Chapter 39 of 100
Chapter 39: Liu Qianjin was shocked by Chen Geng's ambition.
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Seeing the contracts Chen Geng brought back, Liu Qianjin was speechless with surprise.
It had only been a little over half a day, yet Chen Geng had already secured contracts for the modification of six Jeeps from the regional administrative office, the regional grain bureau, and the regional forestry bureau, as well as an intention contract for the renovation of the office of the head of the finance bureau.
The total amount of the seven contracts was as high as 87,000 yuan, almost equivalent to the entire third quarter's revenue of the Third Armament Repair Factory. He couldn't imagine how Chen Geng had managed to do it. Was it really that impressive to be a college graduate?
Chen Geng smiled and said, "Everyone knows a good thing when they see it. We drove the modified 212 Jeep in front of them, let them try it out, and then they signed the contracts with us."
Liu Qianjin's eyes nearly popped out. "It was that simple?"
Don't think that Liu Qianjin had been a strong supporter of Chen Geng's project to modify the 212 Jeeps at the Third Industry Office. In fact, he didn't really believe in the project's potential. Liu Qianjin thought that even if the project lost money, it wouldn't be much. Considering that Chen Geng had brought the carburetor project to the factory, he decided to let Chen Geng use this project as a training ground. There was even a part of him that hoped Chen Geng would hit a wall and realize how harsh the real world could be. But who would have thought that Chen Geng, with just two people, could so easily bring back 87,000 yuan worth of business?
Looking at how easy it seemed, he thought there would be more to come.
How could this be? It completely overturned Liu Qianjin's worldview!
Chen Geng smiled and said, "Our technology is good, and everyone knows a good thing when they see it."
But Liu Qianjin couldn't understand. "But... why? These 212 Jeeps are perfectly fine, aren't they?"
A good car can still be used, so why spend more money on it? Isn't that just being extravagant?
"They are fine, but Jeeps aren't as comfortable as sedans. The leaders' butts are very precious..."
"Haha..." Liu Qianjin laughed. "Don't talk nonsense."
"Understood." Chen Geng obediently replied and continued, "In the past, the government didn't have the money, so there was no choice. But now that they have money, they want to be more particular."
Liu Qianjin nodded, agreeing with Chen Geng. In the past, having a car was already great, so no one cared much about the details. But now, with better conditions, people who used to ride bicycles want motorcycles, those who rode motorcycles want Jeeps, and those who drove Jeeps want sedans. However, the domestic auto industry is underdeveloped, and the supply is limited. What to do? The Third Industry Office's modified Jeep project gives leaders a chance to improve their comfort.
Chen Geng thought Liu Qianjin might sigh or even criticize the growing trend of seeking comfort, but he didn't. Instead, Liu Qianjin fell silent for a moment, his eyes shining brightly as he looked at Chen Geng. "So, you think this business has great potential?"
"Absolutely!" Chen Geng nodded firmly.
The 212 Jeep has been in production for nearly 20 years, with a total production of no less than 700,000 units. More than half of these are in the hands of various levels of local governments and functional departments. Even if only one-tenth of the leaders want to improve their comfort, that would be a huge market. And if even 30% of them choose to have their Jeeps modified by Huacheng Industry, that would be an even bigger market.
Not to mention the biggest user of the 212 Jeep: the military.
This is a super project with an annual output value of hundreds of millions!
Liu Qianjin, who had been a soldier for over 30 years and was in better physical condition than many men in their thirties, felt his legs go weak as he realized the enormity of this opportunity. If he hadn't been sitting, he might have fallen to the ground.
He took a few deep breaths and laughed foolishly. "Hundreds of millions in revenue? Hehe... Our Third Armament Repair Factory would be a large-scale enterprise..."
According to the current classification of enterprise sizes, a company with an annual revenue of over 20 million yuan is considered a large-scale enterprise. With an annual revenue of hundreds of millions, the Third Armament Repair Factory would be a state-owned large-scale enterprise.
Just by looking at Liu Qianjin's expression, Chen Geng knew what he was thinking. He shook his head and said, "Factory Director, we can't swallow this cake."
Liu Qianjin, who had been lost in the dream of becoming the head of a large-scale enterprise, was brought back to reality by Chen Geng's words. He frowned and asked, "Why?"
"Shock absorbers and tires," Chen Geng explained. "The core of this modification is the shock absorbers and tires from the Volkswagen Santana, but we can only get 1,000 sets per year from them, and only for two years."
