Mediterranean hegemon

"Father, I got the general outline of the annual meeting of the United Group. Last year, it lost 1.24 billion lire... The overall operating income was about 2.8 billion. Of the 2.8 billion, United Bank accounted for 1.2-1.3 billion, and United Real Estate accounted for 1.0-1.3 billion. 1.2 billion, the rest are just bits and pieces of member companies, by the way, not counting the import and export business.”

"You don't need to look at their operating income. It has almost no reference value. For example, if he buys things from the Soviet Union and sells them to his own subsidiaries, this is completely a purchase. How does it count as a sale?" Old Agnelli patted the armrest lightly, "No wonder He sold so many shares to the royal families of various countries in the final stage last year...it turned out to be to fill this hole. The shares he sold were 1.2 billion lire, right?"

“I don’t know the specific situation, but my analysis puts it between US$55 million and US$60 million.”

"That's right. It shows that United Group not only did not lose money last year but also made a profit."

"Profit?" Agnelli shook his head, "I can't see it."

"Can't you see? The real estate, residential buildings, and commercial facilities he holds have all appreciated in value due to the opening of the express line. Even the unopened areas, as long as they can be linked to the express line, will increase in value to a greater or lesser extent. And those new workers' villages, if I'm not wrong, they are accounted for as costs, but as long as they want to cash out, they can get a lot of money back by selling them to existing residents at a low price. Don't get stuck. Accountants think that statements are only for statistics and do not reflect the actual operation, especially for large enterprise groups. If I were asked to do the accounting, I could make a negative figure for the Algerian oil company, which only invested in exploration expenses and had no output at all. But this Did it prevent him from selling money?"

Agnelli Jr. nodded: "If you analyze it this way, it is indeed true, but I think his profit and appreciation space is not enough to realize it. It is said that the investment scale will reach tens of billions next year. I predict a loss of at least 2 billion. If it does not fail this year, it will not fail next year." , can it be supported in the next year, and what about the future? Where are there so many large oil fields waiting for him to discover? Without positive cash flow, the funds will be burned out sooner or later. The Italian financial market is burning money faster and faster. It can no longer support a second joint group and must seek financing from the United States.”

"Ten billions?" Old Agnelli was also stunned, "What did he invest in?" "

"At the same time, we will start construction of 7 railway sections, dredge 4 ports, build 6 new power plants, complete the trial operation of United Steel and United Chemical, complete the expansion of the large dock of United Shipyard, and complete the preliminary construction of United Automotive... In addition, we must also run education, and throw it away in one go. The development plans for six colleges and universities including the United Technical College and the United Secondary Vocational School have been announced, and it is said that a United University is still being prepared.”

"After all, it's little Ciano, even if he's very generous, I feel inferior to him..." Old Agnelli sighed, "I heard that he wants to build tanks, planes, and guns?"

"Yes, the fields they are involved in are much richer and wider than we imagined..."

Agnelli Jr. is not lying: after United Group acquired the Ansaldo Tank and Armor Factory, it is now the second largest tank and armored vehicle manufacturer in Italy, second only to Fiat; it has acquired Bereda, Ansaldo, and United Shipyards After the aircraft manufacturing plant was integrated with its own United Aircraft Manufacturing Plant, the scale has now exceeded that of Maggi and is the second largest aircraft manufacturing company in Italy, also second to Fiat; although United Automobile's total volume and scale are smaller than Fiat, However, it is the largest in the field of trucks and large buses, and overall it is the second largest vehicle manufacturer in Italy; United Power can now develop aviation liquid-cooled and air-cooled engines, and has patents for motorcycle engines and automobile engines, making it the second largest engine manufacturer in Italy. Manufacturing company, second only to Fiat.

In addition, United Steel will be Italy's largest steel company; United Chemicals is Italy's largest chemical company; United Defense is Italy's largest rifle and bullet manufacturer and the second largest artillery manufacturer; United Shipyard will be the third A large shipyard; United Bank is already the third largest bank, and the gap between it and the second largest bank is very small. It can easily be surpassed by relying on United Group; United Construction and United Real Estate are the largest real estate development giants in Italy; United Motors is the largest motorcycle company ...In Contini's words, if the member companies of the United Group are not among the top three in Italy in their respective sub-sectors, they are garbage. If United Milan, which ranks ninth, had not been the club chairman and was Contini himself, it is really possible to be directly classified as category D.

"United Group has made full arrangements in our main business areas, and they have even reached a strategic cooperation agreement with Ansaldo..." Little Agnelli said, "Father, now United Group has formed a comprehensive competition for us. The situation, covering a wider range of fields than ours, and the resource advantage we have are also greater than ours. If the industry competes in the future, we may face major challenges. He doesn’t care what’s going on with the team, he just pays. He hasn’t shown up at the team’s home games for at least three months.”

Old Agnelli nodded. His son's analysis was correct. The United Group has the credit advantage of the United Bank. Now the loan cost is significantly lower than that of Fiat. The United Bank first attracted deposits with a high interest rate of 3.75%, and then lent money to the United Group at an interest rate of 5.25%. Although the interest rate spread was reduced to only 1.5%, the United Group's loan scale was large and no credit and risk review was required. For banks, the risk control of loans of 10 million liras is also done in the same way, and the risk control of loans of 1 billion liras is also done by the same few people. The cost and energy are almost the same, so banks are unwilling to do business with small customers whenever they have a choice. The same is true in ancient and modern times.

The United Group has a transportation advantage. All kinds of materials run directly on the new express line built by the United Group. The speed is fast, the efficiency is high, and the toll is 20% higher than that of ordinary railways, but the funds and time saved are more than that? The United Group obtained a large number of primary industrial products and raw materials from the Soviet Union. These advantages are not possessed by Fiat.

Of course, Fiat has its own unique advantages in management and coordination, and Fiat's comprehensive labor cost is only 60-70% of that of the United Group, which is a great advantage.

The United Group has a transportation advantage. All kinds of materials run directly on the new express line built by the United Group. The speed is fast, the efficiency is high, and the toll is 20% higher than that of ordinary railways, but the savings in funds and time are more than that? The United Group obtained a large number of primary industrial products and raw materials from the Soviet Union. These advantages are not possessed by Fiat.

Of course, Fiat has its own unique advantages in management and coordination, and Fiat's comprehensive labor cost is only 60-70% of that of the United Group, which is a great advantage.