Reborn Tokyo Golden Age
Chapter 489 Reform Plan
Shirakawa Kaede knows that if he wants to expand the automotive business market, Subaru alone will most likely not be able to realize this vision.
If automobile OEMs want to increase sales, they must adopt a cost-effective and people-friendly approach.
But because of the previous Subaru brand image, Shirakawa Kaede decided to start a new car brand.
The founding purpose of SIKADE (Shirakawa Automobile) is to take the economic route, and its market positioning is basically in the mid-to-low-end field.
According to popular parlance in later generations, the models produced by Shirakawa Motors probably hover within these levels: A00, A0, A, and B.
The ones placed in Tianchao can also be translated as minicars, small cars, compact cars, and medium-sized cars. The market it targets is basically the general public.
As for Subaru, the mid-to-high-end market is left to it. At this time, Subaru's models are basically B-class, C-class, and D-class.
Even after entering the Celestial Dynasty, Shirakawa Kaede plans to directly translate SIKADE as "Shirakawa Automobile", after all, that is its original meaning.
When Nakamura Takao and the others heard Shirakawa Kaede's plan, they looked at each other in confusion and didn't know how to respond.
If you re-establish a brand, it will still be in overseas markets, so this must require a lot of expenditure.
Seemingly knowing what they were worried about, Bai Chuanfeng knocked on the table boldly.
"In the next year, the 240 billion yen invested by Shirakawa Holdings in Subaru Corporation will gradually arrive.
This part of the funds will be used first to improve Subaru's operating conditions, such as the adjustment of the US market and the maintenance and development of the neon market.
In addition, the production of the Legacy series is also a top priority, and the production line in Gunma can start preparations now.
In addition, in order to increase competitiveness in overseas markets, Subaru needs to relocate its remaining production capacity to areas in Southeast Asia where the labor force is relatively low.
For example, in Lijiapo, Huaxia and other regions, the budget for this part of the expenditure is about 80 billion yen.
As for the new SIKADE automobile brand, considering the construction and research and development costs, it may require more than 100 billion in funds.
The remaining funds will be retained to maintain the operations of other Subaru divisions and adjust the management structure.
Specific budget details are jointly formulated by the Finance Department and various departments, and then presented in the form of reports after completion. "
Sure enough, the injection of huge funds instantly made Takao Nakamura and others smile.
In the past, Fuji Heavy Industries had a fiscal deficit problem, and the funds of various departments were quite tight.
Now that life has become more prosperous, everyone has no objection to the establishment of the new SIKADE brand.
However, although Shirakawa Holdings has invested a lot of money, there are also many places to spend it.
First of all, adjusting the global market and relocating production capacity will cost a lot of money. Investment in heavy industry cannot be completed with a few billion yen.
Secondly, another big money grabber is the new brand SIKADE (Shirakawa Automobile), although it has the technical foundation of Subaru.
But there is always a need for technological updates and iterations, as well as the research and development of new platforms and the construction of factories, which all require huge investments.
Finally, there are other departments within Subaru that also need financial support, such as the Aircraft Division and the Environmental Technology Department.
Especially the former, the research and development of aircraft is even worse than that of cars.
In order to accumulate his own political assets and increase his foundation, Bai Chuanfeng has not given up this part of the business for the time being.
The last environmental technology department is the Special Vehicles Division.
Although the sales volume is not much, as long as it is profitable, there is no reason to give up.
And manufacturing, especially heavy industry. Generally, the investment is large, the profit is average, and the return cycle is long.
Therefore, if this huge investment continues, it will most likely take five or six years to recover the cost.
However, for Bai Chuanfeng now, some things can no longer just look at profits.
When it comes to the chaebol stage, perhaps more consideration should be given to influence.
Although heavy industry has a long payback period, it is an integral part of a country's foundation. For the country, its importance is self-evident.
In fact, Bai Chuanfeng's requirements are not high, as long as he can make money, even if it takes a little longer.
However, Subaru's vehicle profit margin was somewhat beyond Shirakawa Kaede's expectations.
Generally, the profit margin of a single car company is around 8% to 9%, but Subaru used to be able to reach 13%.
This profit margin may be a little lower than that of Tesla in later generations, but in the current era it will definitely rank among the top three car companies in the world.
For example, for the LEONE series, which sells for 2 million to 3 million yen, Subaru makes a net profit of almost 200,000 yen for every unit sold.
The Alcyone series, which is positioned as a luxury model, is priced at more than 3 million yen, and the profit per unit sold is higher.
Unfortunately, overseas sales plummeted due to the appreciation of the yen. Otherwise, even though Subaru is a niche car, you can still live a comfortable life.
And Shirakawa Kaede's adjustments to Subaru go beyond that, in order to increase its popularity around the world.
Shirakawa Kaede decided to establish an STI sub-club under the Subaru Club. This club would do nothing else but take Subaru cars to run rallies around the world.
Horizontal opposition, full-time four-wheel drive, and a ring-shaped body structure are all perfect for racing.
In fact, Subaru has done this before and achieved good results.
It’s just that Fuji Heavy Industries did not regard it as a business in the past.
But Shirakawa Kaede had a different idea. He thought this was a good opportunity to run the Subaru brand.
