Manufacturing Empire in the Valley

Chapter 842 Manufactured in China, sold in the United States

Packard scratched his head when he said this, and said helplessly: "But I still miscalculated, because I didn't expect the laboratory to spend so much money. Although the more valuable patented technology has been successfully developed, the money spent is I simply can't afford it."

He sighed: "In desperation, I can only take the patents I have developed to find a bank loan to provide financial support for subsequent research and development. The result is like a snowball. In just a few years, the amount of the loan has changed from $400 million has gone up to $700 million today, and to be honest, I really don’t feel like I can keep going.”

An idea popped up in Niu Xiaoqiang's mind, and he asked without hesitation: "Mr. Packard, have you ever thought of finding someone to cooperate with? Packard Motor Company has relatively valuable patented technology, as long as you are willing , there should be other car companies buying shares, right?"

Niu Xiaoqiang originally wanted to ask Packard directly why he didn't sell the company, but considering that he had insisted on it for so many years, if he asked such a question, it would definitely make the other party feel disgusted, so he changed his words.

When Packard heard the words, he showed a resentful expression: "I have tried the method you mentioned a long time ago, but the hearts of those car companies are too dark, they don't even think about the life and death of Packard Motor Company, they just want to get mine. Technology, and then completely throw the company my grandfather founded into the garbage dump!"

Niu Xiaoqiang heard some tricks, but pretended to be curious on the surface: "I wonder what kind of conditions they put forward?"

"The best terms are Ford. They are willing to help me repay all the loans owed to the bank, and then give me $500 million in cash. The price is that I must transfer all the shares of Packard to them, as long as it is not Idiots, you can see that they have no intention of saving Packard Motors, they just want to take my technology."

Niu Xiaoqiang nodded slightly: "I can understand your feelings. After all, Packard Automobile Company was founded by your grandfather. Although it is now in ruins, as a direct descendant of the family, you have the obligation to maintain the honor of the family."

Niu Xiaoqiang paused at this point, thought about the wording, and then said: "If any company is willing to cooperate with you to help you save the Packard brand, are you willing to transfer most of the company's shares?"

Packard sighed helplessly: "If it was in the past, I would definitely not want it. As a member of the Packard family, I must have an absolute controlling stake in the company, but now... the reality is very cruel, No matter how reluctant I am, it doesn't matter, my request is very simple, as long as anyone can keep the Packard brand, I am willing to give up the control of the company."

Niu Xiaoqiang was waiting for this sentence, and he said in a very sincere tone: "If I meet your requirements, can you accept me as the owner of Packard Motor Company?"

"what??"

"Xiaoqiang, what did you say?"

Both Linda and Packard were shocked, they never expected that Niu Xiaoqiang would say such a thing.

Niu Xiaoqiang continued to say in a very sincere tone: "Mr. Packard, I am very sincere. As long as you nod, I can discuss the details with you now."

Linda couldn't help reminding: "Xiaoqiang, you have to figure it out. Packard Motors is now in arrears with the bank for a loan of 700 million US dollars. This is not a small amount. Where do you go to raise funds to repay the debt?"

Packard nodded: "Linda is right. If you want to take over the Packard Motor Company, the first thing you have to face is to repay the arrears. Can you come up with so much money?"

Niu Xiaoqiang said in his heart: Even if it is to sell the iron, I will take down the Packard Motor Company!Once this opportunity is missed, it will never be seen again!
A long time ago, it was relatively simple to set up a car company in the United States, as long as you paid a little money to register a trademark.But now, it is not so difficult to apply for the establishment of a car company in the United States.The security deposit handed over to the relevant departments alone needs [-] million US dollars.If you add the cost of building factories and purchasing production equipment, you can't even think about it without a fund of more than [-] million U.S. dollars.

If you can get the brand name of Packard Motor Company, it is equivalent to having the qualification to produce and sell cars in the United States. It is no exaggeration to say that this brand name alone is worth hundreds of millions of dollars.

Since this label is so valuable, why is no one else interested?The reason is simple: because the US auto industry has formed a stable structure, others simply cannot get in.

After fierce competition, the existing three major automobile groups are GM, Ford and Chrysler.

The strength of these three major automobile groups is extremely powerful, and others who want to compete with them in the automobile industry are purely courting death.Therefore, from the end of the 50s to the present, no new car company was born in the United States.

No way, you can't compete with others at all. Investing in the auto industry is equivalent to throwing money into the water. Who would do such a stupid thing?
Niu Xiaoqiang dared to do it because he didn't need to open a car manufacturing plant in the United States, at least temporarily.In this way, he can save a large amount of investment funds. As long as he has the tiger skin of Packard, Niu Xiaoqiang can authorize domestic factories to produce, and then sell the produced cars back to the United States.

No matter how poor Packard is, they still have a certain accumulation of technology, and they also have a high reputation in the eyes of Americans, which saves a lot of money on advertising and promotion.

The domestic labor cost is so low, even if tariffs are removed, the price is still very competitive. As long as the quality is well controlled and the progress is made steadily, Niu Xiaoqiang firmly believes that he can make the auto industry bigger and stronger step by step.

This method of relying on low domestic labor costs to enhance product competitiveness cannot be learned by others, because apart from Niu Xiaoqiang, there is no other private enterprise in China that has the qualifications to enter the automotive industry.

Niu Xiaoqiang has the absolute say in the Asian Machinery Factory, and this inherent advantage determines that he can take a more flexible approach to planning and layout of the automobile industry.

As for the two major auto groups, Yuejin and Nanfeng, they have a bloated structure. Although they have enviable resources, they cannot be as flexible as Niu Xiaoqiang.

They rely on the big tree of the country and just wait for foreign-funded enterprises to come to cooperate with them. They lack the necessary aggressiveness and courage.

Having said that, foreign car companies will not authorize them to produce their own cars even if they are killed. Why is their quality so poor?Compared with the extremely strict quality control of Asian machinery factories, the quality management of these two major automobile groups is simply a joke.

　Thank you book friend "Twilight Reaper" for your support, bow!
　　
　
(End of this chapter)