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By the beginning of 1996, Suning felt that things were going smoothly in the real estate sector.

The model has been fully validated, and the team is well-integrated. We no longer need to micromanage every single project as we did in the previous two years.

Moreover, the team has already developed a complete and mature development system, so I only need to focus on the general direction in the future.

Therefore, Suning began to shift its focus in other directions.

After looking around, I finally chose the automotive industry and wanted to enter the automotive manufacturing industry.

This idea didn't just pop into my head suddenly.

Having witnessed numerous cases of industrial development in later generations, Suning knew that when a country's industrialization process reached a certain stage, the automotive industry would inevitably experience a surge in growth.

In mid-1990s China, private cars were still a rarity, but people were starting to have more money in their pockets, road infrastructure was being built on a large scale, joint venture brands had begun to move their production lines to China, and domestic car brands were also emerging sporadically.

If timed correctly, this point in time can be a ticket to the next era.

In particular, having experience in car manufacturing in the real world makes entering this instance world a natural progression.

But to manufacture cars, the first step is not to build a factory or hire engineers, but to obtain a production license.

Without the qualification catalog, the cars you manufacture simply cannot be registered; it's no different from building a bunch of metal shells.

In the 1990s, the approval process for production qualifications was extremely strict, and it was almost impossible to apply for a new one. The only way was to acquire an existing car factory that had a list of qualifications.

Suning called his assistant, Xiao Zhao, to his office.

After Xiao Zhao entered, Su Ning said directly, "Assistant Zhao, you set up a special team to screen across the country and find those car factories that are experiencing operational difficulties but still have production licenses. Bring me a report after you've finished screening."

Assistant Xiao Zhao asked, "President Su, what are the selection criteria?"

"Three criteria. First, the qualifications must be complete and the ownership can be transferred directly. Second, the factory should ideally be shut down or close to shut down, so there will be less resistance during acquisition negotiations. Third, try to choose inland areas, as the acquisition cost is lower and the local government is more willing to cooperate."

Xiao Zhao nodded: "Understood, I'll take care of it right away."

The project team went through several rounds of screening, traveled all over China, visited more than a dozen factories, and finally placed a report on Suning's desk.

The report highlighted several potential candidates, with the Deyang Automobile Factory in Sichuan Province being the most prominent.

Su Ning flipped through the report while Xiao Zhao gave a verbal report beside him, "General Manager Su, the Deyang Automobile Factory was originally the Deyang Mechanized Brick and Tile Factory, established in 1956. In 1975, it transformed into automobile manufacturing and was renamed Deyang No. 95 Factory. In 1985, it was officially named Deyang Automobile Factory. At its peak, it produced two types of vehicles, a five-ton truck and a light vehicle, which had a certain reputation in the Sichuan local market."

Su Ning asked, "What's the situation now?"

Xiao Zhao said, "Production has basically stopped now. The production line has been shut down for more than a year, the workers have been on long holidays, and the equipment is severely outdated. The local authorities have assessed the situation and concluded that there is no value in restarting it, so they decided to dispose of it. However, they still have the automobile production qualification certificate in their possession, and the procedures are complete, so it can be transferred along with the factory."

Suning closed the report. "That's it. Arrange the itinerary; I'll go and discuss it myself."

"President Su, we have no experience in car manufacturing. Do we really want to enter the car manufacturing industry?"

"Then what do you suggest we do? Rely on our success in the real estate industry and live a life of decadence?"

"No! I feel that the textile and home appliance industries are already quite good. There's no need to tackle such a tough challenge right away. The technology required for car manufacturing is still too advanced."

"But you've overlooked the competitive pressure in the textile and home appliance industries. We don't need to enter an industry with too much competition. The automobile manufacturing industry is different; it's absolutely booming, giving us the opportunity to develop stealthily."

……

In March 1996, Suning and his team flew to Sichuan.

In the meeting room of the local competent authority, Su Ning sat on one side of the negotiating table, opposite several leaders in charge of the disposal of state-owned assets.

The leader's attitude was clear, but he also spoke bluntly.

