Becoming Rich with Daily Scavenging APP-Chapter 518: A New Era for the Automobile Industry

Chapter 518: Chapter 518: A New Era for the Automobile Industry

After Lu Cheng finished introducing the situation of the medical equipment factory, Chen Yiyang had roughly made a judgment in his mind.

This medical equipment factory has no issues in terms of technology.

The main reason the products are not selling currently is that the price of the medical equipment is too high. Many public hospitals now face audit pressure when purchasing such expensive non-branded medical equipment, hence they refuse.

After all, buying foreign products spends the hospital’s money, but brings no troubles to themselves.

If buying domestic ones, in case problems arise, it’s hard to clarify things.

"I’ll get in touch with some hospitals later and see if I can help the factory find some clients."

Chen Yiyang asked Lu Cheng to change the factory’s name first, from now on, it would be called Yiyang Medical.

Of course, this is not because Chen Yiyang is narcissistic.

It’s because he has already established the Yiyang brand through Yiyang Automobile.

For well-known brands like Kuxing Coffee, Chen Yiyang just needs them to continue developing their brand.

But for unknown small factories like this, using the same name brand as his other enterprises is beneficial for promotion and publicity.

Chen Yiyang stayed in the Imperial Capital for a few days before attending another meeting.

This time it was a meeting of the automotive industry.

This meeting was different from the previous one.

The last time, the department took the stage; this time, a higher-level institution directly brought the matter to the meeting for direct criticism.

Because the issue was too significant, everyone carefully studied the directives issued at the meeting after it concluded. 𝓯𝓻𝓮𝙚𝙬𝓮𝙗𝒏𝙤𝒗𝙚𝙡.𝒄𝒐𝓶

Several issues were addressed at this meeting, the first being the issue of internal competition leading to price cuts.

Regarding price wars, the directive stated to strengthen cost investigation and price monitoring in the future.

This means that if automakers want to lower prices, they can. But there needs to be a reason.

If you’ve made a breakthrough in technology and reduced costs, then you can lower the price.

But if you purely aim to outcompete rivals, disrupt market order, and attract more financial financing by boosting sales, that’s not acceptable.

The second issue was to strengthen the supervision and inspection of product production consistency.

This issue also arises from price wars.

In a price war, if there’s no room left to cut costs, hidden maneuvers become the focus.

For example, using thinner materials, poorer quality parts, and promoting products with crafty language where the actual product differs greatly from the promotion.

The situation is so bad that auto manufacturers are worse than those online selling assembled computers. When unscrupulous assemblers cut corners, they’re easily spotted by professionals, who educate others online to prevent being fooled.

But anyone criticizing these auto manufacturers is immediately required to delete videos across all platforms and face lawsuits.

The third issue discussed was the supply chain problem.

Previously, the nation required a sixty-day billing cycle, and almost all automakers stated they’d actively follow suit.

However, despite the passage of time, the supply chain issue hasn’t changed much.

Because most car companies have extended the billing cycle using promissory notes or acceptance drafts.

Companies operating like Chen Yiyang, with a monthly redemption cycle, are considered very conscientious enterprises.

Others have even extended billing cycles beyond prior lengths.

Thus, this time, the directive announced the need to urge key automakers to properly fulfill payment commitments.

"The times are changing, aren’t they?" Zhao Feipeng, who rushed to the Imperial Capital yesterday, said beside Chen Yiyang, "Previously, directives were calls and advocacy. This time they’ve directly issued official demands. Regulation is shifting from guidance to direct intervention and management."

"The next era of the automotive industry is truly beginning." Chen Yiyang naturally understood the significance of this meeting.

The price war among new energy vehicle enterprises is about to end.

But the next phase, where it’s a meritocracy, is beginning.

Then there’ll be higher requirements for the technical capabilities and marketing abilities of automakers’ products.

For Chen Yiyang, the end of the price war will allow his cash flow to breathe a little easier.

But whether Yiyang Automobile can stand firmly next remains to be seen.

After the meeting adjourned, Chen Yiyang spoke to Zhao Feipeng about his recent acquisition of a medical equipment factory.

"I know several big bosses who own private hospitals. They won’t use referral. Tomorrow I’ll get them out and introduce them to you."

"Alright." Chen Yiyang didn’t expect to gain unexpected information from Zhao Feipeng.

Thus, the next day, Chen Yiyang asked Zhang Yuling to book a private room at one of Imperial Capital’s most upscale restaurants and asked Zhao Feipeng to bring the people over.

Many industries in the country have a characteristic where most people in the industry come from one place.

For example, industries like Sha County snacks, foot massage, plumbing, and toilet services.

The leading companies and service providers in these industries often come from the same place.

This phenomenon is not exclusive to the country, it’s common worldwide, and is considered an external manifestation of regional culture.

The most famous example is the courier industry, where bosses of the top courier companies like Shentong, Zhongtong, Yuantong, and Ynda all hail from a small county with a population of forty thousand.

This shows that in some industries with low technical content, connections and resources are paramount, and ability is secondary.

The six bosses brought by Zhao Feipeng this time are all compatriots from the same place, and they all manage multiple private hospitals.

After mutual introductions, Chen Yiyang had a meal and drink with these people, before starting to discuss business.

"Mr. Chen, you engage in large-scale business, while we simply do small business. You inviting us to dine today is a testament to your recognition of us."

The leader among them, a middle-aged man named Lin Zhizhong, raised his glass to toast Chen Yiyang.

"That’s overstated. Everyone’s out there making a living, no need to talk about recognition or non-recognition."

"Though our business scale isn’t as large as Mr. Chen’s, we have plenty of hospitals, and a very significant point is that many of our hospitals are located within those major public hospitals."

"How’s that?" Chen Yiyang curiously inquired.

"It’s like this. Hospitals in our country rarely specialize in treating a particular category of disease; they’re general hospitals.

Mainly it’s because patients don’t know which hospitals specialize in treating which diseases; they only know to go to major hospitals for treatment.

But some hospitals, due to various reasons, can’t maintain certain departments normally, so they outsource these departments to our private hospitals."

"Understood." Chen Yiyang nodded.

This is similar to the outsourcing strategy of regular private companies.

If the outsourced department were handled internally, the profit earned might not even sustain the normal operation of the department.

But by outsourcing these departments, one can instead acquire pure revenue.