Chen Yiyang was stunned.

He initially thought it was because of his previous incidents in the Imperial Capital that left an impression.

But unexpectedly, it was Wei Yujun who recommended him.

It was clear this meeting would likely not be in his favor.

"Have you heard about the argument between Longcheng and Biya Mansion a few months ago?"

"Yes, I’m aware." Chen Yiyang nodded.

"Later on, Jili, including Yueqi behind it, also got involved in the argument.

The core demand of these parties is essentially one thing: they want Biya Mansion to stop the price war and maintain the current prices of new energy vehicles.

Biya Mansion’s prices have been dropping steadily, and not only Longcheng but even Jili, which has been following Biya Mansion’s strategy, is beginning to struggle.

So these car companies stirred things up, leading to this forum with the aim of having the higher-ups directly curb Biya Mansion’s low-price strategy."

"Understood." With Zhao Feipeng’s explanation, Chen Yiyang understood why Wei Yujun dragged him into it.

Because now, domestic car companies are vaguely divided into two camps.

One camp argues that since foreign car companies have lost their competitive edge in the new energy field, domestic car companies should maintain high prices to earn profits.

This group includes Longcheng, some state-owned car companies, and Jili.

They cannot afford further price cuts; more cuts would mean losses.

The other camp is led by Biya Mansion, determined to use a low-price competition strategy to outlast a significant number of competitors.

In the market, companies like Longcheng cannot compete, so they hope to constrain Biya Mansion through higher authorities.

As for why they invited Chen Yiyang.

It’s because although Yiyang Automobile hasn’t officially launched its first model yet, it is evident it’s going to be a low-priced vehicle.

Wei Yujun called Chen Yiyang to give a warning.

"What do you think?" Chen Yiyang looked at Zhao Feipeng.

"My Fei Peng Automobile is surviving on low-priced cars now, what do you think I can do?" Zhao Feipeng shrugged.

Ever since Chen Yiyang recommended Wang Fengyi into Fei Peng Automobile, after completing internal reforms, Fei Peng Automobile began to adopt a low-priced car strategy, and their new model is quite affordable.

Although the profit is low, the quantity sold is high, which directly boosted the stock price.

"However, we don’t need to worry this time," Zhao Feipeng said, "Biya Mansion is holding the line against the higher-ups, so what are we afraid of?"

Indeed, as Zhao Feipeng said.

After the forum commenced, Jili and Longcheng’s representatives directly exchanged verbal jabs with Wang Chuanfan.

If this forum wasn’t organized by the higher-ups, Chen Yiyang would have been worried they might start a fight on the spot.

Halfway through the meeting,

the official presiding over the event coughed a few times to interrupt the argument between Biya Mansion and Longcheng, then spoke in an unhurried manner.

"President Wei from Longcheng just mentioned something noteworthy—currently, there’s no winner in a price war. A price war not only impacts normal business operations but the thin profits also cause car companies to lose their future. I must agree with this point.

However, I believe this matter still requires hearing from the younger generation; Mr. Chen Yiyang, do you have any thoughts on this forum?"

As soon as the presiding officer finished speaking, all eyes in the room turned to Chen Yiyang.

Compared to the group of fifty to sixty-year-old veterans present, Chen Yiyang was indeed strikingly youthful, as if from a different era.

The host’s request to hear the young person’s opinion made it entirely appropriate to call on Chen Yiyang to speak. 𝘧𝑟𝑒𝑒𝘸𝘦𝘣𝑛𝑜𝘷𝑒𝓁.𝘤𝘰𝓂

Fortunately, Chen Yiyang had actually prepared a speech in advance just in case, and it turned out to be useful.

So Chen Yiyang stepped up and began,

"As a junior, I can’t compare with the seniors in the automobile industry in terms of experience.

So I’ll simply cite an example from the past.

A few years ago, Tesla, then the leader in new energy vehicles, initiated a round of car price reductions in the domestic market.

At that time, domestic car companies reacted strongly. If my information is correct, the Automotive Industry Association, along with Longcheng, Qirui, Biya Mansion, Yiqi, and fifteen other companies, signed a commitment to uphold fair market order in the automotive industry, requesting major car companies not to disrupt market order with abnormal pricing."

As soon as Chen Yiyang gave his example, the car company bosses sitting below couldn’t hold back.

Had Chen Yiyang not brought it up, they might have actually forgotten about that past move.

"I won’t comment much more, but considering the current market situation, I can guarantee that any car company’s new car price is likely lower than Tesla’s price back then.

This highlights one issue: unless there’s a clear regulation on the minimum pricing for new cars, any documents or declarations issued will be futile.

Because our market is a free market, simply relying on policy for price caps won’t work.

Even if a minimum price per car is set, dealers can still find ways to discount by providing additional services under the guise of gifts to car buyers, which is another form of discounting that cannot be effectively restricted."

"I’ve finished speaking." After Chen Yiyang finished speaking, he stood up and returned to his seat.