Who would still start a business seriously after being reborn?

Chapter 662 Making Concessions at the Appropriate Time (Fourth Update)

Stuttgart, Germany.

The production planning department at Mercedes-Benz headquarters is in complete chaos.

On the huge electronic dashboard, many production lines lit up with red indicator lights that signified "production halted due to material shortage".

“Mr. Hans, the stock of ESP control units for the A-Class cars will only last for 48 hours. If we don’t accept this price, the smart cockpit chips for the E-Class will also be out of stock next Monday.” A production scheduler reported the current situation to his supervisor with a helpless expression.

Their department head was a veteran engineer who had worked in the automotive industry for thirty years, and even after thirty years, he had never encountered anything so outrageous.

He looked at the emergency price adjustment notice in his hand, which indicated that the price of the new microcontroller unit was 35% higher than last week.

He said with a grim expression, "Those bastards in America are really treating us like pigs to be slaughtered!"

Paris France.

Renault's purchasing director was also yelling into the phone in his office: "Another 25% price increase? And you're demanding 80% prepayment? Do you Americans have any business integrity?"

On the other end of the phone, the Intel France sales representative said in a cold tone, "Sir, this is a globally unified policy of headquarters, and there's nothing we can do about it. If you cannot accept it, your company can find alternative suppliers."

"Replacement? Damn it, you know perfectly well that there are no substitutes for these high-end chips." The director slammed down the phone in anger, a sense of powerlessness and humiliation rising within him like never before.

Once upon a time, European industrial products were sold all over the world, but now they are being held hostage by a tiny chip, with no room for negotiation.

Turin, Italy.

Outside the Fiat factory, union leaders are giving impassioned speeches, condemning the hegemonic behavior of American companies and criticizing the incompetence of the European Commission.

The news media used the most cutting language.

The front page headline of Le Figaro was "The Treaty of Versailles in the Digital Age".

The cover of Der Spiegel features a giant hand made of chips, gripping the throat of a Volkswagen car, with the headline "Suffocation: Europe's Darkest Hour."

A BBC commentator lamented on the program, "We were once one of the rule-makers in the world, but now we have become victims of someone else's rules. This is not business competition; it is a meticulously planned joint strangulation of the economic lifeline of Europe!"

A sense of shame spread rapidly across the European continent under the media's relentless bombardment.

From politicians to businessmen, from engineers to ordinary workers, everyone clearly felt a suffocating sense of being strangled and the humiliation of being treated like a colonial market.

Pressure surged toward Brussels like a tsunami.

The president of the European Automobile Manufacturers Association, along with a group of CEOs from major companies, stormed into the office of the EU Competition Commissioner and slammed a stack of loss reports, symbolizing the shutdown of production lines, onto the table.

Faced with the overwhelming anger of the business community and the boiling public opinion, the European Commission could no longer remain indifferent.

They realized that Microsoft and Intel were serious this time, and were determined to achieve their goal.

Enze Capital and its parent company, Momo Group, have become the only potential avenue for the EU to extract concessions from the other side.

The European Commission, in a highly confidential meeting room.

EU Competition Commissioner Margrethe sat in the main seat with a somber expression. Opposite her were Mike, president of Enze Capital, and Tony, vice president.

Without Microsoft, there would be no Intel.

This was a separate meeting between the EU and Enze Capital.

“Mr. Mike, Mr. Tony,” Margaret said, getting straight to the point. “As you have all seen, Europe is experiencing an unnecessary industrial earthquake, and the epicenter is largely due to your confrontation with the Wintel alliance.”

Tony instinctively tried to cross his legs, but Mike sternly stopped him with a look.

Mike knew very well that this time the EU was no longer turning a blind eye, but was serious.

Mike's tone carried a hint of helplessness as he said, "Ms. Margaret, we deeply understand the predicament our European friends are facing right now. But please believe us, Enze Capital and Momo Group have always been staunch supporters of free markets and fair competition. We are being forced to act in defense..."

