Immersive Translate

Negotiation text plan for the import procurement project of intellectual hydrogen energy powered locomotives

(Party B Anhui Technology Import and Export Co., Ltd.)

1. Basic knowledge of international business

1. Incoterms: FOB/CIF

2. Contract Law

3. Laws and practices of international sale of goods: quality inspection; payment methods; Breach of contract and remedies for breach of contract, etc

4. Complete equipment contract

6. Terms related to the procurement of hydrogen locomotives

2. SWOT analysis

1. List Subjects

Anhui Technology Import & Export Co., Ltd. (Party B)

Intellect FCAB (Party A)

Rich experience in import and export trade, Anhui Technology Import and Export Co., Ltd., as a core member of the world's top 500 enterprises Conch Group, has nearly 40 years of experience in import and export trade, so that it has accumulated rich resources and contacts in the field of international trade.

Diversified product line, the company's import and export products cover a number of fields, the company uses advanced hydrogen fuel cell technology, so that the products in the energy conversion efficiency to reach the industry-leading level, in addition to high efficiency, the company's hydrogen energy products are also praised for their excellent environmental protection, the establishment of a sound quality management system and after-sales service system, to provide users with a full range of safety and quality services.

The company works closely with CRRC Group, one of the largest rail transit equipment manufacturers in China and one of the world's largest rail transit equipment suppliers. CRRC's products are known for their high reliability, high safety and high efficiency, which can meet the demand of the Chilean market for high-quality hydrogen-powered locomotives, and CRRC's products and services have covered nearly 100 countries and regions on six continents around the world, forming an extensive market network and customer service system.

Chile, as a country with abundant renewable energy resources, actively promotes the development and application of hydrogen-powered locomotives.

Hydrogen-powered locomotives use hydrogen as fuel and have high energy efficiency. Compared with traditional fuel locomotives, hydrogen locomotives have less losses in the energy conversion process and are better able to convert the chemical energy of the fuel into mechanical energy. At the same time, as a renewable energy source, hydrogen can be prepared by electrolysis of water, which is conducive to the sustainable use of energy.

Energy security: Chile has abundant renewable energy resources, such as solar and wind, which can be used to produce hydrogen, thus ensuring a stable supply of hydrogen energy and reducing dependence on traditional energy sources.

Strong brand influence, an important economy in South America.

With the support of national policies, the government has provided a good policy environment and market prospects for the application of hydrogen energy technology, environmental awareness is popular, and people's demand for green energy and environmental protection is increasing.

Supporting industries, Chile's hydrogen energy technology and battery preparation and related industries are supported by basic industries, thus providing a guarantee for the production and marketing of manufacturers.

Although the company has rich experience in many fields, the company may have relatively limited understanding of hydrogen energy powered locomotives as an emerging field, and needs to invest more resources in learning and research.

The market is highly competitive, and there are many strong competitors in the international market, especially in the field of hydrogen energy, such as German companies, which need to continuously improve their capabilities to cope with the fierce market competition.

The market foundation is weak, hydrogen fuel technology is restricted by various factors such as technology and capital, and there are few hydrogen fuel vehicles on the market, so the promotion task is more difficult.

The technical threshold is high, and the related technologies and key components of hydrogen-powered vehicles are relatively sophisticated, requiring a high technical and financial threshold.

Lack of innovation capacity, other energy alternatives, compared to hydrogen fuel, other energy alternatives are more popular, such as gasoline-electric hybrids and electric vehicles.

Anhui Technology Import & Export Co., Ltd. also actively promotes the innovation and development of hydrogen energy technology. The international demand for green energy and environmental protection is increasing, and hydrogen energy powered locomotives, as environmentally friendly and efficient means of transportation, have broad development prospects in the international market. The company has increased investment in scientific research, strengthened cooperation and exchanges with international and domestic excellent scientific research institutions and enterprises, and continuously promoted breakthroughs and innovations in hydrogen energy technology.

