The Industrial Giant Reborn
Chapter 329 The Ambition of Investing in Mainland Automobiles
In the next few days, Chen Zhiwen still stayed at the headquarters of AMC and had in-depth exchanges with some AMC personnel. At the same time, he also visited another factory also located in the Detroit area. This factory is AMC's car production line. , these cars are also the main models of AMC. However, under the huge pressure of Japanese brand cars, they have been in a state of loss. Fortunately, the brand has a certain continuity. For many years, AMC small cars have also been considered in the US market. It has a certain reputation, so even though Japanese models are more fuel-efficient, some people are still willing to buy them.
The current AMC can barely maintain the balance of its own operations. It may lose 20 to 30 million U.S. dollars every year, leading to a crisis in the capital chain. After Chen Zhiwen's capital injection, there will be no financial problems in a short period of time. In the future, if If the sales capability of the terminal channel can be further expanded, then maybe AMC can implement its own revenue balance.
However, with the current trend, no matter what, normal operations can be maintained at most. It is impossible to have opportunities for rapid development with other industries under Chen Zhiwen. The automobile industry is the crown of human industry. , no gold finger is useless, even if there is a lot of money injected into research and development, it will take a long time to produce results. Besides, compared to auto giants like GM and Toyota, even Chen Zhiwen's profits from gold futures, It is far from comparable.
After the preliminary inspection of AMC, Chen Zhiwen took Gu Dehua to a coffee shop next to the AMC office building. The sun shines directly on everyone through the glass. bask in the sun.
"Have a cappuccino, thank you." Gu Dehua said to the waiter.
"Me too." Chen Zhiwen continued.
"The coffee here is very good, sweet and very suitable for our Asian tastes. Many Chinese people also like to drink coffee here." Gu Dehua said with a smile.
Chen Zhiwen nodded and asked, "Are there many Chinese in Detroit?"
"Many, but most of them are in the service industry. On a global scale, our Chinese catering is definitely No. 1. Only those who have never tried it like to sit on the sidelines and wishful thinking about how good European and American food is." Gu Dehua said with a smile : "Many big cities in the United States have Chinatowns, and Detroit also has Chinatowns, but the area is small, and many Chinese live here."
"Then how many people work in the automobile industry?" Chen Zhiwen asked again.
"As far as the auto industry is concerned, there are not many of them." Gu Dehua thought for a while and said: "Basically, there are very few ordinary workers who are Chinese, not even blacks. In Silicon Valley, there are few other industries comparable to automobiles. These high-paying jobs are difficult for non-white people to get.
However, it depends on the ability of engineers or management talents. There are still some Chinese in the three major auto giants, some are from Wanwan, and some are Chinese who grew up in the United States. "
"Well, then I'll give you another task, to recruit more Chinese engineers, especially in terms of quality and technology. However, if you are a native-born Chinese who doesn't even know Chinese, you don't need to think about it." Chen Zhiwen continued.
The acquisition of AMC requires reaching certain conditions with the company, the labor union, and the U.S. Department of Commerce. The most basic issue is the employment issue. In addition to this investment, he also needs to rely on the existing AMC managers. Therefore, after the acquisition, AMC’s Basically, there will be no changes in the top management, but Gu Dehua, as his spokesperson during this period, will stay at AMC as the vice president. His main task is to be in charge of personnel and monitor finances. The recruitment is the most suitable thing.
"Recruiting Chinese? Boss, it is difficult to recruit too many Chinese, and the purpose is easy to be discovered. May I know why?" Gu Dehua asked after thinking for a while.
It is not difficult for AMC to recruit people, but it is much more difficult to recruit Chinese engineers who are few in itself, and a large number of Chinese recruits may cause trouble. In the United States, no one dares to accept a hat of racial discrimination. .
"Because I want to invest in the mainland." Chen Zhiwen said suddenly.
"Mainland?" Gu Dehua was stunned for a moment, and asked: "The market in the Mainland is indeed not very small. Boss, you mean to invest in sales terminals and after-sales services in the Mainland, and then send the cars to the Mainland for sale?"
"How can there be such a good thing? There are so many cars of international brands, Volkswagen, Toyota, and GM, which one is not much better than us. If you were an official in charge of importing cars in the Mainland, would you choose us?" Chen Zhiwen asked with a smile .
