Manufacturing Empire in the Valley

Chapter 992 An Insurmountable Red Line

Oh, you are willing to cooperate with domestic enterprises, but you must obtain a controlling stake in the joint venture company?I'm sorry about this, our enterprises are state-owned, that is, owned by the people. We can't ignore the interests of the people, right?Therefore, the controlling stake must be in the hands of our company.

What?You can't accept this rule?That being the case, I can only express regret.

This is the basic domestic attitude towards foreign companies in certain key areas. On the one hand, everyone needs advanced technology and is eager for foreign companies to come to discuss cooperation.On the other hand, everyone is very sensitive to controlling rights, and has formulated a basic red line.No matter who they are cooperating with, domestic companies must have a controlling stake, otherwise they would rather not cooperate.

It is precisely because of the existence of this red line that the Bavarian Machinery Manufacturing Factory did not cooperate with domestic car companies.At the same time, many other foreign companies also failed because of this.

This red line is a double-edged sword. It not only restricts some well-known foreign companies from entering the domestic market, but also restricts some domestic companies from obtaining advanced technologies.

The two domestic auto giants are deeply touched by this.

In fact, whether it is Nanfeng Automobile Factory or Yuejin Automobile Factory, they have already had contact with many well-known international car companies. The reason why they have not been able to sign a joint venture agreement with any car company so far is because both parties have different controlling interests. Stick to your point of view, no one is willing to give in.

If it wasn't for this, relying on the generous conditions offered by the two major auto giants, they would have already started technical cooperation with many well-known auto companies. ?

The more deputy factory manager Tian thought about it, the more confused he became, and he became more and more pessimistic about the outcome of the negotiation.

However, he did not give up on this, but continued to work hard, because once the negotiation was successful, this huge political achievement would provide great support for the future development of Deputy Factory Director Tian.

After thinking about it for a while, deputy factory director Tian finally found a reason that seemed to be beneficial to him.He smiled slightly: "Mr. Sam, is the technology mastered by your company really of such high value as you just said?"

At the beginning, Packard Motor Company relied on its patented technology to obtain a huge loan from Citibank. Citibank is an extremely professional commercial bank with a very professional asset evaluation agency. Since they dared to lend tens of millions of dollars to Packard Motor Company, which has already proved the value of the patented technology in the hands of Packard Motor Company.

Sam nodded resolutely: "About this issue, I can tell you with certainty that even global auto giants like Ford and General Motors attach great importance to the technology our company possesses, and they have negotiated with us more than once. It’s just that the price was not negotiated, so the transaction failed in the end.”

Deputy Factory Director Tian followed up and asked: "You mean that the prices offered by these auto giants are a bit low, right?"

"Well, the price they offered is indeed a bit low, far below our expectations."

Deputy Factory Director Tian thought he had found a breakthrough, and immediately asked: "They are very professional automobile companies, and it is impossible for them not to know the true value of a technology. If the technology your company masters is really as good as you said, why did they Do you want to force the price down? Does this mean that your company's technology is not as good as you think?"

Sam showed displeasure when he heard this.Most of these technologies were developed under his leadership, and Deputy Factory Director Tian's words were equivalent to negating his hard work.

"Mr. Tian, ​​your inference is very arbitrary, because you don't understand the actual situation at all! Whether it is GM or Ford, they are the giants in the auto industry. When a company reaches their height, it will inevitably be Feel arrogant, look down on companies that are weaker than them, and always feel that they are giving you face if they can see your technology, and because of this, they forcefully lower the price, which is almost a common problem of all big companies!"

Sam’s words are on point. In China, this is called shop bullying, and Nanfeng Automobile Factory is a typical representative.

From time to time, they will get stuck on the necks of parts suppliers. They always delay the payment that should be paid to others.

Although these spare parts suppliers are also state-owned enterprises, state-owned enterprises are also divided into levels.

These enterprises are too weak to have the right to have an equal dialogue with Nanfeng Automobile Factory. Once something goes wrong, the relevant departments will definitely stand on the side of Nanfeng Automobile Factory. This makes many small and medium-sized enterprises dare not speak out. Listen to Nanfeng Motor Works honestly.Although there is no affiliation relationship between the two parties, they are not much different from the real superiors and subordinates.

If not, it is impossible for Nanfeng Automobile Factory to just say something, and these companies would stop supplying Asia Machinery Factory, so that Asia Machinery Factory had to stop producing cars and switch to other products.

Deputy Factory Manager Tian saw that Sam was a little angry, so he could only smile along with him: "Mr. Sam, please calm down. I'm just analyzing it from an objective point of view. I don't intend to deliberately slander your company's reputation."

Fan Demin hurriedly raised his glass to ease the atmosphere: "Let's take a sip first, take a break and then talk."

The others nodded in agreement, and Sam couldn't say anything more, so he raised his glass and took a sip.

For the next half an hour, Deputy Director Tian bit the bullet and started a tug-of-war with Sam.The two parties have never been able to reach a consensus on the distribution of equity, but the differences are narrowing step by step.

At the beginning, Sam asked for 50.00% of the shares of the joint venture company. Through the unremitting efforts of Deputy Factory Manager Tian, ​​Sam reduced the shareholding ratio by three percentage points, and it is currently 50.00%.

But that was the end of Sam's concessions. When Deputy Factory Manager Tian wanted to continue to make efforts to win the controlling stake, Sam would not give in no matter what.The two sides continued to grind their mouths for half an hour, and Sam's requested shareholding ratio was always maintained at 50.00%, which made Deputy Factory Manager Tian quite helpless.

After a few more attempts with no progress, Deputy Director Tian had to find a breakthrough from other places.While drinking, he winked at Niu Xiaoqiang, then said that he wanted to go to the bathroom, got up and walked out of the restaurant.

Although Niu Xiaoqiang was very reluctant, he had to adapt to the situation.Soon he also pushed that he was going to the toilet and walked out of the restaurant.

(End of this chapter)