Manufacturing Empire in the Valley

Chapter 991 Trading the Market for Technology

Deputy Factory Manager Tian smiled slightly at this thought, and seemed very relaxed: "I originally wanted to save the issue of equity until the end to discuss with Mr. Sam. Since Mr. Sam has brought it up now, let's talk about it in advance. I don't know Mr. Sam What do you think about the distribution ratio of equity?"

According to Niu Xiaoqiang's previous instructions, Sam said unabashedly: "We want to obtain 50.00% of the shares of the joint venture company."

Deputy Factory Manager Tian felt a little bit in his heart, and said to himself: Sure enough, I guessed it right. Packard Automobile Company, like Bavaria Machinery Manufacturing Factory, both want to obtain a controlling stake in the joint venture company.

Deputy Factory Manager Tian thought for a while, and then said: "This... I wonder how much money your company plans to invest in this cooperation project?"

Sam asked back: "I don't know why your Excellency raised this question?"

Deputy Factory Director Tian explained: "According to business rules, the shareholding ratio is determined according to the investment amount of both parties. If you don't invest as much as our factory, of course you can't get more than half of the shares."

Sam nodded slightly: "Your words are very reasonable. For this joint venture project, our company is going to adopt the method of technology plus cash as a shareholding. The cash will not be less than 1000 million US dollars. As for the technology, this needs to be determined according to the actual situation. For example, if your company lacks any technology, we will provide that technology. Since the technology we have is very advanced, it is also of high value. For example, the V16 engine technology we have is internationally recognized. At the leading level, this technology alone is worth at least 500 million U.S. dollars, and other technologies are about the same price, and very few technologies may be more expensive."

When Sam said this, he stared at Deputy Director Tian with piercing eyes: "As far as I know, your factory's technical strength is relatively poor, and many places need us to provide you with technical support. We can just come up with a few new technologies that can be valuable Tens of millions of dollars, such a large amount should be enough for us to obtain more than half of the equity, right?"

Even if converted according to the valuation of 5000 million US dollars, this is equivalent to Packard Motors' investment of 500 million yuan, plus 1000 million US dollars in cash, which is equivalent to Packard Motors' total investment of 5000 million yuan. million RMB.

If the total value of the joint venture plant reaches 3 million yuan, Packard Motors can take half of the shares.This shows that Nanfeng Automobile Factory has to spend at least 5000 million yuan in funds to compete with Packard Motor Company in terms of equity.

This amount of money is not a small amount for Nanfeng Automobile Factory. Deputy factory director Tian has no right to make decisions on the spot, and it needs to be voted by the factory committee.

He secretly calculated in his heart, and felt that the hope of passing the vote was still great.The main reason is that no joint venture automobile company has been established in China. Both Nanfeng Automobile Factory and Yuejin Automobile Factory want to take the lead. This is a remarkable achievement, and the leaders of both parties naturally strongly support it.

Although the hope of passing the vote is very high, Deputy Director Tian still has some concerns.Just now Sam has made it very clear that any new technology they come up with is worth tens of millions of dollars, and the technology of Nanfeng Automobile Factory is relatively backward. Maybe they need more than a dozen technologies here. Calculating it, Packard Motors has invested hundreds of millions of dollars in capital, and even its own side has to contribute this amount, otherwise it will be at a disadvantage in the distribution of equity.

What's more difficult is that the amount of technology investment is not fixed. At the beginning, only five new technologies may be needed, and then it will be increased to ten in the future, and it may be increased to twenty in the future.

With the increase in technology investment, Packard Motor Company will inevitably ask for more shares. At that time, the joint venture factory has been on the right track and no additional cash investment is needed, which means that Nanfeng Motor Factory can no longer pass Additional investment to balance the equity of both parties.

If this issue is not discussed in advance, this joint venture project may often quarrel in the future.If the Packard Motor Company is angered, it will be impossible for Nanfeng Automobile Factory to continue to receive technical support from the other party. This is a very serious problem for Nanfeng Automobile Factory, which urgently needs to improve its technical level.

In fact, anyone with a discerning eye knows that the biggest reason why domestic companies seek joint ventures with foreign companies is not because of their dollars, but because of their advanced technology.

As long as they have advanced technology, domestic companies can stand on the same starting line as foreign companies and compete with each other.Without these advanced technologies, you will always have to look up to each other.No matter how much the country supports you, it is useless.

There is a good saying: Science and technology are the primary productive forces. From this sentence, it is not difficult to see the importance of technology.

The reason is actually very simple: With technology, you can produce high-quality products, and through high-quality products to gain market recognition, you can then seize market share, and in this way you can make a lot of money.

Sooner or later, the domestic market must be fully opened, otherwise the economy will not be able to truly develop.At present, many large state-owned enterprises rely on monopoly to obtain profits. Once the country opens up the market, foreign products will flood in. If these state-owned enterprises have not improved their technical level by then, what awaits them will surely perish.

The high-level executives have seen this for a long time, and after some thinking, they proposed a relatively simple and effective solution, which is to trade the market for technology.

First use the market to obtain opportunities for joint ventures with foreign companies, and then wait until domestic companies have mastered the advanced technology of foreign companies through joint ventures, and then backhandedly grab the market back. In this way, foreign companies earn money and domestic companies obtain technology. No loss.

The scale of China's market is quite large, and no one can ignore this point, otherwise it would be impossible for those foreign companies to come here after the reform and opening up.

The country's attitude towards investment in key industries is very clear: Do you want to enter the Chinese market?This is actually very simple, as long as you cooperate with Chinese companies, as long as you set up joint ventures with Chinese companies, you can get super high profits through our huge market, and we will also give many preferential policies.

What?Do you want to operate as a sole proprietorship?Sorry, we have not yet opened the policy of wholly foreign-owned enterprises in this field at this stage, you can only wait for the day when the policy is opened, but I must remind you: China's market is so huge, when you wait On the day when the policy is opened, the market will probably be robbed by other joint ventures long ago. At that time, you can only drink the northwest wind, and it will be too late to regret it.

(End of this chapter)