With Chen Zhiwen's current cooperative relationship with the mainland, if he really wants to do this, it is not impossible to let the mainland choose some AMC cars, but after all, he is not well-known, and it is impossible for them to purchase on a large scale. This is the instinct of people shopping, and everyone hopes Unless it is too expensive to buy a well-known car, large car companies basically involve both low and high prices.
"We want to build a factory in the mainland?" Gu Dehua said in surprise.
"Yes, building a factory. Only by building a factory can we reduce costs on a large scale, and then we have the opportunity to win part of the mainland market." Chen Zhiwen nodded and said.
Different from other countries, the country has always had the idea of self-reliance and development, or it can be said that it is an obsession. Any industry thinks that it can produce by itself, unless it is mineral resources that it does not have.
This is the case in the home appliance industry. Although the mainland has approved Midea’s investment, there are still many restrictions. In fact, they want to introduce foreign capital while learning foreign technology and management models, and then develop their own industries. Of course, this process is very difficult, which also leads to Many former big brothers of electrical appliances were merged and acquired by joint ventures, a history of blood and tears, but in the end, domestic home appliances still defeated foreign brands after the new century, and at the same time moved towards export, making the entire mainland the largest production base of home appliances in the world.
The same is true for the automobile industry, and because of the higher technical barriers, domestic executives have long known that it is impossible to reach the level of international counterparts in a short period of time, so they proposed the most famous "market for technology" strategy.
Let’s not talk about the result, but on the bright side, if you want the mainland market, you need to come to the mainland for joint production. Otherwise, it is basically impossible to expect to produce in the country and then export to the mainland.
Before SAIC Volkswagen had large-scale production, there was really no way for China to import cars every year, but after that, the number began to decrease on a large scale, and tariffs were also set very high. Although imported cars have not disappeared, there will be a cliff-like decline in the number plummeted.
"Will the mainland have such a large consumption power?" Gu Dehua asked hesitantly: "I know that the former CEO of GM went to the mainland in 1978 and talked about cooperation, but in the end it was rejected by the board of directors because of the investigation by GM. Information shows that the monthly per capita income of many people in China is only tens of dollars, or even a few dollars, and many people may not be able to drink Coke for the rest of their lives, so how can they afford a car?"
"Although you are of Chinese descent, you also grew up in the United States. If you have the opportunity to go to the mainland in the future, that is a market of one billion people? The annual import and export trade volume is as high as tens of billions of dollars, even if only a few 10,000 cars is also cost-effective. I have investigated this aspect a long time ago, and you should also know that my company in Hong Kong also has a lot of investment in the mainland. I know more about this than the GM board of directors." Chen Zhiwen said lightly said with a smile.
GM went to China long before the opening of the country, and visited some famous domestic factories. Originally, the domestic meaning was to ask GM to buy technology, but GM CEO Thomas was smarter and knew that it would be more beneficial to make money in the long run, so he proposed It can be said that this is the first time that China understands this cooperation method, and it is also the basic law for foreign investment in the automobile industry in the following decades.
Unfortunately, the smart CEO encountered a group of board members who didn't understand anything, and rejected Thomas' proposal. In addition, the oil crisis broke out again, and Thomas did not give up his joint venture investment plan in the mainland. It was only when the mainland was making a lot of money that GM realized it and wanted to return to China to invest, but it was already 15 years later, and the market was basically occupied by the public. After more than ten years of hard work, GM has achieved Not a small achievement, but it didn't last long.
At present, in China, that is, in the 1980s and the next few years, the consumption capacity of automobiles is indeed very weak, but things are developing, and the development speed of the domestic economy has exceeded everyone's expectations. It is also impossible to predict the future.
In the original history, the Santana produced by SAIC Volkswagen in the late 1980s was basically in short supply. Apart from government procurement, the biggest demand was a bunch of companies investing in China from Hong Kong, Wanwan and some overseas companies.
