Manufacturing Empire in the Valley

Chapter 1852 Three Preferential Conditions Proposed by Niu Xiaoqiang
According to the data provided by Ford, the annual production capacity of a production line is only about [-] vehicles. With such a small production capacity, how many years will it take for Yuejin Automobile Factory to recover its cost?

It is precisely because of the huge differences between the two parties on the matter of shares and the purchase of production lines that they have not reached an agreement after no less than fifteen times.

At the beginning, Yuejin Automobile Factory sent a large team of more than 20 people to the United States for negotiations. Later, seeing that Ford was too stubborn, Yuejin Automobile Factory felt that it would definitely not be able to reach a cooperation intention in the short term.

Considering the issue of saving money, the factory leaders gradually reduced the number of negotiators, and the negotiating team has been reduced to the present, only Liu Desheng, his secretary and a translator are left.

After Liu Desheng finished speaking, he sighed: "Ford is too arrogant, it doesn't take our factory seriously at all, and our factory would definitely not agree to the conditions they offered, if it weren't for the fact that I proposed this project first , I want to quit the job.”

Niu Xiaoqiang can understand Liu Desheng's mood very well. Nowadays, foreign companies really don't look down on domestic companies. Every time they deal with Chinese companies, these foreign companies always put on a superior attitude, as if they are negotiating with you like Same at alms.

Niu Xiaoqiang nodded slightly: "Ford is indeed too much. During the negotiation, they were only looking for benefits, but they were willing to pay very little. Don't be angry, Director Liu. As long as I step in, the situation will be greatly reversed immediately. Now Please take out a pen and paper, and record what I say, these are the conditions I offered on behalf of Packard Motors, guaranteed to be heavenly better than Ford’s."

Liu Desheng nodded quickly, and took out his pen and notebook with an expectant expression.

Niu Xiaoqiang stated the first condition: "Packard Automobile Company is willing to cooperate with Yuejin Automobile Factory. The shareholding ratio of the two parties is Yuejin Automobile Factory holds 50.00% of the shares, and Packard Automobile Company holds 40.00% of the shares[-]. "

The first one solves the biggest obstacle to cooperation between the two parties.

The state currently has concerns about joint ventures with foreign companies. In order to avoid handing over the controlling stake to foreign-funded enterprises and being said to be traitorous, the state-owned enterprises must occupy more than 50.00% of the shares in each joint venture project.

This is a matter of principle. If this matter of principle cannot be resolved, no matter how favorable the conditions offered by foreign businessmen in the future will be, it will be useless.

Liu Desheng couldn't help being overjoyed when he heard the words. He smiled while recording: "Secretary Niu is really a straightforward person, and the first condition has hit the point."

Niu Xiaoqiang chuckled, and continued: "If the two parties reach a cooperation intention, Packard Motors is willing to contribute capital according to the shareholding ratio of both parties when building a joint venture."

This condition is quite satisfactory and fully complies with business rules.

After Liu Desheng finished recording, Niu Xiaoqiang continued: "In order to help partners improve their technical strength, Packard Motors is willing to provide Yuejin Automobile Factory with leading technology in China, and is even willing to help Yuejin Automobile Factory provide technology for free. These technologies do not require Yuejin Automobile Factory to pay patent fees, but they are limited to domestic use by Yuejin Automobile Factory.”

This condition surprised Liu Desheng again.

Why does the country want to promote cooperation between the two major automobile factories and foreign-funded automobiles?The biggest purpose is to use the opportunity of cooperation to obtain the advanced automobile technology mastered by the other party, so as to improve the level of the country's automobile industry.

In order to achieve this goal, the country does not hesitate to adopt the strategy of exchanging the market for technology, and is even willing to provide foreign car companies with production land for free, and the taxation is also extremely favorable.

But even so, those foreign car companies still don't accept it.If Niu Xiaoqiang hadn't opened up the situation through the joint venture between Packard Motors and Asia Machinery Factory, those foreign car companies might not bother to start negotiations with the two major domestic car factories.

Liu Desheng said excitedly while recording: "This condition is really great! As long as I report back after I go back, the leaders in the factory will definitely not refuse to cooperate!"

Niu Xiaoqiang said heartily: I only promise to provide domestically advanced automobile technologies. As for those internationally advanced technologies, I will not provide them to you. Enjoy with Fong's Motor Company.

Niu Xiaoqiang is not engaged in charity, so naturally he has no obligation to donate the core technology he has mastered to state-owned enterprises for free.If he doesn't hold back, if Yuejin Automobile Factory changes its attitude in the future, he will suffer too much.

Niu Xiaoqiang is not a person who is afraid of competition. For him, neither the Yuejin Automobile Factory nor the Nanfeng Automobile Factory can be called a competitor at all.

Niu Xiaoqiang's real competition targets are those global auto giants. The reason why he has worked so hard to cooperate with the two major auto factories is that he wants to make money by selling automated car production lines. When fighting an international auto giant, he was stabbed in the back by his own people.

This may sound ridiculous, but that's how it is.These state-owned enterprises are not very good at business operations. If there is no monopoly as support, Niu Xiaoqiang can easily kill them.

But when it comes to making small moves, they are absolutely superb.After all, these people are still very short-sighted, lacking the breadth and tolerance that entrepreneurs should have.

They are all good players in Wo Li Dou, and when they deal with foreign businessmen, they all become grandchildren.To sum it up in one sentence, Niu Xiaoqiang thinks it is like this: "These people are definitely laymen in foreign wars, but experts in civil wars."

In order to reduce the resistance he encountered in the country, Niu Xiaoqiang planned ahead of time, trying to solve the hidden dangers.

He secretly sighed, smiled and said, "There is one last item, this one is about the automated car production line."

If you want to say what the two major domestic car companies want most from the estimated auto giants, the first answer is technology, and the second answer is modern car production lines.

The country is now vigorously advocating the construction of the four modernized societies. The modernization mentioned here is actually to follow the Western road and learn from other people's successful experiences.

In industry, modernization refers to production according to Western industrial models.If you don't even have advanced production equipment, how can you talk about modernization?
When Liu Desheng heard that Niu Xiaoqiang mentioned another key question, he immediately held his breath. He wanted to hear what kind of conditions Niu Xiaoqiang would offer.

(End of this chapter)