Return to Hong Kong Island for a Century

Chapter 373 Suggestions (5000+ words)

"On the one hand, there are minivans, which were originally intended to be sold to ordinary people, but the current prices are still too high, even though they are cheaper than imported ones!"

"On the other hand, the vans are about to be exported, and it's impossible for the export price to be cheaper than the domestic price. I don't want people talking behind my back," Li Song chuckled, offering his explanation.

Minivans are in short supply in China, mainly because there are almost no similar products available domestically.

Of course, the second and most important point Li Song made was that a certain joint venture car factory in history sold a car that originally cost 80,000 for 180,000.

Look at how many years these people have been criticized and condemned. As long as Chinese civilization continues to be passed down, their deeds will be passed down from person to person.

As for why the price wasn't lowered further, logically speaking, the production cost would be lower during this period!

Actually, everyone is mistaken. At that time, the production cost was not low at all, and the international steel price reached four hundred US dollars per ton.

The price in China is currently 550 yuan per ton, and of course, domestic steel is supplied according to a plan.

However, domestic steel prices will continue to rise in the future.

Keep in mind that decades later, in the early 2010s, steel was only 2,000 yuan per ton.

This mainly refers to the current domestic steel production and steel technology.

Furthermore, future inflation and export considerations must be taken into account, since Li Song plans to export all the vans produced by the BMW motorcycle factory. If the price is too low, it will affect the export profits, so a 30% price reduction is now a reasonable consideration.

"Furthermore, the price of minivans will be reduced in the future, and I also plan to cooperate with banks."

"With the reform and opening up, the market will gradually open up, and at that time some people will buy vans to make a living."

"It's not easy to come up with so much money for a big item like a minivan, so I took out a mortgage loan from the bank."

“If banks are unwilling to provide mortgage loans, then our company can provide financial services ourselves!” Li Song knew that it was difficult to get people to come up with tens of thousands of yuan to buy a minivan now, and it would be difficult even in a few years.

Installment loans, although they represent overspending, are a good thing for most ordinary people at this stage, since you can make money by buying a car and doing whatever you want.

Of course, there are definitely risks involved!
Moreover, there are other manufacturers producing these vans. If Lisong doesn't lower its prices now, we'll have to wait until the other manufacturers start selling them.

It wouldn't be good for me to lower the price again.

"I will report this matter to my superiors!" Ma Shengli nodded.
"Another thing is that I may acquire a car brand in London, and then the high-end models will probably be branded under this brand."

"In addition, we have prepared several other car solutions. Of course, the chassis and the three major components will still use the hardware of BMW's 1.5 and 2.0 models. It's just a matter of changing the shell!"

"This will give people more choices and create price differences!" Rebadging will be very common for cars in the future.

"Mhm!" Ma Shengli nodded, knowing that Li Song wanted to give all two of these cars to other manufacturers.

Because BMW is not expanding the production lines for these models, but is instead planning to expand the powertrain production line.

In other words, Li Song will not increase the production of these two models in the short term!
The extra power packs will definitely be supplied to other factories.

Because Baomai Auto Factory has authorized other car manufacturers, those other car manufacturers must start assembling first!
Then, while assembling, they began to learn the technology. By the time these factories were able to manufacture entirely on their own, they still wouldn't be buying power packs from BMW's motorcycle factory.

The same applies to other supporting factories; BMW's supporting factories are mainly located in the Guangdong and Guangxi regions.

Meanwhile, other car factories produce BMWs, so it's impossible for them to buy parts from such a distant place because the transportation costs are too high!
Other places also adopt the form of industrial parks, which means putting the entire industrial chain in one place to achieve economies of scale!
Moreover, it has significant advantages in raw material supply, transportation, electricity, and other aspects, which facilitates the country's related planning.

"In addition, I will convert the profits from overseas into US dollars, or buy Aramco treasury bonds!"

"This part within the country will still be kept domestically!" Li Song said this with his own considerations.

Firstly, in terms of prospects, the US dollar has the highest value retention rate in the world.

The exchange rate of the domestic currency against the US dollar has been declining one after another. It is currently around 2.x and will be adjusted to 7.x in a few years.

The Hong Kong dollar continued to fall afterward.

Even the strongest currencies, the pound and the ruble, subsequently plummeted.

Therefore, all of China's domestic currency will be invested in various infrastructure projects!

As for any additional profits, aside from investments, Li Song will convert them into US dollars.

Li Song's income is now too high, so we need to start calculating it.

"Okay!" Ma Shengli nodded!
Li Song and Ma Shengli walked out of the assembly workshop. When no one else was around, Li Song said, "If there is an opportunity, I suggest that the higher-ups purchase some F-14s and F-15s."

Hearing Li Song's nonsensical words, Ma Shengli asked, "Amei and the others are willing to sell?"

"The opportunity will come soon, but it's not entirely certain yet."

"Based on our assessment, Ami will try her best to win us over!"

“If the mainland needs US dollars at that time, I can definitely provide some support!” Li Song’s answer made Ma Shengli feel a little strange!
"Mr. Li, is something bad about to happen?" Ma Shengli asked.

