Tech Giants: Starting from Bankrupt Companies

317: Chapter 317 Nissan’s DefectionTwo days later, June 20th, 9:00 AM, Baoan Airport.

Nissan President Makoto Uchida’s private jet landed on the runway.

The 58-year-old Makoto Uchida, dressed in a dark gray suit, had his hair combed meticulously. As he stepped out of the cabin, he saw the person standing on the tarmac, and the corners of his mouth turned up slightly.

Gu Yanting had come in person.

”President Uchida, welcome.”

Makoto Uchida shook his hand with a firm grip.

”CEO Gu, Nissan is not here to negotiate. We are here to sign the contract.”

10:30 AM, Xingchen Headquarters signing hall.

On the long table, the contract was already prepared.

”Nissan-Xingchen Strategic Cooperation Agreement”

Joint Venture Name: Xingchen Nissan Automobile Co., Ltd.

Registered Location: Changsha, Hunan

Equity Structure: Xingchen holds 60%, Nissan holds 40%

Technical Division of Labor:

Xingchen provides: Battery systems, motor systems, electronic control systems, in-vehicle infotainment systems, intelligent cockpits, L3 autonomous driving.

Nissan provides: Vehicle design, production processes, global sales channels, after-sales service system.

First Model: Xingchen Nissan · Qicheng (electric sedan), to be launched in 2021.

Production Base: Changsha Economic Development Zone, with an annual output of 500,000 vehicles.

Total Investment: 70 billion rmb (split equally between both parties).

Target Markets: China, North America, Japan, Europe.

Makoto Uchida sat on one side of the long table, opened the contract, and read it carefully page by page.

Su Chen sat opposite him, quietly drinking tea.

Twenty minutes later, Makoto Uchida closed the contract and looked up.

”Mr. Su, I have a question.”

”Please, go ahead.”

”In Xingchen’s ecosystem, what is the relationship between Nissan and Honda? Are they competitors? Or partners?”

Su Chen put down his teacup and looked into Makoto Uchida’s eyes.

”President Uchida, Xingchen partners with Honda, and Xingchen also partners with Nissan. But between Honda and Nissan, you remain competitors. Xingchen does not engage in exclusive partnerships; Xingchen only acts as an enabler.”

He paused.

”You use your own products, your own brands, and your own channels to compete. What Xingchen gives you is—technology that is better than your competitors’.”

Makoto Uchida was silent for three seconds.

Then he smiled.

”Good. I accept that answer.”

He picked up a pen and signed his name on the last page of the contract.

Makoto Uchida.

Su Chen also signed.

The two stood up and shook hands.

Camera flashes went off.

2:00 PM, joint press conference.

Below the stage, more than 300 media reporters were present, even more than during the Honda signing. The eyes of the global automotive industry were focused on Shenzhen.

A reporter raised their hand: ”President Uchida, why did Nissan choose Xingchen instead of self-research?”

Makoto Uchida’s answer was very direct.

”Nissan has been developing electric vehicles on our own for ten years. We have invested hundreds of billions of yen and hundreds of engineers. But the result is—Xingchen’s technology is two generations ahead of us, and the cost is 30% lower than ours.”

He paused.

”In the business world, this is called reality.”

Another reporter raised their hand: ”CEO Su, will there be internal competition between Xingchen Nissan and Xingchen Honda?”

Su Chen smiled.

”There should be. We provide the technology, but we do not interfere with corporate operations.”

The reporters were stunned.

Su Chen continued:

”What Xingchen gives to our partners is the same technology platform. But Honda has Honda’s design, and Nissan has Nissan’s philosophy. They use the same technology to build completely different cars. Consumers vote with their wallets; whoever wins is the better brand.”

”This is not internal attrition; this is healthy competition.”

4:00 PM, flight to Changsha.

After the signing, the group flew directly to Changsha.

A forty-minute flight later, the plane landed at Huanghua Airport.

Zhang Jianguo, Director of the Changsha Economic Development Zone Management Committee, came to pick them up in person. He was fifty years old, wore glasses, spoke quickly and forcefully, and was a typical Chinese official.

