Return to 1958 and build a century-old giant

Chapter 882 Duff Truck
"Okay," Zheng Zhijie replied.
The three then discussed the details, and Yang Wendong also had his assistant contact the Governor's Office. The reply he received was that he could go to the Governor's Office in two days, and Yang Wendong readily agreed.
Two days later, Yang Wendong and Zheng Zhijie arrived at Government House and met with Murray MacLehose.

“Hello, Governor,” Yang Wendong greeted politely.

MacLehose smiled and said, "Mr. Yang, hello, please have a seat."

After everyone sat down and exchanged some casual pleasantries, Yang Wendong got straight to the point: "Governor, what do you think of the current Hong Kong property market?"

"Not bad, right? What do you mean by that, Mr. Yang?" Mai Lihao asked, somewhat puzzled.

Yang Wendong said, "It doesn't mean anything. I just wanted to tell the Governor that I am not very optimistic about the future of Hong Kong's real estate market. Therefore, in the near future, there may be a large-scale sale of some properties, which may have a certain impact on the Hong Kong market and the Hong Kong government."

Given Yang Wendong's current status in Hong Kong, if he were to start selling off properties and make a significant move, it would indeed impact the property market.
After thinking for a moment, MacLehose said, "I see. But Mr. Yang, it seems unnecessary for you to tell me something like this, right?"

“Indeed, there is no need for that. However, considering that the Governor and I have had a good working relationship over the past ten years, and that you will be returning to England soon, I am informing you in advance.” Yang Wendong said with a smile, “In this way, if the Hong Kong government trusts me, it can auction off some of the land sooner, which will be the most beneficial for the Hong Kong government.”

Murray MacLehose will step down as Governor of Hong Kong early next year, which can be considered Yang Wendong's final gift to him.

"Okay, I understand." MacLehose naturally knew that Yang Wendong must have other motives, but he couldn't figure them out in a short time; so he asked, "But I heard that Mr. Yang is still planning to participate in the bidding for the Cotton Tree Drive land?"

Yang Wendong replied, “No matter how bad the economic environment is, our business still has to operate, it will just be a little smaller in scale. I think the Governor of Hong Kong should know about my company’s recent actions.”

"That's true." MacLehose was somewhat suspicious, but he didn't want to show it directly.
After exchanging pleasantries for a while, MacLehose brought up the issue of future disputes in Hong Kong again, and Yang Wendong dodged the question. MacLehose did not press the matter further, after all, he was about to step down, and this matter would inevitably be the responsibility of the next governor.

After a while, after Yang Wendong left, MacLehose summoned the provincial governor, Robert Hopson, and told him what Yang Wendong had just done.

Luo Bishi said, "Yang Wendong wouldn't suddenly be so kind as to remind us; he must have other motives."

“That’s what I think too, but I’m not sure what his purpose is,” MacLehose said. “It seems that his notification is also beneficial to us.”

Luo Bishi said, "The premise is that his prediction is correct. If it is wrong, then we will suffer a great loss."

MacLehose replied, "Based on Yang Wendong's business achievements over the past 20 years, his judgment should be highly accurate, and his real estate company has indeed been gradually withdrawing from the real estate market recently."

Luo Bishi thought for a moment and said, "That is indeed the case, but we cannot change our strategy just because of one sentence from him."

“Of course.” MacLehose thought for a moment and said, “There’s no rush to do anything for now. Let’s observe for a while longer. If the real estate market is really as he predicted, then there will at least be some signs. We’ll find some experts to analyze it then.”
If Yang Wendong's prediction comes true, then we need to sell many of our land plots as soon as possible. Property prices are indeed too high now, and if an economic crisis occurs, the Hong Kong government's finances will inevitably be affected. We need to prepare early.

Luo Bishi agreed, "Yes, we can also take a look at Yang Wendong's recent actions. Maybe we can figure out what he's planning."

Whether MacLehose and the others believe it or not, Yang Wendong has no control over it, but after giving them a reminder, they should know what to do if they are even slightly smart.

This is also a calculated move. Once property market prices start to decline, the Hong Kong government or many property companies will inevitably sell off properties or land. Only companies like Hongkong Land and Hang Lung Properties, which insist that property prices will continue to rise, will try to "buy at the bottom" when prices are high, ultimately killing themselves in the process.

