Why race if you don’t have money?

Chapter 143 The Ambition of Chinese Automakers

"Thank you for your recognition, brother. I will continue to work hard."

Chen Xiangbei was very humble in the face of Cheng Long's praise.

Or perhaps, he wasn't actually an arrogant or conceited person at all.

Just like a classic lyric from Mayday, "You're not truly happy, your smile is just a protective mask."

Chen Xiangbei's arrogance and overbearing attitude towards foreign media is, in a sense, his protective shield.

It's infinitely better for outsiders to see you as a tough nut to crack than as a pushover!
"Xiang Bei, I believe you already know why I wanted to meet with you, right?"

"Ok, I know."

Chen Xiangbei nodded.

"I loved racing when I was young and even wanted to become a professional driver, but God gave me the talent and led me to become an actor."

"However, my love for racing has not faded. Since I can't compete on the track myself, I will use another indirect way to realize my dream of being a driver, just like many people's kung fu dream."

Cheng Long spoke candidly about his past racing dreams, but Chen Xiangbei focused on the phrase "kung fu dream."

Next year, Jackie Chan's movie "The Karate Kid" with Will Smith's son will be released. This can be considered his last glorious moment in Hollywood. According to the timeline, it was filmed around this year, which is why I subconsciously mentioned this term.

"My initial idea was to build a top-level team of our own, using an all-Chinese team to compete in the paddock as much as possible. But now, your appearance, Xiangbei, has put me in a dilemma."

"Should we form a racing team or sponsor drivers?"

Cheng Long spoke very frankly, directly expressing his inner hesitation.

He didn't actually have much of an idea about sponsoring drivers. The reason was simple: dreams are dreams, but many things can't be done "with love alone"; practical factors also need to be considered.

Even though Jackie Chan is an international superstar who has entered the $20 million film salary club, and he is not short of money due to various advertising endorsements.

But after being the eldest brother for so many years, he still has a group of old brothers under his "Cheng Family Team" who need to make a living, so he has to consider the return on investment when investing in motorsports.

For private capital like Cheng Long's, as long as the team can achieve good results, even a huge investment can be recouped, or even generate a profit.

But sponsoring drivers is essentially a pure investment with no return.

The way sponsoring drivers make money is simply through advertising, which increases the visibility of their company or brand.

The problem is that Jackie Chan doesn't own any industrial companies or brands, or rather, he himself is a top-tier "brand".

In the vast underdeveloped regions of Asia, Africa, and Europe, people may not know what Formula One is, but most of them know who "Jackie Chan" is.

In this situation, what is the point of sponsoring drivers for promotion?

"Brother, I understand."

Chen Xiangbei responded that sponsorship is a business collaboration, and there is no requirement for the other party to pay money.

Cheng Long couldn't afford to build an F1 team, and personal sponsorship was meaningless. Even if the deal fell through, he could still maintain good relations and consider it a way of showing his support for his idol.

"No, I've decided to sponsor you anyway."

Seeing that Chen Xiangbei had misunderstood him, Cheng Long shook his head and emphasized.

"Heading north, I look forward to seeing a Chinese driver in the world's top racing events."

"Ten million Hong Kong dollars, as sponsorship funds for your continued commitment to Formula racing, is just a small token of my appreciation."

Often, people live their lives pursuing more than just commercial interests; they also strive to fulfill their dreams and feel a sense of national and familial responsibility.

Historically, when Cheng Long formed the endurance racing team, he could have recruited stronger European and American drivers, or even retired F1 drivers, which would have been more conducive to achieving good results.

However, he chose to add Chinese drivers such as Cheng Fei, Dong Hebin, and Fang Junyu to the Dragon Team, rather than prioritizing results.

Just as he expressed his views today, he hopes to see Chinese or Chinese-speaking drivers in top-level competitions.

"Brother, thank you."

"One day, the F1 paddock will not only have Chinese drivers, but they will also stand on the highest podium. This is my promise!"

Chen Xiangbei didn't mince words about the sponsorship and directly stated his attitude.

