F1: Absolute Car Feel

Chapter 283 Returning to China for Business Discussions
Landing in Pudong, then taking the high-speed rail to Hangzhou.

“Oh, this thing is really comfortable to sit in,” Sid exclaimed.

"Really? I only recently got to sit here myself. Things are changing so fast in China."

Since the two places are close together, Wu Shi made a special trip to experience business class.

"I don't feel like the Demon Lord has changed at all," Sid said.

"Yes, only those who were born and raised on this land can feel how rapidly things are changing."

After getting off the train at Hangzhou East Railway Station, I arrived at the hotel I had booked in advance.

The following morning, a large number of people participated in the talks with Geely.

Personnel from the “WS RACING” brand company, Hpeng company, and other relevant parties were present.

Wu Zhenlin also flew in from the capital.

Wu Shi breathed a sigh of relief upon seeing this lineup, as he wouldn't have to carry any burdens. However, he would have to start learning this knowledge.

Wu Zhenlin and Li Shufu already knew each other before; at their level, they had some connection.

Therefore, upon meeting, Li Shufu greeted everyone with a smile and said:

"Excellent! This young man is very handsome! Quite remarkable! I really envy you; at such a young age, you're not only successful in your career but also have such an outstanding son!"

Even though he is now a CEO with assets worth hundreds of billions, Li Shufu still carries the air of a farmer, a familiar quality that Wu Zhenlin also possesses.

"Oh, not at all! You founded Geely and became a boss when you were my age. I'm still working for someone else now!"

"Hahaha!"

They always complimented each other when they met, making Li Shufu happy and Wu Zhenlin happy as well.

"When I built my first car in 1998, I thought that I wanted to build cars that everyone could afford, and also cars that would go global!"

Li Shufu spoke with great enthusiasm about his past.

This is also a legendary history. Among the many private car brands, Geely is one that cannot be ignored.

"We acquired Volvo a few years ago, and now we can finally start to realize the latter part of my statement."

“Wow! That was a huge gamble, and it took your courage to win after a long and drawn-out battle!” Wu Zhenlin said.

"Yes! The negotiations started in 2007 and continued until 2010. Even after the agreement was reached, there were still various funding issues. I agreed to provide a lifetime guarantee, which meant I was betting my entire fortune and my life!"

"This is thanks to your extraordinary courage. Now you've finally seen the light at the end of the tunnel. The group is thriving and has risen with the help of favorable winds."

Wu Zhenlin, without fading his smile, changed the subject:
“Brother Shufu, you are older than me, so I am honored to call you brother. I have a high-stakes gamble in front of me now, I wonder if you are interested.”

"Hahaha."

Li Shufu laughed heartily a few times and said:

"Of course I'm interested, otherwise why would I be sitting here?"

Both of them knew that the real negotiation was about to begin.

“Sponsoring Formula One has a very positive effect on enhancing the image of a car brand, and we would like to discuss this with you now,” Wu Zhenlin said.

Li Shufu nodded and said, "Yes, how could I not understand such a grand event in the racing world? It's just that the gap between investment and return is too big, and F1's influence in China is undeniable."

“Wu Shi won the world championship, and F1’s influence will rise sooner or later. Now is the perfect time to join,” Wu Zhenlin said.

Without exchanging a few tentative words, the two quickly got down to business.

After chatting for a short while, Li Shufu simply waved his hand and said:
"Wu Shi! I also find this little nephew quite agreeable, and I would gladly sponsor him personally."

“Zhenlin, you call me brother, so I’ll call you younger brother without being polite. Do you know what the biggest problem is with our sponsorship of F1?”

"It's because we don't want to have an empty title! That's useless!"

Li Shufu revealed his true thoughts.

Wu Shi watched the exchange between the two from the sidelines.

He did know that in 2018, Geely Group acquired a 9.69% stake in Daimler AG for $90 billion, becoming its largest single shareholder.

But this is different from joining F1. As the parent company of Mercedes-Benz, Daimler Group has an incredibly strong annual revenue capacity.

Holding these shares would generate at least three to four hundred million US dollars in dividends annually, with an annual return of at least 5%.

This is already incredibly impressive in the field of large-scale investment.

“Hey! There’s no need to rush this. The Williams team is here too. I’ll arrange a meeting so we can all have a good chat,” Wu Zhenlin said with a smile.

"No problem! Of course no problem!"

The two reached a preliminary agreement to have lunch and discuss other topics.

In the afternoon, the real talks officially began in the conference room.

