industrial maniac

Chapter 192 Foundry

Wall Street, Morgan Investment Bank.

In the hall full of wealth, a large screen with 36 monitors is hung.

Listed above is financial information related to General Motors.

Stocks, bonds, funds, futures...

Numerous lines, floating green all the way, continue to rise.

On the side, there are more than a dozen TV sets broadcasting fake news made up by various news media.

'Beijing time, at 6 a.m. on June 1st, TEP (Huaxia) and General Motors successfully signed a contract. The two parties raised 9 billion U.S. dollars and planned to build a new automobile assembly center in Daze Industrial Park. '

"Beijing time... Tiepi GM was listed in Daze Industrial Park. The factory director Xu Fei claimed that he would strive to surpass Daewoo General Factory within two years, overtake Mitsubishi Heavy Industries within three years, and make it the number one automaker in the Asia-Pacific within five years!" '

'General Motors Chairman Smith was interviewed, using the Chinese language 'to break the boat', indicating GM's determination to enter the Asia-Pacific. '

TEP GM officially announced that in order to better serve the Asia-Pacific market, the "Cruze" independent of the existing brand will be entrusted to TEP Industrial Design Company for R&D, design, assembly and debugging. '

'At the same time, General Motors has become the largest distributor of TEP vehicles. It plans to import 10 TEP pickup trucks and off-road vehicles, and carry out "trade-in" activities to make up the difference at the official maintenance site of General Motors. Can participate in...'

'TEP Motors announced that it designed and developed a compact car 'Oil Saving King' for the North American market, Oil Saving King, referred to as OSK, and plans to launch it within half a year.But when the news came out, it was the first to be recognized by the European Union. Faguo Renault has set off for China, planning to win the OSK distribution rights...'

'TEP (Jamaica) announced that it will establish a joint venture with General Motors to build [-] repair stations to serve the global auto industry. The two parties will jointly own, operate and supervise together, and specially launch Buick, Chevrolet, Cadillac, TEP, OSK, Daewoo, Saturn Exclusive day for car owners and members...'

Adam, the president of Morgan Investment Bank, stood in the hall, looking up at all this.

The endless stream of good news pushed the share price of General Motors to a record high of $96, and its total market capitalization also entered the 500 billion mark.

This situation is like 'Wuhu logging on Nasdaq'.

However, through observation, the funds of the 'Renipe Fly' quartet did not enter the market.

In other words, the $10 billion invested by Morgan Investment Bank, together with leverage losses, totaled nearly $20 billion, all of which went into the pockets of 'retail investors'.

This made Adam vigilant.

He wouldn't think that the group of 'Renipfly' was sitting on a huge amount of money, but they helped their competitors raise their stock prices without asking for anything in return.

"What is Raymond doing?"

Assistant: "The other party ran to the US-Mexico border, pulled the border guards of the two countries, organized dog racing, set up a blockade, and won a lot of white noodles, avocados, and backward military equipment."

"???"

Adam, the president of Morgan Investment Bank, couldn't help but light a cigar, "Where's Romney?"

"The old man is negotiating with the state police system and the city police system, and plans to let them deliver couriers and food together."

Adam took a deep breath on his cigar, feeling that the world was getting more and more incomprehensible.

"Where's Pupu?"

"Every day at the rural fair in the southwest corner of Dongshan, I used Ingles to give a speech."

Adam was silent for 5 minutes, "This group of people must be carrying out an unknown plan. Keep staring at Xu Fei. As long as the other party leaves Huaxia, they will immediately do him."

"Okay, President."

The Morgan headquarters didn't allow it to play too wild here, mainly because they didn't want to provoke Raymond and Romney, which would lead to a stalemate with Lao Bu.

In other words, Carlyle + Bain VS Tee is an antagonistic relationship.

However, the Carlyle consortium, the investor of Carlyle, Romney, the actual controller of Bain, and Morgan, the controlling shareholder of General Dynamics and General Electric, belong to a community of interests.

And Morgan is still a supporter of Xiaobu.

Politics and capital are so complicated.

To complicate things further...

Another intelligence came to Adam's mind.

It was a picture of someone Xu visiting Nanbangzi base, and many soldiers, especially the 'Invincible Battalion' warmly greeted him.

And when Xu was in North America, forty or fifty retired veterans of the 'Invincible Battalion' followed him...

"I hope that the Blackwater Company invited by the headquarters can kill Director Xu."

"Otherwise, the chairman will be in trouble."

Adam was talking to himself, put down his cigar, sorted out the report documents on the airdrop failure, and sent them to Morgan headquarters.

