Seeing Wang Dalu's hesitation, Xing Baohua continued, "Do you feel there's a risk involved or that you won't make money? Let me tell you, this business will only last two or three years, and making seven or eight hundred million US dollars a year is no problem."
Wang Dalu stared wide-eyed and asked, "How can there be so many?"
"The biggest risk over there is the gangs. They've always been in this business, but they mainly steal, while we mainly swindle. How do we generate seven or eight hundred million US dollars? It's all part of an industry chain. Not to mention anything else, we make a huge profit just from engines, and there's also used rubber, all sorts of spare parts. We're not telling you to sell scrap metal, but to transfer everything usable to China, forming a complete industry chain market."
There are quite a few Japanese cars in China, as well as German cars. I know quite a few people involved in the black market in Japan. Although we don't have direct contact, we can get in touch. We can buy cars from them, pay them a little money, and they'll sell them. If we don't do this business, someone else will.”
"Understood. What we need to do is control the upstream supply chain. As for how the goods come from the downstream channels, we'll use that fake document maker to complete the paperwork. Even if they find out, it will delay things for a while and allow our people to withdraw quickly," Wang Dalu said with a smile.
"That's a good point. At least the R side needs to find out about Malaysia, and this timing is crucial. Also, don't underestimate the R side's police as cannon fodder. They're not pushovers, and they need a lot of cannon fodder," Xing Baohua reminded him.
“Now that you mention it, it suddenly occurred to me that we can still find loopholes once, twice, or even three or four times. But if it happens too often, the car rental companies won’t dare to rent out their cars anymore. Besides, it’s easy for the Japanese authorities to find the people selling the goods.” After thinking it over carefully, Wang Dalu felt that Xing Baohua’s approach was quite good, but it was a bit rough around the edges.
"I thought you were pretty smart just now, asking that question. What are the cannon fodder for? After they succeed, another group of people are needed to pick up the car. As long as they don't meet, it's fine. So, someone is needed to spread the word. They can spread the word by using cell phone pagers."
As soon as Xing Baohua finished speaking, Wang Dalu cautiously asked, "Is it still easy to find out a phone number?"
"I've never seen anyone as stupid as you. Forget it, I'll find a communications expert to help you design the initial communication network. You can work on it after you've learned how." Xing Baohua waved his hand at the other party after he finished speaking, telling Wang Dalu to go back first.
Since I still need to help artist Chen Qiliang with his visa and passport, which will take some time, I'll take this opportunity to let the CFO's communications counter-surveillance personnel teach them how to set up a communication network.
The fact that Xing Baohua had Wang Dalu procure cars is a real case; that person was involved in such activities from the late 1980s to the late 1990s. The key point is that this person had the support of an entire criminal organization behind him.
The person who acquired these illegal vehicles laundered them all, transported them to various ports in Southeast Asia, and after a legal wash, transshipped them to China or other countries to sell spare parts. The industry chain is huge, and the profits are even greater. The main cost is the zero-cost purchase; other costs are labor and transportation, which is not much at all.
Small-scale operations are just petty theft; the only real problem is getting the goods out of the market. Once you understand and streamline the distribution channels, the entire supply chain will be established, making it much easier to operate.
Moreover, this is not something that just anyone can do. It's not something you can get done by simply getting in touch with a particular department. If you could get in touch with a department, why would you need to deal with parts? You could just deal with the whole vehicle.
That way you make money faster. It's easy to leave the country but difficult to enter, so why choose Malaysia?
Because it's easy to enter Malaysia.
Why is it so easy? Mainly because many people like money. Even the locals believe that in Malaysia, there's nothing that money can't solve. If you can't solve a problem, it means you don't have money.
So as long as you have money to smooth things over, it's easy to get into Malaysian ports.
Therefore, once the upstream supply chain is secured, the downstream supply chain becomes much easier.
Shipping a whole vehicle is too big a target, but if it's broken down into smaller parts, even if something happens, the key figures behind the scenes can easily run away.
In the late 1990s, the Japanese installed surveillance cameras on major roads, making it harder to tamper with vehicles, as they could locate the approximate location by following the surveillance footage.
Getting cars from car rental companies is just the beginning. If they can get luxury cars, it will definitely be harder to do business later. But they can use some unlicensed cars instead.
There are over a thousand Japanese criminal gangs, large and small, and these are the ones that are officially registered. They do all sorts of things. I won't go into details, but as long as one or two gangs provide them with supplies, that's enough.
Sell the entire distribution channel in two or three years. Take your profits while you can; it gets harder and harder as time goes on.
Xing Baohua was just making a plan in advance, in case someone else wanted to do the same thing, that would be stealing his business. Stealing that business would be good, since it would attract attention.
Chinese people doing business overseas tend to be discreet, mainly because they are afraid of having their wealth stolen.
As for why he wanted to disrupt the Japanese car market, he actually had his own reasons.
Indirectly disrupting Japan's financial market will slow down its economy, creating a chain reaction.
It's similar to how a nail falling from a warhorse triggers a series of reactions.
The Japanese financial system is also very developed. Car theft at dealerships is just the beginning; those who have to pay compensation can still manage. But once dealerships can no longer steal cars, then it's the ordinary people who will start having theirs stolen. Do you really think they all bought their cars outright?
Many people also purchase cars on installment plans, especially luxury cars and brand-name cars.
Only those who know how to manage their finances are like that little guy. There's no point in getting this kind of car, since it's cheap and there's not much profit to be made. Just set your sights on high-end cars.
Whether the car is registered under an individual's name or a company's name, most purchases are financed through installment plans, which requires comprehensive insurance. Xing Baohua believes that even with comprehensive insurance, theft insurance is unlikely. After all, car theft is rare in R-registered vehicles.
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