Actively responding to the national green hydrogen strategy, the state encourages enterprises to increase investment in hydrogen energy projects to promote the development of the green hydrogen industry through financial subsidies, tax incentives, industrial funds and other measures.

Growth in market demand: With the improvement of environmental awareness and the development of new energy technologies, the market demand for hydrogen-powered locomotives is expected to continue to grow, and the global increasing emphasis on environmental protection and sustainable development will increase the demand for clean energy transportation.

The project has a role in promoting hydrogen fuel cell technology and hydrogen energy application, and has the potential to drive the development of related industries.

Hydrogen fuel cell locomotives have the advantages of zero emission and low noise, which can meet environmental protection requirements

Policy support and international cooperation opportunities, the Chilean government is actively promoting the development of new energy, providing policy support and financial support for the procurement project of hydrogen energy powered locomotives. International cooperation is conducive to the expansion of business areas and partner networks, and Chile can cooperate with international enterprises and research institutions in the field of hydrogen energy, introduce advanced technology and management experience, and promote the development of projects.

High technical threshold: Hydrogen energy powered locomotives have a high technical threshold, and the technology and key components involved are relatively sophisticated, which poses a challenge to the company's technology research and development and production capacity.

Market competition risk: In addition to direct competitors, other energy alternatives, such as diesel-electric hybrids and electric vehicles, will also pose a threat to the hydrogen-powered locomotive market. Companies need to pay close attention to market dynamics and develop effective competitive strategies.

The technology is in the early stage of development, with high cost and technical difficulty, which may lead to high procurement costs and difficult to compete with traditional power locomotives.

The market is highly competitive, and the emergence of competitors poses a threat to FCAB's market share.

The stability and safety of hydrogen fuel cell technology remains controversial and may be hindered by safety regulators.

Changes in policies and regulations, policies and regulations in South America may change, and the company's business will be affected.

2. Comprehensive analysis

Hydrogen energy powered locomotives can flexibly configure power forms according to the needs of different users, such as "fuel cell + lithium battery", "pantograph grid + lithium battery", which almost does not produce harmful substances and can provide longer cruising range. In addition, the hydrogen fuel cell system equipped with the hydrogen energy power locomotive has the protection functions of automatic alarm and automatic cut-off in the case of hydrogen leakage, high temperature, overpressure and overcurrent, which can effectively ensure the safety of low-pressure hydrogen supply under the condition of large flow and high flow rate. The high power, large capacity and high efficiency and energy saving characteristics of hydrogen energy powered locomotive can meet the shunting and short-distance transportation needs of coal, ore, chemical, steel, port and other application scenarios.

The supply and demand relationship of the international market for hydrogen-powered vehicles and the supply-demand relationship of the international market for hydrogen-powered vehicles show a trend of growing demand and limited supply by technology and infrastructure construction. And the specific price will also be affected by a variety of factors such as brand, model, configuration, and regional differences. It can be found that Zhizhi FCAB and Anhui Technology Import and Export Co., Ltd. have a strong demand for cooperation, and the bargaining position is basically equal, and Zhizhi FCAB has a slight initiative. The key to this negotiation is how to make use of each other's advantages and opportunities, reach a consensus on the core points of the negotiation through friendly consultation, and achieve mutual benefit and win-win results.

3. Specific negotiation plan

1. The core points of the negotiation in this case:

Advance payment, final payment: Consider Chile's payment method and payment cycle to ensure that both parties agree on economic interests.

Quotation FOB/CIF: Price is a very important part of the negotiation. Party B needs to propose a reasonable price plan and explain the reasonableness of the price structure.

Delivery time: Party B needs to clearly promise the delivery time of the locomotive. Determine where the locomotive will be transported and how it will be transported, including the insurance and transportation costs that may be involved.

Warranty Guarantee: After Party A confirms that the product is correct, Party A guarantees to send the acceptance certificate, and Party B provides the corresponding after-sales service plan, including technical support, maintenance, etc., to ensure the smooth operation of both parties.