“Defense?” Margaret interrupted him, her tone harsh. “Your defense has caused severe disruption to the global technology supply chain and turned Europe into the main battlefield. Now, European businesses and people are paying the price for your commercial war.”

She pushed a document in front of Mike and said, "These are the three basic conditions that the Wintel alliance has presented to us through informal channels to end the current chaos. They say that as long as Momo Group makes substantial concessions, chip supply and prices will immediately return to normal."

Mike picked up the document, quickly scanned it, and his brow furrowed deeper and deeper.

Tony leaned over for a look, and his eyes narrowed sharply.

Looking at their reaction, Margaret frowned and said, “Gentlemen, I am not making a request. I am conveying a reality to you on behalf of the European Commission. If you continue to persist and cause irreversible damage to the European economy, then the EU will have to reassess its relationship with Enze Capital and its affiliates, including but not limited to launching an antitrust investigation, reviewing the security of its investments, and even considering adding it to the list of non-cooperative entities.”

This is a blatant threat, but also an ultimatum based on harsh reality.

Caught between two giants, the EU ultimately chose to put pressure on the relatively weaker party, which was legally its own.

Mike took a deep breath; he knew the time had come for his boss, Rebus, to make concessions at the appropriate time.

European anger has reached a breaking point. If no concessions are made, Enze Capital's years of operations in Europe will completely collapse.

“Ms. Margaret,” Mike put down the documents and said with a heavy expression, “we understand the EU’s position and feel the pressure our European friends are under, but for the stability of the global technology industry and the prosperity of the European economy, Enze Capital is willing to show the utmost sincerity to promote a satisfactory resolution to this issue.”

He changed the subject, saying, "However, the conditions offered by the Wintel alliance are far too harsh, essentially putting Momo Group in a life-or-death situation. We need to negotiate while upholding our fundamental rights. Please give us some time; we need to have an urgent conversation with the actual controller of Momo Group." Margaret's expression softened slightly. She knew that Enze Capital was preparing to compromise, but was trying to negotiate for better terms.

“24 hours.” She gave a deadline, saying, “I hope to see a sincere response from Enze Capital in 24 hours.”

Leaving the EU headquarters and getting into the armored car, Tony's impulsiveness and arrogance quickly disappeared. He regained his usual calm and composure, frowning as he said, "I didn't expect the European Commission to compromise so quickly."

Mike rubbed his temples, looking exhausted, and said, "That's politics. We're a company within the EU system. They can't control American companies, but they can control us, right? But the big boss anticipated this day. Let's execute the plan according to the boss's orders."

24 hours later, in the same conference room.

This time, the EU once again became the mediator, giving the stage to Microsoft, Intel, and Enze Capital.

Unlike before, the Microsoft and Intel representatives appeared much more confident and in high spirits.

They even specially dispatched Richard, the Microsoft Global Vice President whose wig flew off, and Kenneth, Intel's Senior Vice President of Strategic Relations.

Sitting opposite them were Mike, the president of Enze Capital, and Tony, the vice president.

Richard's gaze skipped over Tony's hostile look and turned to Mike, saying aggressively, "Mr. Mike, our three demands are the bare minimum for restoring market order, and there is no room for discussion."

"First, Momo must immediately cease all technical interference with MSN and KartRider to ensure their stable operation in the Chinese market. At the same time, all Momo-related software must be unconditionally relisted on the Windows platform with full functionality."

After a moment's thought, Mike replied, "Mr. Richard, regarding the stability issues of MSN and KartRider, we reiterate that the Momo system has never engaged in any targeted technical interference. Any performance fluctuations may stem from network conditions, server load, or compatibility issues with the software itself."

"Furthermore, we cannot interfere with the operation of the Momo system now. If you continue to make demands that we cannot meet, then this negotiation will come to nothing."

Mike paused, noticing the hesitation in Richard's eyes, and then changed the subject, saying, "As for the return of Momo's software to Windows, we can try our best to communicate and achieve that."

