King of Industry

  Chapter 564 Skoda’s Law of Survival

  In the conference room of the Huaxia Embassy in Czechoslovakia, Zhao Guoyang seemed very calm in the face of Gu Jianbin's aggressive questions.

  After the boss finished asking, Zhao Guoyang explained solemnly: "Minister Gu, I have actually analyzed this issue for you when I was in China."

   "That's right, the current cooperation between Songqi Group and FAW Group with 'Volkswagen' and 'Audi' is very pleasant and successful."

   "However, we must also note that when cooperating with these two auto giants, our domestic auto companies are at a complete disadvantage."

Zhao Guoyang said with a dignified expression: "To be honest, in the cooperation with 'Volkswagen' and 'Audi', our domestic car companies are more of a 'foundry' role, without any technology at all... "

   Although Zhao Guoyang's words are true, they are still a bit harsh.

  After hearing these words, Mao Zhichun and Wu Jianlong felt a little uncomfortable.

  Gu Jianbin, on the other hand, didn't seem to have expected Zhao Guoyang to speak so frankly, so he nodded in a subtle way.

  Zhao Guoyang's explanation continued. He took a breath and continued to speak: "The reason why you want to acquire the shares of 'Skoda Automobile' is very simple."

   "Our domestic auto companies should not only be satisfied with the false prosperity of the domestic auto market, but should take a longer-term view."

Zhao Guoyang stared at Gu Jianbin, and said sincerely: "Minister Gu, I have always believed that with China's current rapid economic development and huge population base, even domestic car companies such as Songqi Group and FAW Group If the current model continues to develop, the profits will definitely be huge.”

"However, we are all well aware of the basis on which these profits are based. They are not generated because of the improvement of our domestic auto manufacturing industry, but because of the huge market and the country's tariff protection policy. "

  After Zhao Guoyang's rather fierce remarks, all the cadres of the embassy, ​​including Meng Liangyu and Gu Jianbin, showed a look of shock.

   Zhao Guoyang didn't pay much attention to the changes in their expressions.

  He continued: "In my opinion, the profits of domestic auto companies are reused, but if we have been satisfied with the modern factories of international auto giants, we have no ambition to improve the level of auto manufacturing."

   "Even after another 20 or 30 years, we can still only be other people's foundries..."

   "Of course, I don't mean to improve the level of domestic automobile manufacturing, the only way is to acquire 'Skoda Automobile Company'. However, this is indeed our best opportunity right now..."

   After finishing the last sentence, Zhao Guoyang nodded politely to Gu Jianbin, indicating that he had nothing to say.

   Gu Jianbin, who was sitting opposite him, looked at him seriously for a long time, and then said slowly: "Researcher Zhao, your reason, I really didn't think of it before."

   "Although you still have doubts about whether your plan of 'small fish swallows big fish' can be implemented smoothly, your thinking is absolutely correct!"

  Meng Liangyu, who was sitting upright on the side, heaved a sigh of relief when his stubborn subordinate finally said affirmative words.

   There was silence in the conference room for a while, and many people in the embassy turned their attention to the young man in front of them.

  After taking a sip of water, Economic Counselor Wu Yichang asked Zhao Guoyang: "Researcher Zhao, after hearing your explanation just now, we have no objection to the joint acquisition of the shares of 'Skoda' by domestic auto companies."

   "The only remaining question is how we can compete with other international auto giants."

   "As far as I know, the 'Skoda' car company sold 180,000 cars last year, and its total sales are almost four billion dollars..."

  Wu Yichang came from an economic background, and his understanding of the data of "Skoda Automobile Company" was not beyond everyone's expectations.

Facing everyone's eyes, Counselor Wu continued to speak: "The figure of 4 billion US dollars is only about one-tenth of that of the 'Volkswagen Group', but compared to the annual turnover of any car company in our country, it is even bigger. It's much more."

   "Although 'Skoda' is currently experiencing some financial troubles, even if it is sold at a low price, we estimate that its overall selling price will not be lower than '18 billion' US dollars."

   "Of course, 'Skoda' may not sell all of its shares. But at least, if we want this thing to be successful, it is estimated that we must prepare at least tens of billions of dollars."

Speaking of this, Wu Yichang cast a questioning look at Mao Zhichun and Wu Jianlong: "Chairman Mao and Chairman Wu, based on my understanding of the operating conditions of domestic auto companies, even if Songqi Group and FAW Group jointly , I'm afraid I can't afford such a large sum of money?"

Although Mao Zhichun and Wu Jianlong were a little embarrassed, they still said honestly: "Counselor Wu, you are right. We, the Songqi Group and the FAW Group, have all mobilized, and it is only a fraction of the '10 billion'." That's all..."

