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Chapter 2610 Slap in the Face

The news of the mass production rollout ceremony was featured on several television stations' evening news that very night.

CCTV's economic channel placed the news of Tianchao Automobile's mass production line rolling off the production line as the second item on its news list.

The scene shows three production lines at the Shunyi factory starting up simultaneously.

On the television screen, industrial robots in the welding workshop waved their robotic arms in unison, and blue and white sparks cascaded down like a waterfall. The director repeatedly used a wide shot twice and a close-up shot once to capture the scene of three mass-produced cars slowly driving out of the end of the production line.

The narrator's voice-over, with a rare unofficial tone of amazement, said: "This morning, Beijing Chengtianchao Shangguo Automobile Technology Co., Ltd. held a mass production rollout ceremony at its Shunyi factory. Three models rolled off three production lines simultaneously, marking the first time that a private automobile company in my country has achieved simultaneous mass production of multiple models."

Newspapers react a day later than television, but their impact is no less significant.

The next morning, the front pages of several major newspapers in Beijing were all occupied by China Auto.

The People's Daily published a report titled "Private Car Companies Move Towards Mass Production" on the front page of its economics section, accompanied by a large photo of the Baihu 1 rolling off the production line. In the photo, the white body of the Baihu 1 gleams under the workshop lights, and the front bumper is particularly eye-catching.

The Economic Daily's headline was even more direct: "China's Automobiles: From Doubt to Mass Production".

The article details the various criticisms that Tianchao Auto has faced since its registration, and then shifts its focus to three paragraphs describing the actual scene of mass production rolling off the assembly line.

Finally, I'll quote what Suning said at the ceremony: "Today I won't make any excuses, I'm just inviting everyone to come and see the production line."

Several local newspapers also followed up with reports, some reprinting Xinhua News Agency's press release, and others sending their own reporters to the scene to conduct interviews and write feature articles.

After two days of extensive coverage by television stations and newspapers, public opinion began to subtly diverge.

Supportive voices dominated, but another voice began to emerge in the opinion sections of some newspapers and in television interview programs.

The first to change their tune were those experts who had previously insisted that Chinese cars were a scam.

Some people chose to remain silent; those who used to publish commentary articles in newspapers every now and then suddenly disappeared.

When reporters called to arrange interviews, the other party either said they were not in the area or that they were not feeling well and were unable to give an interview.

However, another group of people chose a different strategy.

An expert who previously analyzed on television that a production line could not exist appeared on another talk show a few days later.

This time, the expert used a different story.

The expert sat on the sofa, his tone still confident, but his perspective was completely different from last time: "Mass production is certainly commendable, but I want to remind everyone of a key issue—mass production does not equate to quality. What we have now produced is only the first batch of cars. How durable are these cars? Will the engine's performance decline significantly after 30,000 kilometers? Has the chassis's reliability under complex road conditions been fully verified? These all require time to test."

He paused, then added, "Furthermore, what I questioned at the time was the source of Tianchao Auto's production line, and that question has yet to receive a positive response. How a private car company could complete the procurement and installation of a production line in such a short period of time remains a mystery."

The host asked, "So you mean that Chinese cars can't be considered successful yet?"

The expert said, "Success? This is just the beginning. Building cars is not like setting up a street stall; it's not enough to just put your stuff out there and call it a day. Cars are meant to be on the road, and they're meant to be driven for eight to ten years. Let's see how it goes after a year. If China's mass-produced cars are still running well on the road, then it's not too late to talk about success."

……

Another university associate professor, who had previously concluded that Tianchao Auto was "100% a scam," shifted his focus of questioning to brand value during an interview with a local newspaper.

The reporter looked directly at the associate professor and asked, "Professor Zhao, now that Tianchao Automobile has gone into mass production, what's your opinion of this company?"

Professor Zhao pushed up his glasses. “Building a car and building a brand are two different things. Every international car brand has decades of technological accumulation and brand building experience. Even if Chinese cars do manage to build a car, can they compete with joint venture brands in the market? Consumers are willing to spend tens of thousands of yuan to buy a car. Would they add tens of thousands more to choose a Santana, or would they choose a new brand they've never even heard of? This problem cannot be solved by a mass production ceremony.”

The reporter then asked, "At that time, Chinese cars were much cheaper than joint venture cars. Do you think the price advantage can make up for the brand disadvantage?"

Professor Zhao chuckled, as if a teacher had heard a student ask a naive question in class: "Cars are big-ticket items, not groceries. If you save a penny on groceries, you can switch stalls; if you save ten or twenty thousand on a car, would you dare switch to a brand you've never heard of? Consumers prioritize reliability, resale value, and ease of repair when buying a car. Chinese cars fall short of all these criteria."

