Chapter 119: Allow Me to Say a Few Words

Faced with such a monumental question from Li Kejian, Zhao Guoyang felt a bit conflicted.

It wasn't that he didn't know what to say; in fact, no one understood the future trajectory of the domestic automotive industry better than he did. As for how the global automotive industry would evolve, no one could match his experience and imagination. But could he simply say such things aloud? The answer was clearly no. Zhao Guoyang knew very well that if he were to voice his true thoughts and insights, these high-ranking officials would likely have him whisked away to some mysterious "Center for Abnormal Human Research" the very next moment.

Yet, given the current circumstances, staying silent was not an option. After all, back in Yangcheng at the Four Sheep Group, he had already opened the door. It was too late to hold back now.

Noticing Zhao Guoyang's hesitation, Fang Xuesen assumed he was nervous and said with a smile, "Little Zhao, feel free to speak your mind. It doesn't matter if you're wrong; we're just exchanging ideas."

Wang Ziqing quickly chimed in, "Exactly, exactly. Little Zhao, go ahead and report your thoughts to the leaders."

With Director Fang having spoken and encouraged by Wang Ziqing’s expectant gaze, Zhao Guoyang could only nod. He collected his thoughts and began in a measured tone, "Since the leaders have asked, I will be so bold as to offer a few words."

"As far as I know, the state adjusted the layout of the sedan industry in 1990 to the 'Three Bigs and Three Smalls' strategy. It is too early to conclude whether this strategy is right or wrong; after all, it hasn't been implemented long enough to see the results."

"Therefore, I can only share my personal views on these 'Three Bigs and Three Smalls' enterprises based on the current domestic market and some feedback I've heard regarding product quality."

Zhao Guoyang scanned the room and continued confidently, "First, I must mention FAW-Volkswagen, one of the 'Three Bigs.' In 1988, FAW signed a contract with Audi to assemble and produce the Audi 100 model. Last year, they added the 200 model."

"Due to Audi's formidable technical capabilities and the superior performance of these two vehicles, it must be said that they have practically no competition in the domestic market. Their popularity is truly astonishing."

"However, FAW has not neglected the other 'big fish' because of Audi's success. Their joint venture with Volkswagen, the Golf-Jetta, has also achieved remarkable results."

Zhao Guoyang raised his voice slightly. "Therefore, based on current development trends, I personally feel that FAW has successfully set a good example. It should be the undisputed leader of the domestic industry in the future..."

These words from Zhao Guoyang struck a chord with Fang Xuesen. In fact, the cooperation between FAW and Audi had been facilitated through his own extensive efforts. Fang Xuesen’s rise from an unremarkable junior deputy director to the Executive Deputy Director of the State Machinery Commission in just a few years was inseparable from his success with the FAW strategy; it was something he took great pride in.

After commenting on FAW, Zhao Guoyang turned to Second Automotive Works (SAW). As one of the "Three Bigs," its development had been far less dazzling than FAW's.

Zhao Guoyang said with a hint of regret, "Actually, I believe the reasons why SAW's development hasn't reached the same heights as FAW's are multifaceted. After all, no one could have anticipated that just as SAW signed the contract with Citroën, France joined the Western economic bloc, leading to the project being shelved indefinitely..."

"However, even if it is on hold, Citroën's strength is beyond doubt. I believe that once the ice in trade between China and France is broken, SAW will still have significant room for development in the future..."

After finishing, Zhao Guoyang paused for a moment to let the leaders digest his points. Fang Xuesen and Li Kejian exchanged glances, each seeing a flash of surprise in the other's eyes. They had initially asked Zhao Guoyang to comment on the "Three Bigs and Three Smalls" just to gauge the young man's horizons and depth. They hadn't expected much in the way of constructive advice. Yet, this young man's concise remarks had hit the crux of the current development of FAW and SAW, and some of his points held significant reference value for the future of the domestic auto industry.

As Fang and Li exchanged looks, Songjiang Mayor Huang Zhigang glanced at his subordinate three seats away, Liang Xiaofeng. Seeing the mayor's look, Liang Xiaofeng understood and cleared his throat, breaking the brief silence in the meeting room.

"Comrade Zhao, now that you've finished with FAW and SAW, why stop there? Next, you should talk about our Songjiang Auto Group..."

Zhao Guoyang smiled slightly at Liang Xiaofeng and said, "Director Liang, don't be impatient. I was just about to get to that."

He gathered his thoughts and spoke calmly, "In truth, among the major domestic auto enterprises, Songjiang Auto has the easiest life. The Santana model alone is something the other major factories can only look up to."

"As far as I know, the localization rate of the Santana has already exceeded 80%, and the product is in short supply in the domestic market. There is no doubt it will remain popular for several more years..."

Hearing this, everyone nodded repeatedly. Mayor Huang’s smile was particularly radiant. As mayor, he was naturally delighted by the impressive achievements of the Songjiang Auto Group. He knew the internal situation: not long ago, when Huang Zhigang made the difficult decision to stop production of the Songjiang sedan, the workers below were very unhappy, feeling as though their livelihoods had been taken away.

In truth, making that choice had been difficult and regrettable for Huang Zhigang. The Songjiang brand had a history of over thirty years, dating back to 1958. To stop production just like that and merge it into the Songjiang Auto Group required immense courage from the decision-maker.

However, the far-sighted Huang Zhigang understood one thing: for Songjiang Auto Group to develop better in the future, he had to have the determination to "cut off his own wrist" for the greater good. Although the current negotiations for further cooperation with German Volkswagen were not progressing smoothly, Huang Zhigang believed that the path he and the group had chosen was the right one. Once the terms were finalized and both sides increased their registered capital, a simple renovation of the Songjiang brand’s production facilities would allow for a second-phase project, effectively creating a new Songjiang Auto. Such a temptation was something Huang Zhigang could not refuse.

Just as Huang Zhigang was lost in thought, Zhao Guoyang began to share his opinion. He picked up a pen and drew a circle in the air, saying loudly, "I think that as long as the strategic direction remains correct, Songjiang Auto Group's leading position in the domestic industry will be maintained for a long time. If I had to point out one area for improvement, it would be a lack of personalization."

Hearing this, both Huang Zhigang and Liang Xiaofeng were taken aback. Before Liang could speak, Huang Zhigang asked directly, "Little Zhao, hurry and explain—what exactly do you mean by this 'lack of personalization'?"