Return to Hong Kong Island for a Century

Chapter 443 Overwhelming Negotiation (Second Update)

"The relevant departments should come up with a solution as soon as possible."

"After the cargo ship arrives at Huangpu Port, the containers are transported to various destinations according to their numbers."

"Especially these most sensitive things!"

"From the moment a container ship docks, to the moment the container is delivered to various departments."

"We must ensure absolute safety. If anyone tries to move these containers, we must take decisive action!" The key leader now needs to consider how to sort the contents of these containers and send them to their respective locations.

The parts and related blueprints for the 160 bomber had to be sent to the relevant classified agencies.

Of course, the technical data and physical objects of satellites and ground facilities are also top secret.

"Okay!" The main leader was assigning tasks to the leaders present, who were responsible for their respective departments.

Then the meeting adjourned because time was tight, there were too many categories of things involved, and they were all very sensitive.

Meanwhile, in Shanghai, the president of McDonnell Douglas was overjoyed to learn that the company's stock had skyrocketed.

We just started negotiations with SF Express today, so it's only just begun, but the company's stock price has already skyrocketed.

What pleased the McDonnell Douglas president most was that the Boeing CEO called and swore at people.

This means Boeing is furious.

Moreover, the decline in Boeing's stock was expected.

"Gentlemen, I just received news from headquarters that the company's stock has surged."

"Our mission this time is very simple: to facilitate this deal."

"This transaction can only succeed, it cannot fail. If it fails, the company's stock price will fall again." The president of McDonnell Douglas gathered his subordinates, shared some good news with them, and then spoke.

McDonnell Douglas was determined to make the deal because there were many unfinished products in the DC10 orders, and some products that had been produced but no one wanted them.

These aircraft originally had customers, but many airlines cancelled their orders after they were grounded in 79.

Therefore, McDonnell Douglas had a considerable number of aircraft in its inventory.

And now the West is experiencing a financial crisis, leading to rising fuel prices.

Therefore, there is even less market for long-range versions of aircraft like the DC10-30.

McDonnell Douglas had some stockpiled finished products and semi-finished products on its production line, and it also placed orders with upstream companies.

If these issues are not resolved quickly, they will become non-performing assets for the company.

After the president of Maidao Company finished speaking, everyone applauded.

After the applause ended, someone said worriedly, "Mr. President, I think you should take a look at the European opinions on the Changan 201."

"The Chang'an 201 is far superior to the Boeing 737 in all aspects of performance."

"It can be said to be the best aircraft of this model!"

"Firstly, in terms of comfort, the cabin pressure reaches 1800 meters above sea level, which is 600 meters lower than the standard altitude of 2400 meters."

"In addition, the noise inside the cabin is lower than that of the Boeing 737."

"The aircraft's operating system is also excellent."

"Another aspect is the safety of the aircraft itself, especially in terms of maintenance, where multiple safety measures have been adopted."

"In addition, its fuel economy is even better than that of the Boeing 737."

"Of course, the most crucial point is that the factory price of this aircraft is only $700 million!"

“Our lowest price for an aircraft is $20 million, and our aircraft has a very bad reputation.”

Upon hearing this man's words, McDonnell Douglas's president frowned slightly. The Chang'an 201 passenger plane was even better than he had imagined.

"This is indeed a problem!"

"Furthermore, Yum! Brands has applied for both twin-engine wide-body and four-engine wide-body aircraft." McDonnell Douglas's president nodded.

When the Chang'an 201 applied for flight permits and airworthiness certificates in Europe, all the aircraft's information had already been transmitted to several major Western civil aircraft manufacturers.

After all, the commercial airliner industry is only so big.

The performance of the Changan 201 was previously only rumored.

But this time I saw the actual product in Europe, and it was even a mass-produced model.

This put pressure on several major companies, with Boeing bearing the brunt of the impact, otherwise Boeing wouldn't have spent so much on public relations.

But this is not a good thing for McDonnell Douglas either.

This means that the aircraft can no longer be sold at a high price, because the other party already has the manufacturing capability.

Moreover, Parkson has applied for even more patents.

"Mr. President, we are facing several issues. The first is that Chang'an Aircraft Manufacturing Plant is capable of manufacturing aircraft that are superior to our DC10."

"This means we are in a passive position in the subsequent negotiations."

"Secondly, this may be the best opportunity for McDonnell Douglas to deal with so many non-performing assets at once."

“These non-performing assets may be cheaper if they are handled by a third party.”

"Third, I think we can't just look at the unit price of an airplane when looking at the problem; we also need to look at it from another angle, such as the stock price!"

"Fourth, we now need an aircraft design that will allow McDonnell Douglas to continue its glory," someone said.

The CEO of McDonnell Douglas nodded. On the way here, the shareholders had insisted that this transaction must be completed.

If the deal falls through, the company's shareholders will fire him.

For McDonnell Douglas, the DC-10 had become a bad asset, and the MD-80 was not performing well either.

In other words, the company is currently lacking an aircraft model that will allow McDonnell Douglas to maintain its market dominance in the long term and compete with Boeing.

Therefore, the CEO of McDonnell Douglas has a very important task this time.

Of course, McDonnell Douglas's president also knew that the reason Shunfeng Company chose to buy the plane was because it was cheap.

Of course, there are other reasons as well, such as Boeing's continued targeting of Parkson!
Of course, this is good news for McDonnell Douglas's president.

Of course, there are some things that the CEO of McDonnell Douglas couldn't say. After hearing his subordinates' suggestions, he said, "Everyone should try to talk to them and find out their bottom line."