Every property crisis in Hong Kong has actually involved many such conglomerates. The four major families of the past rose to prominence around the 70s, but in reality, there were many conglomerates that were larger or about the same size before the 70s. The decline of these conglomerates was often due to misjudging the situation when faced with a property crisis.

After arranging these matters, Yang Wendong didn't pay much attention to the Hong Kong real estate market anymore, letting it develop on its own. In any case, by September 1982, real estate prices would inevitably plummet by half, and the right time to buy at the bottom would be around 1984, so he didn't need to rush.

In his current business empire, real estate still occupies a very important position, serving as his strongest cash cow and top-tier financial asset. However, he also attaches great importance to several other core industries, some of which may not be as profitable as real estate, but have a much greater influence.

In mid-February, Yang Wendong traveled to the United States again because there was a new development with Goldman Sachs.
On the 18th, Yang Wendong arrived in New York. After resting on the plane, he did not need to go to the hotel to adjust to the time difference, so he went directly to the headquarters of Goldman Sachs in New York City.

Goldman Sachs Vice President Barney personally greeted them at the downstairs entrance, and then they went together to a meeting room upstairs;
“Eric, you know why we invited you here,” Barney asked with a smile. “Regarding the shares of DAF, a Dutch company under the Chicago Harvester Company, DAF is seeking to buy them back. After receiving the news, we immediately notified the Chicago Harvester Company that other buyers are interested. What do you think?”

“I’ve reviewed DAF’s information, and it does indeed align with my initial goals.” Yang Wendong nodded and said, “Then let’s inform them that we can discuss this. Should we go to the Chicago Harvester Company or DAF’s headquarters in the Netherlands?”

Last year, he informed many investment banks around the world that he intended to acquire a truck company. These investment banks took it very seriously and inquired about many targets. However, either these companies were not considering selling, or they were involved in the military industry and could not be sold to overseas capital.

Later, he personally negotiated with Thatcher, but that didn't work either. British truck companies also had close ties with the military. However, Thatcher also told him that his best target was truck companies in some small European countries, because these countries did not invest much in military affairs and, under the protection of NATO, did not attach much importance to defense. So when Goldman Sachs told him about Duff, he had someone investigate the company overnight. It was a Dutch company with some scale in the European market, specializing in various types of trucks, and did not have a close relationship with the military. This was his perfect target.

The only pity is that Chicago Harvester only owns 30% of DAF Trucks, so even if it acquires it, it cannot gain control. However, things can be done step by step.

Barney said, "We still need to go to the Chicago Harvester Company. We need to negotiate there. As for Europe, this isn't an acquisition for us, and the amount of money involved won't be much. You and I can just send some people over. Of course, if you really care, you can go yourself."

“Hmm, I’ll think about it.” Yang Wendong thought for a moment and then asked, “Barney, if we successfully acquire 30% of Duff’s shares this time, I would like to continue acquiring shares in the company. Can Goldman Sachs help me achieve this?”

He didn't really care where the truck company was; his core objective was to gain management control so he could invest in the mainland.
The truck and bus market in mainland China will be a huge long-term market. Although it cannot compare with passenger cars, historically, no large foreign truck manufacturers have entered the market. Once we enter, we will not only have exclusive access to the entire market, but at least we will have exclusive access to the market that foreign brands can obtain.
The core issue here is controlling stake; otherwise, he wouldn't acquire a 3% stake in a truck company he doesn't know anything about, as it wouldn't have much investment value.

Barney laughed and said, "I had guessed that before. I can't be 100% sure, but I can say that I will send someone to Europe to try. As you know, many companies in Europe are family-run businesses, which makes communication difficult."

“Okay, let’s give it a try. We’ll acquire 3% of DAF’s shares first,” Yang Wendong nodded and said.
If that doesn't work, then we can negotiate with DAF to build our own factory in the mainland and purchase their technology. That would be a backup plan.
If that still doesn't work, then I'll consider other companies. But I should still try my best until the very end. After all, truck companies are related to defense, and who knows when the next opportunity like this will come? Besides, the global auto industry will recover after the oil crisis, and it will be even more difficult then.

