Chapter 540 - 239: The Cost of Business Warfare (Part 2)
Chapter 540 - 239: The Cost of Business Warfare (Part 2)
Because the domestic market for new energy vehicles is just beginning, their scale is quite limited, and there isn’t much market demand.
Even though their motor drive technology is top-notch domestically and still among the best globally, they couldn’t secure many large orders.
But the emergence of Extreme Shadow Cars broke their previously stable rhythm.
Because Extreme Shadow Cars were remarkably willing to invest.
They ordered 100,000 sets of motor systems in the first batch, all of which were of the highest specifications.
At the same time, Extreme Shadow Cars also planned to invest four hundred million for them to carry out product research and iteration.
Of course, there was only one requirement, which was that new technologies be used by Extreme Shadow Cars first.
Is this even a requirement? It’s nothing!
Providing money for research and shouldering the market risks, where else in the world would you find such an easy opportunity?
They really hoped that Extreme Shadow Cars would succeed, so the company would not lack orders.
Upon seeing the surge in orders for Extreme Shadow Cars, they were extremely happy.
This is what you call a win-win cooperation.
However... this happiness didn’t last long.
On January 30th, the orders for Extreme Shadow Cars exceeded 6,000 vehicles, and a piece of news about Extreme Shadow Cars’ procurement prices broke in the market.
Someone received the car and then disassembled it, re-pricing all the parts, and finally discovered... the cost price of an Extreme Shadow Car was only 165,000.
At the same time, someone posted the quotations received from Extreme Shadow Cars, finding all component prices to be outrageously high.
Especially the motor system from Huichuan Power, where a small company could purchase the same motor system for just 2,700 per set.
But on the Extreme Shadow Cars’ end, one car used four sets, each with a procurement price of 4,500.
Exactly the same thing.
Initially, Huichuan Power hit the ceiling limit after opening today, but due to this news, the market tumbled.
This might involve the transfer of benefits and the amount involved was considerable.
Once confirmed, many people might get arrested.
But that’s just one issue; according to the exposed procurement lists, almost every item for Extreme Shadow Cars had problems with procurement costs being severely inflated.
Huichuan Power knew better than anyone that these prices were inflated.
But Extreme Shadow Cars were willing to buy, and they actively increased the prices.
Now, neither Extreme Shadow Cars nor the corresponding suppliers knew what to say.
For suppliers, making so much money for the first time, they definitely sided with Extreme Shadow Cars.
But whether Extreme Shadow Cars admitted it or not, it was a no-win situation.
If they admitted, it meant treating the users as suckers.
If they didn’t, with purchase orders thrown in their faces, wouldn’t not admitting only cause more suspicion?
This issue might directly cause the collapse of Extreme Shadow Cars.
...
Li Yang was still in charge of car deliveries, until he completed the handover of all 1,000 cars.
These were all the first batch of guinea pigs for Extreme Shadow Cars, and Li Yang didn’t want them to suffer any losses.
Putting in some extra effort was no big deal, at least making them feel that buying the car was worth it.
During the lunch break, the company informed him of the online situation.
Extreme Shadow Cars’ general manager Feng Xinli also rushed over as soon as possible.
"President Li, should we respond to this issue?"
Li Yang glanced at the reports and asked, "The ones who looked at the procurement lists, they should have all signed confidentiality agreements, right?"
"Yes, we’ve already identified who it was."
Each procurement list was unique, with a distinctive code embedded in the documents.
It could even be directly hidden within the data information.
If anyone dared to take a screenshot of the procurement list, no matter if it was a photo or anything else, they could immediately identify who made the mistake.
Li Yang tapped on the table, "Then first handle the issue of the leaked procurement list. Give the legal department something to do. As for the rest... let’s discuss it when I have time tonight."
"Okay."
Feng Xinli never hesitated over any decision made by Li Yang.
Li Yang only expected him to have his own opinions when needed. Otherwise, he considered himself a tool person.
He was more aware than anyone else of the procurement situation, with price increases as per Li Yang’s direct instructions.
At the time, he didn’t understand... he still doesn’t understand now.
But he never doubted that Li Yang would be taken advantage of, even if he truly was.
After Feng Xinli left, Jiang Banxia asked, "What does Master Li plan to do? Are we going to make it public?"
She knew very well that Li Yang was in a dilemma. If he publicly admitted to self-raising procurement prices, users would feel bad about it.
If Li Yang tried to pacify users by saying the purchase points were just subsidies, things would only escalate.
Because those purchase points couldn’t have value; if they did, it would be a violation.
"Let’s deliver the cars for the afternoon first, and then we can talk about it."
Jiang Banxia sighed, "It seems like nothing is ever that easy."
Her Wanliu Capital had it too easy, never encountering any real difficulties.
Every time there was a problem, Li Yang could resolve it in no time, allowing her to earn significant profits.
Now that Li Yang was facing a problem, she found she couldn’t help at all.
"What are you thinking? This little issue is nothing, it’s a minor thing that’ll be easily resolved. Hurry up and eat, we’ve got a busy afternoon ahead."
Li Yang felt quite ashamed that he had been in Jiangbei for several days without visiting Bai Qing.
But it would soon be resolved, in another five days.
That afternoon, after delivering dozens of new cars, he returned to his residence.
Li Yang picked up his laptop and started to post on Weibo.
About an hour later, a fresh Weibo post was officially released.
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