The car giant started by marrying the daughter of the king

Chapter 271: Plans cannot keep up with changes, the unexpected surprise brought by GM

It is very troublesome to make an overseas call these days.

In particular, there is a twelve-hour time difference between America and China.

It is daytime in China, but night in other countries.

It's daytime in America, and it's time to get off work in China.

Ordinary people’s phones are not capable of making international long-distance calls; one needs to go to a telegraph office.

Fortunately, after suffering a loss before, Jiang Hui asked Austin for his home phone number last time, so he was not completely unable to contact him.

"Jiang, it's rare that you take the initiative to call me, is there any good news?"

Austin is in a good mood now. Last time he chose to follow Jiang Hui's pace and bought stocks of IBM, Intel and Apple, they have risen a lot in the past year or so.

After tasting the sweetness, Austin also increased its investment.

His current earnings from the stock market have exceeded his normal salary income.

So when he received Jiang Hui's call, he was not unhappy at all because it was evening and time to get off work.

"There is indeed a project that would be good for General Motors that I would like to discuss with you."

Jiang Hui is very clear that when he purchases second-hand production lines from General Motors or other automobile companies, he is not begging them, but helping them to recycle waste.

Therefore, there is no need to be humble. That way you won't be able to get good conditions and may even get ripped off.

“Oh, what’s a good project?”

Austin has been paying close attention to the various things happening around Jiang Hui in the past two years.

General Motors has set up an office in China, one of its tasks is to collect relevant information on China's automobile industry.

This also includes some personal information of Jiang Hui.

"I heard that GM's capacity utilization rate is only 70%, and several production lines are in a semi-shutdown state."

"At the same time, there are several production lines that have been invested in for more than ten years. Compared with the latest production lines invested by Toyota and other manufacturers in the United States, there is a big gap in efficiency."

"GM is considering upgrading some of its production lines. Is this news correct?"

After Jiang Hui said this, Austin did not deny it.

But he was a little unclear about what Jiang Hui meant by these words.

"I think we should take advantage of the period when Japanese manufacturers are limiting the export quantity to complete the upgrading of GM's internal production line. Otherwise, our production cost will always be higher than others."

"But it would be a shame to just scrap the eliminated production lines."

"I want to buy it through a middleman, and then find a suitable manufacturer to sell it to."

Jiang Hui expressed his thoughts directly.

Anyway, this is a good thing for Austin or General Motors.

There is no need to hide it.

"I am not responsible for matters related to the production line, but I have heard about the situations you mentioned."

"As long as the price is right, it's not impossible."

Austin didn't say anything final.

Jiang Hui wants to purchase General Motors' second-hand production line, which is not a bad thing.

But for her personally, there doesn't seem to be much benefit, so her enthusiasm is naturally not high.

"Ford, Chrysler, and AMC are actually facing similar situations, and many production lines need to be eliminated and upgraded."

"Austin, we can form a company together, buy these scrapped production lines at a low price, and then find suitable manufacturers to sell them at a higher price."

Although what he did was good for General Motors, if Austin was not given certain benefits, he would at most help to make connections and would not work very hard.

So Jiang Hui directly came up with an attractive plan.

If BMW Technology were to purchase an obsolete production line directly, it might cost $3000 million.

But if we operate through Austin and purchase it in the form of scrapped equipment, maybe it can be done for 1000 million.

If it is operated well at that time and the actual cost is 2000 million US dollars, it will be equivalent to saving 1000 million US dollars.

If we consider that in the process of changing from $1000 million to $2000 million, not 100% of the change goes to Austin, then the savings will be even greater.

This thing can definitely be done.

Sure enough, after hearing Jiang Hui’s proposal, Austin immediately became interested.

"Jiang, can you ensure that after you buy back these production lines, you can find a buyer at a higher price?"

Austin is not one to take easy chances. He wants to make sure that this thing is really promising before he is willing to take action.

After all, in order to get rid of the obsolete production line at a low price, he also needs to find some people to communicate and contact, and even have to advance part of the money.

“If there are too many production lines, we may not be able to handle all of them.”

“But if it’s just a complete car production line, then it’s 100% no problem.”

"You can definitely make money from this business. As for how much you can make, it depends on the specific situation." After Jiang Hui said this, Austin finally became interested and began to think about it very seriously.

