America: My Time

Chapter 901 Testing each other
Chapter 871 Testing Each Other

The nights in Tokyo this year are unusually cool. The bursting of the real estate bubble has left many people feeling lost. The more frenzied things were before, the more lost they are now. Burdened with huge debts, they are all feeling suffocated. This is the reality. Even the tycoons are having a hard time, let alone ordinary people.

In this neon-lit world where almost everyone is speculating in stocks and real estate, very few people managed to escape the real estate bubble unscathed. Most were swept up in this frenzied disaster, and the impact on them grew with each bankruptcy and liquidation of one company after another, even leading to despair.

Many Japanese people today live a life of hardship, suffocating under the weight of terrifying debt, fearing they too will join the ranks of the unemployed at any moment. Although John's companies are expanding in Japan, recruiting, and even acquiring, this investment is negligible for the country as a whole and has little impact. If it has any effect at all, it's merely allowing a few to avoid disaster and have a stable life.

"John, you see? Those guys all want to work with you!"

Hearing Akio Morita's words, John smiled calmly and said, "I know, but I'm powerless to do anything about it. I believe they should be aware of the situation in Taiwan, and as members of the automotive industry, they are naturally very clear about the situation in the United States as well. I not only received a call from Morgan, but also from the White House. GM and Ford are definitely on my list, and I have a good working relationship with Toyota. After all, Phoenix Media and Legendary Entertainment have always had a pleasant advertising partnership with them, so I can't refuse their requests. Plus, there's Bentley Motors. Do you think I can meet the needs of others? The number of products that Taiwan can release is limited, and that's with Bentley Motors lowering its own requirements. The Europeans have been looking for opportunities all along, and they've even approached the White House. I'm equally powerless to do anything about them!"

"Yes, that's certainly true given the production capacity in Taiwan. But have you ever considered building a factory in Japan as well? Japan has a large workforce right now. If you're willing to believe, the Japanese government will provide strong support!"

"That's impossible. Putting aside the staggering costs in Japan and the long construction period, do you think the White House would allow it? If I build a factory in Japan, it would be a slap in the face to the White House and give my enemies in the US a reason to attack me. It's alright in Taiwan, where it's about reducing costs, but there's no reason for that in Japan. I can't do it. Besides, building a factory in Japan is nowhere near as fast as Taiwan's expansion."

John's words made Akio Morita nod. In fact, he was well aware of this, but he had no way of being arranged by the authorities to test the waters. If he succeeded, all the better; if he failed, it wouldn't matter.

“I understand. Although Japan has enough workers, the production costs are too high. Even our own companies are relocating overseas. It’s even less likely that an investor like you would put such a manufacturing plant in Japan. It’s already very difficult for you to make such an expansion at this time. This is something that many of us cannot do.”

"I'm just doing my best. After all, my cooperation with Japan has always been very pleasant, and being able to contribute is my way of giving back. Besides, this kind of investment isn't without profit, although it might not be huge and it will take a long time to recoup the costs. But it's still a small help to the other companies under my umbrella. To be honest, if I had known that Japan would undergo such a dramatic change, I definitely wouldn't have sold those convenience stores. Now I regret it a bit and want to rebuild them, but that will take a long time. And even if we expand now, there are many concerns. After all, Japan's real estate holdings have never shown any signs of slowing down, which makes 7-Eleven hesitant to expand on its own and only able to choose the franchise model, which will seriously affect its own development."

“You’re right. If we had known this would happen, no one would have let go of such a high-quality asset. The profits of convenience stores are constantly rising, but I don’t have much profit either. The debt I’m taking on for the acquisition is giving me a headache, and the continuous decline in real estate prices is giving me even more headaches.” Akio Morita naturally understood John’s words. Although the profits of convenience stores are not large, their market value is still very stable, which is one of the few companies in Japan with such a stable market value.

