Return to Hong Kong Island for a Century

Chapter 415 Speechless (Second Update)

"This is Professor Morgan from the University of Michigan, Ann Arbor," the host said again.

Professor Morgan's smile was somewhat unnatural, because the Ann Arbor campus had good working relationships with GM and Ford.

However, ABC invited him, and Morgan couldn't refuse.

Alternatively, if they decline, ABC will invite professors from other schools, including the University of Michigan, Ann Arbor, which is widely recognized as the top school for automotive engineering.

It's one thing for ABC to invite professors from other schools, but the worst thing is when ABC says they invited professors from a certain school, but the professors refused to participate in the program.

What kind of impression will this give to the public?
Could the University of Michigan, Ann Arbor, have been paid by the car company?

Or perhaps they know BMW cars are good, but can't speak out because of certain relationships?
Although every university has a partisan affiliation, these universities don't make it too obvious or let public opinion influence them, so Morgan came along.

Everyone knows the background of ABC television station; it is inextricably linked to Wall Street and a certain financial group.

In fact, there are two major factions in the United States: one is industrial manufacturing, and the other is financialization.

One set of data is enough to illustrate the point: in the 1950s and 60s, one-third of Amerigo Veterans' fiscal revenue, or tax revenue, came from major corporations.

In 2024, corporate revenue accounted for 11.5% of Aramco's fiscal revenue.

The majority of income comes from personal income tax, accounting for 49.8%.

Employment tax (social security and medical insurance) accounts for 36.3%.

Consider how many Fortune 500 companies and high-tech enterprises Aramco had decades later, yet why did it pay such a small percentage of taxes?

It's because of tax avoidance.

This is why Aramco's fiscal deficit remains high, because the government doesn't receive taxes from large corporations at all; instead, the Aramco people bear the entire burden of fiscal expenditures.

How do Amazon's companies operate? They set up shell companies in tax havens, just like Apple sets up shell companies in tax havens.

For example, Apple purchases phones for $300 from a major Eastern country through a shell company, which then resells them to Amer for $800. Amer then sells them on the market for $900.

It looks like there's a $100 profit, but in the end, you might actually lose money, since you can outsource the operation to other companies and take the profits.

The profits are in the shell company, so the Aramco government can't collect any taxes.

The taxes that should have been borne by large companies and enterprises have all fallen on ordinary people, resulting in increases in water, electricity, and telecommunications taxes for ordinary people.

Because of the Aramco government's fiscal deficit, these debts require interest. What to do if there's no money to pay the interest? Of course, it's to raise taxes...

Unfortunately, capital has no nationality, and in pursuit of high profits, it has led to the relocation of manufacturing overseas.

Now, Japan is the first stop, followed by South Korea.

Since America's capital did this, European capitalists had no choice but to do the same.

Because if we don't keep up, our products won't be competitive and we'll just have to wait to go bankrupt.

Unfortunately, neither of these two countries can take over such a massive manufacturing industry.

Population restrictions and resource restrictions.

Ultimately, this manufacturing industry fell into the hands of certain Eastern countries.

Actually, the third-in-command also has a chance, but Coca-Cola and McDonald's are examples of this.

The third leader was supported by Fat Bear and Amei in turn during the 1970s, but unfortunately, industrialization never took off (because of the farmer-land-tenant-vote-landlord hereditary system).
America and Europe also do not want a certain major Eastern country to become a manufacturing powerhouse.

But there's no way around it; capitalists need to make money, and there's only one company in the world that can take on that responsibility.

"I believe many viewers have read today's newspaper, but to avoid confusion, I'll state the answer here first. J.D. Company has released test data for BMW cars, and the final conclusion is that BMW's manufacturing technology and engine technology have reached world-leading levels, and are superior to our American cars. Mr. Lille, is my statement accurate?" The host dropped a bombshell right from the start.

Lille, a middle-aged white man from Onsa with a receding hairline, nodded upon hearing the host's words: "Yes, we at Jundi Auto pay attention to cars all over the world. As soon as BMW was launched, we got our hands on a prototype and conducted a comprehensive test. In terms of manufacturing processes and engines, BMW is leading the world."

Lille first advertised his own company before giving a positive response.

Before Lille arrived, the company had already devised a plan: speak boldly and don't be afraid of offending people, because this is the time for the company to become famous.

“Based on our test results, that’s the case. I wonder, Professor Morgan, have you conducted disassembly tests on BMW cars?” Lille asked Morgan directly.

Morgan sighed inwardly. As the top automotive school in America, how could he say he didn't know?
The school not only disassembled the vehicle, but also conducted many experiments with Ford. In fact, they disassembled and tested the BMW van together with Ford's laboratory.

“We also conducted tests.” If Morgan were to say now that there were no tests, what would the audience think of his school?
Is the top-ranked professional company inferior to a third-party company?

