Chapter 385 In the end, it's all about money
Lin Johnson's lawyer team officially entered the negotiation stage when the two parties began to officially enter the negotiation stage. In recent years, many joint ventures have been built in China, and there have been joint venture automobile companies such as Binqi and Harbin. In recent years, SAIC and BAIC have been negotiating contracts with foreigners.
The delegation is already very familiar with commercial negotiations. This time everyone is familiar with it. First of all, Binqi's new model Passat B5 was introduced. The Jetta model has been produced for 4 years. In recent years, Binqi has also made some minor improvements to this model, but the basic appearance has not changed.
This time, the B5 model made up for the lack of Binqi's lack of high-end models. As a company that can produce high-end cars, it must adjust its production line, reasonably improve process and upgrade and transform equipment.
The two parties signed an agreement with the ls Automobile Design Institute authorized the B5 model to Binqi, and made strict regulations on the production quantity, model size, subsequent modification and other details of this model. Lin Johnson did this strictly control the authorized models like many famous car manufacturers. If manufacturers want to develop subsequent models, they can only get Lin Johnson's consent.
Geng Shaojie from Binqi did not bother with this issue too much, because the two sides cooperated closely and happily in the past, and every small change was made by both sides just by notifying each other and going through a procedure. They did not think much about this and agreed to these requirements.
FAW's negotiations are much more complicated, and the company's large scale system is relatively rigid. Moreover, they are originally a large automobile manufacturer. In order to save foreign exchange funds and revitalize their own production equipment, they must not introduce a full set of production lines and do not have that much money. Such negotiations will be very troublesome, and no new factory will come as easy as possible.
Fan Hengguang, Lu Fuyuan and others discussed with lawyers one by one, which ones are manufactured or improved and upgraded by FAW. In order to save foreign exchange as much as possible, several people even made the degree to which flaws must be investigated!
In fact, this time the country only gave FAW a foreign exchange quota of US$15 million. Previously, when Fan Hengguang went abroad, Huang Zhaoluan, the former factory manager, told him not to use all foreign exchange. The foreign exchange that FAW finally won, and told him to leave some foreign exchange balance for the company, and might be able to respond to emergency responses in the future. Of course, Fan Hengguang also wanted to save money. The price of each production line was a victory. It was very happy to find a device that he could have!
"Johnson and Johnson, you said that some of the automobile factories in Detroit have gone bankrupt. So as far as you know, are there any production lines and equipment we can use?" Fan Hengguang came to ask Lin Johnson for information that day. In fact, they had thought of it a few days ago and contacted the three companies of General Motors Ford Chrysler, and had sent people to several companies to inquire whether there were second-hand equipment.
Lin Johnson was a little surprised. He said to Fan Hengguang: "Director Fan, can't you see it? The complete set of production lines I provide for you is already the cheapest. You can take it away for $12 million. And I'm the arrival price!"
Looking at Fan Hengguang and Lin Johnson continued, "This 12 million US dollars includes a complete set of production lines for producing automotive parts, such as unwinding, blanking, palletizing, stamping, welding, coating, assembly, and testing. This is the ability to produce 100,000 cars per year. If you FAW conducts three-shift continuous production, you can even increase the output to more than 200,000 vehicles! What's more, it also includes an engine production line with an annual output of 70,000 units! What I give you is the real price, and it can't be cheaper. Besides, technical authorization, do you only buy spray equipment but not spray technology? Where can you buy advanced automotive metal paint manufacturing technology?"
Fan Hengguang thought for a while and said with a smile: "The price is quite low, but do you know that our country is still in trouble! Johnson & Johnson, we are also familiar with us. I will tell you the truth. We have some equipment here from FAW, and we can also make some machines. We have equipment like unwinding machine, blanking machine, palletizer, etc. We have equipment like unwinding machine, and can we remove the car testing equipment? Those instruments require a lot of foreign exchange, and domestic products can also be tried to produce instead!"
Lin Qiang-Chengsheng said to Fan Hengguang directly: "Director Fan. If you FAW reduce the share capital of the joint venture to 50%, then I promise you to give you a full set of production lines for free, and you don't need your money for car licensing and technology transfer! How about it?"
Fan Hengguang was stunned for a while after hearing Lin Qiangsheng's words, but then shook his head like a rattle. He refused and said, "This is not possible. I don't have such a big right. Besides, didn't we FAW hold 60% of the shares that we promised before?"
Fan Hengguang smiled and pointed at Lin Johnson and said, "Boy, don't go back on your word!"
Lin Johnson smiled and spread his hands and said, "There is nothing I can do. The equipment I provide must be cheaper than other homes. US$12 million cannot be less!"
After contacting several giant auto companies in Detroit, FAW did take a look at some production lines and equipment by several companies, but the industrial equipment provided by several giant companies was undoubtedly provided to them by industrial equipment from the 1970s.