The motorcade drove out of the airport, speeding toward the Economic Development Zone.

The scenery outside the car window was very similar to Wuhan—overpasses under construction, brand-new residential buildings, and sprawling industrial parks.

The motorcade stopped in front of a large, level plot of land.

Zhang Jianguo pointed into the distance: ”Here is the site selection for the Xingchen Nissan project. Two thousand mu, enough to build a factory with an annual output of 500,000 vehicles.”

Makoto Uchida got out of the car and stepped onto the soft soil.

The wind blew, kicking up a cloud of dust.

He thought of the congestion around the Nagoya factory. In Japan, finding a factory site with a capacity of 500,000 vehicles would take five years to negotiate. Landowners, local governments, environmental organizations, resident associations... every link could get stuck.

Here, five months was enough.

Zhang Jianguo pointed to a substation under construction in the distance: ”That is built specifically for you. Over there is the employee dormitory area, which can house 20,000 people. Over there is the logistics park, which will open to traffic next year, connecting directly to the Beijing-Hong Kong-Macau Expressway.”

Makoto Uchida listened and suddenly smiled.

He turned to Gu Yanting: ”CEO Gu, I have truly witnessed the speed of China.”

Gu Yanting also smiled: ”President Uchida, you will get used to it.”

7:00 PM, Changsha signing banquet.

By the Xiang River, at the Du Fu Pavilion.

Through the window, one could see the lights of Orange Island. The Xiang River flowed quietly in the night, and the silhouette of Mount Yuelu was faintly visible.

Su Chen, Makoto Uchida, Gu Yanting, Zhang Jianguo, and four core directors from Nissan sat around a table.

On the table were authentic Xiang dishes: chopped chili fish head, Mao-style braised pork, spicy crayfish, and steamed preserved meat.

Makoto Uchida raised his glass.

”Mr. Su, this toast is to the rebirth of Nissan.”

Su Chen raised his glass.

”To cooperation, to trust.”

The two drank it in one gulp.

Makoto Uchida put down his glass and said seriously:

”Mr. Su, when Honda signed, there were still many people inside Nissan who were hesitant. They said, ’Wait a bit longer, see the results from Honda.’ As a result, Honda’s stock price rose by 15%, and Toyota’s fell by 5%. Everyone who was hesitant changed their minds overnight.”

He smiled.

”So, Nissan is not here to negotiate. We are here to embrace the future.”

Su Chen nodded.

”I understand. Therefore, the terms Xingchen offered Nissan are exactly the same as those for Honda. Fairness is the greatest sincerity.”

Two days later, June 22nd, Tokyo, Mitsubishi headquarters.

President Takao Kato sat at the head of the meeting room table, watching the news of the Nissan signing on the big screen.

The 60-year-old Takao Kato had worked at Mitsubishi for 35 years, rising from a production line worker step by step to president. He had seen Mitsubishi’s glory and had also experienced Mitsubishi’s crises.

But at this moment, what he felt was unprecedented anxiety.

”Honda and Nissan have both signed,” he said in a low voice, ”What about Mitsubishi?”

The head of the strategy department said cautiously: ”President, let’s go to Shenzhen too.”

Takao Kato smiled bitterly.

”We definitely have to go. The question is, is Xingchen still accepting?”

”I heard Xingchen’s production capacity is already booked until next year.”

Takao Kato was silent for three seconds.

”Then we’ll get in line. It’s better than waiting to die.”

10:30 AM, Hiroshima, Mazda headquarters.

The same scene.

President Akira Marumoto stood in front of the window, looking at Miyajima in the distance. One of the three most scenic spots in Japan, a holy land in the hearts of Mazda people.

But at this moment, he had no heart to appreciate it.

Behind him, the vice president was reporting: ”After Honda signed, their stock price rose by 15%, and after Nissan signed, it also rose by 12%. The market is voting with money.”

Akira Marumoto sighed deeply.

”Mazda’s pride, the rotary engine, is worthless in the electric era.”