"And we're pushing all DC10-30s!" McDonnell Douglas wanted to sell only this model of aircraft because it was expensive and had a longer range, as international routes weren't doing so well due to the financial crisis.

Therefore, the sales slump for this model of aircraft is even more severe.

"This negotiation was a success, and everyone will receive a bonus when we get back," the president of McDonnell Douglas said concludingly. Those present applauded, as they were all senior executives of the company, and the company's stock price had already risen.

If this deal goes through, the executives will naturally receive a high return.

At Aramco, the income of the company's senior management team is mainly determined by the financial statements.

Later that evening, news broke from Aramco that the East had sent a procurement delegation to inspect and purchase Western fighter jets.

As for whether to purchase from Paris or New York, no decision has been made yet.

The next day, Li Song brought Tian Jiahui and Yang Haiyang, the general manager of Shunfeng Company.

Yang Haiyang is 48 years old this year. He used to work in a railway department in Guangzhou. For a long time to come, SF Express's logistics system will mainly rely on railways.

"Mr. President, congratulations on the rise in your company's stock price!" Li Song said first upon meeting the two.

The president of McDonnell Douglas felt a chill run down his spine. Was this young man up to something again?

Because this young man has such a huge influence, the stock price of a bad company might plummet again.

"We have to thank Mr. Li for giving our company this opportunity." The president of McDonnell Douglas adopted a very humble attitude, his words even bordering on flattery.

"I think your aircraft price is still a bit high."

"After all, your planes have the reputation of being the king of air disasters."

"DC 10-10, $18 million per aircraft!"

"DC 10-30, $18 million per aircraft!"

“If it weren’t for business needs, our company would never have purchased these defective products from your company!” Li Song stated his price directly.

Upon hearing the offer, McDonnell Douglas's president shook his head with a wry smile: "Mr. Li, this price is too low. Our previous selling price for the DC10-30 was at least $30 million."

"That was before!"

“These things are now considered bad assets by you.”

"You don't want to see the company's stock price fall again, do you?"

"You should try to persuade your shareholders!"

“It’s already good enough that someone is willing to take over these non-performing assets.” Li Song didn’t give the other party a chance to switch, and immediately followed up with his own investment.

The president of McDonnell Douglas felt frustrated; less than five minutes into the negotiation, the other party had come to threaten him.

The key issue is that the other party has the ability to threaten me.

If you mess up the negotiations, the shareholders will definitely tear you apart.

“Mr. Li, this price is far too low. I have no way of explaining it to the shareholders.”

"In addition, we also need to purchase your company's technical drawings."

“We hope we can continue to cooperate, rather than just a one-off transaction,” said the president of McDonnell Douglas, trying to steer Li Song in a different direction.

"Mr. President!"

"You're wrong. This is a one-time transaction between us."

"Because we'll be competitors from now on!"

"Guess how long it will take us to build a twin-engine wide-body passenger jet, and a four-engine wide-body passenger jet?"

"Therefore, the longer the negotiations drag on, the more disadvantageous it will be for you!"

"What you need to do now is to dispose of the bad assets you have, then take the blueprints we sold you, manufacture the aircraft as soon as possible, and then compete with Boeing."

"Because at this stage, the West is still the main market for commercial passenger aircraft."

"Because you have the most developed Western countries, and your income is also the highest."

"Of course, you can also sell the plane to Japan and South Korea."

"For a long time, our company will only focus on the domestic market."

"So for your McDonnell Douglas, your main competitor going forward will be Boeing," Li Song said confidently.

“Mr. Li, what you say makes a lot of sense, but this price is really too low.” The president of McDonnell Douglas shook his head with a wry smile.

"Let's not waste words. 30 DC-10-30s, $20 million each, but your company must grant us technology licenses. We can modify DC-10 aircraft, mainly converting passenger planes into cargo planes!"

"In addition, we also need to authorize us to use other third-party engine systems."

"In addition, I will design a competing model for the Boeing 737 for you."

"It only requires $1 million!"

"If you get the blueprints today, you can go back to production tomorrow." Li Song had been in control throughout the negotiations, so he now stated his position in a somewhat forceful tone.

When McDonnell Douglas's president heard Li Song say this, he felt a little conflicted, because the company's bottom line was $20 million.

However, Li Song also brought many additional conditions.

“Mr. Li, I will report your request to the board of directors.” President McDonnell Douglas felt it was best to report to the board.

“Of course, you can tell your board that every day the negotiations are delayed, our company’s aircraft manufacturing progress will be faster, and your company will continue to fall behind in the competition with Boeing!” Li Song nodded, then stood up, shook hands with the other party, and said these words.

In the end, he left without looking back.

The other participants in the negotiations were somewhat dumbfounded. They hadn't even settled into their seats, and the tea leaves for their hot tea hadn't even been added yet, and the negotiations were already over.

This is too fast!

The McDonnell Douglas team lacked confidence in the face of the assertive Li Song; any other McDonnell Douglas representative would have slammed their fist on the table long ago.

But Li Song couldn't do anything about it.

The president of McDonnell Douglas quickly reported the situation to the board of directors, inevitably embellishing the story, because as a senior executive of the company, he only cared about the financial report and not the company's future development.

I'm not going to be a CEO forever!

McDonnell Douglas's board of directors did not expect the negotiations to end so quickly.

The board members also prepared strong coffee, intending to stay up all night.

Since it was Amei's evening, everyone guessed that news wouldn't come back until at least midnight.

"Gentlemen, what do you think of the demands they've made?" The vice president and the president shared the same idea: to make the company's financial statements look good. Non-performing assets would only drag down the company's financial statements, while disposing of non-performing assets would generate revenue.

(End of this chapter)