  Wu Yichang had expected this a long time ago, and immediately turned his head to stare at Zhao Guoyang and said, "Researcher Zhao, since the funding gap is so big, why do you seem to be full of confidence? This is what I am more curious about!"

  After Wu Yichang finished asking, Mao Zhichun quickly interfaced: "Counselor Wu, I'll just explain this situation to you!"

Under the curious eyes of Wu Yichang and other cadres of the embassy, ​​Chairman Mao explained in detail: "In fact, the 'little fish' in Researcher Zhao's plan is not just our Songqi Group and the FAW Group. .”

  Wu Jianlong also nodded in agreement: "Yes, Counselor Wu! In the newly established 'Huaxia Automobile Group Company', our FAW Group and Songqi Group only occupy 5% and 8% of the shares respectively."

   "The rest of the shares are occupied by the Pudong New Area Construction Company of SJ City and our Spring City New Area Investment and Construction Company of Liaodong Province..."

  After Wu Jianlong's explanation, everyone at the embassy immediately understood.

  Obviously, the establishment of this "Huaxia Automobile Group Company" is more from the perspective of national interests, and it is not just a matter of Songqi Group and FAW Group.

  The explanations of Mao Zhichun and Wu Jianlong completely dispelled the worries of several embassy leaders.

  Meng Liangyu, who had been silent for a long time, smiled and said to Du Yitao after hearing the explanations of the two big automakers.

   "Old Du, with the support of the state, it seems that when you come this time, the acquisition of 'Skoda Automobile Company' is inevitable."

  Du Yitao laughed twice, pointed at Zhao Guoyang and said, "Old Meng, with Researcher Zhao here, I am very confident in our mission this time!"

   Speaking of this, the economic experts at the embassy no longer have any doubts about Zhao Guoyang's "small fish swallowing big fish" plan.

  Even Gu Jianbin, who has never been very optimistic about Zhao Guoyang, shook his head and sighed: "If this plan can be successful, it will really play a pivotal role in the development of our domestic automobile industry!"

  After listening to his words, Miao Jiawei, commercial counselor of the embassy, ​​raised his own questions to Zhao Guoyang.

   "Researcher Zhao, your plan is theoretically feasible."

   "However, have you ever thought about a question, 'Skoda Automobile' may only need to introduce part of the funds to improve the current operating conditions?"

  Although Miao Jiawei's question was still unfinished, Zhao Guoyang understood his meaning in an instant.

  He nodded lightly and said, "Counselor Miao, I understand what you mean. You are worried that Skoda Auto has no plans to sell more than half of the shares."

   "In that case, it would be meaningless for us to acquire the other party's shares, wouldn't it?"

  Miao Jiawei gave a "huh", nodded and said, "That's right, Researcher Zhao, this is what I'm worried about."

  Zhao Guoyang smiled and explained unhurriedly: "Counselor Miao, before answering this question, please allow me to briefly talk about the history of 'Skoda Automobile Company'..."

  “In 1895, in a small house on the outskirts of Prague, the capital of Czechoslovakia, a small bicycle factory started its century-old journey.”

   "The mechanic Vaclav Lorraine and the businessman Vaclav Clement joined hands to establish a small, unremarkable company called 'L&K'."

   “Then, in 1900, they started making motorcycles. Five years later, they started making cars…”

   "Very soon, because of the outbreak of the First World War, the production of automobiles was hindered, and the strength of the 'L&K' company was also weakened."

"After the war, in order to restore their former reputation, Vaclav Lorraine and Vaclav Clement found the largest industrial group in the country at that time, Skoda Persson Group, which was engaged in the production of agricultural machinery, aircraft engines and trucks. From then on, the production of cars under the Skoda brand began."

"This was the beginning of Skoda Auto and the end of the 'L&K' era. Vaclav Lorraine and Vaclav Clement, although they lost control of the company, made the factory Rise again after the war."

  Looking at the bosses around him who were listening to his story with relish, Zhao Guoyang looked very calm.

   "For vulnerable groups, finding strong support is the basic rule of survival. As a country, Czechoslovakia is like this, and 'Skoda Automobile' has always done this."

   "In the **** years to come, this method of 'Skoda Auto' worked more than once, bringing the century-old factory back to life."

   Having said this, a confident smile appeared on Zhao Guoyang's face.

He looked at Miao Jiawei and said, "So Counselor Miao, as long as it is confirmed that 'Skoda Automobile' really intends to sell its shares, I believe they will definitely transfer more than 50% of the shares, or even 100%. It is not impossible... "

  (end of this chapter)