Countercurrent 1982

Chapter 1639

"If Mr. Johnson doesn't believe it, we can write this article into the future contract." Duan Yun smiled slightly, and continued: "And the training of workers and the construction of the factory building can be carried out simultaneously, that is to say, if Mr. Johnson has If we have the willingness to invest, then we only need two years to put the new factory into operation in China, and we will see benefits in that year.”

Duan Yun is trying his best to persuade Johnson to invest in China. Judging from the current situation, Johnson and his party seem to be dissatisfied with the situation of Shenyang Jinbei Automobile Factory, so Duan Yun needs more attractive conditions to attract him.

"Mr. Duan, I hope you can understand that our Volvo Group is very cautious about every investment, and we have formulated relevant strict indicators as early as many years ago. Judging from the current situation, your This side has yet to meet the rigid requirements of our investment." Johnson said with a slight frown.

Speaking of this, it is very clear that Johnson himself does not plan to invest in Shenyang to set up a factory. Although he and Duan Yun have a very good relationship, friends are friends, and business is business. As the president of Volvo, Johnson must put The interests of the company are placed in the highest position.

"Mr. Johnson, I hope you don't jump to conclusions too easily. China is really a market with great potential. Many multinational companies have already achieved success in China, so it is really wise to invest in China." Choose." Duan Yun said.

"China is a great country, and maybe it will really become a very huge market in the future, but at least from the current situation, the risks we have taken are too great..." Johnson said.

"Mr. Johnson, the noise in the workshop is too loud. Let's talk in another place." Seeing that the investment matter was about to collapse, Duan Yun quickly got into the rhythm of the conversation. He was going to lead Johnson and his party to the conference room for a formal interview.

"Okay." Johnson nodded slightly.

Later, Duan Yun led a group of Johnson to the company's headquarters building.

In the conference room on the second floor, the table was covered with various fruits and drinks, and the cool air conditioner lifted everyone's spirits.

"Mr. Johnson, when you were in Shenyang, what was the joint venture factory agreement that their local leaders negotiated with you? Can you tell me in detail?" After everyone sat down, Duan Yun asked Johnson road.

"The officials over there are very warm to me, and I am very grateful to them, but business is business, and some things cannot break through our bottom line." Johnson pondered for a moment, and then said: "The cooperation plan they proposed is that our Volvo Group To provide corresponding technology and production equipment, they provide factory buildings and land, as well as part of the funds, but our production equipment is very expensive, in addition to the high cost, the freight is also a considerable expense.”

"That's it..." Duan Yun nodded.

According to the provisions of the national law, for Sino-foreign joint ventures established in China, the foreign businessmen generally provide industrial property rights, machinery and equipment, and part of foreign exchange in cash, while the Chinese party provides the current plant, equipment, labor and part of RMB funds.

The land to be occupied shall be paid to the Chinese government on a yearly basis or the land use right shall be discounted as part of the Chinese contribution.

Johnson's initial idea may be to provide some technology and equipment. By transforming the workshop and workshop equipment of Shenyang Jinbei Automobile Factory, only a small amount of capital and equipment needs to be invested, and the enterprise can be transformed into a workshop that meets Volvo car production. But now it seems that the original factory buildings and equipment of Shenyang Jinbei Automobile Factory are too outdated, and there is no value for upgrading and transformation at all. However, if everything is rebuilt, the investment funds and the back cycle are too long, and the gains outweigh the losses. .

"Actually, I am still very interested in the Chinese auto market, but the price I paid this time is too high, and our board of directors will not approve it..." Johnson said.

"Is that so..." At this moment, Duan Yun also began to fall into deep thought.

Obviously, from the very beginning, Volvo's plan was to enter the Chinese market with a small amount of money, and to use as little cost as possible to provide only a small amount of capital, technology and equipment, and to control the cost to a minimum. In this case, even if the Chinese market does not get too much return, they will not lose too much. This is a very conservative business thinking.

To put it bluntly, Volvo executives still don't have much confidence in the Chinese market and dare not invest too much capital.

"Mr. Johnson, I know you want to minimize the risk of investment, but any business in this world is risky, and there is nothing that is sure to make money..." Duan Yun said.

"The key to the problem lies in such a large investment. I can't convince everyone on the board of directors." Johnson showed embarrassment, and then said: "As far as I am concerned, I am still very willing to invest and set up factories in China, but at present our Volvo funds The situation is not very optimistic. The research and development of new models has lasted for three years, and the sales of traditional cars have stagnated for two years. At the beginning of this year, we just invested a sum of money in the shipbuilding industry. While the existing cash flow is healthy, there are no more wealthy ones investing in new projects...”

Johnson put on a posture that the landlord's family had no surplus food, and directly showed off his cards with Duan Yun.

In fact, Johnson did not deceive Duan Yun. The current Volvo capital situation is not abundant, but to rebuild a car factory in China and meet the standards of Volvo Cars, at least hundreds of millions or even hundreds of millions of dollars will be needed. This is Now Volvo can't afford it.

"Then... If I am willing to buy your production line equipment and related technologies with full capital, is it feasible?" Duan Yun asked.

"You want to buy a full set of production line technology and equipment from our Volvo Cars?" Hearing what Duan Yun said, Johnson was stunned for a moment.

"That's right, I need your Volvo 740 sedan and F12 truck production lines and related technologies. If you are willing to sell related technologies and production line equipment, we can also retain Volvo's shares in the Chinese auto factory." Short Cloud thought for a while, then said : "We can roughly give you 10% of the shares..."

Since Volvo does not have the funds to invest a complete set of production line equipment in China, Duan Yun can only retreat and directly purchase Volvo's complete set of equipment and production lines in cash, but correspondingly, Duan Yun will ask for more shares. In order to make up for the huge investment of their own funds.

(End of this chapter)