Manufacturing Empire in the Valley

Chapter 1413 Monopoly has a price

At present, Fang's heavy trucks are already performing very well in the market. The reason why they have not expanded their market share is because their marketing work is not in place.When people free up their hands to concentrate on operating the heavy-duty truck market, MAN will be greatly threatened.

If MAN exports technology to Fang's Motors, it will create a strong competitor for itself in the foreseeable future.At that time, MAN will no longer have any advantage in the face of Fang's heavy trucks. Comparing the manufacturing costs in Germany and China, Heman can hardly imagine how serious the consequences will be.

Taking these factors into consideration, Herman immediately ruled out the first option.

The second plan is not easy to agree to. MAN has done a very good job in the field of heavy trucks, and can reap more than one billion dollars in profits every year. Even if it takes 5.00% compensation to Fang's Motors, it will be nearly [-] million dollars.

MAN is a listed company, and when making any decision, it needs to take into account the reaction of shareholders and the stock market at the same time. If it is obvious that it pays such a large amount of money to compensate Fang's Automobile, what is it?
This is only the current situation. When MAN gets the support of super carbon steel, they will rapidly expand their market share and earn more profits. At that time, the money that needs to be compensated to Fang's Automobile will only be More, the company has no way to explain to shareholders.

Seeing that Herman didn't speak, Niu Xiaoqiang couldn't help but asked: "Is there any difficulty for Mr. Herman? Why don't you tell me and listen, maybe I can help you think of a solution to the problem."

Herman thought about the wording before speaking: "I personally prefer the second compensation plan, but your asking price is too high. I guess the shareholders will definitely not agree to it, so I feel in a dilemma."

Hearing this, Niu Xiaoqiang couldn't help laughing and said, "Mr. Herman, is he worried that shareholders will think that this kind of nominal additional expenditure is not justified? It may even make shareholders think it is ridiculous?"

Herman nodded: "Well, that's what I'm worried about. Looking at Secretary Niu's expression, it seems that you have already thought of a solution?"

Niu Xiaoqiang nodded with a smile: "Yes, this problem is actually very easy to solve, just change the way of thinking."

Heman showed surprise, he didn't expect Niu Xiaoqiang to have a countermeasure so soon, he was stunned for a moment before asking: "I don't know what Secretary Niu refers to by changing the way of thinking?"

Niu Xiaoqiang showed a harmless smile: "It's very simple, we can increase the price of the original parts in the contract, and in this way we can pay the compensation to Fang's Automobile."

Hearing this, Herman's eyes could not help but brighten up. This method can indeed solve the problem very well.

I saw him nodding with a smile: "Secretary Niu is really amazing, to think of such a good idea."

When he said this, he changed the subject: "Although this method is very good, if the price of the original parts is too high, it will inevitably cause criticism from shareholders, so I think Secretary Niu should appropriately reduce the amount of compensation. "

Niu Xiaoqiang asked: "According to Mr. Herman, how much should I reduce?"

Herman replied immediately: "Let's still pay it now, and the annual compensation is 5000 million US dollars."

Niu Xiaoqiang's reaction was also quick. He immediately shook his head: "No, no, no, 5000 million US dollars is too little. Compared with the profits that MAN can reap, Fang's Automobile should not only get such a small return."

Herman already felt a little afraid of Niu Xiaoqiang. First of all, he was the weaker party. Fang's Motors had many other options besides MAN, and there was no need to hang himself on the tree of MAN.

In addition, as the negotiation progressed, Heman was surprised by Niu Xiaoqiang again and again.The young man in front of him can definitely be called an old fox, both in terms of thinking and reaction speed, he is extremely powerful, which makes Herman find it difficult to fight.

Seeing that Niu Xiaoqiang denied the amount he proposed, Heman couldn't help swallowing his saliva quietly, and asked tentatively: "Then according to Secretary Niu's intention, how much should the compensation be?"

Niu Xiaoqiang immediately stretched out two fingers: "The annual compensation amount should not be less than [-] million US dollars, and this is only temporary. If your company wants to continue to cooperate with us after five years, it must further increase the compensation amount. After all, currencies are depreciating all the time, and even the U.S. dollar has declining purchasing power year by year, so I have to take that into account.”

Herman was taken aback, thinking "this guy really opened his mouth like a lion" in his heart.He repeatedly shook his head and smiled bitterly: "Secretary Niu, the amount you proposed is too high. If the amount you proposed is evenly distributed on the original parts, the price of the original parts will be ridiculously high. I can't explain it to the shareholders. , how about we each take a step back and implement according to the figure of [-] million US dollars per year?"

Niu Xiaoqiang smiled slightly: "In this way, it is equivalent to reducing my quotation by 5000 million U.S. dollars, but you only increased it by 500 million U.S. dollars. Obviously, I am at a disadvantage. Otherwise, we will implement it at 500 million U.S. dollars per year. Compensation agreement, in this way, I have reduced by 500 million US dollars, and you have increased by [-] million US dollars, so it is fair, right?"

Herman felt that although the number reported by Niu Xiaoqiang was a bit high, it was still within an acceptable range.In order to end the negotiation early and finalize the cooperation matter, Herman nodded slightly and said: "I personally accept Secretary Niu's offer, but the amount is a bit large. I need to ask the board of directors for an opinion before I can answer you. Please give me some time, I will Now go call."

It’s almost time for lunch now, and it’s still late at night in Germany. Niu Xiaoqiang couldn’t help reminding: “Mr. Herman, it’s midnight in Germany, is this a good time for you to call?”

Herman explained with a smile: "Several major shareholders of the company made an appointment to travel to the Maldives. Maldives is now daytime, so I won't disturb their rest."

Niu Xiaoqiang snorted, nodded and pushed the phone on the desk to Herman: "This phone can make international calls, you don't need to go outside to make calls."

Herman thanked him and dialed a satellite phone number.After the call was connected, he spoke German. Niu Xiaoqiang only knew a little bit of German, so he couldn't understand it.

After less than 10 minutes, Herman hung up the phone and said with a smile: "Several major shareholders held a brief meeting just now, and they were persuaded by the reasons I gave to accept the compensation terms proposed by your Excellency. Secretary, can we sign the contract now?"

(End of this chapter)