Chapter 772 You Are the Middleman I Found
He looked at Yang Dongxu, who was much younger than himself and seemed to be not even older than his own son. Dave's mood was extremely complicated. If Yang Dongxu was the boss of the 76ers, he could barely accept it.
But Yang Dongxu is still the boss of BMW Motor Company, and he started his business from scratch. This caused him to waver in his values as a business wizard.
"Can I ask why you established a branch factory in Detroit? I'm not doubting your company's development plan, but you know the current situation in Detroit." Dave pondered for a moment and said.
The current investment environment in Detroit is not necessarily the worst in the United States, but it is definitely among the worst. What's more, Yang Dongxu invests in automobile companies.
Detroit is the birthplace and even the home base of American automobiles. The largest automobile companies in the United States are all produced in Detroit, and behind them are extremely powerful consortiums.
When you come to Detroit to invest in an automobile branch, do you feel that China is too far away and these automobile companies cannot reach your tender little piece of fat, and then you take the initiative to put it in their mouths?
“The investment environment is indeed very poor, especially the public security environment. But from another perspective, it is precisely because of the decline of Detroit that I can get better investment policies, right?
Moreover, it has the largest number of skilled automobile production workers in the world, and there are many automobile engineers who can help me. I can even acquire some automobile production lines and production technology at a lower price. These are also advantages, aren’t they? Yang Dongxu said.
Dave didn't speak for a while, staring at the young man in front of him for a few seconds, "For Derek's sake, I have to give you a piece of advice. Of course, those you mentioned are advantageous resources. But old-fashioned, traditional, The pride of Detroit is really a big quagmire now, and there is a high chance that your investment will not get a corresponding return.”
"I have prepared a risk assessment report before investing. The reason why I asked you to cooperate is that I don't have many resources and connections in Detroit. I hope you can help me recruit ordinary workers and automotive engineers.
If possible, I would also like you to act as a middleman and help me acquire several production lines that other car companies do not want. Of course, you cannot be too far behind. It would be even better if I could get the right to use or purchase some automotive technology. I will pay you a fee that satisfies you. "
With the lessons learned from Haina Branch, Yang Dongxu will naturally not make the same mistakes when making industrial investments in the United States. So he decided to borrow the resources of a local named Dave.
"None of what you said is difficult. I now have good cooperative relationships with many car companies. Recruiting is even easier. Hundreds of thousands of people in Detroit are now unemployed, and many people have decided to leave their hometowns and go to other places. If you give him a job, I think they will be very grateful."
"That would be great, but I have a small request. That is, I hope that workers who join my company should give up part of the rights of union members, and as a guarantee, I can guarantee that their wages will not be lower than The average salary for similar positions at Ford, General Motors, etc.," Yang Dongxu said.
"This." Dave frowned.
The power of labor unions is very powerful in the United States, and this is also the power granted to them by the Constitution. As a citizen of a country that talks about human rights, fairness, and freedom all day long, asking them to give up the power of the union will definitely cause an uproar.
"Detroit's current results are certainly due to the development of the economic environment, and Detroit's lagging behind in development is directly related to it. But the big men in the labor unions also played an indispensable role in fueling this.
I don’t want the workers I’ve just invested in to go on strike before the company I just invested in goes into production, demanding higher wages and reduced working hours. I invest to make money, not to use the money to do charity in Detroit. "Yang Dongxu knocked on the table in front of him.
Trade unions in the United States are definitely on the same level as those in China who are having trouble with each other. Sometimes they are so unreasonable that you can't touch them, and you may even have to pay money to settle the matter. Yang Dongxu obviously didn't intend to get used to such a temper.
Anyway, the unemployment rate in Detroit is very high now, and jobs related to automobile production can be picked at will. If you are willing, we can sign a contract and formally hire him. If you are not willing, just get out. He doesn't want to recruit a group of uncles to come to the factory to serve him.
"I can only say give it a try. You know Americans value their rights very much. You will undoubtedly infringe on their rights again." Dave said after a moment of silence.
"But I also gave corresponding compensation, and I did not deceive them. This will be clearly written when recruiting employees, if they still want to stay in Detroit.
In order to have a stable salary to repay their mortgage, car loan, and all kinds of messy credit cards, I gave them a job, and they should also give up a little.
I feel that this surrender of power is insignificant to them. After all, it is a formal contract. I did not deduct their wages or restrict their freedom. This does not even have anything to do with human rights.
