America: My Time

Chapter 869 Worries from Across the Ocean

Chapter 839 Worries from Across the Ocean
John decided to increase investment in Asia, which is also part of his development plan for the next few years. As South Korea and Taiwan accelerate their expansion, investment in China must also be accelerated to keep pace with their industrial development, especially in the automotive, electronics, and semiconductor sectors.

The spin-off of the Bentley Group is also about to begin, but not the brand itself; rather, it involves the separation of parts production. John and Mary Barra have discussed this, and she has given her approval. After all, the Bentley Motors Group can no longer continue its comprehensive development. When it was small, this wasn't a problem, but as the company grows, manufacturing all parts in-house becomes unsustainable due to rising production costs. The spin-off will also include parts sales; only in this way can the company's development be kept unaffected. This will accelerate its impact on the three major Japanese car brands and increase its market share.

As time went by, John's investments in China yielded huge returns. Although most of the profits remained in China, the scale of these investments continued to expand, and the profits were astonishing. Many people worried that John might transfer these funds, given that the dual-track exchange rate system was causing the RMB to depreciate, and John's annual losses in this regard were not insignificant. Even though John had previously agreed not to withdraw foreign exchange, that was only last year, and no one knew whether he would do so in the future, since every company had astonishing profits.

After ten years of investment, John's assets in China have become astonishing. This year, because of his confrontation with old guys like Rockefeller, John did not attend the consulate's reception to avoid being targeted by that guy again. After all, he is now being watched by many people with ulterior motives, and even a small matter could attract unnecessary trouble and affect his plans. It is better to keep a low profile.

During the ten years John invested, the currency depreciated by half. It would be wrong for John to say there were no losses; at least there were paper losses. However, these losses were made up by the sale of goods and transactions with the Russians. At this time, China attached great importance to investments and did not want to see any unexpected events. Therefore, John had to have another discussion with the consulate on this issue.

The fears of many did not materialize. John made it clear that investment in China would continue to increase, and that further investment would be made in auto parts factories, with promising exports. Less important parts for the Bentley Group would be divested to reduce production costs.

"Mr. John, are you sure you want to increase investment, especially in automobiles and electronics?"

"That's for sure, but not for cars, but for auto parts. Bentley Motors' expansion, especially in Taiwan where it needs cheaper parts, not to mention North America and Europe, where we have a complete sales channel, has led to a rapid increase in the number of parts we need as we continue to develop the market over the years. So, expanding investment is necessary, but this can no longer be done by Bentley Motors. We need to spin it off to form our own parts company. Investment in electronics is also necessary, as labor costs in Taiwan are too high, which is not conducive to our competition with Japanese companies."

China takes John's situation very seriously, especially given his recent frenzied actions, which have shocked the country. The split of the two major groups, the layout in Oregon, and the emergence of a global navigation company have all shocked many people. Now, Bentley Group also has the idea of ​​splitting up, which is even more outrageous.

While others are constantly expanding and acquiring, John is choosing to split up, breaking up a business giant. Many people can't understand this, but it is the right way out.

The Consul General now understood John's idea: to compete with Japanese companies for market share. Japan's economy was already collapsing, with the stock market and real estate market crashing, and businesses unable to hold on any longer. Now was the perfect time to step in and compete with Japanese companies for market share.

How can companies reduce costs? Naturally, it's through large-scale production. For automotive parts, mass production is essential to lower costs. Otherwise, high costs will be the biggest problem for companies. This is the case with Bentley Motors. For luxury brands, this is not a problem, but for the mid-to-low-end market, they need high-quality, low-priced parts to reduce production costs and gain a larger market share.

“There’s one thing we need to clarify beforehand: even a split will take time. We need to wait until the new parts factory is built and the equipment is fully operational before we can begin. This requires rebuilding the factory, new land, and, more importantly, assistance. We need to complete the factory’s construction and operation in the shortest possible time; time is crucial for us.” Although Bentley Group already has a considerable amount of reserved land for its factories in China, it’s far from sufficient given the current situation. After the split, the parts factory will need to be rebuilt, with newer equipment installed to cope with a larger market share and reduce production costs. John doesn’t want to give the impression that he’s only doing this for land. After all, after the split, it will no longer be a single group company, but a new parts company, or even a conglomerate. Therefore, completely separating the factories is the best option. However, building a factory is no easy task, and relying solely on oneself would undoubtedly waste too much time.

The Consul General also felt the pressure regarding John's request. It was no small matter; it involved the breakup and consolidation of an automotive giant, and the investment was substantial. After all, to grow bigger and stronger and compete with Japan for market share, it couldn't be a small investment.

"In principle, there shouldn't be any problem, but I need to report to my superiors before I can give you an answer."

"That's no problem. If possible, it's best not to be too far from the original factory. After all, those employees will be taken in by the new factory after the split, and we still need to train more employees. So we need an accurate time. After all, our time is limited and we can't wait too long!"

Training employees is no small matter and requires advance planning. Ideally, it should be done during factory construction to quickly establish production capacity without disrupting the overall layout. This necessitates negotiation regarding site selection. When John brought up the issue of time again, the Consul General understood John's emphasis on time.

Building a factory from scratch takes time. Just leveling the land and other things require a lot of time. Without proper planning and scheduling, it is impossible to complete it in a short period of time. Even though modern factory construction does not require much high technology, the necessary factory buildings and other things still take time.

Following the meeting with John, the news was quickly reported. This was no small matter; it was of great importance, and the investment amount would be staggering, with a significant impact. Those who have been following the Bentley Group know how powerful their parts sales channels are in Europe and America, not to mention their automotive investments in South Korea and Taiwan. In South Korea, they have already begun entering the North American market, competing with other automotive giants for market share. If the Bentley Group continues its development in this manner, the demand for parts will be enormous.

Of course, the most important thing is the new equipment, which is something that not every car company is willing to invest in. At least among foreign companies, no one has been able to reach the level of Bentley Motors Group. It's not about bringing outdated products to the Chinese market to make money, but about bringing the most advanced technology and models, and having car factories that are consistent with those in Europe and America.

It can be said that John has a very good reputation in China and in global investments. At least no one speaks ill of John, accuses him of having problems with his investments, or of cheating his partners. Even though those guys in Japan suffered huge losses in this storm, no one spoke ill of John. On the contrary, many people are even thanking John. After all, John had warned them long ago, and more than once. But these guys didn't take it seriously. Now that things have gone wrong, they have to bear the consequences themselves. They can't blame John.

John's excellent reputation earned him recognition in the investment process; otherwise, even the most ambitious offers from Taiwan wouldn't have been so generous. Their goodwill was met with a positive response from John, with the factory under construction in Taiwan at full speed, and equipment even located at sea. This efficient pace earned recognition not only from Taiwan but also from countries around the world, and China was well aware of this. The fact that Bentley Motors Group placed such importance on this investment suggests that the car factory in Taiwan is not ordinary; it's not just targeting Taiwan, but potentially also Southeast Asia.

John now intends to expand his investment in China, establishing a more complete parts factory, as well as expanding into electronics and semiconductor manufacturing. Under these circumstances, who wouldn't take it seriously? After all, such investments are rare, and such a strategic move is planned. Missing this opportunity would be difficult to regain, especially since this was the early 1990s, when foreign investment in China was still very cautious, unlike the later frenzy. John's investment in China is the largest in scale, covering all aspects, and the annual profits are astonishing, so naturally everyone is paying close attention.

(End of this chapter)