472: The anger of global oil giants!

In his previous life, during the era when 92 octane gasoline cost 8 yuan per liter, why did many people prefer to drive electric cars for short trips instead of gasoline cars? Wasn't it because of the excessively high fuel prices?!

But if, at this time, Shuguang Automobile only required less than half the gasoline of other cars, people would naturally be willing to drive Shuguang Automobile instead of electric cars just to save a little on fuel costs.

Therefore, fuel consumption has a really significant impact on consumers and can determine their purchasing preferences.

Whether or not to sell the Pure Compression Ignition Gasoline Engine to these car manufacturers will determine their future decline or prosperity.

Under these circumstances, the presidents and vice presidents of Global automobile manufacturers present at the scene looked nervously at Lin Chen, unsure of his final answer.

Lin Chen, at this moment, was deep in thought, clearly hesitating.

After several seconds of tense observation, Lin Chen slowly began to speak:

"Currently, the patents and ownership of the Dawn Pure Compression Ignition Gasoline Engine and the three-clutch automatic transmission are held by the Shuguang R&D Center.

Shuguang Technology initially invested in the research and development of the Pure Compression Ignition Gasoline Engine and the three-clutch automatic transmission, so Shuguang Technology holds a significant share of the profits and distribution rights.

We do not intend to exclusively hold the Pure Compression Ignition Gasoline Engine, so we welcome any Global automobile manufacturer to purchase our Pure Compression Ignition Gasoline Engine.

As for the three-clutch automatic transmission assembly, we need to maintain Shuguang Automobile's exclusive core technological advantage.

Therefore, regarding the three-clutch automatic transmission assembly, we do not plan to sell it externally.

Under these circumstances, other automobile manufacturers can purchase our Pure Compression Ignition Gasoline Engine to pair with their own AT transmissions, CVT transmissions, or dual-clutch automatic transmissions.

Additionally, if any automobile manufacturer develops their own Pure Compression Ignition Gasoline Engine and wishes us to use Dawn High-Entropy Alloy to process and produce components such as crankshafts, cylinder liners, connecting rods, pistons, and piston rings, our Shuguang Electronics also welcomes it."

"Whoa!"

Upon hearing Lin Chen's words, the scene instantly erupted in an uproar.

The presidents of those Global automobile manufacturers, on the other hand, lit up with joy, a hint of relief in their eyes.

Lin Chen explained that not exclusively monopolizing the Pure Compression Ignition Gasoline Engine at this time was somewhat out of necessity, because the Pure Compression Ignition Gasoline Engine was simply too fuel-efficient.

The fuel consumption of the Pure Compression Ignition Gasoline Engine is less than half that of other engines; under these circumstances, the Pure Compression Ignition Gasoline Engine has actually become a thorn in the side of Global oil giants and oil-producing nations.

It can be said that the level of resentment and anger it draws from them is no less than that of electric vehicles in his previous life.

After all, once the Pure Compression Ignition Gasoline Engine becomes widely popular, it means their oil sales will be directly halved.

Under these circumstances, Shuguang Technology would undoubtedly be quite hated and a big living target.

Global oil giants and oil-producing nations would absolutely do their utmost to bring down Shuguang Technology; the 'package deal' enjoyed by ZTE and Huawei Technology in his previous life, Shuguang Technology would certainly experience it in advance.

So, after some thought, Lin Chen ultimately decided to sell the Dawn Pure Compression Ignition Gasoline Engine assembly externally.

He was even willing to use Dawn High-Entropy Alloy to produce critical Pure Compression Ignition Gasoline Engine parts for others, such as cylinder liners, crankshafts, connecting rods, pistons, and piston rings.

The ultimate goal of this was actually only one: to make Shuguang Technology less conspicuous and to spread the anger of Global oil giants and oil-producing nations across multiple Global automobile companies.

After all, if only one company produces and sells cars using the Pure Compression Ignition Gasoline Engine, it would certainly invite considerable jealousy and hatred.

But if all cars globally use the Pure Compression Ignition Gasoline Engine, then although Shuguang Technology would still be hated, Global oil giants and oil-producing nations would have nowhere to vent their anger.

After all, the ownership of the Pure Compression Ignition Gasoline Engine belongs to the Shuguang R&D Center.

Shuguang Technology, which produces and sells Shuguang Automobile, only possesses the distribution rights for the Pure Compression Ignition Gasoline Engine and the three-clutch automatic transmission.

If they want to harbor resentment, then they should resent the Shuguang R&D Center.

But the Shuguang R&D Center is in Daxia and is not publicly listed; could they really go and cause trouble for the Shuguang R&D Center?

So, after a brief deliberation, Lin Chen decided to directly break it down into parts, letting Global automobile manufacturers share the pressure from Global oil giants and oil-producing nations.

As for whether Shuguang Technology's interests would suffer huge losses this way?

In reality, Shuguang Technology would not only not lose profits, but would earn more than by selling Shuguang Automobile.

After all, Shuguang Technology's current annual production capacity is merely 5 million cars, while the historical annual sales for this year, 2006, were 70.9 million cars.

Therefore, even if Shuguang Technology can achieve full production and sales in the coming days, its total annual sales share would still only be a mere 7%.

In other words, Shuguang Technology can at most capture 7% of the total annual sales pie; however, if it sells the Pure Compression Ignition Gasoline Engine externally at this time,

Then, if handled well, it might be able to capture over 80% of the Global pie, and the profits Shuguang Technology could earn from selling the Pure Compression Ignition Gasoline Engine would certainly be several times the profit from that 7% pie.

At this point, some might question how selling Pure Compression Ignition Gasoline Engine assemblies could be more profitable than selling entire vehicles, given that an engine typically accounts for only 10% to 20% of a car's price.

But the problem is that currently, only Shuguang Technology can produce the Pure Compression Ignition Gasoline Engine; at this time, if Shuguang Technology raises its prices, can they really refuse?

Therefore, if Shuguang Technology's Pure Compression Ignition Engine can capture 80% of the entire market sales, the profit earned from just selling the Pure Compression Ignition Gasoline Engine could be several times that of Shuguang Automobile.

Of course, Lin Chen also intends to fully support Shuguang Automobile, which is why he retained the three-clutch automatic transmission and did not sell it externally.

Under these circumstances, relying on the three-clutch automatic transmission and Shuguang Automobile's own cost-performance positioning,

Lin Chen is confident in maintaining the task of full production and sales of 5 million cars in the coming period.

As for reaching the 10-million-unit level, that would require one year of factory construction time, estimated to be completed around August next year.

After all, automobile factories are massive and contain a lot of large equipment; constructing a super automobile factory with an annual output of 5 million units is not easy.

"Click, click, click, click, click…"

The reporters, having realized the significance, pressed their camera shutters, and those with notebooks rapidly jotted down the key points of Lin Chen's statements.

Following this, Lin Chen proceeded to answer other questions from the reporters present, and the press conference soon concluded. (End of this chapter)