"No. We will be setting up a factory in Russia to produce our off-road vehicles, and we will be using the Oriental Deer logo overseas." Oriental Deer had become a subsidiary brand of Bing City Machinery Company, and from this year onwards, China's Songjiang Off-Road vehicles will have a new logo and name.
"Setting up a factory in Russia? Didn't you say you are going to set up a factory in the US this year? "Li Mingde was puzzled as Feng Yu had not told him about this. The export tax exemption policy will only expire at the end of this year.
"More specifically, we will be entering a joint venture with Moscow's Polar Bear Automobile Company to produce our Oriental Deer. It will be like the joint venture between Audi and SAIC Motors. But it will not be the current cooperation. It will be the previous cooperation. What I discussed with the other party is that we will provide a full set of technologies and part of the funds, and we will send some experts to guide them. We will take 49% of the shares.
Li Mingde's jaws dropped. What? We will provide the technologies? We will provide the experts?
Although Li Mingde knows Oriental Deer is selling well in Russia and Eastern Europe, that is Russia. Their industrial technologies are the best in the world. How can we send people to guide them?
Li Mingde did not know that in his previous life, the Volga Automobile industry only started to prosper before Li Mingde's rebirth. Before this, the Volga Automobile industry was still producing old models from more than 10 years ago. The Volga Automobile industry did not place much importance on these small passenger cars. Russia was one of the world's most powerful industrial countries, but there were many foreign brands on the streets. Their own country's automobile market share was only more than 5%!
It was only after Putin came to power and changed his policies that Volga Automobile started to prosper. But it was only within Russia's borders. During the former Soviet Union era, Russia's cars are the most famous in the world.
"General Manager Feng, are you joking? That is Russia. Don't they know how to develop their own cars? With their industrial capabilities, it should be easy for them to develop. "Li Mingde stuttered.
"With their capabilities, it should be easy for them to develop their own cars. But they are still focusing on their heavy industries. If not, why would they import cars from us? Of course, this Oriental Deer's technologies will not be expensive. But this is still our country's first car to export its technologies! "
Li Mingde's face was flushed with excitement. Hua Xia's first car model will be from Bing City Machinery Company!
What kind of glory was this? Compared to those automobile manufacturers that imported their own models, this was much better. If I succeed, who would still dare to be sarcastic to me the next time I meet them!
If you're so capable, why don't you develop your own cars? If you're so capable, why don't you use your technology as well? He couldn't do anything, so what was there to be proud of?
No wonder General Manager Feng wanted to produce new models. No wonder he wanted to reduce the production of Oriental Deer. So this was his plan. From the looks of it, it was completely feasible.
Li Mingde and the others had always thought that there were many restrictions on exports to Eastern Europe. Taxes aside, if it weren't for the Russian boss, how could there be such a huge sales volume?
Also, there are many cars in the Russian market, and there are all sorts of brands. Li Mingde and the rest were worried that their cars might not sell well.
But now, it's different. With a joint venture with that Russian, Oriental Deer's sales will increase. Although their profits will be lower than before, their total profits will be much higher. They will not suffer any losses, and Songjiang Motors will become more famous. Overall, the pros outweigh the cons.
"General Manager Feng, I need to report this to the City Government immediately." After saying this, Li Mingde looked at Feng Yu embarrassedly. Feng Yu is the biggest shareholder and the one who has the final say in the company.
"It's fine. Go and report this. This is a good thing, and it will not affect Bing City Machinery Company's profits. If the City Government does not agree, you can tell them that Fu Guangzheng and I had agreed. "
Even if the City Government does not agree, they can call for a shareholders' meeting and see who has the final say!
But Feng Yu believes that the City Government will also agree. This is a political achievement, and those people should be happy to agree!
"Ok, I will go and report to the higher-ups first. I will come and look for you tomorrow."
Li Mingde jogged out of the door. At his age, he is still running. This shows how excited he is.
… …
Bing City Machinery Company's Deputy General Manager Li Dafu called for a meeting to discuss the export of technologies.
When they received Li Mingde's notification yesterday, all of them were shocked. Bing City Machinery Company can export their technologies to Russia? Ten years ago, no … yesterday, none of them dared to imagine this happening!
The Deputy General Manager from the City Government was overjoyed. When he received the notification from the higher-ups yesterday, he also did not believe it.
It seemed that it wouldn't be long before he would be promoted!
All of them were overjoyed when they heard this news. No one felt that they should not do this. Although they will lose their short-term profits, the long-term benefits outweigh the cons.
Most importantly, it was such a glorious thing!
"Everyone, I had informed everyone about this last night and asked them to consider this matter. Although Mr. Kirilenko had been working with us for a long time, this is the first time we are working with him. This is also the first time in Hua Xia's history! "Li Dafu said excitedly.
"Now, we have a few plans. The first plan is to sell off all our technologies at once and use the technologies as shares. The second plan is to continue investing in our technologies. We will be in charge of R&D, and in the future, all the new technologies of Oriental Deer will be supplied to the joint venture factory. We can save a lot of money. The third plan is to not only cooperate with Oriental Deer. All our Songjiang Motors models will be partnered with the joint venture factory, and we do not need to spend a single cent. I had told you all about these plans yesterday, and you all can make your decision now. "
These three plans were suggested by Kirilenko. Feng Yu does not like the third plan, and both the first and second plans are fine. The first plan is to cooperate with Hua Xia's overseas automobile manufacturers.
"I think the first plan is better. The second plan is for us to supply all our technologies to them, and that will lower the value of our technologies. We can sell our technologies to them in the future. The third plan is for us to cooperate with them on all our models. I don't think it is necessary. "The Deputy General Manager, who is in charge of motorcycles, said.
"I think the third plan is better. We only have a few models, and this is only a cooperation on passenger cars. So what if we give them all our technologies? We will introduce new models this year. "The Chief Engineer said.
"Actually, the second plan is also good. We can introduce new brands in the future, like Dongbei Tiger, Dongfang Leopard, etc. We don't need to provide them with new technologies. This cooperation will bring us more benefits." The Deputy General Manager of SASAC said.
Every plan has supporters and opponents. None of the plans has more than 50% support. Li Dafu frowned. What should he choose?
… …
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