In Hong Kong, we build a global business empire

Chapter 547: A sudden and impromptu move

Lin Haoran's proposal really made many reporters' eyes light up.

Previously, due to the sudden introduction of targeted policies by the United States, the Japanese automobile industry fell into panic in an instant. Everyone believed that once sanctioned, Japanese automobile brands would most likely decline rapidly.

This is also the biggest reason why Japanese car brands such as Toyota, Honda, Mitsubishi, and Nissan were almost universally criticized from February to April.

After all, the United States is now the world's largest market and the most important export destination for Japanese products.

In fact, among Japan's automobile exports, the number shipped to the United States accounts for almost half of Japan's total automobile exports.

It is easy to imagine how big a blow it would be to Japanese auto brands if they lost half of this export volume.

This is also the reason why the Japanese auto industry was so pessimistic before the results of the US-Japan auto trade negotiations came out.

"Why didn't anyone think of this idea at the beginning?"

"That's right. If we move part of the production to the United States, the problem will naturally be solved. Although the production cost in the United States is slightly higher than that in Japan, after deducting tariffs, transportation costs, etc., the total cost should actually be lower!"

"In this way, even if the United States really imposes very severe sanctions on our Japanese auto industry, as long as they set up branches in the United States, our Japanese auto brands will naturally not be greatly affected. At most, it will only reduce some jobs in our country."

……

All of a sudden, many reporters started talking about it. Lin Haoran's proposal made them suddenly enlightened.

“Everyone, even if you are not professionals in the automotive industry, you should be able to intuitively feel that Japanese brands such as Toyota and Honda have long been well-known in the US market and have accumulated a large number of loyal users.

Otherwise, the United States would not have imposed sanctions specifically on Japanese cars. This is all because the market share of Japanese cars in the United States has continued to increase, causing the United States to panic.

In addition to the obvious advantages, I think there are many other benefits. For example, through localized production, companies can effectively avoid high tariffs and trade barriers and significantly reduce logistics costs.
At the same time, shortening the supply chain cycle means that automotive products can respond to market demand more quickly and seize market opportunities;

In addition, in order to attract the return of manufacturing, the US government has provided a series of preferential policies such as tax breaks and infrastructure support, which will undoubtedly further enhance the profitability of companies.

More importantly, building a factory in the United States can significantly enhance the brand's trust in consumers, thereby expanding market share;
A diversified production base layout can also disperse dependence on a single market and effectively resist the impact of external risks such as geopolitical fluctuations and natural disasters on the supply chain.

Of course, these are just my humble opinions as an outsider. I believe that industry insiders can see more profound values. " Seeing that the discussion was getting better, Lin Haoran added with a smile.

The reason he said this was just to change the subject for reporters. He really didn't want to answer too many questions about himself.

Now it seems that the topic was diverted very successfully.

It is only a matter of time before Japanese automobile companies set up branches in the United States. Now he has simply brought this about earlier. In this way, the Japanese automobile industry should be grateful to him.

Little did they know that more than a year later, they had this plan, so even if Lin Haoran didn't say it out loud, these Japanese automobile companies would soon follow this path.

As an island country in an earthquake zone, Japan has too many natural disasters, such as earthquakes, tsunamis, etc., which occur from time to time. It is normal for the cars produced to suffer heavy losses due to tsunamis, earthquakes, etc.

Lin Haoran's words were recorded word for word by these reporters.

At this moment, the style of the reporter's interview was completely reversed.

Since Lin Haoran has already promised that he will not really acquire Toyota and has provided a very good proposal to the Japanese automotive industry, it would be a bit too much to target the other party.

"Everyone, I still have things to deal with, so let's stop here for today's communication." Lin Haoran smiled and nodded to the reporters. Then, surrounded by bodyguards, he quickly left the interview site and walked into the elevator not far away.

The reporters wanted to surround him and ask more questions, but were stopped by security and had to give up.

However, they had gained a lot today, so the reporters left the Landmark Tower and returned to the company.

The originally lively scene suddenly became quiet again.

Sitting in the office, watching the media vehicles leaving the Landmark Building downstairs, Lin Haoran's mouth slightly raised, revealing a barely perceptible smile. He didn't have the good intention of simply giving a warning to the Japanese auto industry.

You know, at this moment he is facing a difficult situation where many consortiums are eyeing to acquire his stocks.

Today's seemingly inadvertent move to "give advice" to the Japanese auto industry was actually a move he deliberately planned on the spur of the moment.

