ABT # Chapter 149: Going to Scam Foreigners
Some are happy, some are worried; some rejoice while others grieve.
Unlike the bustling scene at Zhengxin, Reiss Fast's V12 experienced a sales debacle.
In truth, the Brits have always looked down on China. However, seeing the sales miracles created repeatedly by the German, Japanese, and American car companies in the Chinese market over the years, the old sports car manufacturer Reiss Fast also began to feel envious.
After investigating the sales situation in the Chinese sports car segment and seeing the enticing numbers, they decided to re-enter the market.
The company took the already discontinued L6, swapped out the engine and the exterior, and marketed it as specially designed for the Chinese market, setting a price that made them smile in their dreams. They then launched it, fully expecting to rake in money.
Reiss Fast had neither production lines nor a sales network in China. However, through original import channels, Reiss Fast cars had been selling quite well in China. So this time, they allocated 6% of their profit to commission an external trade company to sell the RF-V12.
The trade company thought they had landed a big deal and were ready to make a fortune. To their dismay, the V12 faced continuous setbacks, selling only about thirty cars from the official launch on the 18th to the 25th—eight days later.
At this rate, they wouldn't even recover their advertising costs.
Reiss Fast still had some clout. Despite the poor market reputation and feedback, they managed to sell over thirty units. In this respect, Zhengxin couldn't compete. If the roles were reversed, X-power wouldn't have sold a single unit.
This is the result of a century of accumulated brand heritage.
However, this did not meet the company's expectations. After ramping up their advertising efforts with little effect, Reiss Fast decided to stop V12 production. They quickly changed their tune, seemingly forgetting their previous boasts about the V12 being custom-made for the Chinese market. Instead, they announced it would debut at the North American Auto Show in November and go on sale globally.
Honestly, the V12 might be able to fool the Chinese market a bit, but it's a different story in North America. Most of the technology, aside from the engine, is outdated. Now, they're hoping to open up the market at the North American Auto Show, showing just how desperate they are.
"If they can't make it in China, they'll try their luck elsewhere to avoid having that inventory on their hands," thought Li Fanyu.
However, the announcement of the V12 at the North American Auto Show gave him an idea. If the V12 could go there to make money, theoretically, so could the X-power, right?
Truthfully, using the X-power GT to make money domestically was somewhat embarrassing...
Even though the GT performance version sounds grand, it's essentially a gimmick. The standard version accelerates from 0 to 100 km/h in 4.1 seconds, while the GT version does it in 3.5 seconds.
If it was a difference between 9 seconds and 4 seconds, that would be significant. But between 4 seconds and 3.5 seconds... how much difference can there really be? It only serves to satisfy the boasting needs of some wealthy individuals.
However, it's a different story abroad. Scamming foreigners is a thrill; "Hello, my friend! This is the X-power GT version, accelerating from 0 to 100 km/h in just 3.5 seconds. It's the perfect tool for picking up dates, traveling, and experiencing the thrill of racing. Now available at the North American Auto Show, priced at only $288,000. No 998, no 188, just 28.8! Drive home a GT supercar!"
Ahem... just thinking about it is exhilarating.
Previously, he thought the road to making money abroad would be long, but now an opportunity had come so soon. Li Fanyu vaguely remembered that in his previous timeline, the North American Auto Show was held in January...
No matter, it's timely and convenient! Going abroad to make money—it's decided! X-power!
Thus, full of ambition, Li Fanyu made the decision: Take the X-power to the North American Auto Show!
The North American Auto Show, along with the Frankfurt Motor Show, Geneva International Motor Show, Paris Motor Show, and Tokyo Motor Show, is one of the five major international auto shows.
Formerly the Detroit International Auto Show, it has a history of nearly a century. It is the longest-running and most frequent auto show in the United States.
It is organized by the Detroit Auto Dealers Association. At this point, it might be clear what this show is about.
Yes, it's essentially a large matchmaking program between car dealers and car manufacturers. Major car companies show off their technology and showcase concept cars that look cool but might not actually be produced. Showing off muscles and boasting, that's about it.
Auto shows, at their core, are no different from film festivals.
No matter how fancy or varied the format, it's all about fame and money. Ultimately, it's all about money.
So, whenever money is involved, Americans, especially those in Detroit, become very accommodating.
What? Zhengxin? Never heard of it.
X-power? Hmm, sounds familiar.
Want to participate in the show? Sure! Of course, you can. Detroit welcomes you, my friend!
Here's the price list, just to give you an idea: The exhibition lasts ten days. Booths are divided into three levels: $1,500 per square meter inside the venue, $1,000 per square meter on the venue's edge, and $500 per square meter outside.
For the top-level booths, we can arrange star-rated hotels and overseas transportation for your exhibition items and vehicles. For the second level, we'll arrange food and accommodation for the exhibitors and host a dinner.
For the third level, sorry, but you'll have to handle everything yourself.
Oh, and the smallest booth is 100 square meters. Which one do you prefer?
Li Fanyu was stunned by this blatant money-grabbing approach—Detroit, it seems, is in worse shape than he imagined!
This is reminiscent of certain Chinese tour groups’ tactics. Uncle Sam, you've learned some bad habits...
After some haggling, Li Fanyu instructed Wang Meimei to reply to the organizers: We'll take the third level! We've heard it's too hot inside the venue, and we can't stand the heat. Outside is just fine, nice and cool!
Li Fanyu's guess was right; Detroit indeed needed money.
The city had a single-industry structure, and after the overall collapse of the industry, its economic transformation failed. Population started to decline sharply around 2010. The middle and upper classes began to strip assets and flee the city, leading to high unemployment and a surge in crime rates, with frequent security incidents.
At its worst, the mayor even declared the city bankrupt. As if things weren't bad enough, the nationwide subprime mortgage crisis hit, further devastating the already struggling automotive industry.
However, in the past two to three years, as the economy gradually recovered, Detroit also aimed to regain its former glory.
How to rebuild the glory? Make money!
Expand the auto show, relax the conditions, and control costs. Attract any investment and consumption that can benefit the city.
And it worked. They managed to make a name for themselves.
The city hit rock bottom around 2013, with hardly anyone daring to attend the auto show—afraid of being assaulted by the charming residents of Detroit. Subsequently, some top car brands explicitly stated they wouldn't attend the North American Auto Show—it was too risky.
Rumor had it that even local gangs fled the city at its worst, feeling it was too dangerous.
Can you imagine how chaotic it must have been?
But in the past couple of years, thanks to the inclusiveness and openness demonstrated by the auto show, they managed to regain some reputation, achieving decent results with respectable transaction volumes.
That's why Reiss Fast targeted this show.
And the unsuspecting Chinese entrepreneur Li Fanyu also decided to join the fun. Due to the language barrier, he specifically hired a translator.
Yes, it's Miss Cheng Ke, who claimed to speak five languages fluently, was proficient in four, could cook, keep warm, and work hard without being clingy.
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