“Okay.” Richard knew this would put Enze Capital in a difficult position, so he continued, “Then I’ll make a second request: Lianxiang, Shenzhou, and Glory Computer must immediately issue a written apology, admitting that their actions have damaged the stability of the Wintel ecosystem, and promising to make comprehensive rectifications. All computers shipped must be pre-installed with a genuine Windows operating system and prominently display the Wintel inside logo.”

As soon as Richard finished speaking, Mike showed an extremely troubled expression and said, "As a listed company, Lianxiang Group can do its best to persuade them. However, the heads of Shenzhou Computer and Glory Computer are very emotional. They believe that they are the winners of fair market competition, and now they have to apologize, which touches their dignity and business bottom line."

“If we forcefully exert pressure, it could lead to the collective resignation of the management team, or even trigger large-scale protests by factory workers, which would be devastating to production and the supply chain.”

Mike cleverly used the underlying sentiments as a shield, sighing, "Although we at Enze Capital are shareholders, we also need to respect the opinions of the local management team, especially the labor environment in China... You should understand that if this matter escalates too much, it will not be conducive to Microsoft's operations in China."

Richard was slightly surprised; he had a feeling that Mike's words were something he had prepared long ago.

Because every reason Mike gave was irrefutable.

Richard said in a deep voice, "Then let's simply change the requirements. Enze Capital, on behalf of Momo Group, will issue a relatively mild global statement in well-known media outlets around the world, publicly apologizing to us, and at the same time promising to push Lianxiang Group to make rectifications and restore the pre-installation of Windows system in all its product lines. As for Shenzhou and Honor, we will lift the sanctions on them whenever they come to their senses."

“Okay, no problem,” Mike immediately agreed.

He'd love to issue a global statement; if they did, they could touch the already fragile nerves of the European people.

Only by stirring up hatred can they possibly push forward ARM's chip revival plan.

Richard continued, "The third requirement is that the Momo operating system must be strictly restricted to use within China and must not enter the global market in any form."

Mike was taken aback by this and couldn't help but say, "Mr. Richard, your thinking is all muddled again."

“I have said this many times: Enze Capital currently only holds 40% of the shares of Momo Operating System and does not participate in its daily operations. We only have the right to make suggestions regarding the operation of the Momo system, but we do not have the right to make decisions.”

He looked at Richard, whose face was ashen, and said, "Of course, we are very willing to make suggestions to the board of directors of Momo Systems Company as shareholders to explore the market strategy of Momo operating system, but whether or not to adopt it depends entirely on the decision of China. Your request has exceeded the capabilities of our Enze Capital."

Richard and Kenneth exchanged a glance, both seeing the anger and a hint of helplessness in each other's eyes.

They can pressure Enze Capital, but they can't pressure Huaxia Software Group and Huaxia Capital.

“Okay!” Richard finally agreed.

The negotiations lasted for nearly an hour and a half.

After everything was agreed upon, the two parties signed a settlement agreement with extremely cautious wording.

Microsoft and Intel barely managed to save face, while Enze Capital successfully preserved its core assets.

Following news of Enze Capital's concession, Intel and two semiconductor companies simultaneously announced that, given the positive progress in negotiations, they would gradually restore normal chip supplies and prices to the European market.

As soon as Intel's announcement was released, the wave of protests across Europe subsided, and the green light for restarting production lines gradually appeared. It was as if everything had returned to normal.

But beneath the calm surface, an undercurrent is gradually becoming clearer.

When German automotive giants meet privately, they are no longer just complaining about American dominance, but are even starting to seriously discuss the possibility of a European self-sufficient chip program.

For the first time, French politicians have elevated digital sovereignty to the same level of importance as national defense sovereignty during parliamentary debates.

Their most frequent topic of discussion was Enze Capital, whose willingness to kneel and bow to the Wintel alliance for the sake of the European automotive industry drew attention from many insiders for its enormous sacrifice.

Indeed, only European companies know how to love Europe.

(End of this chapter)