Chen Dong looked stunned.
To be honest, he really didn't know the state's shareholding ratio in FAW-Volkswagen.
In his previous life, Chen Dong belonged to the financial circle, and the knowledge he learned was also related to finance.
If you ask him which year a black swan event occurred in the world, he will definitely be able to answer.
But if you ask him what percentage of shares FAW-Volkswagen holds, that would really be difficult for him.
Old Lin continued, "Let me tell you, the government owns 60% of the shares. Do you think the automotive technology you got in that island nation can compare to German automotive technology?"
Chen Dong fell silent upon hearing this.
It's not that he agrees with what Elder Lin said; in fact, that statement is incorrect.
From a technical standpoint, German cars are indeed superior to Japanese cars, but compared to Chinese cars, they are far superior.
At that time, Chinese automakers were still in their early stages, relying on giving up market share to attract foreign companies to enter the market.
FAW-Volkswagen and Shanghai Volkswagen are products of cooperation between local governments and the Volkswagen Group.
Although Chen Dong didn't know the exact percentage, he was clear that the country would not achieve a technological breakthrough in automobile engines for at least the next ten years.
Companies like BYD and Chery Automobile only started from scratch and gradually developed after the early 2000s.
Therefore, Chen Dong should also take Lin Lao's words in half.
Business negotiations are just like that. An old man and a young man are like two foxes fighting, constantly testing each other's bottom line. If they are not careful, the losses will be astronomical.
In a short time, Chen Dong understood a lot.
He nodded, then shook his head and said, "Mr. Lin, I don't deny what you said. When it comes to joint ventures, both sides need to show sincerity. Do you agree with me?"
Old Lin glanced at him with some surprise, then nodded, waiting for him to continue.
Seeing this, Chen Dong continued, "I think that as a joint venture, FAW-Volkswagen must have FAW Group taking the lion's share of the investment, or even the full amount. Am I right?"
Just as Old Lin was about to interject, Chen Dong raised his palm and continued, "And as I just said, Longteng Group will not only contribute the technology it acquired from Japanese car companies, but also a certain percentage of its funds."
At this point, Chen Dong smiled and said, "In that case, it's not unreasonable for Longteng Group to demand a 51% stake, is it?"
Upon hearing this...
Old Lin was so angry he laughed. This brat had been waiting for him all along.
Of course, Old Lin was not one to be trifled with, and retorted, "It's true that you're providing the technology, but you also asked FAW Group to provide talent. In my opinion, while technology is important, skilled technical workers and technical experts are even more important."
The two stared at each other, neither able to convince the other.
Chen Dong suddenly deflated, "Old Lin, it's not worth it for us. How about I talk to the person in charge at FAW? What do you think?"
"nonsense!"
Old Lin glared at himself, pointing at himself, "If you can't even convince me, how are you going to talk to others? I think you should give up on this idea. Once you can convince this old geezer, I'll introduce you to the person in charge of FAW."
"......."
Chen Dong was speechless, so he changed the subject and decided to try a different approach to persuade Old Lin.
"Mr. Lin, why don't you listen to my plan first? What do you think?"
"Alright, tell me, I want to see what you're up to."
Old Lin appeared to be sulking, but in reality, he greatly admired Chen Dong.
I also like Chen Dong's stubbornness; he's really like him when he was young.
Chen Dong took a sip of tea. The top-grade Da Hong Pao was indeed extraordinary. He wondered if he would miss it if he couldn't drink it again in the future.
One sip, two sips, and the tea in the cup was almost empty.
Old Lin glared at him and said angrily, "Boy, are you here for tea or a conversation? You're just keeping this old man in suspense. Leave these things behind, and you can go back to where you came from."
"mean!"
Chen Dong mentally refuted this, but stopped what he was doing, put the teacup on the table, and then said, "Mr. Lin, this is what I'm thinking. I plan to invest a total of 2 billion US dollars in building a factory in cooperation with FAW. Our Longteng Group and FAW Group will each contribute half of the funds."
$2 billion, which, based on the 1993 exchange rate, was equivalent to about 10 billion RMB.
This portion of the money includes building factories and manufacturing automotive parts, including engines, sensors, batteries, motors, etc.
Some special steels need to be imported from overseas due to manufacturing processes, but this is not a difficult task. The steel used in automobiles is not subject to COCOM restrictions, and importing from outside will not result in any bottlenecks.
Old Lin listened on the surface, but was secretly surprised.
That brat has quite the audacity!
Although the state holds a 60% controlling stake in the joint venture automobile manufacturing company established by FAW Group and Volkswagen Group, it has come at a cost.
In joint ventures, foreign investors only contributed technology and did not invest any real money. Furthermore, the parts produced in China were not the most important core component of automobiles: engines.
In this respect, it must be said that Volkswagen has a very clever plan.
In addition to providing significant financial support, China Merchants Group has given FAW-Volkswagen a wide-ranging advantage, including a three-year tax exemption, market access, and competition with its peers.
It's essentially a concept of exchanging market access for technology.
The conditions offered by Chen Dong were very sincere.
Needless to say, all the technology involved in automobile manufacturing is involved. The key issue is the investment ratio, with Longteng Group, controlled by Chen Dong, and FAW Group each contributing half.
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