……

In television interview programs, the dialogue between the host and the guests is more direct.

An interview program invited two guests: one was an industry commentator who supports Chinese automobiles, and the other was an old-school expert who has always been pessimistic about domestic cars.

The host handed the microphone to the two of them, asking, "Now that the Chinese car has gone into mass production, what are your thoughts?"

The commentator who supported Tianchao Auto spoke first: "Facts speak louder than words. Three production lines running simultaneously and three models rolling off the line at the same time—this isn't just PowerPoint presentations; this is real industrial manufacturing capability. Tianchao Auto is the first automaker in our country to be able to mass-produce three models simultaneously in a year. The significance of this cannot be overstated."

The old-school expert snorted from the side.

The host immediately took the lead: "What do you think?"

The old-school expert cleared his throat. "As I just said, facts speak louder than words. I admit that my previous judgment was flawed. But my intentions were good... At the time, all the publicly available information pointed to abnormal operating practices. As a responsible industry observer, wasn't it my duty to raise questions?"

The commentator added, "You never hesitate to question when you need to, but when you need to acknowledge the facts, you say you still need to observe. That's not fair."

The expert's face turned pale instantly, and a vein in his neck throbbed. "I'm not denying the facts! I admit they built the car, but building it doesn't mean they've succeeded. Do you know how brutal the competition in the automotive industry is? How many new brands emerge and die every year? Whether a car company in China can survive isn't determined by a roll-off ceremony, but by whether it's still around in three to five years."

The commentator casually remarked, "Then let's see in three years! But I think that since they've already built the car, they should at least give us some recognition, instead of rushing to find another angle to criticize."

"..." The expert remained silent for four or five seconds, his face ashen, before finally saying, "I think further observation is needed."

……

After watching the reports and program recordings in his office, Suning did not make any lengthy statements or rebuttals.

He simply called Xiao Zhao in and said, "Put public opinion aside for now. It's time to get down to business. Go and call Manager Sun from the marketing department over."

"Yes, Mr. Su."

The real business is the distribution channels.

The car has been manufactured; the next step is to make it available to consumers.

Tianchao Auto is a completely new brand with no historical background, no existing sales network, and no 4S stores.

In 1997, China's car sales channels were structured as follows: joint venture brands relied on a combination of direct sales by manufacturers and authorized dealerships, imported cars used agent channels, and domestic car brands mostly depended on local machinery and materials companies for distribution. For Chinese automakers to carve out a niche in this market, they had to build their own distribution network from scratch.

Suning called Manager Sun from Tianchao Auto's marketing department into his office. "Manager Sun, how's the dealer recruitment going?"

Manager Sun said, "President Su, we are drafting a recruitment announcement, but there is a question I would like to confirm with you... How high should our threshold be? The threshold for franchised dealers of joint venture brands is very high. They have to pay hundreds of thousands of yuan in franchise fees, and they also have to pay a certain store size and invest in after-sales equipment. If we set such a high threshold, we may not be able to recruit many dealers."

Suning said, "The entry threshold won't be high, but standards will be set. The announcement clearly states three points: those with car sales experience will be given priority; those with their own showrooms and after-sales service capabilities will be given priority; and those who recognize the value of domestic brands and are willing to grow together with Tianchao Auto will be given priority. The first batch of authorized dealers will be exempt from franchise fees, and the manufacturer will provide unified store design plans and support for the first batch of display vehicles. The sales rebate policy will be directly written into the contract template, so that those who come to negotiate can see at a glance how much money they can make."

Manager Sun quickly jotted down notes in his notebook: "No franchise fee? Mr. Su, isn't that a bit too much?"

Suning said, "When a new brand opens up channels, who will work with you if you don't offer discounts? Distributors are not charities; they need to make money. We waive franchise fees, provide adequate support for display vehicles, and set rebate policies that are more generous than those of joint venture brands. Only then will they be willing to take the risk of becoming an agent for a new brand they've never heard of. What we need now is not to make a little money from franchise fees, but to expand our sales network as quickly as possible."

Manager Sun nodded and said, "Understood. I'll go back and revise the announcement, and send it out in the next couple of days."

……

After the recruitment announcement was published, Tianchao Auto set up a special business reception office at its Shunyi factory.

Xiao Zhao was transferred by Suning to take charge of overall coordination, and Zhuang Zhuang was also temporarily assigned to help with reception and data organization.

The two assistants are busy at the reception desk every day.

Inquiries from dealers all over the country came in one after another, the phone ringing from morning till night.

Zhuangzhuang's throat became dry from answering the phone so many times, and she ate half a box of throat lozenges on the table in one day.

"Hello, this is the Tianchao Auto Investment Promotion Reception Office. May I ask where you are from?"

