Reborn Tycoon Rise

Xu Zhi said: "Go to the Shanghai Stock Exchange!"

"Why did you choose to go to Shanghai?" Rao Bing asked with a smile. His negotiations with Volkswagen have entered the substantive stage, and the location has been decided, also in Shanghai.

"Currently, the three cities with the most complete automobile facilities in the entire mainland are Wuhan, Changchun and Shanghai. Shanghai is close to the sea and has convenient transportation, so it is naturally the best choice." Xu Zhi replied.

But the core reason is difficult to explain. That is before SAIC Volkswagen is established in the future, it plans to establish its own automotive industry supporting facilities in Shanghai. Although many parts of trucks and cars are different, they will have a large number of imported goods. The only one that owns foreign precision processing equipment is itself. Since the Shanghai Municipal Government already has these equipment in the city, it is unlikely that it will spend huge amounts of foreign exchange to purchase them again. After all, foreign exchange in this era is extremely precious. Although the Shanghai Municipal Government already has these equipments in the city, It is the core of the entire country's economy, but the amount of foreign exchange is not large because most of it is handed over to the central government.

In this way, it has the opportunity to become SAIC Volkswagen's largest supplier in China. In the future, with the development of domestic automobiles, it may also become the leader of the entire mainland auto parts industry.

It is actually very difficult to enter the automobile industry. After World War II, the automobile companies that were able to rise were all born in developing countries. This is because local policy protection slowly cultivated the local automobile industry and then entered the international market. South Korea’s Hyundai Motor is a successful example.

Others can only circulate within their own countries.

In mature developed countries, the only one that breaks convention is Tesla, which has suddenly emerged with its electric vehicles.

But Xu Zhi's base camp is Xiangjiang, a city that cannot provide the market and technology needed by the automobile industry. It is impossible to build an automobile company by himself.

Another method is acquisition, but it involves too much funds. Even a small car company needs hundreds of millions or even billions of dollars. The funds used will also affect the development plans of other companies under its umbrella. Moreover, local policies, Cultural clashes are all problems.

For example, a bunch of British car brands, in the original history, many of the world's top car companies acquired them and used technology and funds to support them, but they all suffered serious losses. By the 21st century, Jaguar and Land Rover, which survived and were relatively famous, , it is also relying on the mainland market to regain vitality, but now in the 1980s, no one can save them.

As for luxury brands such as Rolls-Royce, Bentley and other sports cars, these companies are just pioneers where big car companies spend money to cultivate technology. Even in the 21st century, none of these companies can make profits on their own.

Unless your surname is Quant after time travel, it's best not to touch British cars.

Therefore, taking advantage of the opportunity of trucks entering the mainland market and intervening in Volkswagen's local supply is the best way to enter the automobile industry.

Among the world's top 500 companies, there are many automobile industries, but there are also many auto parts companies. Some powerful parts companies such as Bosch, Aisin, and Magna have a comprehensive strength that is not much worse than that of some second-tier car companies. Moreover, the technical reserves are extremely high, and BBA often seeks their help. It is the kind of low-key money-making enterprise.

"Xu Sheng, one more thing. In our country, if it is a domestic sales enterprise, it must ensure a foreign exchange balance. This is the most important indicator of a joint venture. Once it cannot be achieved, it cannot be established." Rao Bing said cautiously.

Foreign exchange balance is an enterprise law established by the country in the 1980s to protect its own foreign exchange. It stipulates that all joint ventures that sell products domestically must achieve foreign exchange balance. That is to say, if one dollar of products sold domestically, they must also export one dollar. dollars of product, or more.

All joint ventures established in the country are protected by law, which means that if they earn RMB, according to regulations, they have the right to exchange foreign exchange dollars from the central bank.

Now is the initial period of reform and opening up, and all the attention of the world is here. Therefore, in order to protect its own small foreign exchange reserves, any foreign investment company in China must discuss how to deal with it before signing an agreement. Maintain foreign exchange balance.

In this era, it is very difficult to earn foreign exchange from the mainland government and then remit it abroad! Small amounts are okay, but larger amounts are basically impossible. For example, Coca-Cola Company, although it entered the mainland in 1978, is not allowed to sell to Chinese people at all, and can only sell to foreign businessmen or tourists in China.

Unless it is a cooperation project with strategic materials urgently needed by some countries, or a special project approved by the top leadership, it is possible to succeed. However, the lifespan of these projects is basically not long. As long as it consumes the country's foreign exchange for a long time, this was absolutely impossible in the 1980s. Not allowed.

"I know this." Xu Zhi said with a smile: "In addition to the investment plan of Mark Company, another electronics company under my ownership will invest in a large factory in the mainland, mainly producing color TVs, radios and other electronic products, and all using For exports, this will generate substantial foreign exchange earnings, which should be able to balance the trucking companies' domestic sales.

