Chapter 530 Skoda's Law of Survival
In the conference room of the Chinese Embassy in Czechoslovakia, Zhao Guoyang seemed very calm in the face of Gu Jianbin's aggressive problem.
After the boss finished asking questions, Zhao Guoyang explained seriously: "Minister Gu, I have already analyzed this question for you when I was in China."
"That's right, Songqi Group and FAW Group are currently working with 'Volkswagen' and 'Audi', which is very pleasant and successful."
"However, we should also note that when cooperating with these two auto giants, our domestic auto companies are at a complete disadvantage."
Zhao Guoyang said with a serious expression: "To be honest, in the cooperation with 'Volkswagen' and 'Audi', our domestic car companies are more of playing the role of 'Office Factory', and there is no technology at all..."
Although Zhao Guoyang's words were true, they were still a little harsh.
Mao Zhichun and Wu Jianlong, who were beside him, looked a little uncomfortable after hearing these words.
However, Gu Jianbin seemed to have never expected Zhao Guoyang to speak so frankly, and nodded indecisively.
Zhao Guoyang's explanation continued. He took a breath and continued to speak: "Why should I acquire shares of 'Skoda Automobile Company'? The reason is very simple."
"Our domestic automobile companies cannot just be satisfied with the false prosperity of the domestic automobile market, but should look at it a little longer."
Zhao Guoyang's eyes were on Gu Jianbin and said sincerely: "Minister Gu, I have always believed that with the current rapid economic development of China and the huge population base, even if domestic car companies like Songqi Group and FAW Group develop according to the current model, their profits will definitely be very generous."
"However, we all know what the profits are based on. They are not caused by the improvement of the level of our domestic automobile manufacturing industry, but by the huge market and the country's tariff protection policies."
After Zhao Guoyang's fierce remarks were expressed, all the cadres of the embassy, including Meng Liangyu and Gu Jianbin, were shocked.
Zhao Guoyang didn't care too much about their changes in expressions.
He continued: "In my opinion, the profits of domestic auto companies are reusable, but if we have always been satisfied with giving international auto giants a modern factory, we do not have the ambition to improve the level of automobile manufacturing."
"Even if we have 20 or 30 years, we will still be our OEM factory..."
"Of course, I don't mean that the only way to improve the level of domestic automobile manufacturing is to acquire 'Skoda Automobile Company'. However, this is indeed the best opportunity for us at the moment..."
After saying the last sentence, Zhao Guoyang nodded politely to Gu Jianbin and signaled that he would say so much.
Gu Jianbin, who was sitting opposite him, looked at him seriously for a while, and then slowly spoke out: "Researcher Zhao, I really didn't expect this reason before."
"Although you still have doubts about whether your 'little fish swallows big fish' plan can be implemented smoothly, your ideas are definitely correct!"
Meng Liangyu, who was sitting upright, heard his stubborn subordinate finally say something affirmative, and finally breathed a sigh of relief.
After a long time of silence in the conference room, many people in the embassy focused on the young man in front of him.
After taking a sip of water, the economic counselor Wu Yichang asked Zhao Guoyang: "Researcher Zhao, after hearing your explanation just now, we have no objection to the joint acquisition of 'Skoda's shares by domestic automobile companies."
"The only question left below is how we compete with other international auto giants."
“As far as I know, 'Skoda' Automobile Company sold 180,000 cars last year, and its total sales were about 4 billion US dollars…”
Wu Yichang is an economic leader, and his understanding of the data of "Skoda Automobile Company" is not beyond everyone's expectations.
Facing everyone's eyes, Counselor Wu continued to speak: "Although the 4 billion US dollar is only about one-tenth of the 'Volkswagen Group', it is much more than the annual turnover of any car company in our country."
"Although 'Skoda' is currently facing some financial trouble, even if it sells 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 its shares. But at least, if we want this to succeed, we must at least prepare for tens of billions of dollars."
Speaking of this, Wu Yichang looked at Mao Zhichun and Wu Jianlong with questions: "Chairman Mao, Chairman Wu, based on my understanding of the operating conditions of domestic automobile companies, even if Songqi Group and FAW Group join forces, I am afraid that I can't afford such a large amount of money, right?"