“Mr. Morita, you’re mistaken. Although the value of real estate is declining, it’s a fixed asset, and it will eventually recover. Besides, it’s currently generating good profits, and it’s a significant help to Sony Music and Sony Games, directly giving Sony its own sales channels. This is a huge benefit to Sony, but it has a considerable impact on Phoenix Group and Legendary Entertainment. I’m now racking my brains trying to figure out how to quickly rebuild and improve 7-Eleven convenience stores.” As he said this, John sighed, a faint hint of regret flashing across his face.

"Take your time. You have plenty of time. Besides, given the current situation in Japan, maintaining profitability is already a challenge; we can't expect more. However, the people you chose are truly capable. They've completed the basic setup in Japan in such a short time; now it just needs time to refine it bit by bit. But, have you considered bringing the Mandarin Oriental back to Japan? Many hotels are already struggling to stay afloat!" "I'm willing but unable. Under the current circumstances, the Mandarin Oriental can't easily enter the fray. The best outcome is to hold onto those resort hotels, whose value has plummeted. If I had known this would happen, I should have sold them off as well. Many hotels in the US have had designs on them!"

"Indeed, if I had known that things would turn out this way in Japan, I should have been more decisive. Now it's too late to regret it. I also regret that Sony shouldn't have invested so recklessly in real estate. Not only did we not make any money, but we're now losing a lot of money. If it weren't for the recovery of game companies and record companies, I wouldn't have been able to hold on."

"Record companies and game companies have a bright future, not only in Japan but also in Europe and America. Sony should invest heavily in them. Compared to other industries, the entertainment industry is still a valuable asset. I'm starting to regret it now. If I had known the situation in Japan would turn out like this, I should have been more decisive. I still have some izakayas (Japanese pubs) in my hands. I should have sold them along with the nightclubs. Now, no one is willing to take them on, so I can only keep going. But it's hard for an unknown izakaya to survive. I don't know what to do. Those guys even gave me an even crazier idea: to expand in this area. Do you think that will work?"

"It's hard to say, maybe fifty-fifty. After all, an investment like an izakaya isn't much for you, and haven't you always treated them as employee benefits? Actually, continuing to invest isn't a big problem, but you need professional managers, otherwise, this chaos can't continue!"

“I’d like to, but the current situation in Japan is making me very worried. I’m afraid that if I make an acquisition, I’ll continue to lose money. The decline in real estate prices is too crazy, and it’s making me very anxious. Now my Wagyu beef factory has to export. There’s no hope left in Japan, but the export volume isn’t enough. I’m also unwilling to sell it. It’s a real dilemma. It’s become a useless asset. It’s completely incomparable to my investment in Australia.”

“John, you can actually continue to acquire them. Many Wagyu cattle farms are planning to sell, after all, the investment costs are too high, and many people can no longer hold on. You have wineries in Australia and also in the United States. You can totally acquire those Wagyu cattle farms that are going to be sold and then revitalize your wineries.”

"Mr. Morita is mistaken. My breweries don't need to be revitalized. They can be traded with the Russians, and the profits are quite good, at least better than raising Wagyu beef. The demand from the Russians is considerable. My breweries in Southeast Asia can't even meet their needs. I also have investments in South Korea. If it's about investment and acquisition, I'd prefer to acquire breweries in Japan, at least I can still trade with the Russians. But Wagyu beef is out of the question; they simply won't accept it."

Upon hearing John's words, Akio Morita thought to himself, "What a sly fox! He's completely downplaying the issue. This is just a small Wagyu cattle farm. Even if it loses money every year, it's no big deal for you. Besides, everyone knows you've absorbed it all yourself. Now you're bringing it up here. How cunning!"

Although he understood John's scheme, Akio Morita couldn't expose it. After all, everyone was doing the same thing, testing each other. He shook his head and smiled, "This is nothing to you. That loss is insignificant. If you can expand your farms, you can absorb it just by operating in Europe and America. After all, the expansion of the Mandarin Oriental Group in Europe and America has not been greatly affected!"

“I’d like to, but we need to consider it more carefully. In the current situation, any investment requires caution, especially large investments with slow returns. We need to have someone conduct an investigation first. At least we need a complete investigation report from Europe and America before we can make a decision, and that will take time.”

(End of this chapter)