Geely Group will provide personal sponsorship to Wu Shi, and the specific amount of the sponsorship and Wu Shi's obligations must be clearly defined.

This will require negotiations by professionals, involving both domestic and international laws and regulations. Therefore, the issues to be discussed are far from trivial.

After a day and a half of consultations, preliminary results were finally achieved.

During this time, Li Shufu took Wu Shi to visit Geely's car factory.

"I actually have a strong idea to make a performance car," Li Shufu said.

“That’s certainly a good thing!” Wu Shi said.

"I just don't know if you'll have time to come and demonstrate for us. The pain points you've pointed out are definitely much better than what those product managers say," Li Shufu said confidently.

"Oh, no, I don't have a driver's license yet," Wu Shi joked.

"Haha, I almost forgot, our champion isn't an adult yet and can't drive on the road. What a promising young man! What a promising young man!"

Li Shufu continued to express his admiration, showing that his appreciation for Wu Shi was genuine. As someone who pays close attention to domestic and international market trends, he knew the true value of this young man.

He may not be well-known domestically, but if you put him in the European market, he will definitely be more effective than most celebrity endorsements.

On December 10, Williams' business team was invited to Hangzhou to discuss cooperation with Geely Group.

During this consultation, Wu Shi's team was basically just an observer.

Even though they were just listening in, they could hear Li Shufu's ambition.

This man, known in the industry as a "madman," wanted to partner with Williams through a combination of financial and technological sponsorship.

Anyone can see that he wants a lot.

Despite being a private racing team, Williams has its own wind tunnel and its own aerodynamic technology reserves.

In addition, there are technologies such as suspension, gearbox, transmission, kinetic energy recovery, and electronic control systems.

These technologies were developed for Formula 1, but they can serve as advanced technologies for civilian vehicles, greatly aiding in the development of civilian vehicles.

Especially the experience in suspension tuning, which is accumulated over time, can only be mastered by experienced mechanics.

Most importantly, Williams has a large group of engineers in the automotive field, which Geely is envious of.

When Li Shufu acquired Volvo, why was he willing to "let the tiger return to the mountain" and allow Volvo to operate independently?
It's all about quickly reaching an agreement with Ford regarding the technology patents and technical personnel behind the acquisition of Volvo.

Meanwhile, Williams is also considering the financial support that Geely can provide.

Even though Wu Shi won the driver's championship this year, his overall financial situation has not improved quickly.

Ultimately, it's because F1 teams are becoming increasingly financially constrained and struggling to make a profit.

It won't be until Liberty Media takes over and the budget cap is implemented that F1 will gradually return to profitability.

This year can be considered one of the best times since the 2008 financial crisis to make early investments in F1.

The reason it is one of them is that a few years later, a global infectious disease will deal another heavy blow to F1. Williams was also acquired after that, ending the glory of private teams in F1.

Wu Shi was able to foresee the future, but like a butterfly flapping its wings, there were many things he could only tell his father.

The talks between Geely and Williams appear to be going to drag on for a very long time.

In just two days, they only reached an agreement on a portion of the sponsorship for 2016, and that was at the lowest level of technical support partner.

There has been no progress on higher-level sponsorship cooperation with technology partners, which means it is destined not to be settled in a short time.

Wu Shi estimated that this might be another protracted battle, just like Geely's acquisition of Volvo.

However, after two years, Geely may still choose to invest in Daimler.

No one can say for sure, but his mission is complete—Wu Shi may become the brand ambassador for Geely's new brand in the finalized technical support partnership.

He just needs to show up when the time comes; he'll follow instructions and let them do as they please.

As for the remaining negotiations, Wu Shi left some people to continue the investigation before leading his team to Shenzhen.

There are also quite a few things to deal with here.

The Pengcheng Speed ​​Racing Circuit now displays the "WS RACING" brand logo.

WS RACING now sponsors CKC at every race, successfully making its go-kart chassis and other products one of the designated brands for CKC events.

Moreover, the quality is quite guaranteed, as it is specially produced by a subsidiary of the Longteng Group.

These goods are supplied directly to Europe, and since domestic standards are based on European standards, they are perfectly applicable.

This brings the standards of domestic and international competitions in line.

As for Uncle Ye, he's busy right now and not in Guangdong, so we haven't met.

However, negotiations with sponsors of Air China and Penghang Airlines are still ongoing.

Now that they no longer need anyone to act as a go-between, the airlines have already tasted the benefits of sponsorship and have begun to actively negotiate.

(End of this chapter)