2. Negotiation objectives of the Chinese side:

The highest target: the quotation CIF is 4.3 million US dollars, the advance payment is 25%, the balance payment is 10%, the warranty is 3% + 12 months, and the delivery time is 19 months

Ideal target: Quotation CIF 4.2 million US dollars, 23% advance payment, 13% final payment, 3% + 30 months warranty, 15 months delivery time

Bottom line target: Quotation CIF 4.1 million US dollars, 20% advance payment, 15% final payment, 5% + 12 months warranty, 11 months delivery time

3. Transaction conditions setting:

Adhere to the CIF quotation, and negotiate the final 10% balance payment with the acceptance certificate sent by Party A, at least to ensure one goal.

If it is not possible to insist that the second negotiation is to negotiate the final 10% balance payment with the acceptance certificate sent by Party A after the locomotive arrives at the site for commissioning, then insist that Party A pay 25% of the total contract price in advance, and consider the term of the warranty letter;

If the second negotiation cannot be taken, after the locomotive arrives at the site for commissioning, the final 10% balance payment can be negotiated with the acceptance certificate sent by Party A, and Party A can be conceded to pay 20% of the total contract price of the advance payment and delivery period, and request long-term cooperation;

If necessary, make concessions and adjustments in combination with terms such as payment methods, commodity inspections, and order quantities.

4. Transportation routes and shipping companies

1. Shipping routes

Route 1: Shanghai - Japan - Fiji - Chile

Route 2: Ningbo - Pacific - Chile

Comparison of route advantages and disadvantages: There are some differences in the advantages and disadvantages of the two sea routes from Shanghai to Chile and Ningbo to Chile, although they both cross the vast Pacific Ocean, the different starting points may have an impact on transportation costs, shipping company selection, and port facilities. First of all, as one of the largest ports in China, the Port of Shanghai has a relatively complete infrastructure and logistics system. The Port of Shanghai has efficient loading and unloading capacity and advanced cargo handling system, which makes the transportation of goods from Shanghai more fast and reliable. In contrast, although the Port of Ningbo is also an important port, there may be a certain gap with the Port of Shanghai in terms of scale and facilities. Therefore, from the point of view of port facilities, the sea route from Shanghai to Chile may be more advantageous. Secondly, the choice of shipping company is also a factor that affects the advantages and disadvantages of sea freight routes. As an international shipping center, Shanghai has attracted many internationally renowned shipping companies to set up routes here. This means that there are more shipping companies and routes to choose from for goods departing from Shanghai, making it possible to get more competitive shipping rates and services. Although Ningbo also has shipping companies to provide services, it may be relatively limited in terms of choice and degree of competition. Summarizing all the factors, let's choose route one.

2. Choice of shipping company

COSCO Shipping Lines Co., Ltd. (COSCOShipping Lines): As an internationally renowned shipping giant, COSCO Shipping has an extensive route network around the world, and often optimizes routes according to market demand. As such, it may offer services on the Shanghai to Chile route, including via Japan and Fiji.

CMA CGM : CMA CGM has a strong presence in the global shipping industry, covering a wide range of routes, including those from Asia to South America. Given the geographical location and trade needs between Shanghai, Japan, Fiji and Chile, CMA CGM may offer related transportation services.

Yang Ming MarineTransport: As a well-known shipping company in Taiwan, Yang Ming Shipping also has certain strength and experience in global route layout. Although specific services are subject to change, Yang Ming Marine may offer services via Japan and Fiji on the Shanghai to Chile route.

3. Advantages and disadvantages of shipping companies

中远集运（COSCO Shipping Lines）

优势：

Extensive network coverage: COSCO operates as the world's leading shipping company with an extensive global route network, which can ensure the stability and reliability of the Shanghai-Chile route.

Rich service experience: In the years of shipping operation, COSCO has accumulated rich experience and is able to provide customers with professional logistics solutions.

Advanced technology: COSCO continues to innovate in logistics technology and introduces advanced information management system to improve logistics efficiency and transparency.