Moreover, in addition to investing in assembly production lines, we will also bring in a large amount of processing equipment. In the future, many parts and components in the United States will also be produced by domestic companies. Moreover, our subsidiary Hutchison Whampoa is involved in trade with countless countries in Asia. In the future, We will also develop channels for selling various types of trucks or parts, hoping to reduce the foreign exchange balance for domestic sales. "

Foreign exchange balance is the most troublesome provision for joint ventures in this era, and the joint venture project with Volkswagen almost ended because of this issue. Later, after the new German CEO came to power, he re-examined the entire project and finally agreed to build a building in Shanghai. The production line with an annual output of 150,000 automobile engines, all of which are exported, has solved the last problem that hampered the Volkswagen joint venture project.

If Mark Company only relies on a little processing of parts and foreign trade, it will be difficult to offset the trade balance of domestic sales of trucks. After all, the cost of ocean transportation of trucks is too high, and there is basically no price advantage for shipping overseas, let alone the establishment of sales channels. Not overnight.

At present, a small truck in the Mainland costs tens of thousands of dollars, and they are all popular items. There is currently a severe shortage of trucks in the country. If production is really liberalized, selling tens of thousands of units a year will not be a problem, but if we cannot use the huge amount of money from RCA's factory, Exports are used as a balance of trade, but even if the trucks are produced, they are not allowed to be sold.

All plans now are aimed at the smooth start-up of the factory. As long as the country has no shortage of foreign exchange by the 1990s, this problem will no longer exist.

"Processing equipment, Mr. Xu is planning to make parts in China?" Rao Bing's eyes lit up. You must know that even the joint venture project with Volkswagen initially adopted the SKD model, which is known as semi-bulk parts and is shipped in large quantities from abroad. Parts and components are assembled domestically, and when the technology matures, parts and components will be slowly domestically produced.

"Yes, Mark has acquired some suppliers of core components. As long as the project is established, we will bring more than a hundred precision industrial processing equipment." Xu Zhi smiled and added: "The scope of Batumi equipment inside.”

Batumi's influence on the mainland is everywhere. Because of the establishment of diplomatic relations between China and the United States, Batumi's restrictions have been relaxed a lot. Except for the most sophisticated, many precision equipment can be shipped to the country. However, domestic foreign exchange is lacking. Many places want to buy a 10,000-dollar machine. The processing equipment had to be discussed at a meeting by the city government. Xu Zhi had no shortage of US dollars, so this was not a problem at all.

"What equipment is there?" Rao Bing asked urgently.

Xu Zhi shrugged and said: "It's not clear yet. It depends on the future situation. There should be some machining centers, lathes, gantry mills and the like!"

"Sorry, I'm a little impatient." Rao Bing said apologetically. The reason why he was so excited was because after these equipments enter the country, they will not only serve the future truck factories, but also can be used for any product needs in the machinery industry. Used for processing, especially the localization of parts for future car production lines, can also save a lot of foreign exchange.

"I have also heard about Mr. Xu's electronic investment plan, but currently they are two investment projects. Whether they can be used to offset each other's foreign exchange balance depends on the central government's intention." Rao Bing pointed out the biggest problem and thought about it. Then he asked: "Then I wonder if these equipment can process other products, such as some of the needs of our mainland?"

"Of course there is no problem, but if we are processing other domestic products, it doesn't matter if there is less. If there are too many, it will create a large foreign exchange imbalance. How to solve this problem?" Xu Zhi said with a smile. The key point is that external processing is necessary. It is just a matter of how many orders the truck factory can get. However, external processing faces the problem of foreign exchange imbalance.

"I haven't thought about this problem." Rao Bing replied with a frown.

Xu Zhi smiled and said: "Director Rao, as long as you and I can finalize this kind of large-scale project today, let the professional team discuss these details in the future. They will consider it more perfectly. It's really not possible anymore. It’s up to us.”

Rao Bing nodded and smiled: "Mr. Xu, I wonder when your team will be here?"

"After I stay in Beijing for a few days, I will go to Shanghai. Some employees of Mark Company in the United States are already preparing to apply for domestic visas, but they need reasons, so they can only go to Shanghai early after the government confirms the project. I hope this will happen quickly, so that everyone can discuss the whole matter as soon as possible and strive for early cooperation."

"No problem, then I will go back and report it to the central government immediately. As long as the superiors agree, I will immediately urge the Ministry of Foreign Affairs to issue visas to Mr. Xu's colleagues in the American company." After Rao Bing finished speaking, he stood up and prepared to leave, negotiating with foreign automobile giants. It's so painful. Now that there is a Chinese who is so easy to talk to, of course the speed must be faster.

Xu Zhi also stood up, shook hands and smiled: "Thank you very much, Director Rao!"