"In some data points, BMW does indeed have a strong advantage." Professor Morgan was distressed. There was no way to lie about this, because there were so many BMWs on the market. If he lied, others would disassemble them and conduct experiments.

At this point, America still had some sense of shame. But when pushed to the limit, it confiscated the wealth of a rich person from one country today and the wealth of a rich person from another country tomorrow.

Of course, Professor Morgan is not a politician, but a scholar.

Scholars at that time were still highly qualified, unlike later experts who, for the sake of their own business, became shameless to the extreme...

Therefore, Morgan couldn't lie, otherwise the school would face a public relations crisis because of this.

Competition between schools is fierce, especially in terms of program rankings. If negative publicity emerges, other schools will definitely take advantage of the situation.

"Professor Morgan, is it accurate that BMW's mass-produced 1.2L and 1.5L naturally aspirated engines achieve a thermal efficiency of 30%?" Lille pressed on firmly. "Accurate."

"Is it accurate to say that it has the highest thermal efficiency among mass-produced engines in the world?"

"precise!"

"Is it accurate that other engines achieve a maximum of 25% for the same type of engine?"

"precise."

"So, with the same engine, the BMW engine is at least 5% more fuel-efficient, is that accurate?"

"precise?"

"So what do you think of BMW's aluminum alloy engine casting technology? It reduces the number of parts by at least 25% compared to similar engines, and is at least 15% lighter, making it more fuel-efficient, right?"

"Correct."

"Does the fact that BMW engines have a quarter fewer parts mean a lower failure rate?"

"I'm not entirely sure!"

"So you think that one-piece thermoforming technology has a higher failure rate than screw-connected technology?"

"of course not!"

“Professor Morgan, your answer is contradictory. It is a well-known fact that the fewer the number of parts, the lower the failure rate.”

“The more parts there are, the more bolts are needed to connect them. Over a long period of use, these bolts will break down due to vibration and other reasons. Now that there are fewer bolts, wouldn’t the failure rate be lower?” Lille was determined to confront Professor Morgan.

Why?

Because Morgan's school was ranked number one in automotive engineering, his company needed to associate itself with such schools to gain recognition.

Professor Morgan shook his head: "Our school hasn't tested the failure rate yet, so I can't answer that question."

“Mr. Lille, I think we should pay more attention to our country’s employment issues, after all, the automotive industry needs a lot of jobs.” Morgan tried to use the employment rate as an excuse.

“I’m sorry, Mr. Morgan, I’m just a third-party testing company. We are only responsible for the products. I’m not the mayor, the governor, or the president, so I can’t answer what you’re saying.”

"Does the University of Michigan, Ann Arbor, also teach politics or other job-related majors? Don't they teach automotive engineering?" Lear retorted bluntly.

“Of course not, but the automotive industry and employment…” Professor Morgan continued.

"Okay, so Toyota has the second-largest market share in Aramco. What do you think about that?"

"Also, may I ask what BMW's market share is in Amerigo Vegan?" Lille continued.

“We don’t have a market share yet.” Professor Morgan knew he was in trouble.

"But..." so he quickly said.

"Then, Mr. Morgan, since BMW doesn't have a market share yet, what are the reasons for the unemployment of those workers?"

“Mr. Morgan, please answer!” Lille said quickly.

“Because of the financial crisis…” Professor Morgan replied.

“Because of the financial crisis, most people don’t have money. Don’t we need products with better value for money?” Lille continued.

"But this will affect the employment rate..."

“Fine, so if BMW doesn’t enter the Aramco market, will those unemployed workers be able to go back to work? If so, I also strongly oppose BMW entering the Aramco market,” Lille questioned loudly.

Since the financial crisis from last year to this year, many people in America have lost their jobs. ABC TV did not expect that what was originally a BMW car issue would lead to the more sensitive topic of unemployment.

The ratings jumped immediately.

"..." Professor Morgan did not answer.

"I've lost my job, so can't I sell my car and buy a cheaper one?"

"Moreover, we were originally just going to talk about cars today, but Mr. Morgan, you want to talk about employment rates. So many politicians have failed to solve this problem. I don't think you, Professor Morgan, a professor of automotive engineering, are any better than them..."

"Within Aramco, some people are trying to divert attention, just like Mr. Morgan, who was worried about employment rates even before BMW entered the Aramco market?"

"Instead of facing the persistently high unemployment rate, this is typical bureaucracy. I didn't expect a professor at the University of Michigan, Ann Arbor, to be so bureaucratic." Lille addressed the university directly.

"No, no, this is my personal..."

"This further proves the excellence of your school. I suggest that your school eliminate the automotive major and teach politics instead..."

Many unemployed workers watching TV picked up the phone and called the University of Michigan or its Ann Arbor campus, hurling insults at the schools.

Some people even called the TV station to yell at Professor Morgan.

“Alright, let’s get back to the technical stuff!” Riel said, seeing that Professor Morgan was speechless.

(End of this chapter)