Although I really wanted to get promoted and raise my salary, the $20 billion I raised was gone.

If he wants to keep the position of president, he still needs to make some achievements to make up for the loss.

After careful consideration, Adam contacted his subordinates, and after the forced liquidation, the money that had to be returned to the brokerage firm, that is, 10 billion reserve funds, was invested in General Motors, three times as long, and some profits were taken advantage of the trend.

…………

Daze power.

Morgan Investment Bank sniped the 'Renipfei' quartet and shorted General Motors in a very covert manner.

Don't say that Xu Fei doesn't know, Raymond doesn't know, Romney doesn't know, even the controlled General Electric doesn't know.

As for the 'victim' General Motors, it is even less known.

Moreover, Morgan is a super consortium, and Morgan Investment Bank is only one of its companies, also known as Morgan Stanley (Morgan Stanley).

In addition, there are JP Morgan Bank, Chase Bank, North American Steel, North American Telegraph and Telephone Company, and hundreds of large companies in their holdings.

But just this one Morgan Stanley, the overall strength is comparable to Carlyle.

How dare Xu Fei provoke an 'old monster' of this level.

Even Raymond and Romney didn't dare to provoke them.

Although the four of them have already been provoked, they are still beating their grandson, General Electric, to death, and then waiting for their grandson to use Wall Street to finally get out of the hospital, so they continue to beat them coldly.

After the fight, he was not satisfied, and then framed and framed, causing his grandson to search for warships all over the world...

At this moment.

After making money and sharing the spoils, the group of four who don't know what Morgan is doing is like Adam's assistant's report, what to do.

November 6rd afternoon.

After TEP Motors signed with General Motors.

Xu Fei's eyes straightened when he saw Smith's wealthy remittance of 20 billion US dollars.

Then think of GM's previous three 'operating fees'.

2 million, 5000 million, 2000 million.

These are all in Mr. He's personal pocket.

Ah bah, it's Director Xu.

Then I remembered that in the 'financial storm', General Motors was the winner.

Xu Fei turned his eyes, and immediately pulled Smith to chat about 'foundry'.

In fact, most car companies are just assembly plants.

They do not produce components, or only produce core components, and then entrust the manufacturing process to professional 'foundries'.

Like Hongqi Motors, the higher-ups do not want to be referred to as "rebranded cars" by the outside world, and insist on introducing production lines, but they only introduce manufacturing equipment for engine components.

Other parts, including car shells, wheels, tires, seats, glass, doors, etc., still need to be purchased from Osawa Industry.

Otherwise, building a car is tantamount to setting up a 'whole industrial system'.

If you think about it a little bit, you will know how difficult it is.

The related investment is by no means as cheap as $36 billion.

In the field of automobile OEM, the most famous one is the 'Magna Group', which is known as the 'Emperor of the Automobile Industry'.

It was born in Austria and is responsible for the OEM of Mercedes-Benz G-Class, BMW X Series, Mini, Jeep Grand Cherokee, Chrysler...

In other words, the above cars all come from one production line.

Conversely, a set of industrial production equipment can give birth to countless brands.

This is also the reason why Xu Fei decided to build a car after exchanging the M8 production line.

There are too many types of accessories. Instead of dismantling the production line and leaving the conveyor belt, it is better to set aside a part to make agricultural machinery and leave a part to make cars.

If there is something missing in the manufacturing process, we will add something.

Therefore, there are TEP cars with big red flags, small red flags, and small red flags.

For the same reason, TEP changed the license plate, and then borrowed the gasoline engine of General Motors, and the Cruze was born.

TEP shrank the shell, borrowed General Motors' small gasoline engine, and OSK was born.

As for why it is necessary to borrow a gasoline engine from General Motors.

Like the 6V750C diesel engine that comes with the Grizzly Chariot, perhaps the base technology helped adjust the design, which does not conflict with the current diesel engine patents in the world. The company reduced the specification and produced 6V300C, which can be sold directly for money.

And gasoline engine.

I don’t have a gasoline engine chariot at home. If I reproduce an external gasoline engine, I can’t get around patents and other issues. Once it is commercialized, I will definitely face a lawsuit.

Although Director Xu is not afraid of lawsuits, we need to have a good reputation in international trade, otherwise why would we not repay the loan?

Therefore, TEP Motors has reached a cooperation with General Motors. On the basis of "market exchange" and "cooperative research and development", Xu Fei exchanged electroplating technology and two-way stable suspension for gasoline engine authorization.

This is roughly equivalent to binding the two parties together. If GM cancels the authorization, the company will immediately stop the OEM.