The vice president said cautiously: ”President, should we go to Shenzhen too?”

Akira Marumoto nodded.

”Honda went, Nissan went, what is the consequence if we don’t go? It is that in 2025, Mazda becomes the fourth in Japan, and then slowly disappears.”

He picked up the phone.

”Send a visit application to Shenzhen. Just say that Mazda wishes to explore the possibility of cooperation with Xingchen.”

2:00 PM, Lin Wan pushed open the door to Su Chen’s office.

”CEO Su, Mitsubishi and Mazda have just sent visit applications at the same time.”

Su Chen was reading a document; he looked up upon hearing this and smiled.

”Let them get in line. After Honda and Nissan signed, the entire global automotive industry knows that Xingchen’s capacity is tight. Those coming now are all trying to cut the line.”

Gu Yanting sat nearby and asked: ”How should we respond?”

Su Chen thought for a moment.

”Reply to them: Xingchen welcomes all partners willing to cooperate sincerely. But capacity is limited, and cooperation applications will be evaluated in chronological order. It is recommended to first send a delegation to Shenzhen for preliminary communication.”

Lin Wan smiled.

”This is to make them line up?”

Su Chen shook his head.

”Not line up. It’s to divide them. The Japanese automobile alliance has existed for decades, jointly developing, jointly purchasing, and jointly resisting external competition. Now, Honda and Nissan have jumped out to sign separately, and this alliance is broken. If Mitsubishi and Mazda come again, it will be even more broken.”

4:00 PM, data impact.

Zhang Zhen walked into the conference room with a report in his hand.

”CEO Su, I just did the math.”

He turned on the projector:

Honda Motor: 2018 global sales of approximately 5.3 million vehicles.

Nissan Motor: 2018 global sales of approximately 5.8 million vehicles.

Total: 11.1 million vehicles.

Zhang Zhen pointed to the screen: ”Of course, not all cars will use Xingchen’s three electric systems. In the next three years, the electric vehicle production of Xingchen Honda and Xingchen Nissan will be about 800,000 to 1.5 million vehicles. But what does this brand influence of 11.1 million vehicles mean?”

Su Chen took over the conversation.

”It means that global consumers will see that Honda and Nissan are both using Xingchen’s technology. This psychological suggestion is more effective than any advertisement.”

Zhang Zhen turned to the next page.

Global new energy vehicle three-electric system market share (forecast, 2022).

Xingchen/Spark: 82%

LG/Samsung: 8%

CATL: 5%

Others: 5%

Gu Yanting gasped.

”80%... This is a monopoly.”

Su Chen shook his head.

”Not a monopoly. It is natural selection brought about by technological leadership. As long as Xingchen’s technology maintains a generational gap, all car companies will choose Xingchen. It is not Xingchen forcing them; it is their own choice.”

7:00 PM, Su Chen’s office.

Lin Wan delivered the final piece of news.

”Toyota is still arguing internally. The conservatives advocate increasing investment in self-research, while the reformers advocate lining up to sign immediately. At present, the reformers have the upper hand, but Akio Toyoda is still hesitant.”

Su Chen nodded.

”Let them argue. The longer they argue, the more thoroughly they will be divided.”

He stood up and walked to the window.

Outside the window, the lights of Shenzhen extended to the horizon. The Ping An Finance Center shone brightly in the night; it was the tallest building in the city and also a symbol of the new order.

”Three years ago, the Japanese automobile alliance was still discussing how to blockade Red Flag. Now, they are fighting among themselves first.”

Lin Wan stood beside him.

”Is this the result you wanted?”

Su Chen nodded.

”The Japanese automotive industry, starting from sweeping the globe in the 1980s, has always been an ironclad block. They jointly researched, jointly purchased, and jointly set standards, making European and American car companies suffer greatly.”

He paused.

”Now, this ironclad block has cracked.”

Outside the window, the night was deep.

Further away was the direction of Tokyo.

In the meeting rooms there, the arguing was still continuing.

But the cracks could no longer be repaired.