If I had laid out the country earlier, I might still have the opportunity to grab some business from the public. Besides, even from the perspective of the original history, the Yanjing jeep in the 1980s is still a sacred car in the eyes of ordinary people, especially when the domestic road conditions are not good. Jeeps are so useful. In this life, it is impossible for him to make the mistake of AMC again. Even a Jeep, if it really becomes the representative of SUVs in the hearts of Chinese people, it can make a lot of money. At the same time, it can also help the country reduce a large number of car purchases. losses, and the ability to cultivate some relevant industrial chains as soon as possible.
"I understand, then I will contact some Chinese engineers in Detroit." Gu Dehua nodded, and then said: "Is there a time plan for our investment in the Mainland so that I can arrange it?"
"Not yet. Although I want to invest in China, I hope that the country can take the initiative to find AMC. After all, our reputation is not very big. If we are too proactive, we may put a cold face on our face." Chen Zhiwen said with a light smile.
Even if it is Midea's investment, he basically waits for some officials in the mainland to come to him. He has foreign exchange in his hands, so there is no need to take the initiative. People with insight in the country will naturally contact him. Only the business of helping his uncle was proposed by himself, and this is also because of his family relationship. He also hopes to use these strong investments to send his uncle to a higher position.
The same is true for the automobile industry. In fact, he has been paying attention to the news of this area for a long time.
Although it was opened at the end of 1978, the domestic decision to develop the economy wholeheartedly, and the use of foreign capital for development was a decision that had been made in early 1977, but the steps would not be large at once. Therefore, in the early stage, the country still sent a large number of officials and relevant experts. Overseas countries, visit some major local industries.
Automobiles are naturally one of them. The First Ministry of Machinery Industry in China, which is in charge of automobiles, sent experts to visit GM in the United States, Toyota in Japan, Mercedes-Benz, BMW and Volkswagen in Germany, Renault Citroen in France, and Fiat in Italy. cooperate.
However, except for the intention of the GM CEO at the beginning, the rest of the public has not refused. For others, they all think that the best way to cooperate with China is to produce them locally and sell them to you.
Although Volkswagen is willing to invest, the conditions put forward are very complicated and complicated. In the original history, from the contact at the beginning of 1978 to the joint establishment of the factory in 1984, it took a total of 6 years and more than 60 negotiations before it succeeded.
If you cooperate with the country yourself, the negotiation progress will naturally be reduced a lot, so there is no rush now.
"Then if this is the case, we can release a message." Gu Dehua thought for a while and said: "Considering that you are from Hong Kong, boss, we can announce to the outside world that AMC is going to build a branch factory in Asia to facilitate the development of the Asian market. If the mainland If they are really eager to build a joint venture with a foreign car company, they will definitely ask.”
"Yes, I was also planning to invest in automobile channel terminals in Southeast Asia, so it can be matched." Chen Zhiwen nodded and said.
Later generations of Jardine have a very large car sales company under their umbrella. They own terminal retail stores such as cars and motorcycles in many Southeast Asian countries. This is a pure capital investment. After the acquisition of AMC, Chen Zhiwen has the same plan .
This industry itself can make money, because there is no local auto industry in these places in Southeast Asia. If foreign cars want to enter, they have to rely on a large number of sales terminals. At present, the economy of Southeast Asia is just like the mainland. Very low, the future market will belong to the rising period, as long as I build the sales terminal, I don't have to worry about no business.
The second role is naturally to help our own cars. Whether imported from the United States or imported from inland factories in the future, one can drive employment in the United States and better stabilize Chen Zhiwen’s business in the United States. The second can drive domestic profits. Forex, kill three birds with one stone.
Of course, in order to quickly expand and strengthen this type of industry in Southeast Asia, we still have to cooperate with local giants, such as Guo Henian, or the partners introduced by Guo Henian. Proper benefit sharing is still necessary.
"I thought of a person. She was a former colleague of mine at General Motors. It is said that she has a certain relationship with the mainland. If the news is accidentally released to her, it should be able to spread to the mainland." Gu Dehua said.
"Well, then give it a try." Chen Zhiwen nodded, and said: "One more thing, my agreement with Li Iacocca also includes some patent purchases, you can discuss it with Hughes, see what you need, and make a list Come out, now Chrysler is begging us, there will be no such store after this village."
PS: Today is just this chapter, part-time coding and family affairs, I am a bit too busy.
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