"Mr. Smith, our two car companies are both genuine 'car manufacturers'. They not only have assembly lines, but also production lines. Now that we cooperate, the related businesses overlap. Don't you think it's too wasteful?"

"I'm thinking about that too."

"To tell you the truth, I visited United Defense in North America a few days ago, and when I saw the operating costs and salary expenditures of Harsco and FMC, my face turned green with fright."

"If you see the real financial report of General Motors, you will probably be frightened to say fake data. After all, the official salary of General Motors is twice that of Harsco and FMC."

"So, your financial fraud is to make low salary expenses?"

"Otherwise? If the outside world finds out that the reason for GM's shortage of funds is not research and development, but salary, what do you think the stock market will fall into?"

"That's it!"

Xu Fei secretly sent a message to Romney, "It's time to go out and go short." '

In fact, at the beginning, he didn't think about engaging in the stock market of General Motors.

But now that the cooperation has been reached, the stock of GM has risen all the way, and it has also given GM shareholders a taste of the sweetness. It is time to cash out, and it is time to withdraw shares...

The stock price has risen so high, a full $96, and it is normal to fall back now.

Even if it is cut in half, it costs 48 US dollars, which is a bit more than the previous 30 US dollars.

After sending the text message, he looked at Smith again.

"After reading the financial report of United Defense, I know that layoffs must be made, otherwise Harsco and FMC, let alone reorganization, even repaying debts will be a problem."

"So, you succeeded."

Smith knew about the Philadelphia incident, but he was not sure whether it was the two factories of General Electric Boom or Xu Fei's bitter plan.

But as a professional manager, he prefers the latter.

Instead of waiting for huge debts, it is better to take advantage of some assets, Boom has two factories, relocated two factories, and then asks for preferential treatment from the place of relocation, Massachusetts.

Therefore, Xu Fei can get full marks for this operation.

If you add in the shorting of General Electric...

This is simply his best successor.

So much so that Smith really wanted to lure Director Xu to General Motors, but unfortunately, the shareholders have been exhausted from torture recently. After cashing out, they are going to spend money to take care of their health and live for the rest of their lives.

As for the next batch of shareholders, we still don't know what they will look like.

Inviting Director Xu to work in General Motors is far away.

Xu Fei didn't know what Smith was thinking, "The joint defense reorganization was successful, Harsco and FMC ushered in a new life, the operating cost was reduced to one-twentieth of the previous one, 10 employees were cut to 2, and a large amount of automation equipment was introduced... Production has quintupled, compensation packages are one-third higher than before, and salary expenditures are one-fourth of what they used to be.”

"You mean, GM also employs this method of layoffs?"

After Smith finished speaking, he shook his head and denied, "You may not know the size of General Motors, and how many additional businesses and factories it has... Rough calculations, at least 16 employees, even if the operation is successful, North America will not allow us layoffs."

"Then ask for subsidies, otherwise how will you live?"

"This is why the whole world knows that GM has made financial fraud, but the North American officials ignored it, including the largest fine in history last year, and only paid 1000 million to go through the process."

Smith took out the record of the conversation with the shareholders, "Furthermore, sometimes it really corresponds to the old Chinese saying, the common poverty, but not the wealth."

Xu Fei was slightly stunned, "Is there such a thing on our side?"

"It probably means that everyone was very difficult in the past, trying to deal with stocks and employees all the time, earning more and earning less, all in order to save their lives. As long as the life is passable, the whole will be very united. It's different now Yes, the financial turmoil made a lot of money, and this time the stock skyrocketed, and I made a lot of money again. With a huge sum of money in their pockets, shareholders don’t plan to play anymore. Cash out, withdrawal of shares, and even a few of them are hiding from me. Contact the next family."

"Are you still in power now?"

"It's okay to be in power, but my concern is that the next shareholder disagrees with me, and it will end up making a lot of business impossible."

"This is your internal matter. I have said so much, just as a partner, to give you a good suggestion, and to get a business for myself by the way."

"I understand that the manufacturing costs and labor costs in the East are one tenth, or even one percent, of North America. If General Motors transfers the manufacturing plant in North America, and then invests most of the funds in exchange for production capacity, a small part will be used With OEM fees, GM can definitely double sales."

Smith thought for a long time, "I'll go back and talk to the shareholders again, and I hope so, at least the deployment of GM in the East requires a lot of money."

Seeing this, Xu Fei's heart moved, "Why don't I help you talk about it."

"Ok?"

"Do you want to get bigger?"

"???"

(End of this chapter)