Tycoon of a car company

"President Xiao, the sales director from Bosch just sent an official notice. If we don't make an advance payment for the goods within this week, they're going to cut off the supply!"

In the general manager's office of Nanshan Automotive Co., Ltd., Xiao Hui had just returned from the R&D center when Purchasing Director Wang Fugui came in with a nervous expression to report the latest supply situation.

"Our payment cycle is two months. For parts delivered this month, payment is made the month after next. What gives them the right to demand advance payment?"

Wang Fugui couldn't help but complain internally.

Nanshan Automotive's monthly sales had plummeted to three digits, and cash flow was already extremely tight. Rumors were swirling outside. Didn't Xiao Hui have any idea of their dire situation?

"Michelin's Boden also just called me. He said that if payment isn't received, they'll start reducing supplies from next Monday."

"What do you mean by 'reducing supplies'?"

"It means if our order is for 100 tires, they'll only supply a portion of that."

"Which other suppliers are demanding advance payment before they're willing to deliver?"

"Um… well…"

Wang Fugui hesitated, worried that the young general manager might make an impulsive decision.

Offending one or two suppliers was manageable for him as the purchasing director.

But if they alienated all the key parts suppliers at once, Nanshan Automotive would immediately halt production.

Unfortunately, in this world's version of China's auto industry, domestic suppliers lagged far behind their international counterparts.

For components like ESPs and ABSs, international giants like Bosch and Denso had total monopolies.

Besides the body panels and some interior parts, nearly all functional components in cars depended on these giants.

Independent automakers had suffered countless losses because of this.

But there was no other choice—if you wanted to manufacture cars, you couldn't do it without them.

Being forced to act like a supplicant as a client was a bitter pill to swallow.

Even worse, if any domestic brand vehicle became a bestseller, suppliers would suddenly claim "insufficient production capacity," refusing to supply enough components even at higher prices.

These "choke points" in the supply chain continually tested Xiao Hui's patience.

"What do you mean 'um'? Are you constipated?"

Xiao Hui lashed out irritably.

Having been in this world for over a week, he had largely adapted to his new identity and circumstances.

But seeing a domestic automotive company being trampled on by foreign parts suppliers made him feel deeply frustrated.

In his past life, he had been a programmer at Huawei, witnessing firsthand how the company humiliated so-called international giants in the Middle East and Africa.

Now, in this alternate world, facing such bullying from parts suppliers, he found it hard to accept.

"Besides Bosch and Michelin, several other suppliers, including ZF and Denso, have made similar demands.

President Xiao, to be honest, I think selling the company wouldn't be a bad option. We all understand the current situation."

Wang Fugui glanced at Xiao Hui, who didn't seem angry, and continued sharing his thoughts.

"Right now, we're only struggling with cash flow. Apart from parts payments, we don't have any other debts.

Yesterday, when the head of the reform committee visited, he clearly stated that if our annual car sales don't reach 10,000 units this year, our production license will be revoked.

While our production license is still worth two or three hundred million euros, I suggest we sell it as soon as possible."

Wang Fugui had watched Xiao Hui grow up, so he dared to speak this bluntly.

Xiao Hui's father, Xiao Sr., had started as a successful trader, making substantial profits as one of the largest merchants dealing with Russia in the 1990s.

But after being swayed by patriotic slogans like "revitalize the nation through industry," he poured his entire fortune into the auto industry in the late '90s.

He established Nanshan Automotive Co., Ltd., building an advanced factory designed for an annual production capacity of 300,000 units.

The company launched high-end models, aiming to become "China's BMW and Benz."

The result, however, was predictable…

The automotive industry's trajectory in this world was markedly different from what Xiao Hui remembered.

China's policies on foreign investment in the automotive sector were also unique—there were no joint-venture restrictions requiring foreign ownership to stay below 50%.

Despite these differences, other industries closely resembled the mid-2000s era from Xiao Hui's previous life.

In recent years, China's government had begun consolidating its automotive sector, aiming to grow stronger domestic brands by reducing the number of manufacturers.

Companies with annual production below 10,000 units faced losing their production licenses.

Simultaneously, new licenses were no longer being issued, and existing ones were revoked, causing their value to skyrocket.

"When they lured my father to invest here in Nancheng, they certainly didn't say this. Now that our sales are down, they're showing their true colors?"

"President Xiao, the rules are theirs to make; we can only adapt."

"Fine, I understand the situation. Send in the finance director."

Xiao Hui's frustration was evident, but he knew Wang Fugui wasn't to blame.

Still, he had no interest in continuing the conversation.

Several other department heads were waiting to see him.

"President Xiao, what about Bosch and Michelin's payments…?"

"If they want to cut off supplies, let them. But make it clear—if they stop now, they'll never supply us again!"

Wang Fugui grew anxious. "Running a business isn't child's play, President Xiao. We can't act on impulse…"

"Leave, now!"

Wang Fugui: …

There was no point arguing with the boss. Wang Fugui reluctantly left the office.

"President Xiao, we only have 200,000 euros left in the account. We won't even be able to pay wages tomorrow!"

Finance Director Li Jinming entered with yet another grim update.

"What's the status of our bank loan applications?"

"Unless we use the production license as collateral, no bank in Nancheng will lend us anything."

"Our factory is massive, and just the equipment alone is worth hundreds of millions. Isn't that enough for collateral?"

"**The land was allocated by the Nancheng government for free; we don't own it.

Most of the equipment is seven or eight years old and due for replacement.

But the most critical issue is…**"

Li Jinming hesitated, clearly reluctant to say more.

"What is it? We're already at rock bottom; just say it."

"President Xiao, the French company Renault is planning to build a factory in Nancheng. Rumor has it they're close to finalizing a deal with the local government and just need a production license. Our trouble securing loans is likely related to Renault."

"How can a French company influence our banks?"

"Renault alone can't, but the Nancheng government can."

Xiao Hui was speechless.

This predicament was tied to the unique policies governing China's automotive sector in this world.

To encourage mergers and acquisitions, the government had made production licenses increasingly scarce.

With only two domestic companies in Nancheng holding licenses, the difficulty in securing loans became understandable.

"Agree to the banks' conditions, but I want at least three hundred million euros in collateral!"

"What? Agree to their terms? President Xiao, they're only offering a one-year loan. We'll never be able to repay it by next year…"