Go back in time and be a chaebol

Chapter 1379: Become Bigger and Stronger and Create More Glory (First Update, Please Subscribe)
Use monopoly to enhance the competitiveness of enterprises against foreign companies after they go overseas!
Isn't this just about becoming bigger and stronger and creating greater glory?

Closing the report in his hand, Li Yian was silent for a while, then said:

"Indeed, you are right! The integration of thirteen automakers can indeed concentrate the technological advantages of each company, there is no doubt about that."

There is really no doubt about it!
After more than a decade of development, the automobile manufacturing industry here has not only developed very maturely, but also formed a full range of models of high, medium and low grades, each with its own advantages. For example, BMW has focused on high-end cars in the past decade, and it is simply a strong choice for it to build small economical cars. For another example, although Alfa Romeo has built mid-range cars for more than a decade, its sports car foundation is unmatched by other companies, even Porsche cannot compare with it - in terms of history, Ferrari is the younger brother of Alfa Romeo, after all, Alfa Romeo has dominated Le Mans.

When it comes to making small economical cars, Wuling can beat everyone to their knees, after all, this is the foundation of its success. In the mid-size car market, Volkswagen is ahead of Wuling for the simple reason that Volkswagen's mid-size car is epoch-making - the prototype car comes from a shopping mall, and the high starting point makes Volkswagen catch up, while Wuling is a natural upgrade of local technology.

"By integrating them, we can make up for shortcomings and strengthen advantages. Through full technical integration and resource integration, we can more effectively reduce costs, and the concentration of capital will improve efficiency. This is a good thing and is indeed the direction of development, but..."

Although he praised it for a while, after a "but", Li Yian said:

“Capital concentration does improve efficiency, but over-concentration does reduce efficiency. Basically, capital concentration and efficiency are indeed a parabola. However, if any capital can reach the top of this parabola, that is, when capital concentration reaches its highest efficiency, the purpose of capital will no longer be efficiency, or it will not care about efficiency at all, but will pursue monopoly and absolute pricing power. In the absence of external constraints, it will inevitably go the way of destroying all competitors. There is no lush grass under a big tree, and no beautiful seedlings between large plots. This is the truth.”

A typical example is Coca-Cola. In terms of the rate of return per unit currency, it is far inferior to its peers and its efficiency is extremely low. However, the concentration of its capital is enough to support it in defeating any opponent. If there were no external constraints, there would only be one liquid beverage product in the world, and that is Coke. All mineral water and fruit juice would be out of business!
In fact, when talking about monopoly, Li Yian didn't even bother to talk about himself. Speaking of monopoly, is there anyone more monopolistic than the North Borneo Company?
Its development to date is simply a "super giant enterprise" in science fiction novels, and its business areas cover everything from food, clothing, housing and transportation.

But the situation is different!

"To put it simply, an overly large organization or an overly competitive environment may not be conducive to the growth and development of an individual. Therefore, integration is necessary, but the degree must be controlled..."

As Li Yian spoke, he recalled another world, how the American auto industry fell from grace. While recalling, he analyzed:
"As for our European and American competitors, let's analyze them in detail. For example, in the United States, the products of American car companies are generally single large-displacement, high-power products, but not everyone needs such a car. For example, housewives and families who are sensitive to spending prefer the production of small-displacement cars."

In fact, the so-called "oil crisis" that caused American families to turn to fuel-efficient Japanese cars is itself a false proposition. Before Japanese cars entered the US market, European small cars such as the Volkswagen Beetle were already selling well. Not only women prefer small cars, but many ordinary families also prefer them.

Although gasoline is cheap now, for a family that is careful with budget, even if they can save one-third of the gasoline, let alone 70%, the money saved in a year is very considerable. Therefore, the "oil crisis" is just an inducement.

What is the real reason for the popularity of Japanese cars?
It saves money!
This is the real fragrance!

"But the products in this market segment are completely unfamiliar to American automakers. Even if they launch some products, the result is that the small cars produced in the United States are of poor quality and consumers complain. European and our automakers are good at making fuel-efficient and economical cars, so our products are still very competitive in this world."

