Traveling through the sword to engage in military industry.
Chapter 469 Giants’ Counterattack
Westminster.
Rolls-Royce headquarters.
"President, Boeing, McDonnell and Douglas have all terminated our aircraft engine supply contracts." The secretary hurried over with a telegram, bringing the news that President Robert least wanted to hear.
"What's their reason for terminating the contract?" Robert asked, rubbing his brows.
"According to them, the safety of our engines cannot be guaranteed." The secretary replied after taking a look at the telegram in his hand.
Very good, and you can give a reason.
Robert closed his eyes and thought for a while, "Put down the telegram and go do your own thing."
Robert leaned back in his comfortable boss chair, silently calculating the losses that this bad news would bring to Rolls-Royce.
The aviation engine business of Rolls-Royce relies on the few contracts from the British Armed Forces, and it is difficult to even make back the maintenance costs of the production lines. It is only with the support of these giants on the other side of the Atlantic that the aviation engine business of Rolls-Royce can operate normally.
However, if Rolls-Royce does not cooperate with Dongda in producing passenger aircraft and enter the more promising passenger aircraft business, it will never be able to break free from the order control of the giants on the other side of the strait and will have to eat the leftovers given by the other side.
This is indeed the case. Even though Rolls-Royce sold everything it had and even had to separate the top luxury car Rolls-Royce to develop the RB211, it occupied the passenger aircraft engine market with the RB211 three-rotor engine and became one of the three major suppliers of aircraft engines. However, after being limited to this field, the market value of Rolls-Royce in the main world entering the new century was only more than 40 billion pounds.
The status of one of the world's three largest aviation engine giants is only worth this much money.
So from Robert's point of view, entering the passenger aircraft market is a dream come true. Before Dongda Yandu Airlines extended an olive branch, he could only think about it. However, with the cooperation invitation from Yandu Airlines and the huge aviation market support from Dongda.
Robert felt that if he missed this opportunity, he would be the sinner of Rolls-Royce!
Unfortunately, the vision cannot solve the real problems.
Now the aviation giants that were responsible for the Rogue Eagle have collectively launched a counterattack, and their own aviation engine businesses are about to come to a halt.
How to fill this huge business hole?
Robert was very confused for a moment.
"Brother Ren, the cooperation between Yandu Aviation Company and Rolls-Royce has run into problems again." Staff Officer Ye brought Chen Hanyuan, general manager of Yandu Aviation Industry Company, to visit.
As one of the key supported aviation enterprise groups, Yandu Aviation Industry Corporation, which shoulders the hope of the rise of Dongda's civil passenger aircraft, is undoubtedly the focus of Staff Officer Ye. When encountering small problems, he can naturally handle them himself, but when encountering big problems, Staff Officer Ye still wants to hear Ren Zhong's opinions and suggestions first.
"What problems are there now?" Ren Zhong was a little surprised. The cooperation agreement between the two parties was signed a long time ago, and the assembly factories of both parties were also under intensive construction.
In terms of research and development, Rolls-Royce has formed a team of more than 100 people at the CAC-120 Technology Research Center of Yandu Aviation Industry to begin research on the Continental customized A300 model.
按照计划,A300的第一款将会是混合布局,在机舱前面的5排由5*5经济型布局改成4*4的公务舱布局,加上5*19经济舱,共计是111个座位,这样的布局将会提升A300对商务尊贵客人的航班适应性。
After all, the demands of senior white-collar workers and bosses who are engaged in business in Europe are much greater than those in Japan. Although these people are the ones who fly in Japan now, they have not evolved to the point where they can demand the comfort of aviation.
In addition to the inculcation of a sense of equality within the country, it is unlikely that domestic flights will differentiate between cabins now. Of course, when we develop international routes in the future, certain zoning will be required.
Therefore, the A300 will not only be the main regional aircraft model of the European continent, but also the model used by Dongfang University to develop international routes. It can be regarded as the first passenger aircraft of the sincere cooperation between the two parties.
Ren Zhong has seen this design and he thinks there is no problem with it. In the future, it may even be possible to derive a first-class cabin based on the business class cabin. These changes are only made to meet the needs of market customers and have little impact on the changes to the fuselage and the entire aircraft.