"It has little to do with the mainland; it's mainly in Europe." Li Song knew that the August 1st military exercise was primarily aimed at Europe.

Who would have thought that in 1981, the fat bear was still eyeing Europe and the whole of Europe and America with covetousness.

In just ten years, the top brass of Fat Bear have become worshippers of the West and even proud to join the West!

Unfortunately, the West did not accept the fat bear.

The main reason why Europe and America don't accept heroes is that two tigers cannot share the same mountain!
If the bears join the European circle, then America can forget about dominating Europe!

At that point, the entire European circle will be under the control of the fat bear.

Then there's the US, UK, and France. These three countries have conflicting situations, but also share common interests!

They would never allow fat bears to ride on their heads.

So even though Fat Bear tried his best to flatter and enter Western circles after the family split up, he was ultimately ridiculed by them!

All of this provided valuable experience for the mainland. The mainland also went through two processes in its development. The first was to get closer to the bear. Historically, the relationship with the bear was very good. However, the bear later demanded that troops be stationed there, so the mainland parted ways with the bear.

Later, we aligned ourselves with the West, only to find that even a fat bear couldn't catch the West's eye, so we couldn't even dream of it.

In fact, during the process of national development, various policies and guidelines are not static, but are adjusted at any time.

It was precisely because of this that the mainland later embarked on a unique path.

"Mr. Li, could you please elaborate?" Ma Shengli was even more eager to hear this!
"It's because our northern neighbors want to give Europe a hard time, so they're flexing their muscles!"

"However, based on the limited information we have, they will probably scare Europe this time!" Li Song estimated that it was about time, because it was already mid-June, and the fat bear would start to show its muscles in September.

Some countries have already received the news.

Many people didn't pay attention to this news, thinking it was just a routine military exercise.

“Okay!!” Ma Shengli nodded.

Ma Shengli wondered if Li Song's backer had powerful connections in the neighboring area to the north.

Ma Shengli had this idea, and it was also Li Song's deliberate act!
The reason Li Song brought this up now is to lay the foundation for bringing out some of Fat Bear's techniques in the future.

They had already prepared the M3 Backfire improved bomber.

The overall design and layout lay the foundation for subsequent electronic and intelligent transformation.

Just like the upgrade space reserved in the blueprints of a transport aircraft.

Because these types of bombers have a very long service life.

However, as time went on, these bombers gradually went from being mainstream equipment to auxiliary equipment.

However, this type of auxiliary equipment also has an advantage: it can launch long-range strikes from thousands of kilometers away from enemy territory.

Or it could simply be equipped with stealth missiles or stealth high-speed drones.

In other words, this type of equipment can only end up as a launch platform.

The Backfire M3 has a maximum payload of 24 tons, but this is achieved by sacrificing fuel.

With a full tank of fuel, it can carry up to nine tons.

But that's enough.

Nine tons is enough to carry a nuclear cruise missile or a nuclear torpedo!
These types of weapons can be launched from outside the defended area.

However, this type of strategic bomber will continue to play an important role in national defense for the next two or three decades.

The application of weapons and equipment varies at different times. Although Li Song is not optimistic about this type of equipment, it is indeed needed at this stage.

Although there haven't been any major conflicts in history, no one knows if there might be one this time. Li Song and Ma Shengli then went to the sports car production department.

The sports car's design was inspired by the first electric car from DaMi!
It is equipped with a 4.0L six-cylinder horizontally opposed air-cooled engine.

This car has now entered the assembly stage.

This car is the product that Li Song used to attract European and American customers.

It's not that there's no demand in China, but rather that the price of this car would be very high in China, and the road conditions in China are not yet suitable for this type of car.

To be honest, in the 1970s, 1980s, and 1990s, the infrastructure in Europe and America was much better than that in China.

Then, after the millennium, the infrastructure of European and American countries gradually lagged behind.

This is mainly related to politicians, who are busy dividing up the tax money paid by citizens!
Of course, it is also related to the national conditions and interest groups!
It's not that Amei lacks the ability to build high-speed rail, but rather that it would lose money if it did.

In addition, there are trucking unions and aviation companies, which will not allow the existence of high-speed rail.

Many people are unaware of the background of Midea's truck union.

Many of America's unions were originally mafia organizations.

And even decades later, these unions were still controlled by these families.

Moreover, the aviation industry in America is very developed, so there is no need for high-speed rail at all!

In addition, the automobile association will not allow high-speed rail to exist, because high-speed rail will also affect car sales.

As for why Europe hasn't developed high-speed rail, it's mainly because the countries are too small; in some countries, you can cross the border in half a day by car.

High-speed rail might be built unless Europe becomes unified, but that's impossible.

The entire sports car production department was highly motivated because there was a 70% bonus of one million yuan for every prototype produced.

There aren't many people in this production department, only a little over two hundred.

Because this type of sports car will not be produced in large quantities.

This sports car comes in two versions: a customized version and a general version!

A custom version means that even every single screw is custom-made, with a pattern chosen by the individual!
This pattern is present on all the parts.