What I want is just that during normal production, they get the pay they deserve, and they should learn to be grateful instead of thinking that this is not enough and threatening them with strikes if they want to be bosses. "Yang Dongxu plans not to give in on this point.
"May I ask, how much do you plan to invest and how many workers do you plan to recruit?" Dave asked.
The subtext of this sentence is: Since you came up to stipulate this and that, how much do you plan to invest? If it's just a few million dollars, then leave quickly and don't waste my time here.
"An initial investment of US$5,000." Yang Dongxu raised two fingers: "If the first investment gets the results I want, then the later investment will be no less than 200 million. And in the early stage, I plan to recruit 500 skilled workers in various positions. and 50 automotive engineers, and of course talents in corresponding management positions.”
"It is indeed a large investment. If you are sure that you really invest 200 million and write it in the memo, there may be a lot of room for maneuver in this matter." Dave rubbed his chin.
"This matter is a request of the government from me, and you are the middleman I found. I will pay you enough, and you should do things for me and stand on my side." Yang Dongxu reminded Dave.
"Ah, sorry, the sense of substitution is too strong. Mainly because you are too strong. I will adjust my mentality. But how much is my agency fee?" An embarrassed look flashed across Dave's face, but for him like this The big boss's embarrassment was nothing at all, and he continued to speak without even blushing.
“Based on the current average policy preferences offered to investors in Detroit, I will let the negotiating team agree on a value with you.
To reach this average, your intermediary fee is US$100,000. For every additional percentage point discount, you can get an additional US$100,000, and so on.
The same goes for purchasing automobile production lines or ready-made factory land. If you buy it at the market price, I'll pay you $100,000. If you can keep the acquisition price as low as possible, you can get 20% of the fee below the market value. Yang Dongxu said.
"It seems to be a big business." Dave did not come up and ask for more reports, but rubbed his chin and roughly calculated his income.
Not to mention purchasing factories and production lines, he relies on his connections and capital. There is no problem if something worth tens of millions or hundreds of millions can be reduced to a few million, so this 20% remuneration can be worth millions of dollars.
Don't think that Dave is a billionaire with many profitable companies under his control, and his pockets are full of money. The billions of assets are just assets, fixed industries, and the company's assessed value.
And the money he currently has available in his bank account is just over 300,000 US dollars. That's right, his account balance only has so much money. Whenever he wants to buy some big toys, such as yachts or airplanes, he can't pay all at once and can only borrow money from the bank.
So the temptation of a million dollars in cash that was entirely hers was not small for him. What's more, the commission ratio is negotiable.
"How many days are you going to stay in Detroit? I can take you around the city and let you know more about it. This may give you more confidence when investing." Dave changed the subject.
"I'm going back to China in two days. There are still many things that I need to deal with there. In the subsequent negotiations, there will be negotiators from the United States to cooperate with you." Yang Dongxu said.
"Although two days is a bit tight, I think I can help you get to know some energetic people in Detroit, and then give you a general introduction to those cars with a higher linear cost performance." As a businessman, Dave obviously knows how to negotiate so that he can take the initiative.
To introduce Yang Dongxu to powerful people in Detroit is to show Yang Dongxu his connections and capital. Let him see how much profit space he can obtain for him, and then talk about the agency fee. He will undoubtedly be able to take the initiative.
"Of course, no problem. Oh, by the way, I forgot to mention it just now. Although I plan to build a factory in the United States, a large part of some car parts will not be purchased locally in Detroit, but will be imported from China."
"This is obviously a big problem." Dave frowned again.
Investing in an automobile manufacturing plant can revitalize the economy of an automobile production chain, if the automobile manufacturing plant's business is good.
But if the manufacturing plant imports parts from abroad, this will undoubtedly make other manufacturers in this industry chain unable to earn profits. In this way, they will naturally not support Yang Dongxu, which will undoubtedly make his negotiations more difficult.
"Don't you buy any parts locally?" Dave asked.
"It's not so absolute. If the parts they produce are of the same quality, they are cheap enough. I have no reason to spend a lot of money to import them from China, right?" Yang Dongxu shrugged.
Dave rolled his eyes, this was obviously nonsense. Based on the production cost of American auto parts, it would be damned if it could be lower than that of China. Their auto parts production technology is indeed advanced, but labor costs and other taxes are also really expensive.