Barney nodded and said, "Okay, I'll make the arrangements. We'll go to Chicago tomorrow."

The next day, the Goldman Sachs team followed Yang Wendong's plane to Chicago.

On the plane, Yang Wendong looked at the information on the Chicago Harvester Company and asked curiously, "Barney, why would the Chicago Harvester Company go to Europe to acquire shares in DAF Trucks?"

Barney laughed and said, "Eric, don't think this company only makes harvesters. It's actually an agricultural tool business under the Chicago consortium, which was established in the last century. In its early years, it also wanted to enter the truck industry, but it couldn't find a suitable target in the United States, so it chose a European company."

Originally, they planned to relocate their European truck manufacturing to the United States, but due to differing standards, the trucks produced there sold poorly in the US. Therefore, they ultimately abandoned the plan and instead partnered with other American truck companies. This is why they are preparing to have DAF buy back their shares, giving us a chance.

"I see. I've heard of the Chicago consortium before," Yang Wendong nodded and said.
Japan, South Korea, and even Hong Kong have their own local conglomerates, so the United States naturally has its own as well. The Chicago Conglomerate is one of them, and it is quite large.

Barney said, "This Chicago conglomerate controls half of Chicago and has considerable influence in other states. If you want to invest in Chicago in the future, you'll have to deal with them."

"Chicago? There's nothing suitable for my business there." Yang Wendong thought back for a moment, and it seemed there was nothing in Chicago worth investing in.

This city is an old American city with many companies, all of which have been established for a long time, such as the giant Caterpillar, as well as the headquarters of Boeing and NASA.

There's only one thing: in his previous life, he quite liked the Chicago Bulls in the NBA, but that was mainly because of their star player, Michael Jordan.

Actually, now is the time to invest in Jordan. With Jordan's future fame, he can endorse many of his own products. Putting aside everything else, Red Bull needs a top star like him. After all, it's impossible for everyone to really know Li Xiaolong.

Barney laughed and said, "Everything has a beginning. Maybe there'll be a chance?"

Yang Wendong nodded and said nothing more.
A few hours later, Yang Wendong, led by Barney, arrived at the Chicago Harvester Company;
Sure enough, there are a lot of harvesters here. The United States is a major agricultural country with vast plains suitable for agriculture, but there are not many farmers, so it does need a sufficient number of harvesters.
In contrast, the situation was reversed in China. In the first twenty years of reform and opening up, there were still a large number of farmers. In addition, there were not many plains, so oxen were probably more practical. When Yang Wendong was a child in his previous life, he often rode oxen for fun.

The Chicago Harvester Company also sent a vice president, Henry, to greet Yang Wendong and Barney, among others.

Henry briefly showed Yang Wendong around the factory and said, "Mr. Yang, I know you have considerable agricultural production areas in Asia and extensive networks of relationships with many countries. I wonder if we could cooperate in the field of harvesters?"

"You want to sell harvesters to Asia?" Yang Wendong thought for a moment and said, "We can give it a try. I will have my trading company visit your company and then we can discuss cooperation."

Harvesters may be needed in parts of Asia, but the scale should not be large. Yang Wendong himself does not want to participate. He will let his subordinates talk to them. Whether they succeed or not does not matter. The main thing is to give them face now. There is no need to refuse without even talking. After all, there are more important things to do later.

“Okay, please, let’s go to the conference room.” Henry smiled and pointed in the direction.

The group arrived at the conference room, and the discussion was quite simple. The Chicago Harvester Company was only selling shares to recoup funds, as long as Yang Wendong offered more money.

Yang Wendong was naturally not stingy and quoted a price even higher than that of DAF, which satisfied Chicago Harvester Company. However, they did not agree immediately but told him that they would hold another board meeting to discuss it.
This is normal business practice; they would definitely ask DAF Company to raise the price again. Yang Wendong knew this, so he returned to the hotel.
He had never been to Chicago before, so he took the opportunity to spend a few days there.

But two days later, Yang Wendong suddenly received a meeting invitation from Joseph, the head of Duff Company’s U.S. office, who wanted to meet him.
PS: Please give me a monthly ticket
(End of this chapter)