With the support of Jiuli Sports, he has temporarily overcome the financial difficulties.

However, to secure a place in the F1 paddock, the more money the better, especially in this era of financial crisis when teams are generally short of funds. Often, the power of money is just as important as the driver's own ability!
"Okay, I look forward to that day."

Cheng Long stood up and gave Chen Xiangbei another warm hug.

He also instructed the company's legal department to quickly draft a sponsorship contract, and he would transfer the funds to Chen Xiangbei as soon as possible.

From Cheng Long's perspective, Chen Xiangbei was so short of money that he couldn't even afford to hire crew members, which led to an absolute disadvantage in pit stop strategy and almost affected the outcome of the race.

To some extent, Chen Xiangbei's "miserable situation" was one of the important factors that made Cheng Long decide to sponsor him.

He didn't want to see a highly promising Chinese racing prodigy fall by the wayside due to a lack of money to race!
During the time they were waiting for the legal department to draft the contract, Cheng Long talked about life and movies, and even warmly invited Chen Xiangbei to make a cameo appearance in his movie.

Chen Xiangbei readily agreed, not only because he was curious about participating in the film, but also because it would be a collaboration with kung fu superstar Jackie Chan.

Even if we take a step back and think that I might become a sports superstar someday, a cameo appearance could still bring viewership and advertising to the film, which would be a way of repaying Jackie Chan for sponsoring my racing funds today.

After signing the sponsorship contract and chatting for a few more minutes, Cheng Long decided against inviting Chen Xiangbei to his home, considering that Chen had just finished a race and was quite tired. The two then waved goodbye.

As Zhang Zhicong left the VIP box, he said with emotion, "Xiang Bei, work hard in the future. This ten million is equivalent to Brother Cheng Long's free sponsorship."

Zhang Zhicong is an investment banking manager and understands the importance of business acumen.

He initially shared Chen Xiangbei's opinion that the sponsorship deal was unlikely to be finalized.

In a surprising turn of events, Cheng Long decided to pay the ten million.

Without a doubt, this money is not for profit, but to buy a future for Chinese drivers.

"Yes, I know."

After saying that, Chen Xiangbei took out a car key from his pocket.

"Uncle Zhang, the R36 is parked in the A1 parking lot. You can drive it back later."

"Xiang Bei, aren't you planning to stay a few more days?"

Zhang Zhicong took the keys and asked a question in return.

"The European Renault Cup is not over yet, and I have already missed two races. If I don't go back, I may not be able to win the overall championship."

Upon hearing Chen Xiangbei's explanation, Zhang Zhicong said with regret, "Alright, actually your Aunt Zhang is still thinking about it and waiting for you to come back for another meal."

"Uncle Zhang, please thank your wife for me. I will definitely visit her sometime."

"Then... I'll go back first."

Zhang Zhicong hesitated for a moment before uttering these words of farewell.

Without the Grand Prix, I really don't know when I'll see Chen Xiangbei again.

Although he had long since made up his mind to retire from motorsports, Zhang Zhicong was often moved as Chen Xiangbei grew and climbed higher, and he recalled more than once the passionate years when he founded Huasai Sports.

If possible, he would like to follow in the footsteps of his old friend Liang Chi and once again conquer the Formula One circuit in a different capacity.

But when the passion faded and Zhang Zhi regained his composure, he realized that he couldn't be as pure as Liang Chi.

If you can't fully commit, it's best not to set foot in it at all!

Looking at the dejected expression on Zhang Zhicong's face, Chen Xiangbei knew the regret in the other's heart.

At this moment, he spoke up and said, "Uncle Zhang, Uncle Liang and I will carry on your dream and make Formula One stand at the pinnacle of the world!"

Upon hearing this, Zhang Zhicong's eyes lit up instantly.

"Okay, I'm also looking forward to that day!" Without saying more, Chen Xiangbei bid farewell to Zhang Zhicong and returned to the team's pit garage.

The crew members had finished cleaning up after the race and were waiting for Chen Xiangbei to return to their hotel together.