Winning the honor that belongs to Subaru in the rally arena will allow its performance and reliability to be recognized by the media around the world.
STI's operating expenses will be temporarily integrated into Subaru's marketing budget, and will be allocated separately in the future.
The relocation of production capacity, new brands, transfer of operation centers, establishment of rally clubs, etc. are all major operations performed by Shirakawa Kaede on Subaru.
Of course there are major surgeries, but there is also no shortage of minor surgeries.
In order to strengthen the connection between various departments, Bai Chuanfeng eliminated some positions with duplicate functions.
At the same time, the responsibilities between departments are clarified, and project responsibility systems and performance evaluation systems are introduced. The previously lifeless merit-based merit sequence system will slowly disappear from the stage.
Shirakawa Kaede has been busy for more than a month regarding Subaru.
This is the first time that Baichuan Holdings has entered heavy industry, and it may also be the last time that Baichuan Kaede invests in the real industry for a long time to come.
However, Subaru's adjustment and transformation cannot be completed in a month. It may take a year or two to truly digest and operate smoothly.
Once the general direction and goals are set, Bai Chuanfeng will no longer pay attention to the rest.
Time has entered the end of the year in a blink of an eye, and everything in the golden age is whizzing by like a storm.
This year Shirakawa Kaede witnessed the rise of buildings of various shapes in Tokyo, and witnessed the birth of the 4 million yen sacred stock NTT.
It has witnessed that the total output value of the neon catering industry exceeds 20 trillion yen, ranking first in the real industry.
Ranking second and third are the department store industry with 3.9 trillion yen and the construction industry with 3.6 trillion yen respectively. As for the manufacturing industry, it is already at the end of the real industry.
The Haagen-Dazs ice cream shop opened in Shibuya in the same year, there are more than a thousand people queuing up every day, and the queue is several hundred meters long.
Still in this year, the total cost of corporate communication expenditure exceeded 4 trillion yen.
Hospitality expenses are 4 trillion yen, and 80% of them go into the pockets of hotels and restaurants.
French cuisine such as foie gras, caviar, premium beef, champagne, and wine are the most popular.
SABATINI in Ginza is a place frequented by dignitaries. Spending several million yen per night is just an ordinary place.
Shirakawa Kaede often goes to places like this, but this is just the tip of the iceberg in the bubble era.
If you want to see the real social street scene at this time, go to a convenience store and buy a copy of "Obasan Brigade", which has a more detailed introduction.
This comic was just released this year. On the cover is a plump aunt with a thick gold necklace hanging around her neck and a Nikon camera.
Both arms carry various foreign luxury goods in large and small bags, while the background is the Hawaiian beach.
If it weren't for the Japanese text on it, Bai Chuanfeng would have thought it was a satire on the aunts in China.
Although the comic style is exaggerated, the story is actually what happened in the current era.
Ever since they got rich, Neon's aunties have embarked on carnival-style overseas travel.
They either travel in groups or mobilize their families. After arriving overseas, his words and deeds were exaggerated, and he never asked the price when buying things.
The behaviors of jumping in line, making loud noises, littering, taking public property, and frantically scanning goods in public places are the true portrayal of neon aunties at this time.
Because of this behavior of Neon People, Omi’s media directly ridiculed them as “people are stupid and have too much money”. Louis Vuitton even introduced a queuing and purchase limit mechanism for Neon People.
As I flip through this comic, Shirakawa Kaede always feels an inexplicable sense of familiarity.
Gee, history is always surprisingly similar.
As the end of the year draws to a close, another issue in Neon that has aroused heated discussions among the public is the official establishment of the consumption tax in December.
Although there was no shortage of money in the golden age, people were always unhappy about an extra tax.
However, although consumption tax has been legislated, taxes on some high value-added luxury goods have also been cancelled.
Because there are many people buying luxury goods now, in general, although people criticize the consumption tax, they can barely accept it.
However, none of these things affected Bai Chuanfeng's happy mood to return to his hometown in Northeast China to celebrate the New Year. However, the most excited person was not him, but Xiao Qingkong and the others.
"Duosang, is the snow in Akita really as thick as mine?" Xiao Qingkong, who was about to turn into a ball, opened his short arms and awkwardly gestured his height.
"Hai~" Bai Chuanfeng answered this again, a question that Xiao Qingkong asked countless times.
"Duosang, Xue'er is so white, can I eat it?"
"No~" Bai Chuanfeng touched Xiao Yasheng's head lovingly.
Like Qingkong, she also wore a furry ball in order to cope with the severe cold in Akita.
Compared with Qingkong's naughty and restless attitude, Mei Sheng huddled in her winter coat is undoubtedly much more cute and cute.
Bai Chuanfeng couldn't resist Xiao Measheng. Even with the winter clothes separating him, he couldn't help but pick her up and rub her face hard with his nose.
Amidst the laughter, Bai Chuanfeng pulled the little Qingkong who was purring. After turning around and greeting Yuko Tanaka who was surrounding them, the family boarded the plane back to Akita.
Before setting off, Xiao Qingkong was clamoring to go skiing at the Lujiao ski resort.
However, when they arrived at the place, Bai Chuanfeng was also stunned by the scene in front of him.
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