Although he rarely intervenes directly in the details of the business now, Li Yian is still very good at doing business, especially the automobile business. After all, he is standing on the shoulders of historical giants:
"Then there is the mid-size car market, which is the real core market. A few years ago, after our car companies tasted the sweetness in the small car market, they continued to expand their product lines and continued to attack with their famous fuel efficiency and outstanding quality. With the dual demands for fuel efficiency and large space continuing to ferment, Wuling's Tarot and Volkswagen's "Charites" have been welcomed by the market since the day they entered the US market. They both entered the market as compact cars and quasi-mid-size cars, but with continuous upgrades and enlargements, they gradually gained a foothold in the mid-size car market."

Speaking of entering the mid-size car market in the United States, in addition to the "Charites" that Li Yian made from the mall, the Taro was independently developed by Wuling. Its size is slightly smaller than that of a mid-size car, but significantly larger than that of a compact car, and its power is also good, while its price is not much different from that of a gasoline-powered and compact car. In addition, the Japanese engineers in the company fully exploited its space, making its interior space much larger than that of a compact car.

It is precisely because of these advantages that Tarot successfully entered the US market, and the "Charites" with better performance directly dominated the US market. These successes are obvious.

"It is precisely thanks to this market segment that we exported millions of vehicles to the United States last year. In the future, we will export 200 million, 300 million, or even more... There is no doubt about this."

When Li Yian said this, his tone was full of confidence.

"It's not just because of our product advantages, but also because of their own reasons. After the war, the US auto industry quickly moved towards industry monopoly, resting on its share of the US market, lacking innovation, and the three giants generally have rigid management and are controlled by the government at the top and trade unions at the bottom. They have become too big to be eliminated." The decline of the US auto industry is almost inevitable. They were already plagued by all kinds of problems long before the "oil crisis", but the oil crisis tore everything apart.

Listening to your analysis, Zuo Xiaohan said:
"Sir, what you said is basically consistent with the problems found by the company's investigators. Especially during the war, the Detroit Big Three generally used black workers. Although the wages were low, their technical level was poor, which even led to the decline of the quality of their cars, which directly affected the reputation of their cars."

Detroit, black people!

Almost subconsciously, I think of Detroit decades later. It is now the car city and will become a "ghost town" in the future. What is the root cause?
Aren’t they just those “noble people”!

Although the war brought huge orders to Detroit, the Detroit automobile industry achieved leapfrog development. After the end of World War II, Detroit had factories and warehouses of the three major automobile companies, General Motors, Ford, and Chrysler, and a large number of workers and their families lived here.

However, while the war promoted the development of the local economy, the Big Three recruited a large number of black people in the South to solve the problem of worker shortage because a large number of workers were conscripted during the war. Even after the war, the low-paid "nobles" in the South were still welcomed by the Big Three. Gradually, they became the mainstream of the labor market.

It takes a long time for the ice to freeze three feet thick!

The decline of Detroit is a long process. If nothing unexpected happens, the last few years should be the peak of Detroit, and then it will go downhill. And a few years later, the so-called "equal rights movement" led to urban riots that shocked the world.

A few years later, when they elected a "noble" mayor, everything was irreversible.
In the end, these "noble people" turned Detroit into a "ghost town".

All these factors combined eventually led to the decline of the Big Three and the U.S. auto industry. Feeling about the future of the U.S. auto industry, Li Yian heard Zuo Xiaohan say:

"It is precisely because the decline of the U.S. auto industry is inevitable that we need to prepare in advance to strengthen our auto industry through the integration of enterprises. Therefore, the ministry tends to retain two or three large auto companies to complete the integration of resources and production capacity in order to pave the way for a comprehensive control of the U.S. market in the future!"

Fully grasp the US market!

Zuo Xiaohan's words made Li Yian look at him in surprise. The executive director of NBC's Department of Trade and Industry was full of fighting spirit at this moment.

He seemed ready for battle, with strong desire bursting from his eyes!
"Fully grasp the American market!"

Li Yian asked uncertainly:

"Are you sure?"

"Yes, Your Excellency!"

Zuo Xiaohan nodded and said:
"We have our own industrial advantages. Through the introduction and absorption of technology over the years, and considering the many problems of the Big Three in the United States and the inevitability of their decline, I believe that we have every chance to grasp, no, we should say occupy, the American auto market!

We may even have the opportunity to acquire Detroit's Big Three automakers in the near future!"

(End of this chapter)