Siheyuan starts from a better life

Chapter 1106 Overcapacity
"After one and a half years of development, we now have nearly 4 S stores. Sales and purchasing channels have been opened up. We have now established offices in China, the United Kingdom, Germany, France, Italy, and even the United States. We can deliver more than luxury cars of various types from various places every month, and achieve a net profit of million US dollars.

Hearing this, Jiang Yan nodded slightly. He had also learned about the cars he imported. On average, one car cost about 10,000 to 20,000 US dollars. Of course, many of these were ordinary foreign cars. Among the 200 cars, a quarter were produced by Jiang Yan's factory.

Moreover, the profit is high. His foreign car business is almost a monopoly, and he basically sells it at several times the price, otherwise there would not be such high profit.

However, even so, there are many rich people in Damuo, and their consumption power is quite terrifying. They have received orders for thousands of vehicles. Such a large business is bound to attract the attention of other people. Even with the support of high-level management, Arov has had many conflicts with others. In order to proceed smoothly, Jiang Yan even gave up a lot of profits.

"Of course, our most profitable business is not the luxury car business, but the inconspicuous parts business. The Guzhili sedan produced by the Volga Automobile Factory has seen a slight damage to the production line, resulting in a significant drop in production capacity. Therefore, the price is also rising, especially the parts are scarce. If it weren't for your full support at the Flower Planting Factory, sales would not be so good. At present, the monthly net profit of this business has reached 20 million US dollars."

In order to support Arov's accessories business, Jiang Yan opened several production lines in China to produce these accessories. The funny thing is that the accessories produced by Jiang Yan's factory are actually better than the original ones.

Of course, Jiang Yan would not pay the bill in rubles but insisted on US dollars, which left Jiang Yan with a large portion of profit.

There is a reason why it sells so well. In the past, many people in Russia did not get their own cars. It was just that according to seniority and qualifications, he was not selected. He will most likely be allocated a house with two or more bedrooms after marriage and own a car of his own when he is around 40 years old.

Now in Russia, or even in the entire bear country, it seems that everyone has the freedom to buy a car at will, but the gap between the rich and the poor is widening, and a large amount of wealth is pouring into the hands of a small number of people.

Ordinary Russians, seeing their savings depreciating rapidly, are thinking about buying some value-preserving products, especially the middle class. Russia has not yet liberalized many things, with the automobile industry being an exception. Therefore, many people are targeting this industry, otherwise the automobile business will not continue to grow.

Believe it or not, as long as the car can be driven, someone will buy it, and this is only a problem that people above the middle class consider. Many ordinary people have no food to eat as the ruble depreciates, so they don’t care about cars!

It seems that they are free, but in fact they are not free. They have just changed from another form of slavery to slaves of money.

So, Jiang Yan was not surprised at all that the car sales were so good now. And according to Jiang Yan's proportion, this month's total net profit was 30 million US dollars, and he would get about 12 million US dollars, which is about 80 million Chinese yuan.

That was the year, more than 80 million RMB a month, that was a lot of money.

"Let's increase investment in luxury cars in the future. Ordinary Russians don't have much money left." Jiang Yan said after thinking for a while.

"But I think the economy is actually recovering a bit now. You can see that the stores are full of goods now, and they are no longer empty as before. This is a good thing."

"I think the lives of the Russians will become better and richer in the future. Our Guzhili cars will sell better then. Now we should worry more about the supply problem of the Volga Automobile Factory. It would be great if we could buy it. What do you think, boss?"

Hearing this, Jiang Yan was shocked and at the same time felt helpless. The inertia of history was indeed huge. Arov was still thinking about the Volga Automobile Factory as he did in his previous life.

In his previous life, Arov had always wanted to take over the Volga Automobile Factory and even went so far as to come up with a 2 billion dollar loan scam.

The end result, of course, was that after the money depreciated by hundreds of times, it was returned intact to everyone. As for why Arov did not swallow up the Volga Automobile Factory in his previous life, it was because he found a more profitable business like the bank. However, when he said this, Jiang Yan's expression moved. Since the inertia of history is huge, Jiang Yan suddenly felt that he could work hard in this direction. After all, Volga Automobile is much larger than his own national automobile company, and its foundation is not bad. As long as he gives a little guidance, it will be a continuous cash cow.

But now is obviously not the time to discuss such an issue. Jiang Yan just needs to think about it. There will be plenty of opportunities later anyway.

However, Jiang Yan disagreed with Arov's idea, because Jiang Yan understood that the current prosperity was false. According to market laws, this was a typical case of industrial overcapacity.

The essence of the economic crisis is still caused by an oversupply of commodities.

It is a common consensus in the past that economic crises are caused by a surplus of commodities. This overproduction is not an absolute surplus but a relative surplus, that is, a surplus relative to the demand of the working people with the ability to pay and the need for capital value appreciation.

It is generally manifested in a large backlog of goods, a sharp decline in production, a large number of factory closures, a large number of workers unemployed, serious damage to credit relations, and the entire social economy falling into extreme chaos and paralysis.

This is determined by the basic contradiction of the capitalist mode of production, namely, the contradiction between the social nature of production and capitalist private ownership.

To get out of this economic crisis, people must have confidence in the economy, the future, and the country, and have strong endogenous motivation.

Unfortunately, Da Mao has none of these, which is also the reason why Da Mao will not be able to recover from the shock in the future.

So Jiang Yan briefly explained all this to them and briefly introduced the essential issues of the economic crisis. After they understood it, everyone's expression changed drastically.

"Boss, I was wrong." Arov said sincerely.

He finally realized clearly again how big the gap was between him and Jiang Yan.

Jiang Yan smiled and said, "Arov, you are a mathematician, but not an economist. It's normal that you don't know these things. These are quite profound questions, which are studied by economists. But you are much better than them now."

Arov wanted to say, "Boss, aren't you an economist too?" But as soon as the words came to his lips, he swallowed them back because he knew that saying this would easily offend his boss.

Although Jiang Yan is not an economist, the fact that he owns so many companies and has such wealth is enough to prove that Jiang Yan's ability and vision are many levels higher than those so-called economists.

And Jiang Yan's praise of Arov was not in vain. To be honest, Jiang Yan has always believed that if these so-called experts are really capable, it would be great for them to start their own business and make a lot of money. Why do they have to stand on the sidelines and talk after the fact?

(End of this chapter)