"..." Liu Qianjin patted his head, realizing the severity of the problem.
Indeed, the four-link suspension system Chen Geng designed for the 212 Jeep was excellent, but without good shock absorbers and tires, it would be useless. Continuing to use the old leaf springs and hard tires was not an option.
If there were no hope or opportunity, it would be one thing, but now that he saw the hope and opportunity, Liu Qianjin was determined not to let it slip away. He stood up and paced around the room, agitated. "There must be a way, there has to be a way..."
But without the shock absorbers and tires from the Volkswagen Santana, what could they do? Liu Qianjin couldn't think of a solution.
Unable to think of a solution, Liu Qianjin suddenly turned to Chen Geng and smiled. "Chen, you have a solution, right?"
Liu Qianjin hadn't realized it at first, but seeing Chen Geng's calm demeanor, he finally understood something was off. With this kid's nature, he wouldn't let such a big business opportunity slip away.
It was impossible!
The reason for his calmness must be that he already had a plan. Given Liu Qianjin's familiarity with Chen Geng, this was highly likely.
"There is a solution," Chen Geng nodded.
Liu Qianjin, irritated, said, "If you have a solution, why don't you say it quickly?"
If Chen Geng weren't the deputy factory director, Liu Qianjin would have kicked him.
"Let's start with the tires," Chen Geng said. "The state's goal for the Volkswagen Santana is to achieve basic domestic production by 1989. What does 'basic domestic production' mean? Not just over 50%, but 80%."
"80%?" Liu Qianjin was taken aback. "That high?"
In China, once a goal is over 50%, it is considered "basically achieved," but the central government's requirement for the domestic production of the Volkswagen Santana was at least 80%, showing a strong determination!
What is the current domestic production rate of the Volkswagen Santana? 0%! Every single part, even a screw, is imported from Germany, and this will continue until 1987.
But there was no need to tell Liu Qianjin this. Chen Geng nodded. "Yes, 80%. Given the state's strong determination, although the order of domestic production for various parts may differ, for non-core parts like tires, which have a long production history in our country, we should be able to produce qualified products quickly. I think we can cooperate with the tire factory that supplies the Volkswagen Santana. The tires should be domestically produced within two years, right?"
"Hmm... That's possible." Liu Qianjin thought for a moment and nodded. "What about the shock absorbers?"
"We have two options for the shock absorbers."
"Two options?" Liu Qianjin's eyes lit up, and he urged, "Which two?"
"The first option is to follow the Volkswagen Santana's path."
"Follow the Volkswagen Santana's path..." Liu Qianjin hesitated. "Do you think the domestic industry can provide qualified shock absorbers for the Volkswagen Santana within two years?"
"Unlikely!" Chen Geng shook his head and said honestly. "So I think the second option is more feasible: we do it ourselves!"
"What?" Liu Qianjin exclaimed. "You mean we produce the shock absorbers ourselves?"
"Yes, we produce them ourselves. This way, not only will we meet our own needs, but we can also supply the Volkswagen Santana. In recent years, the domestic auto industry has developed rapidly. French Peugeot is cooperating in the south, and I hear that Jinmen is also working with Japanese companies. The Datsun van is already in production... So I think the demand for high-end shock absorbers in the country is significant. With the money we earn from the 212 Jeep modification project, we can support this project.
Once the shock absorbers and carburetors, the two core components, are in production, we will become a core supplier for the Volkswagen Santana, and we won't have to worry about the survival of the factory for a long time."
The carburetor project is still in the air, and you're already thinking about this? Liu Qianjin couldn't accept Chen Geng's wild ideas and waved his hand. "Let's see, let's see. We'll talk about it after we achieve the current goals... By the way, what's the deal with the office of the head of the finance bureau?"
This change of topic was a bit abrupt, but Liu Qianjin couldn't help it. First, the carburetor, then the 212 Jeep modification, and now this kid wants to tackle shock absorbers. He was afraid of Chen Geng and couldn't keep up with his ideas. He had no idea what Chen Geng would think of next.
"Oh, the head of the finance bureau thinks his office is too old and doesn't match his status..." Chen Geng explained the situation to Liu Qianjin, not using the version from Gao Yueming.
In fact, the reason the head of the finance bureau wanted to renovate his office was simple: as the head of the finance bureau, he shouldn't have to use such a dilapidated office. It was embarrassing and shameful. He had to change it. It had to be changed!
That's all there was to it.