"I'm from Wenzhou, Zhejiang, and I'm in the car trading business. I saw your recruitment announcement and would like to ask about the agency conditions for Qinglongyi."

"We have an electromechanical company in Heilongjiang that wants to become an agent for Baihu Yi. Do you have any special support policies for distributors in the north?"

"I'm from Guangzhou, and I used to work as an importer of cars. I'd like to know about your Zhuqueyi's authorization situation in South China. Do you offer territorial protection?"

There are many phone calls, and many people come to visit.

Local Beijing businessmen drove directly to the factory gate and told the security guards that they were there to look at the cars and discuss cooperation.

As soon as the security guard calls out on his walkie-talkie, Xiao Zhao has to run out to pick up the person.

A boss from the south sat at the reception desk for half a day, dragging his suitcase, and asked questions about every single contract clause from beginning to end.

All sorts of people come here anyway.

There was a dealer from Northeast China, in his forties, who used to sell Jiefang trucks. When he came in, he didn't look at the terms and conditions first, but asked the staff to take him to the workshop to see the production line.

Xiao Zhao accompanied him on a tour of the workshop. He stood by the welding line for a full ten minutes, watching the industrial robots swing their robotic arms in perfect unison. After watching, he turned to Xiao Zhao and said, "I've been selling cars for over ten years, and let me tell you a lesson... Manufacturers that dare to let dealers into the workshop can't be bad products. Those that are secretive and don't let you in are probably up to something. I've signed with Tianchao Auto; they'll reserve the dealership rights for me in three cities in Northeast China."

"Pleasant to work with."

"Pleasant to work with."

……

A dealer from the south, in his thirties and dressed in an expensive suit, walked in, sat down in a chair, crossed his legs, and asked Zhuangzhuang, "What advantages do Chinese cars have compared to joint venture cars?"

Zhuangzhuang said, "Our three major components are independently developed, and the price is 20% to 30% cheaper than that of joint venture vehicles of the same level. Moreover, our after-sales parts system is under unified management, and the prices of parts are open and transparent."

The man chuckled. "I believe it's cheap, but as for independent research and development... can a domestically produced car engine compare to Volkswagen's?"

Zhuang Zhuang said neither humbly nor arrogantly, "Sir, it's not up to me to decide. You can wait until our test drive vehicle arrives and take it for a spin yourself before making a judgment."

The man glanced at Zhuangzhuang, probably surprised that a young woman could be so composed. He put his legs down and sat up straight. "Okay, when will the test drive car arrive?"

Zhuangzhuang flipped through the schedule. "We'll be starting a nationwide test drive tour next month. Please leave your contact information, and we'll let you know when it starts."

There was also a local Beijing businessman, in his fifties, who used to run an auto repair shop and had saved up some money to switch careers to car sales.

This man didn't even look at the contract or ask about rebates. After entering, he circled the White Tiger display car parked at the reception area several times, then found Xiao Zhao and said, "I came here specifically for this White Tiger. I've driven for over twenty years and repaired cars for over ten. I just lay down and checked the chassis; it's a ladder frame, a transfer case—a genuine hardcore off-road vehicle. I'm sure someone in Beijing will buy this car. Do you offer a deposit for the dealership?"

Xiao Zhao said, "The first batch of authorized dealers are exempt from franchise fees, but they need to have certain financial strength and store conditions. You have a background in auto repair shops, so your after-sales service capabilities should not be a problem, but the store needs to be built according to our unified image standards."

The boss slapped his thigh and said, "I already have a shop. My auto repair shop's street-facing storefront can be renovated and used. No need to say more, just bring me the contract."

Among the dealers who came to discuss cooperation, the Northeast boss who sells Jiefang trucks and the Beijing merchant who runs an auto repair shop are both sincere and capable partners.

But some people are just there for the fun of it.

A middle-aged man with a southern accent came in, but he didn't pay much attention to the cars. He just kept asking questions as soon as he entered.

When will your brand be able to start advertising?

Do you have any celebrity endorsements?

"Could you add two more percentage points to your rebate?"

After asking a bunch of questions, she pressed on, "Are you sure I don't need to pay a franchise deposit? Can I get an authorization first, and then find a store location after I get back?"

Xiao Zhao could only politely see the person off. After seeing him off, he came back and told Zhuangzhuang, "This kind of person isn't here to sell cars at all; he's just here to reserve a spot. Even if he gets the authorization, he might not actually open a shop. From now on, we'll just weed out these kinds of people."

Zhuangzhuang made a note in her notebook: "I'll remember this. We need to see if the other party has their own store, sales experience, and sincerity. We should politely reject anyone who has none of these three things."

"Yes."

...(End of this chapter)