Rebirth, 1980. A life without regrets.
43 The profiteering bicycle industry

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Half a month later, Auntie Chen called back from Japan.

"Yuechen, an automatic bicycle production line here costs 200,000 RMB! Do you think this price is appropriate?"

"200,000 it is. Bring two of them over first. Also, get them to send two technicians over to guide them.”Xiao Yuechen said.

"Will I lose money if it's so expensive?" Auntie Chen was a little worried.

In this era, the purchasing power of RMB was still relatively strong. Naturally, it felt very expensive. If it was in the 21st century, this little money would not even be enough.

"I'm sure you won't. Nowadays, you need a ticket to buy a car. You can't buy one without a ticket!”

In this era, bicycle factories in villages and towns had yet to flourish. Almost all of them were monopolized by the state. It was almost difficult to find a bicycle with the permanent brand or the Phoenix brand.

There were no tickets and no connections, so they definitely couldn't buy it. This industry would still have a future in the 1990s.

"Alright, I'll go talk to him again." Auntie Chen replied.

"We must hire a few technicians.”Xiao Yuechen emphasized.

"I know…"

After saying that, Auntie Chen hung up.

While the production line was being contacted, Xiao Yuechen hurried to Ha City.

The factory had been under construction for half a month, and they were trying to start work when the production line arrived.

A few days later, the purchasing department of his aunt's factory found a power engineer called He Quan.

He was poached from the Phoenix brand bicycle factory, so the salary was naturally high.

Xiao Yuechen offered a monthly salary of 1500 yuan. Without enough benefits, who would be willing to come?

After He Quan arrived, Xiao Yuechen immediately made him the chief engineer of the bicycle factory and hired people from the surrounding areas.

The factory had been built for more than a month, and the two light bicycle production lines had arrived.

There were two types of bicycles, men's and women's, and both of them had much smaller wheels than the current bicycles.

Wheels like the Big Iron Bull were tall and big. When getting on or off the car, one had to swing one's legs backward before sitting on it. It was very inconvenient.

Moreover, it was so high that it looked very dangerous. In fact, this kind of bicycle was used for carrying heavy loads. It was practical, but it would eventually be replaced by light bicycles.

His father had started the application process for the factory half a month ago. With the help of Grandpa Wang, the documents were easily approved.

Along with the production line were two technicians from Japan and a translator. These two technicians would be fired after one or two months of guidance.

Xiao Yuechen also took this opportunity to communicate more with the Japanese translator. After all, he only learned from his aunt's colleague. It would be better to communicate with a native.

Under the guidance of these two technicians, the production line began to be installed. It was semi-automated, but it was more labor efficient than the current domestic bicycle assembly plant.

Once the production line was installed, work started immediately.

However, there was still some time before production. Because more than 200 workers were inexperienced, they did not know what to do at all. They had to be taught step by step.

Other than the frame of the bicycle, which was pulled out by himself, most of the other parts were imported from Japan.

Everything was difficult at the beginning. Who asked the country to not have factories that produced these parts!

However, Xiao Yuechen's plan was to use this bicycle factory to boost the economy of the suburbs of Ha City and form a bicycle parts production base.

Under the guidance of the two Japanese technicians, the bicycle factory slowly got on the right track. It was not a very technical thing, and it only took three days to put it into production.

The first was the frame. The welders pulled out the steel pipes, then Welded them together, and then sent them to the semi-automatic production line to transport the frame to the next assembly point.

After each assembly point, the workers had gradually installed the various parts.

After that, he filled it with air and started painting.

The first was the light men's bicycle. This kind of bicycle was painted black and looked metallic. It was cool.

According to Xiao Yuechen's request, he would spray as cool as he could. He did not want to be the coolest, but only cooler.

Then, he wrote a line of letters and Chinese characters. On one side, he wrote 'National Power' while on the other side, he wrote 'Fashion Choice'.

There was also a brand logo. The word 'Long Teng' was printed on the back of the sponge cushion. This was the brand that Xiao Yuechen had nominated herself-the 'Long Teng' brand bicycle!

On the first day of official production, the two production lines produced more than 500 bicycles each.

The production capacity of these two production lines was about 2,000 bicycles a day.

They had only produced 500 cars. Apart from the unskilled workers, there was also a lack of manpower, especially when it came to welding the frame.

The market research department that his father had helped to set up had already done a clear survey of the bicycle industry.

The average selling price of a bicycle was 150 yuan, which was equivalent to two months 'salary. The more expensive ones could be sold for 180 to 200 yuan.

Xiao Yuechen calculated the cost of the bicycles in the factory. It was about 40 yuan per bicycle.

According to the investigation, the cost of a Phoenix brand bicycle was 50 yuan, and the appearance price was 110 yuan. It was very profitable, and the workers in these factories were treated very well.

Although most of Xiao Yuechen's bicycle parts were imported from Japan, the technology transfer there was far better than in China.

Therefore, the price of bicycle parts was much cheaper than the cost of domestic products.

This could be seen in the future when Japanese bicycles could still compete in the country.

Therefore, Xiao Yuechen decided to set the ex-factory price of her bicycle at 110 yuan. She believed that this kind of light bicycle would sell much better than Big Iron Bull.

There was no need for him to engage in malicious competition.

In history, the decline of the Yongjiu and Phoenix bicycle factories was not due to profit problems, but because of the competition of models.

The bicycle models of these factories were old. When a large number of township private enterprises were established and new models of bicycles were introduced, these old bicycles only had a market in the countryside!

Xiao Yuechen earned 60,000 yuan from selling the bicycles.

Xiao Yuechen took out a loan of two million yuan with the factory equipment as collateral. She then asked Auntie Chen to buy ten more production lines!

This book comes from:m.funovel.com。

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