Lin Haoran understood very well that only by letting top Japanese conglomerates such as Mitsubishi and Mitsui clearly see the broad prospects of the Japanese automobile industry and the huge profits hidden therein, would they be more determined to acquire the stocks in their hands.

After all, once the Japanese automobile industry develops in the direction he guides, such as successfully building factories in the United States and expanding overseas markets, it will bring immeasurable wealth growth.

Driven by interests, these consortiums will naturally buy his stocks at all costs in order to get a piece of the pie in this feast of wealth, so that they can better participate in the dividend distribution brought about by this industry change in the future.

Instead of haggling with him over the bid in order to reduce investment.

In addition, this proposal will also make investors more confident in the domestic automobile industry, so that the stock prices of major automobile companies will not be unable to continue to rise.

What Lin Haoran didn't know was that the content of his interview at the Landmark Tower was quickly heard by major conglomerates and automobile companies.

Before long, senior executives of Japanese automobile companies such as Toyota, Honda, Mitsubishi, and Nissan also began to pay close attention to this incident.

They held emergency meetings to discuss Lin Haoran's proposal and its possible impact.

In a spacious conference room at Toyota Motor Corporation's headquarters, the atmosphere was solemn and heated. The company's senior executives sat around a long table and were having a heated discussion on Lin Haoran's proposal.

"Everyone, what do you think about Mr. Lin Haoran's proposal to establish a branch factory in the United States?" Toyota Eiichi asked in a deep voice, looking at the more than 20 senior executives in the conference room.

"I think we can consider this proposal. After all, the US market is too important to us." A Toyota executive was the first to break the silence. He pushed his glasses and continued, "Moreover, dispersing production bases can also reduce the risks we face. Just like the earthquake in Minami-Izu, Shizuoka seven years ago, the tsunami caused a devastating blow to our Tokyo vehicle garage, causing heavy losses. We should learn from the past."

"Yes, and once we move part of the production to the United States, the U.S. export quantity restrictions on Japan will naturally have no substantial impact." Another Toyota executive took over the conversation.

"That being said, we cannot completely rely on the U.S. market." A senior director of Toyota frowned, with a hint of worry in his tone. "Lin Haoran's proposal sounds tempting, but we also have to consider the various challenges that may be faced in building a factory in the United States, such as cultural differences, labor issues, and changes in local policies."

"This is not a question of dependence or not. Do you want to miss out on the American market? The American market is too important to us now. By building a branch factory in the United States, our market share in the United States may be able to further expand!" another senior executive retorted.

"Mr. Lin's proposal is really good. I didn't expect that he, who is not an industry insider, could come up with such an insightful proposal. President, Mr. Lin is now our major shareholder. If he joins Toyota Motor, he may be able to give us more good suggestions." A senior executive put forward his own suggestion.

"Don't even think about it. I personally invited him to join the board of directors last night, but he was rejected!" said Eiichi Toyota helplessly.

At the same time, in a luxurious conference room at Honda Motor Company, the atmosphere was equally tense and heated.

"Mr. Lin's proposal is very far-sighted. Moving part of the production to the United States can not only avoid high tariffs, but also enhance our competitiveness in the local market." A middle-aged senior executive said excitedly, waving the report in his hand. "Moreover, the preferential policies provided by the US government to attract the return of manufacturing industry are a rare opportunity for us."

"But what about the cost issue?" another Honda executive questioned. "The production costs and land rents in the United States are not low. We still need to consider how to balance costs and benefits."

The discussion was equally heated in Mitsubishi Motors' conference room.

"I think this is a direction worth exploring," said a Mitsubishi market strategist. "By building a factory in the United States, we can get closer to local consumers and understand their needs, so as to adjust our product strategy. Our export volume is not as large as Honda and Toyota, so we should catch up with them."

"However, we cannot ignore the potential of other markets," another Mitsubishi executive added. "For example, Southeast Asia and Europe are all areas where we can expand in the future, and establishing branch factories is also a very good way out, which can get support from local governments."

In Nissan Motor's conference room, senior executives were also having in-depth discussions on Lin Haoran's proposal.

"This proposal is indeed attractive, but we need to evaluate it carefully," said a financial analyst at Nissan. "In addition to considering costs and benefits, we also need to pay attention to the competitive situation in the U.S. market and possible legal and policy risks."

“That’s right, we can’t just follow the crowd blindly,” Nissan’s CEO concluded. “We need to combine our own company’s actual situation and strategic goals to develop a plan that is both in line with current interests and conducive to long-term development.”

Although the various automobile companies were not in the same conference room, they all realized the opportunities and challenges behind Lin Haoran's proposal. (End of this chapter)

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like