So Ren Zhong didn’t think there was anything wrong.
"Mr. Ren, the problem now is that Rolls-Royce has suffered an order return from the Rogue Eagle aviation giant, which has caused their aviation business to stagnate before the sale of future passenger aircraft. There is financial pressure. The result of negotiations with the government is that the authorities do not have the budget funds to subsidize them. In this case, cooperation with us may lead to a break in the capital chain." Chen Hanyuan explained.
Ren Zhong frowned. He had never thought of this problem beforehand.
Although this is the other party's problem, according to common logic, it can be ignored. However, Ren Zhong knew that the John family of the Sun Never Sets was really ruthless. In the near future, Rolls-Royce in the main world will conduct research on the RB211 three-rotor aircraft engine. The research budget increased from tens of millions of pounds to 1.7 million pounds, which directly led to bankruptcy. Rolls-Royce cars were divided and then reorganized into state-owned enterprises.
Therefore, Ren Zhong really needs to use his brain to figure out a solution to Rolls-Royce's problem. Before the passenger aircraft is put on the market and sales form a positive cycle, they have to be on guard against the other party suddenly going bankrupt.
Now it is still possible for private enterprises to cooperate with each other. Even if the rogue hawks have strong opinions, Downing Street can push it as the market behavior of private enterprises. Once it is taken over and turned into a state-owned enterprise, it will be different.
"What are your opinions on this now?" Ren Zhong pondered for a while before asking.
"We just feel it's difficult to deal with. We can't just subsidize them to tide over the difficulties," Chen Hanyuan said with a wry smile. "Although we are partners, it's not appropriate for us to give them a transfusion to support them."
It seems that they have studied many solutions, but have not found a reasonable one.
"It is indeed not appropriate to give direct subsidies." Ren Dianzhong nodded and said, "When we cooperate with foreign companies, no matter who we cooperate with, we can use commercial means to solve the problem. We must never use non-commercial means. Otherwise, it will not only give others excuses, but also be detrimental to protecting our interests." "I have two solutions. Let's see which one you can refer to for reference."
"The first way is a mortgage loan. According to our valuation of Rolls-Royce, we can provide international credit to Rolls-Royce through a syndicated loan. According to their current expenses, the maximum loan is 1 million pounds, which is equivalent to a five-year loan of 2.8 million US dollars. This basically solves their problem. This method is the simplest and fastest, and the evaluation in the middle is also easy to do."
"The second way is that Rolls-Royce has an automobile business. They have formed a close cooperative relationship with the British royal family. From the perspective of future development, although it is unlikely to form a large number of automobile consumer products, it is possible to build a top luxury brand in the automobile industry. The value is self-evident. We can use the name of an automobile joint venture to purchase 300% to half of the equity of Rolls-Royce's automobile business and jointly develop high-end automobile products. In this way, they can not only obtain our investment to develop their own automobile business, but also use this investment to survive the current difficulties until the Airbus A we cooperate with is launched, which will solve the problem once and for all."
"Ah, that's possible? Then why don't we just invest in Rolls-Royce's aviation engine business? I remember Brother Ren said that Rolls-Royce's aviation engines have great potential and are expected to become one of the world's aviation engine giants. Wouldn't it be more cost-effective for us to invest in its aviation engine business?" After hearing this, Staff Officer Ye's eyes lit up and he said to Ren Zhong seriously.
"I would like to do the same, but this business is not something we can interfere with. They will not open up aviation business to investors like us." Ren Zhong said with a wry smile.
Rolls-Royce is full of treasures. If possible, Ren Zhong would like to dig it out and bring it back to Dongda. In this way, he would basically be responsible for providing an idea, and the team would be able to realize everything he thought of.
Apart from anything else, the EJ200 medium advanced turbofan engine has high thrust, high reliability and good maintainability. It is one of the most successful medium thrust engines in the main world. It is the most appropriate to use it to replace the current WS-9. If this medium thrust engine comes out, the F-15 in the world of Liangjian will come out ahead of schedule and become a leader in heavy fighter jets.
Not only will aviation engines leap to the world's top level, but the corresponding levels of Dongda will also be greatly improved in terms of ship engines and nuclear power plants for nuclear-powered submarines, especially gas turbines. The MT-30 gas turbine is simply top-level power for destroyers.