This maximizes the emotional value, but there's a downside: the used car will definitely be harder to sell.

Also, if it breaks, it will definitely need to be sent back to the factory for repair.

After looking around, Li Song and Ma Shengli went to the off-road vehicle project site next door.

The off-road vehicle project team is now gradually accelerating its progress because some personnel have been transferred from the passenger car production department.

Since the public relations for the sedan have been completed, all that's left is mass production after testing.

Finally, we arrived at the truck project site. The truck project was progressing a bit slower because it was using a diesel engine, which is different from the gasoline engine used in BMW cars.

However, the prototype should be available this year, and it might even be able to go into mass production.

The biggest problem right now is the lack of people, especially technical personnel.

The shortage of personnel was caused by the technology that Li Song provided.

Li Song brought out so many home appliances, as well as technologies related to construction machinery, motorcycles, chemicals, textiles, metallurgy, and so on.

There's also the sales and transportation of these products from different eras.

It gives the impression that there's a shortage of people everywhere.

Of course, there is a major benefit: those educated youth who returned to the city have now been recruited into factories.

There are also those educated youth who cannot return to the city for various reasons. Some places have offered additional conditions, such as transferring the household registration of the whole family to the city and arranging jobs for the family members.

Not just anyone can become a technician. First and foremost, one must be literate and able to understand the technical documents issued to them.

Only in this way can further research into the technology be possible.

Li Song didn't have a better solution, because now it's not just companies that are short of people, but government departments are also short of people.

Now, as long as you are a college graduate from a prestigious university, it's very easy to get into a department directly under your command (not a typo)!

Li Song was somewhat envious of the era when college graduates would be everywhere in China in a few decades.

Back then, if I had the technology, I could easily build a factory with 100,000 employees in no time.

At that time, there was a great abundance of talent in various professional fields in China.

Unlike now, where anyone with even a little technical knowledge can be forced into a job.

After Li Song finished reading, he held a short meeting at the car factory half an hour before leaving get off work.

Each department reported on its progress, with each department only taking a few minutes to report. Anyway, Li Song had already gotten a general understanding of the progress.

Then, when it was time to leave work, Li Song was even more enthusiastic than the others.

Ma Shengli went to report on his work while Li Song was in a meeting.

"Li Song is quite conscientious for lowering the price of his minivan!" someone in the expert group said after hearing that Li Song was going to reduce the price of his minivan by 30% and that he had learned the reason.

"This must be Li Song's personal decision, otherwise those capitalists wouldn't have given up such an opportunity," someone speculated.

"I also feel that Li Song's personal authority seems to be getting bigger and bigger?"

"Is it mainly related to the fact that the people behind him have gone into hiding?" someone else said uncertainly.

"In any case, price reduction is a good thing. However, there is currently a shortage of minivans in China. Once the price is reduced, the demand will probably increase several times over!"

"It's a good thing that demand has increased several times over. Several factories will be producing vans soon, and Li Song is probably considering having other factories produce vans as well."

"Actually, I also think the price of minivans is very high. Although they are cheaper than similar models, don't forget how low the average wage is in our country."

"The cheapest one costs 30,000 yuan, while the average wage for most people is less than 100 yuan."

"Even if you don't eat or drink, it would take decades to buy a minivan!"

"Imported cars are expensive, but they are not expensive in their home countries."

"The average income per capita in the country is $10,000. At our current exchange rate, that's enough for them to buy a car in a year."

This is easy to understand. The reason why imported cars are so expensive is partly because they cannot be manufactured domestically, but more importantly, it comes down to the costs for both parties.

Just like our country's automobile exports decades later.

Those countries without industry, with per capita income only one-tenth of ours, want to buy cars worth tens or hundreds of thousands of yuan.

The situation they encountered is the same as the situation currently faced in mainland China.

In other words, you don't have the ability to manufacture independently, so you can only afford high prices.

This seemingly outrageous price is nothing in other countries.

This is why many luxury car brands don't perform well overseas, mainly due to the income difference between overseas and domestic markets.

"Yes, price reductions are a good thing; they'll make cars more accessible to a wider range of people!"

"I think the higher authorities will agree!" The expert team also knew that the high price of imported cars was unavoidable.

Now that domestically produced cars are available, there's no need to set such high prices anymore.

"As for the other ones, we won't comment!" The expert group knew that these were not issues they should be involved in when they saw the last few questions.

First, they acquired a London-based car brand!

Secondly, Li Song would convert all of his overseas profits into US dollars.

Third, Li Song suggested purchasing foreign fighter jets.

Fourth, there's the matter of the military exercises on the other side of the bear.

After compiling the data, the expert team sent it to Kyoto overnight.

Li Song had just finished get off work when the leader he had met at the Chang'an Aircraft Manufacturing Plant was already reviewing the materials sent by the expert group along with several other leaders!
"Li Song's approach of reducing the price of minivans by 30% is indeed good. Our own manufacturing costs are not that high." The leader first affirmed Li Song's decision to reduce the price of minivans.

(End of this chapter)