"Xiang Bei, how's it going? Has the sponsorship been finalized?"

Liang Chi immediately stepped forward to ask a question, and Zhang Zhicong had already informed him about the search for sponsors behind his back.

In order not to distract Chen Xiangbei, he pretended not to know anything.

"Yes, Brother Cheng Long sponsored ten million Hong Kong dollars, plus Jiuli Sports' annual sponsorship of ten million, and the vehicle advertising of five million, so the funding problem has been solved for the time being."

"That's good."

Liang Chi nodded. As a techie, he was really clueless about business operations and would have to rely on his old friend Zhang Zhicong for help.

“Let’s go. Staller messaged me; he’s waiting for us at the hotel.”

Odette then spoke up, saying that he and Staller had something to discuss later.

"Yes, team leader."

Everyone responded and picked up their things to return to the hotel.

However, Chen Xiangbei looked around, and upon seeing his action, Lu Xiaoman understood and moved closer.

"What, looking for that little girl Dong Yuanxi?"

"Hmm, where did she go?"

Chen Xiangbei asked, even disregarding their ambiguous relationship, he was the one who brought her to the P-room, and he had the responsibility and obligation to safely return her.

"Don't worry, her father came and took her away."

"But before the little girl left, she asked me to give you something."

After saying that, Lu Xiaoman took out a peace knot from her pocket and handed it to Chen Xiangbei.

"This little girl made it for you by hand, hoping you'll have a safe and smooth race."

As Chen Xiangbei received the peace knot from Lu Xiaoman, he instantly felt a warm current in his heart.

For a driver, most people only focus on their results, but only those closest to them care more about their safety.

"Keep it safe. The fact that the little girl gave you this shows that she really put her heart into it."

After saying this meaningfully, Lu Xiaoman left the P room with her team members.

As for Chen Xiangbei, he glanced at the peace knot in his hand, a smile unconsciously appearing on his lips, then put it in his pocket and strode after him.

By the time everyone arrived at their hotel, it was nearly dusk.

Staller was sitting in the hotel's conference room waiting when he heard someone push open the door. He turned around and saw Chen Xiangbei walk in.

He immediately stood up and said in a tone of utmost admiration, "Bei, I never imagined that besides being a racing genius, you were also a business prodigy!"

"Just yesterday, the Huali Group and the Ford Group finalized all the details regarding the acquisition of the Volvo Cars brand, including a $200 million interest-free loan provided by Ford."

"Indeed, just as you said, the Ford Group was willing to assist in the acquisition, and this multi-billion dollar cross-border merger and acquisition can be said to have been completed under your leadership!"

Staller's tone became increasingly agitated, after all, he was also an investor.

The more you understand the financial investment circle, the more you can appreciate how simple and profound Chen Xiangbei's advice is.

No one could have imagined that they could borrow money from the seller to acquire the seller's brand.

Chen Xiangbei not only thought of it, but he actually managed to make it happen!

Staller didn't believe there was any element of luck or chance in such a multi-billion dollar cross-border merger. Chen Xiangbei's ability to propose such a plan meant he had a very precise grasp of the dynamics between the two automotive giants and knew what each side wanted to gain.

In business, the most difficult thing is to see through the other party's cards.

Chen Xiangbei's suggestion was tantamount to seeing through both sides' cards, which can only be called a business miracle!
This reminded Staller of Chen Xiangbei's earlier offer to personally fund the acquisition of the Honda F1 team, and his prediction that the RA109 would be a "Mars rover" brimming with cutting-edge technology.

As it turns out, Chen Xiangbei's prediction was correct.

This year's F1 season has already seen two races, and Brawn GP driver Jenson Button has easily secured the championship titles in both races.

Even more impressively, in the opening race in Australia, the Brawn GP team took a commanding 1-2 lead, demonstrating a clear performance advantage.

If Chen Xiangbei weren't a professional race car driver, Staller believes he could easily become the next "Warren Buffett" with his keen business sense!
"It's good that the deal was reached."

Compared to Staller's excitement, Chen Xiangbei appeared quite calm.