General Motors and other companies have indeed eliminated many old production lines, and most of these eliminated production lines are placed in the open air and slowly turned into waste. In fact, Lin Johnson's production lines and equipment were also acquired from the bankrupt factory in Detroit. It was made by the improvement and installation of a new electronic control system by EY Machinery.
"Chrysler can provide us with a production line with an annual output of 30,000 engines, but we looked at it. It was the process level in the early 1970s, and the old equipment technology was behind that of Mr. Lin's production line!" Lu Fuyuan reported to Fan Hengguang. They visited several automobile giant companies in a few days, but the results were not ideal.
"30,000 production lines? We are just starting to produce cars, but in fact, the output of 30,000 units is enough!" Fan Hengguang thought for a while and said.
He then asked, "Chrysler people told me what the price of this production line is? We can save a little bit if we don't have much foreign exchange!"
"3 million US dollars!" Lu Fuyuan said softly.
"What? 3 million US dollars!" Fan Hengguang looked at Lu Fuyuan in surprise, and then he shook his head repeatedly and said, "No, no, we can't accept such a price. One engine production line costs 3 million US dollars, so it's even less enough to buy foreign exchange for other production lines!"
Fan Hengguang shook his head. Originally, FAW wanted to introduce the model and then buy an engine production line, and it was best to have an assembly production line. Other production lines and equipment were improved or manufactured by FAW itself, so that a lot of foreign exchange could be saved.
However, after they looked at the complete set of production lines provided by Lin Johnson, they unconsciously increased their requirements a lot. The key is that the equipment provided by Lin Johnson is really good, and the production process and technical standards are completely the most advanced in the world. The robot welding wire and spraying wire were only seen when visiting Binqi Harbin, and it was even more advanced than what they saw. Although FAW is also doing research, it is still far from forming.
Fan Hengguang felt that as long as FAW introduced a full set of production lines, their company would change its guns from now on, and their production technology reached the standards of a modern enterprise. As the project introducer, Fan Hengguang, a newly established car joint venture company in the future, might become the factory manager. Judging from the domestic car market, if the FAW car factory develops well, it might be on par with the general factory!
"Bang!" Fan Hengguang hammered his hand vigorously. He decided to buy a full set of modern equipment to achieve one step.
Fan Hengguang said to the people of FAW: "Americans think we are fat sheep, so only Lin Johnson is left! Let's look for him again to see if we can lower the price!"
However, Lin Johnson was not in the hotel at this time. He asked Bai Yunsheng to come to the Detroit River and chose a place with many tourists for fishing.
These days, Bai Yunsheng has tried every means to talk to Lin Johnson and asked him to consider investing in building an automobile factory in Xingde.
"Mr. Lin, there are three companies in our city, Hongxing Automobile Factory, Changzheng Automobile Factory, and Xingde Automobile Factory. These three automobile manufacturers are all very capable! As long as Mr. Lin is willing to invest in our Xingde, we guarantee you the best conditions!" Bai Yunsheng had no intention of fishing at all. He sat beside Lin Johnson and kept encouraging Lin Johnson to cooperate with Xingde.
Lin Qiangsheng smiled and said, "Mayor Bai, if I am not interested in your city, I will not look for you at all. Since I asked you out alone, it means I want to cooperate with you Xingde to develop the automobile industry!"
Bai Yunsheng was overjoyed, and he smiled happily: "I just said Mr. Lin would not come to me for no reason. Since you are interested in our city and have anything to ask, I will definitely know everything, one is said, two is said!"
Lin Johnson nodded and asked, "Building automobile companies requires a large number of technical workers. How many workers do your three automobile companies have?"
Bai Yunsheng said confidently: "Mr. Lin, please rest assured that our Xingde has a huge talent group in the automotive industry. There are the Changzheng Automobile Factory with a total of three or four thousand people, the Hongxing Factory with more than two thousand people, and there are about one thousand people in 114 Xingde Automobile Factory. The Long March Factory was originally relocated to Xingde in Xindu Automobile Factory in Beijing. The production model is a large and complete Soviet model. Three-quarters of the workers in the factory are processing parts, from the car chassis, engine assembly, and the assembly of the whole vehicle.
The workers processed them one by one. They have solid processing skills and exquisite spare parts processing skills. Moreover, the Changzheng Automobile Factory also has technical schools, Hongxing Factory also has technical schools, and our Xingde Technical College and Automobile Department are all cradles for cultivating personnel in the automobile industry! The talents trained by Xingde not only supply local automobile companies, but also Xingde has participated in the construction of automobile factories across the country. They are all college and technical secondary school graduates who are competing for automobile manufacturers and related parts manufacturers across the country!”
Chapter completed!