Reborn Entrepreneurial Giant

In order to ensure that the acquisition of Yahoo by Shigejumei goes smoothly, Qu Li chose a slightly complicated plan. First, he asked several investment banks to form a consortium to buy out the Yahoo portal and other network assets, and then set up a subsidiary in Singapore by Shigejumei. The company acquired Yahoo from this consortium.

There are pros and cons to this, because the merger of Facebook and Verizon may result in the final acquisition price exceeding $5 billion, and only some of Yahoo's major shareholders can become shareholders of the new company, and there will be additional taxes.

There are still ways to save money. For example, if this consortium is registered in Bermuda or the Virgin Islands, and Shiguangjumei directly acquires the shell company, the problem is that investment banks have increased risks and must see returns.

At this time, under the guidance of Qu Li's goal-oriented principle, Shiguang Jumei gradually became more willing to pay a price for time and efficiency, such as accepting shares from consortium investors. This is not an unacceptable condition. Anyway, this part of the international business will be listed overseas.

After assisting Kato Yu to become the CEO of Mitsubishi Motors, Qu Li flew to Singapore to promote the development of things. By the way, he arranged for promising people to go to Singapore and then to inspect the Thai market.

As I said before, Japanese car companies are deeply entangled in Southeast Asia. From supply chain companies to dealer channels, everything is controlled by them. Now that 5Q has invested in Mitsubishi Motors, their suppliers in Southeast Asia, including dealer channels, must be "shared". Even if it's just a part, it's enough for Qiancheng to open up the situation.

"China is the world's largest automobile market. There is no need for us to rush to open up overseas markets." Lu Tao in Japan insisted on his idea, but Qu Li insisted on his internationalization

"Our fuel vehicle production in Southeast Asia will be handed over to Mitsubishi Motors?" Xia Mingfei did not expect Qu Li to play such a trick. This idea is really difficult to evaluate.

"Of course!" Qu Li thought clearly. The construction period of factories in Southeast Asia is relatively long, about two to three years. By then it will be 2019. How many years can fuel vehicles be sold? In addition, the Fuyao 2.0 architecture will probably not be implemented until 2018. Is it necessary to build the best and most advanced factories in Southeast Asia? The cost is much higher and construction will be more difficult.

After comprehensive consideration, letting Mitsubishi Motors OEM may be the best choice. The other is Mitsubishi's OEM factory for Nissan. They originally wanted to sell it to Nissan, but now they have changed their mind. He thought it was a bad thing, but when he discussed it with Mitsubishi Motors executives in Japan, he discovered that starting in 2015, Malaysia had eliminated all tariffs on imports from Japan in the automotive industry.

That is to say, the cars produced by Qiancheng Geometry in Japan do not need to pay tariffs, but the question arises, is there a cost advantage in producing cars in Japan? That's for sure, no! Japan has high production efficiency, but not all companies in all industries.

5G's Gigafactory is definitely more efficient than Toyota as a whole, but most of their equipment is purchased overseas. Even if there are collaborations with TimeJumei, Honor, etc. in terms of software, it is actually not that difficult for Toyota Volkswagen to build a Gigafactory.

Generally speaking, the cost of producing Qiancheng's fuel vehicles in Japan is definitely higher than that in China, but excluding the impact of tariffs, it is still cheaper to produce them in Japan, and the OEM model is feasible.

Mitsubishi has factories in Thailand and Mexico. To expand production capacity, Qiancheng Motor will pay more. The new factory can be co-managed by the two companies. In this way, cost control cannot be minimized, but Qiancheng Motor itself is not a cheap car brand, so it does not matter.

"Why is Mitsubishi Motors willing to cooperate?" Xia Mingfei doesn't understand

"Japanese automobiles have an absolute advantage in Southeast Asia, but as far as the Thai market is concerned, Mitsubishi accounts for less than 10%, or more to be precise, more than 5%..." Qu Li explained that he did not expect that some of them could not be named in the country. Isuzu and Suzuki are very prosperous in this land. It doesn’t matter that Toyota and Honda are better than Mitsubishi Motors. Nissan and Mazda often surpass Mitsubishi Motors. To put it bluntly, although they have annual sales of millions of cars, Mitsubishi Motors is not beaten. Lost temper.

"In this way, Mitsubishi Motors' sales in Japan account for less than 50%..."

Without sales volume in the international market, it cannot be called a big manufacturer. This is not due to technical reasons. Enterprises that can only survive in a single market have poor risk resistance capabilities.

Fuel vehicles are produced through OEM, and pure electric vehicle factories are waiting for more and more supportive policies from various countries. Later, in some places in Thailand, pure electric vehicle companies seem to be exempted from income tax for eight years when setting up factories, and there are also benefits such as halved tax, and various benefits. The conditions are increasing.

There is a global trend of transitioning to pure electric vehicles. As an industry that has been abandoned, will the import tariffs on fuel vehicles in many countries be gradually exempted?

Qu Li doesn’t know whether fuel vehicles will disappear soon, but he knows that when electric vehicles develop to a certain stage, they will definitely cause damage to the stability of the power grid. How to solve the problem is still unknown. Therefore, let Mitsubishi Motors build a factory and conduct various cooperation based on the principle of "sharing benefits and sharing risks".

By cooperating with Mitsubishi, the production of fuel vehicles in Southeast Asia and North America is basically worry-free. Depending on the situation, we will choose whether to build our own factories. The remaining South America needs to develop on its own. In Europe, should we focus on the 10% tariff on exports, or should we produce cars in Europe?

Qiancheng Geometry has a car factory in Sweden. The production equipment has been shipped here and debugged, and it will be ready for production soon. The key is that the current products are mainly cars with a price of less than 30,000 US dollars. The cost of production in Sweden is relatively high, and the tariff may not be covered. cost.

As for the Hungarian factory, the situation encountered is similar to that in Southeast Asia. The industrial chain there is complete, but the suppliers are trained by others. What does it matter if you go there? Even if those major automobile manufacturers don't block you, those small and medium-sized suppliers are still worried about your credibility. Oh, no, Qu Li is the richest man in the world, and his credibility is very high.

Of course, these problems can be solved, but the key is that risks are difficult to control. The European automobile market is more mature than the domestic one. Their requirements for fuel vehicles are quite different from those in China. There should be no problem in selling small batches. If we really want to build a factory , at least monthly sales of over 10,000 are required to support a car factory with a production capacity of 100,000, right?

A factory produces multiple models, and it is obvious at first glance that a super factory will be built. Then the scale of overseas investment will increase. What if sales are not as expected?

"This risk is worth taking!" Xia Mingfei is optimistic about Qiancheng Motor's development in Europe. The previous batch of cars exported to Europe sold well, but because domestic sales were so good, exports were suspended and they waited for production capacity to increase.

"But should we reduce the investment cost of the factory?" Xia Mingfei

Super factories require large investments and high risks. Can traditional factories reduce risks?

"But one factory can produce multiple models at the same time, and flexible manufacturing is in line with the general trend of the future..." If the investment is not too large, Qu Li wants to transform all factories into super factories. By then, their flexibility in producing cars will be second to none.

"Continue to promote the Hungarian factory and build a super factory with a production capacity of 100,000 yuan there." Qu Li still didn't believe that the monthly sales of so many fuel vehicles from Qiancheng could not reach 10,000 yuan in Europe.

Xia Mingfei thinks the problem is not big, but at the same time he is a little worried. Can they really occupy a place in the European market? The risk of the OEM model is relatively small, and it seems that CMGE's investment in Mitsubishi Motors will not make a loss. (End of chapter)