劣势：

Possible price competition: Due to the high popularity of COSCON in the market, the price of its services may be relatively high, and it may not have a significant advantage in terms of price compared with other shipping companies.

CMA CGM:

优势：

Price competitiveness: CMA CGM is flexible in terms of service prices and is able to offer competitive prices to its customers.

Service quality: The company pays attention to service quality and provides fast and reliable transportation services that can meet customers' requirements for timeliness.

Innovation ability: CMA CGM has a strong innovation ability in shipping technology and logistics solutions, and is able to provide personalized services to customers.

劣势：

Route network coverage: Although CMA CGM has a certain route network around the world, its route coverage may not be extensive enough compared to companies such as COSCO.

阳明海运（Yang Ming Marine Transport）：

优势：

Service quality: Yang Ming Shipping is known for its high-quality service quality, focusing on customer needs and providing personalized solutions.

Cost control: The company performs well in cost control and is able to provide customers with relatively reasonable service prices.

Transportation efficiency: Yang Ming Marine has excelled in transportation efficiency and is able to ensure that goods arrive at their destination on time.

劣势：

Market popularity: Compared with internationally renowned shipping companies such as COSCO and CMA CGM, Yang Ming Shipping's market popularity may be slightly inferior.

Technology investment: In terms of logistics technology and informatization, Yang Ming Shipping's investment may be relatively limited and needs to be further strengthened.

Considering a variety of factors, we chose CSCL.

The process and strategy of negotiation

Preparation for negotiations

Develop negotiation strategies: clarify your own goals and consider the interests of the other party, and formulate a reasonable negotiation scope and bottom line;

Determine the negotiation team: form a professional team, including government representatives, technical experts, legal advisers, etc.;

Analyze the market situation: Understand the global hydrogen energy power locomotive market, and grasp the relevant technical and policy information:

Determine the negotiation agenda: clarify the main content and secondary issues of the negotiation, and arrange the time reasonably;

Preparation of negotiation documents: Preparation of bidding documents, technical specifications and other relevant documents to ensure that the relevant requirements are clear.

Emotional communication

Deployment strategy

By talking about the cooperation between the two sides, they form emotional resonance and bring the other party into a more harmonious negotiation atmosphere.

Mid-term stage

Red-faced and white-faced strategy: one of the two negotiators acts as a red-faced and the other acts as a white-faced auxiliary to negotiate the agreement, so as to transfer the negotiation topic from the positioning of the "advance payment" event to the final payment and long-term interests, grasp the rhythm and process of the negotiation, and thus take the initiative.

Advance layer by layer, step by step strategy: skillfully put forward our expected goals, first easy and then difficult, step by step for the camp to strive for benefits.

Grasp the principle of concession: clarify where our core interests lie, implement the strategy of retreating, take one step back and two steps, make roundabout compensation, make full use of the chips in hand, and when appropriate, you can return the amount of compensation in exchange for other greater benefits.

Highlight the advantages: use the information as the support, convince the people, emphasize the benefits brought to the other party by the success of the agreement with us, and at the same time implement both soft and hard, implying that the other party will have huge losses if the agreement with us fails.

Break the deadlock: make reasonable use of the pause, first calmly analyze the reasons for the deadlock, and then use the method of grasping the form of affirming the other party and denying the essence of the other party to break the deadlock, and use the strategy of attacking the east and west in a timely manner to break the deadlock

Off-season: If necessary, adjust the original plan according to the actual situation.

Final Negotiation Stage:

Grasp the bottom line: use the compromise and reconciliation strategy in a timely manner, strictly grasp the magnitude of the final concession, put forward the final offer at the right time, and prepare an ultimatum.

Laying the ground: Forming integrated negotiations in the negotiations with a view to building long-term relationships.

Reach an agreement: clarify the final negotiation result, present the meeting minutes and the contract template, ask the other party to confirm, and determine the time for the formal signing of the contract.