Some factories in America will definitely be able to find an obsolete production line.

Even if General Motors doesn't have it, other car manufacturers also have production lines that need to be eliminated.

But relatively speaking, he would have some scruples when doing things.

If branches outside the United States have production lines to deal with, they will receive much less attention.

Thinking of this, Austin suddenly remembered a piece of information. Suzuki Motor had in-depth cooperation with General Motors last year and sold part of its shares to General Motors.

The two parties have relatively close ties in the development and production of vehicle products. Some of Suzuki's products are even sold in the American market with a different logo.

Conversely, some GM products are also sold in the Asian market through Suzuki Motor after changing their logo.

He knew that Suzuki was planning to eliminate a production line for microvans this year. If this production line could be taken down, there would be much more room for operation.

As a representative of General Motors, he is a director of Suzuki Motor.

Those Japanese people still have great respect for the representatives of General Motors.

As long as Austin speaks, there is no reason for anyone at Suzuki to object.

After all, the production line was going to be eliminated anyway, so it didn't matter who it was sold to.

As for whether the production line sold 1 or 2 million dollars more or 1 or 2 million dollars less, there are actually many ways to rationalize it.

Thinking of this, Austin became excited and said, "Jiang, Suzuki Motor has a production line that is going to be eliminated. I am confident that I can take it down, but I need to communicate with a lot of people in the process, so..."

Austin wanted to first confirm how much benefit he could get.

If after all the trouble you only make a few hundred thousand dollars, then it wouldn't be that meaningful.

After all, he did take some risks by doing this.

"Austin, can I know more about the specific situation of this production line? This is closely related to the subsequent profits."

Jiang Hui naturally understood what Austin meant.

However, he knew nothing about the situation of the production line that Suzuki was going to eliminate, and he certainly would not make a random offer.

Otherwise, wouldn't you be treated as a fat sheep and slaughtered?
"It's very specific information and needs further confirmation, but I know that this production line has the full process from stamping, welding, painting to final assembly."

"Although this production line was invested in in the 1960s, it had been in normal production before. However, various technologies are advancing rapidly now. Suzuki wants to use more advanced equipment to produce cars, so it plans to phase out this production line."

Austin reviewed the report materials he had seen and briefly introduced them to Jiang Hui.

"In this way, if all the equipment on the production line can be guaranteed to operate normally, and Suzuki Motor can arrange personnel to help assemble all the equipment and guide the customer's personnel to use the equipment, then I can ensure that you can get at least $200 million in profit from this order."

"Using $1000 million as the dividing line, if you can get Suzuki to sell the car at a lower price, half of the reduced amount is the additional profit you can get."

Now or never.

Although Jiang Hui didn't know much about the production line of Suzuki Automobile, it was normal for a complete automobile production line, even if it was second-hand, to be worth tens of millions of dollars.

The first joint venture company established by the Capital Automobile Manufacturing Plant in its previous life had an investment of more than 100 million US dollars.

Of course, most of the equipment they use is imported from America, so it will definitely be more expensive.

But even if it is cheaper, purchasing equipment for a new production line will cost at least 50 to 60 million US dollars.

It is also acceptable if I can acquire a second-hand production line at a price of around US$1000 million.

"According to what you said, if I can get Suzuki to sell this production line for $500 million, then I can get a profit of $450 million?"

Austin couldn't help swallowing.

1982 million U.S. dollars in 450 was a huge number even for Americans.

An automobile executive like Austin only earns a few hundred thousand dollars a year.

"Yes, if you can get them to sell it for $200 million, you can make $600 million."

Jiang Hui gave his reply very affirmatively.

Anyway, it is Suzuki's profits that are being damaged, so it doesn't matter if Austin eats more.

Maybe I will continue to cooperate with Austin in the future.

"Jiang, I will be going on a business trip to Japan in a few days to finalize this matter. You'd better arrange someone to be responsible for connecting with me."

This time, Austin had no more doubts.

Let’s get this money down quickly.

"No problem. I have a company in Hong Kong City. I will give your contact information to the person in charge of this company and ask her to complete the initial docking with you."

Jiang Hui has witnessed the greed of Americans.

It is true that money makes the world go round.

However, the greedier Austin was, the happier Jiang Hui was.

(End of this chapter)