If there is even the slightest possibility, Ren Zhong would not miss out on such a world-class engine company.
What a pity! Even if it goes bankrupt, the British Empire will not let this enterprise fall into the hands of others. At most, it will be re-nationalized and then privatized when the time is right.
But there is room for negotiation regarding Rolls-Royce's automotive business.
After all, the sensitivity of the automotive business is simply not comparable to that of the aviation business.
"Can Rolls-Royce's automotive business really create a top luxury car brand?" After a moment of silence, Staff Officer Ye repeated his question to Ren Zhong.
According to the current timeline of the world of Bright Sword, Rolls-Royce has just started cooperating with the royal family, and the brand's popularity and reputation have not yet been established. Although this is also a car brand that has been around for decades, its current fame is completely incomparable to its future fame in the main world.
"I think there is a high probability that the creation of this brand relies on the British royal family. These resources are completely unavailable to other car brands. Our knowledge of car brand building is still at the level of elementary school students. With the help of this possible joint venture, we can send a team to learn their brand building and car production quality control. In the future, when the time is right, both parties can jointly create a secondary brand based on the Rolls-Royce super brand, which may make up for the shortcomings of Upper East China University of Technology in high-end car brands." Ren Zhong said. He has studied a lot of Rolls-Royce stories.
Although I cannot say that I know everything about this brand, I have a clear idea of the approximate time nodes and future evolution.
Of course, to achieve this, there is still a lot of work to be done, including how to acquire competing brands like Bentley.
If this cooperation can be successful, Ren Zhong can suggest starting the encirclement and acquisition of Bentley now.
In this way, in the future ultra-high luxury car market, Dongda can enjoy the profits of Rolls-Royce and the opportunity to build sub-brands, and re-realize the style of its two ace products, Rolls-Royce Phantom and Cullinan, in the world of Liang Jian, and then form a high-end car camp with Bentley. The former two will focus on products above 500 million, while Bentley will fill the market of 100 million to 500 million, competing with BBA in the high-end market.
I just don't know whether Rolls-Royce will cooperate.
"Dongda wants to cooperate with us in the automotive business?" Robert received the results of the communication from his subordinates and fell into deep thought for a while after reading the report.
Compared to the aviation business, the automotive business is obviously secondary to Robert.
However, the two parties in the aviation cooperation have a profit-sharing and division of labor relationship on new products. There are no asset disputes over each other's joint venture parent companies. The two parties are actually like a loose production alliance. They form a cooperative symbiotic relationship around passenger aircraft, build a unified aviation brand, and then divide the labor in product production and sales. The sales amount of the products is distributed according to their contribution to production.
Although this form of cooperation is somewhat loose and coordination will be very troublesome, it ensures that the interests of all parties are fully protected, especially in terms of technical security. Since the new passenger aircraft production line cuts off the direct connection between each company and the new company, the technical secrets of the original company are protected to the maximum extent.
"The automotive business will be separated into an independent entity. The entire automotive business is valued at 4 million pounds. Dongda is willing to pay 2 million pounds for 2% of the shares. The parent company can take this million pounds directly to develop the aviation business as consideration for the independent operation of the automotive business. Of course, Rolls-Royce will still be the controlling shareholder of the independently operated Rolls-Royce Motor Cars." Robert looked at the draft of the cooperation plan, and his heart beat faster when he saw the numbers!
With this life-saving money of 2 million pounds, he has enough confidence to ignore the orders from the three giants across the Atlantic!
With this money, Rolls-Royce will have basically no problem getting the A300 into mass production.
Once the A300 goes into mass production, things will get better for the entire Rolls-Royce company.
Apart from anything else, even if Rolls-Royce produces ten A300s a year, it will not have to worry about supporting itself.
Of course, the cost is also high, as half of the automotive business will have to be given up.
Where to go? Robert was also a little hesitant.
There was no other way out before, so Robert set his sights on Dongda. His original intention was to lend Dongda a long-term loan, but unfortunately Ren Zhong saw through his intentions and put the loan solution as a last resort. In this way, they would be forced to accept the cooperation plan.
Robert looked at the plan and fell into deep thought.
. . . (End of this chapter)
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