After all, such so-called commercial miracles are nothing more than having a God's-eye view of history.

In fact, even without their own suggestions, following the course of history, the Huali Group could still have completed the acquisition of Volvo, it just took a little longer.

"It's not just a deal that's been reached. Mr. Li, the chairman of the Huali Group, even came to the Guia Circuit today to watch the race in person. He is very interested in your strength and performance."

"Furthermore, Li also revealed that the Huali Group has the idea of ​​entering the high-level formula racing market!"

Huali Group is considered the only car company in China with "racing genes" in the early days. In the early 2000s, when it was still in the initial "copycat" stage, it had already invested heavily in creating Huali Formula and independently developed F4-level formula cars and engines.

After growing stronger in 2010 and 2011, the company participated in international touring car racing events year after year, and its Lynk & Co brand even won the WTCC championship team title.

Compared to NIO and DS Techeetah's Formula E championships, and Jackie Chan's Yaolai DC Le Mans LMP2 championship, the Lynk & Co team's championship title is actually more prestigious.

Because the Lynk & Co team is a factory team that relies heavily on technical skills!
It's not surprising that a car company like this has the idea of ​​entering the high-level Formula racing scene; all it lacks is funding and strength.

"Bei, Li made a promise that as long as you can successfully enter F1, Huali Group will very likely help you compete for a regular driver's seat through naming rights!"

There are many ways for car manufacturers to enter F1, the most common being the factory teams with the strongest technical capabilities.

For example, the well-known Mercedes-Benz, Ferrari, Renault, and so on.

When a car company lacks the strength to support the research and development and operation of an F1 team on its own, it can enter the market through cooperation, such as becoming an engine supplier.

Honda, a famous Japanese automaker, has thrived in the F1 paddock for many years by providing engines, but it has been a complete mess when it operates independently.

If the technology is even worse, and they can't even manufacture and supply engines, the only way to enter the market is to sponsor an F1 team.

Take the Sauber team, which is familiar in domestic competitions, as an example. A couple of years ago, it was called the Alfa Romeo team, which was actually acquired by spending money to obtain the naming rights.

It's clear that Huali Group's strength and technology don't meet the standards of chassis manufacturers or engine suppliers, so the only option left is to spend money on naming rights sponsorship.

When F1 teams select drivers, the title sponsor also has a lot of say, and if they spend enough money, they can even have a decisive effect.

If the Huali Group were to enter the fray, and Chen Xiangbei's abilities weren't exceptionally weak, he would essentially have a powerful backer in the F1 paddock, just like Sato Takuma had the Honda Group behind him, and Nakajima Kazuki had the Toyota Group behind him.

"In the north, all indications suggest that the Huali Group has very big ambitions."

Staller concluded by remarking that he had dealt with many top automakers throughout his life and was quite knowledgeable.

Only the Huali Group made him feel an ambitious "ambition" to become a world-class car company!
The acquisition of Volvo alone is extravagant enough, a classic example of a "snake swallowing an elephant" in mergers and acquisitions.

As a result, even before the Volvo acquisition is complete, the Huali Group is already planning to enter the F1 arena. Clearly, they intend to enhance their brand awareness and technological sophistication in the shortest possible time, which is fundamental to gaining consumer recognition.

After all, no one likes an unknown "knock-off" brand from China.

Hearing Staller's exclamation, Chen Xiangbei smiled and replied, "Who wouldn't want to be the next Toyota or Honda?"

There is an old Chinese saying: "A great man is born between heaven and earth; how can he live a life of melancholy and subservience to others?"

Japan has a prime example of using motorsports to shed negative corporate images and enhance brand prestige, so it's perfectly normal for Chinese automakers to want to follow suit and surpass it.

Just as Chen Xiangbei said this, Odeto walked in from outside and said calmly, "Let's put aside the next Toyota and Honda matter for now and talk about Bei's career path."

“Stahl, just as you suggested before, I also think that North is no longer suitable to continue fighting in Formula Reynolds.”

(End of this chapter)