Although Mao Zhichun and Wu Jianlong were a little embarrassed, they still honestly said: "Counselor Wu, you are right. Our Songqi Group and FAW Group have all mobilized them, but they have only raised a fraction of the '10 billion'..."
Wu Yichang had expected this, so he turned his head and stared at Zhao Guoyang and said, "Researcher Zhao, since the funding gap is so big, why do you look full of confidence? This is what I am more curious about!"
After Wu Yichang asked, Mao Zhichun quickly said, "Counselor Wu, I'll explain this situation to you!"
In the curious eyes of Wu Yichang and other cadres of the embassy, Chairman Mao explained in a simplified manner: "In fact, the 'little fish' in Researcher Zhao's plan is not just our Songqi Group and FAW Group."
Wu Jianlong also nodded and responded: "Yes, Counselor Wu! In the newly established 'Huaxia Automobile Group', our FAW Group and Songqi Group only occupy 5% and 8% of the shares respectively."
"The remaining shares are occupied by Songjiang Pudong New District Construction Company and our Liaodong Chuncheng New District Investment and Construction Company..."
After Wu Jianlong's explanation, everyone at the embassy immediately understood.
Obviously, the establishment of this "Huaxia Automobile Group" is more about the national interests, not just about Songqi Group and FAW Group.
The explanations of Mao Zhichun and Wu Jianlong completely made the concerns of several leaders in the embassy disappear.
Meng Liangyu, who had never spoken out, smiled and said to Du Yitao after listening to the explanations of the two auto manufacturing giants.
"Old Du, with the support of the country, it seems that you will definitely win the acquisition of 'Skoda Automobile Company' this time."
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, these economic experts at the embassy have no doubt about Zhao Guoyang's plan to "swallow big fish".
Even Gu Jianbin, who has always been not optimistic about Zhao Guoyang, shook his head and sighed: "If this plan can be successful, it will really play a vital role in the development of our domestic automobile industry!"
After hearing his words, Miao Jiawei, the business counselor of the embassy, raised his own questions to Zhao Guoyang.
"Researcher Zhao, your plan is theoretically completely feasible."
"But, have you ever thought about a question, "Skoda Automobile Company" may only need to introduce some of the funds to improve its current operating conditions?"
Although Miao Jiawei's question was still unsatisfied, Zhao Guoyang still understood what he meant in an instant.
He nodded softly and said, "Counselor Miao, I understand what you mean. You are worried that 'Skoda Automobile Company' will not intend to sell more than half of the shares."
"In that case, if we acquire the other party's shares, it will lose its meaning, right?"
Miao Jiawei said "hmm" and nodded, "That's right, Researcher Zhao, this is what I'm worried about."
Zhao Guoyang smiled slightly and explained slowly: "Counselor Miao, before answering this question, please allow me to briefly talk about some of the history of 'Skoda Automobile Company'..."
"In 1895, a small bicycle factory started its own journey in a small house on the outskirts of Prague, the capital of Czechoslovakia."
"Mechanic Wenceslav Lorraine and businessman Wenceslav Clement joined hands to build an inconspicuous small company called 'L&K'."
"Then, in 1900, they started to produce motorcycles. Five years later, they started to produce cars again..."
“Soon, because of the outbreak of World War I, automobile production was hampered, and the strength of ‘L&K’ was also weakened.”
"After the war, in order to restore its former reputation, Wenceslav Lorraine and Wenceslav Clement found the largest industrial group in China at that time, the Skoda Person Group, which was engaged in agricultural machinery, aircraft engines and trucks, and began to produce cars with Skoda as its brand."
"This is the beginning of Skoda Automobile and the end of the 'L&K' era. Although Wenceslav Lorraine and Wenceslav Clement lost control of the company, their wise decisions made the factory rise again after the war."
Looking at the big guys around him who listened to his story with relish, Zhao Guoyang seemed very calm.
"For vulnerable groups, finding strong support is the basic rule of survival. As a country, Czechoslovakia is like this, and 'Skoda Automobile Company' has always done this."
"In the bloody years that will come, this method of 'Skoda Automobile Company' has worked more than once, bringing the century-old factory back to life."
Speaking of this, a confident smile appeared on Zhao Guoyang's face.
Chapter completed!