The leader at the head of the group adjusted his glasses and looked at Su Ning, saying, "President Su, we've heard of Mingju Real Estate. They've done many projects in Beijing, and we acknowledge their financial strength. But regarding the Deyang Automobile Factory, there are two issues that must be clarified. It's not that we're trying to make things difficult for you, but we have to be responsible to our superiors and to the workers in the factory."

Suning said, "Please go ahead."

The leader counted on his fingers and said, "First, you must have sufficient financial strength. This factory has been shut down for more than a year. The equipment is aging, the factory buildings need to be repaired, and the production lines need to be readjusted. The subsequent investment will not be a small amount. We do not want someone to take over, work for a year or two, and then abandon the business, leaving a mess for our local area."

Suning nodded, not rushing to express his opinion, but instead signaling his accompanying staff to lay out Mingju Real Estate's financial statements, project list, and bank credit certificates for the past two years on the table.

After the staff laid out the documents, Su Ning said, “Distinguished leaders, this is Mingju Real Estate’s audit report for the past two years, this is our project list for nine cities across the country, and this is our credit agreement with three banks. Our current annual sales and asset size can fully cover the acquisition cost and subsequent restart investment for the Deyang Automobile Plant. You don’t need to worry about funding at all. I mean what I say. With Mingju Real Estate’s capital, we can enter any industry, but the automotive industry is our first choice for group development.”

Several leaders took turns picking up the document and flipping through it.

After reading the document, the leader put it down, his expression visibly softening: "President Su is indeed well-prepared. Now, let me address the second question."

Suning said, "Please go ahead."

The leader leaned forward, his tone more serious than before: "The workers. Although the Deyang Automobile Factory has ceased production, there are still over a thousand workers on the roster. Some of these are veteran workers who have worked there for twenty years, while others came in to take over their parents' jobs. Their entire families depend on this factory for their livelihood. When dealing with state-owned assets, the most difficult part is not how to sell the assets, but how to resettle the workers. If you take over the factory and push all the workers into society, things will become very difficult."

Su Ning didn't shy away from the issue. After the leader finished speaking, he directly presented his solution. "I already prepared a plan for worker resettlement before I came here," Su Ning said, taking a document from his assistant and placing it on the table. "The core idea is a two-pronged approach. First, prioritize rehiring. All the original technical backbone and skilled workers who are willing to return will have their labor contracts renewed, with wages increased by 15% according to industry standards. Employees with more than three years of service will receive an additional seniority allowance. Second, for those who are unwilling to return, a one-time buyout resettlement fee will be issued according to national standards, with the higher standard being preferred. In addition, we will set up a re-employment service station in the factory area to help workers who are unwilling to return find employment in other local companies."

Suning pushed the document forward a bit. "The specific details are all here. All leaders can take a closer look after the meeting. To put it bluntly, these workers are not a burden, but skilled labor and valuable human resources. I need them to restart the production line."

The leaders looked at each other, and the one in the lead picked up the document, flipped through it, remained silent for a few seconds, and then turned to the person next to him and whispered a few words to each other.

After discussing it, he turned back, his expression much more relaxed than when he first came in.

"Mr. Su, to be honest, your proposal is the most practical one we've encountered from any acquirer in recent years. Others either say they'll take over all the workers, but then change their minds once the contract is signed, or they say they'll only buy the equipment and not the workers, leaving them to the government for resettlement. You've come up with this resettlement plan before even signing a contract, which shows you're genuinely interested in doing this."

Suning said, "I'm here to do real business. If we can't even settle the workers properly, how can we continue doing business?"

"However, there is one more thing: you cannot relocate the factory."

“We have also considered this. Deyang is located inland, which is not suitable for the future development of new car companies. Therefore, we are considering that the Deyang plant will mainly produce auto parts and become a key supply chain for new car companies in the future.”

"This……"

"Distinguished leaders, we cannot avoid these key issues. What we value most is the vehicle manufacturing qualification of the Deyang plant."

The leader nodded and extended his hand: "Then I think we can discuss our cooperation in more depth."

