The Amazing son in law Chapter 7639

“Because the core logic of car manufacturing is the assembly and reproduction of countless parts and solutions, from aluminum and steel to motors, batteries, seats, steering gears, suspensions, tires, and even the inconspicuous wiring harnesses hidden in the car body, all need to be screened and integrated from the supply chain;”

“This ability determines the lower limit of product costs. For example, different restaurants can make the same dish, even if the ingredients and service quality are the same, but the cost will not be the same. This is because everyone’s bargaining power varies. A chain restaurant with large volumes has lower procurement costs for all ingredients than an average restaurant, so the cost of making the same dish is lower than that of an average restaurant. However, if a restaurant can find an authoritative figure in the vegetable supply field, who has great influence and status in the vegetable supply industry, then they may be able to get a lower price than even the big restaurants can. To put it bluntly, it requires strong bargaining power to convince suppliers to take a lower profit from us.”

charlie Wade asked him: “Then what are our capabilities in these two areas?”

hank said, “Master Wade, regarding resource integration capabilities, we can be said to be number one in the domestic automotive industry. This is because your grandfather has a great influence in the global trade market. With the An family’s help, we can obtain equipment and technologies that many other manufacturers cannot.”

At this point, hank added: “As for our supply chain integration capabilities, based on our current discussions, we wouldn’t say we’re far ahead, but we can maintain our position in the first tier. Suppliers are very optimistic about bruce Auto’s future development, so even though we haven’t had any mass-produced cars roll off the assembly line yet, they can still supply us with the same conditions as top OEMs.”

charlie Wade thought for a moment and asked him: “Major suppliers, do we still have room to lower prices further?”

hank said, “Currently, the largest single cost item for a vehicle is the battery power system. Your grandfather and second uncle have already started planning the production of power batteries. Once they are completed and put into production, they will definitely cooperate closely with us. Other suppliers are too diverse, and most are domestic manufacturers. For chips, they are Qualcomm and Nvidia. The body safety systems are mostly provided by German suppliers, the tires come from French suppliers, and the brake systems come from Italian suppliers. Overall, the bargaining power of European suppliers is not very high.”

charlie Wade smiled slightly: “Whether the bargaining space is high or not depends on who is negotiating. Whether you go or I go, I’m afraid those Europeans will not give us face. However, I do have a friend who can help mediate. If he comes forward, I believe that European and American suppliers will definitely agree.”

hank asked curiously, “Mr. Wade, if you know such a capable person, why not let him join bruce Automobile and take charge of our supply chain?”

charlie Wade smiled and said, “I plan to let Steve Rothschild, the heir of the Rothschild family, help us negotiate the price. This guy is indeed a capable person. It’s definitely okay for him to help us privately, but if he is asked to join bruce Automobile, that would be a bit too magical.”

hank exclaimed, “The heir to the Rothschild family?! Oh my God, half of those foreign suppliers I just mentioned are actually industries actually controlled by their family. This is no longer just a capable person, this is a very capable person!”

“Really?” charlie Wade suddenly said in surprise: “That’s great, Comrade Steve Rothschild has finally found an opportunity to show his talent! I’ll call him later and ask him to come out and say hello to those suppliers.”

hank said happily, “That’s great! If we can further reduce the cost and lower the price, the car’s cost-effectiveness will be even higher. Maybe we can really create a few national masterpieces!”