……

The negotiations lasted less than a week, and Mingju Real Estate ultimately acquired all the property rights of Deyang Automobile Factory for 50 million yuan, including the land, factory buildings, equipment, and the invaluable automobile production qualification certificate.

On the afternoon of the day the contract was signed, Suning led a group of people to the Deyang Automobile Factory.

Pushing open the rusty door and stepping inside, the people accompanying him fell silent.

Rows of factory buildings sat there quietly, several windows broken, and spider webs on the beams.

The machines on the production line are still in the same state they were in when the line stopped. A semi-finished truck cab is parked on the track at the end of the assembly line. The headlights have not yet been installed, and the steel plates on both sides have rusted with a layer of brown spots in the humid air of Sichuan.

Standing to the side, Xiao Zhao looked at the rusted equipment and empty factory buildings, and sighed, "President Su, this place looks like an ancient ruin."

Suning looked around the entire factory area, then turned to his entourage and said, "Don't sigh. In a year, I will get this production line running again. In three years, I will have auto parts produced here installed on cars running on highways across the country."

"Does Mr. Su mean to use auto parts as a starting point?"

"Yes! The limitations of the Deyang plant are obvious. It's impossible to place the main production base here. I intend to build the production base in East China. It's necessary to develop the Deyang plant into an auto parts factory, at least to give an explanation to the local government."

No one spoke, but all eyes were on Su Ning.

It turns out that Suning had already considered all the issues, indicating that entering the automotive manufacturing industry was not a spur-of-the-moment decision.

Looking at the rusty, unfinished truck, Su Ning seemed to be speaking to his team, yet also to himself: "The automotive industry is the backbone of a country's manufacturing sector. The timing of our entry is perfect—too early and it would be too late, too crowded. This factory may be shut down, but it has the qualifications, the land, and the foundation. Rusty equipment can be replaced, and damaged factory buildings can be repaired, but once the qualifications are gone, they're gone forever. This qualification catalog is the most valuable thing we bought for 50 million."

Then, Su Ning turned to his team and said, “Remember, the Deyang car factory is not an acquisition project; it’s our first foothold in the automotive manufacturing industry. Continue with the real estate business as usual, but with the cars, I need you to demonstrate the same level of execution as in real estate. Production must resume within a year. Any questions?”

Xiao Zhao was the first to speak: "No problem."

Su Ning glanced at him: "Whether this factory can survive or not depends not on the equipment, not on the qualifications, but on whether you can make this happen. I'm putting this out there today... If, three years from now, the cars we manufacture are running on Chinese roads, everyone here today will be a veteran and a hero. If we can't, then everyone here will be a failure."

No one spoke anymore, but everyone's attitude had changed.

At first, they thought their boss had probably gone mad to enter an unfamiliar high-tech industry.

However, Suning's statement today has changed their minds, and they may indeed be able to continue the success of Mingju Real Estate.

Su Ning took one last look at the semi-finished truck, turned and walked towards the factory gate. "Let's go! Back to work. Have the legal team complete all the transfer procedures this week, the finance team pull out the budget for the subsequent renovation funds, and the human resources team issue re-hiring notices tomorrow. Go find the section chiefs and experienced workers on the production line one by one, and bring back everyone you can."

He opened the car door, turned around and said, "By the way, we need to change the factory name too. The name Deyang Automobile Factory is outdated; we need to come up with a new one."

Assistant Xiao Zhao immediately asked a crucial question, "President Su, what will our future car company be called?"

"Celestial Empire Autos," Su Ning said with a smirk, uttering a name that exuded domineering confidence.

"Chinese cars?"

"Yes! China Superior Automobile Technology Co., Ltd. has also registered four sub-brands: Azure Dragon, White Tiger, Vermilion Bird, and Black Tortoise. In order to prevent unnecessary trouble in the future, we have registered the other mythical beasts in advance."

"Huh? Is this really necessary?"

"Of course! Registering domain names, trademarks, and brands has always been an important matter."

"Understood! I'll instruct the legal department to follow up when I get back."

...(End of this chapter)