Chapter 614: Everyone is happy

Don't say much, brothers, give me some strength!

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Anyway, in a few years, Huayang Power intends to expand its production capacity, and in order to balance the interests of developed countries in Europe and the United States, so that they have fewer restrictions on Huayang Power, so this year's production line of 1.5 million vehicles must be purchased from Europe and the United States respectively.

In line with the principle of saving if possible, Jin Xiaoqiang naturally hit the idea on the head of General Motors, who is currently carrying out a global lockdown strategy.

GM's expansion has been too fast over the decades, and when the economy was good, they started to expand a lot of factories.

At that time, because the economic situation in the United States was good, there was no need to worry too much about sales, but now with the decline of the domestic automobile manufacturing industry in the United States and the high cost of labor, GM has had to close a number of factories in the United States, of course, many of these factories are not worth saving.

For example, a production line with an annual output of 500,000 vehicles that Jin Xiaoqiang acquired from GM last year is the production line of the Oldsmoreby brand under GM.

When it comes to this brand, it was also all the rage in the United States, and the muscle car that is still influencing American car culture is created from the Rocket 88 brand under this brand!

And this rocket 88 model, sold for 50 years, until recent years, with the international crude oil price getting more and more expensive, and Oldsmoreby's research and development strategy and direction, but has not kept up with the pace of the times, has been building high-horsepower, high-fuel consumption muscle cars, which led to them completely eliminated by the market, GM after several shots, but also failed to recover the decline of this brand in the market. In the end, I had to announce the abandonment of this brand.

After announcing the abandonment of the Ozmolby brand in 2004, they only shut down the brand's last production line in 2005.

And this production line with an annual output of 500,000 units. It was around the year 2000. In order to save the Oldsmoreby brand, the newly added robots, machine tools and other equipment are still very new. It can be regarded as letting Jin Xiaoqiang pick up a big bargain.

Just make adjustments in the parameter settings, and make adjustments in the installation. And the computer control equipment of the production line was refreshed, and the production line was immediately reborn in the factory building of the second branch of Huayang Power in Dongkou City, the Celestial Empire. Restarted a continuous manufacturing career.

According to the predictions of the engineers in the company. As long as the production line is properly maintained and can be smoothly followed up and upgraded in the future, that production line will not be a problem even if it is in use for 30 years.

And this time, Jin Xiaoqiang moved the idea, and GM set up the head of the Saturn production line in Tennessee!

In fact, last year, Jin Xiaoqiang was already thinking about the brand Saturn and his production line. If conditions permitted, he would have planned to build a Saturn production line last year. After all, if you can get the Saturn's production line, it can be said that it is the most cost-effective production line for Huayang Power, which requires the least cost, the smallest adjustment, the least later modification cost, and is also the most cost-effective.

Saturn is a young brand under the GM umbrella, founded in 1982, and GM's etiquette when it was created was to make this car stand against the increasingly aggressive and energy-efficient Japanese cars in the market.

The brand's purpose is to concentrate GM's state-of-the-art technology, design, and production of small, American-style economy models, which were put into production by Saturn in 1990 and officially launched in 1991!

As a young brand, Saturn has no historical and cultural baggage, and his brand's purpose is to 'make the models that consumers need', and it is under the influence of this concept, and with the support of GM's advanced technology, Saturn has squeezed into the top ten best-selling models in the American car market in just three years after its launch. …,

In 1993, Saturn was second only to Lexus and Infiniti, and in 1997 Saturn was tied with Lexus for first place.

It can be said that GM created the Saturn to compete with Japanese cars such as Toyota, Honda, and Nissan, and by the mid-90s, the Saturn once dominated the American market for cheap compact cars, and once became one of the most popular models among Americans.

But later, in order to save Oldsmoreby, as well as Buick and other brands, GM had to withdraw a large amount of funds from the Saturn brand, which also seriously affected Saturn's research and development of new models.

So it didn't take long for Saturn to be like a short-lived meteor, quickly retreating from the American market, and was driven off the altar again by Toyota and Honda.

Since 2000, GM has begun to be a little anxious, and it has no heart to estimate the young brand of Saturn, so the products of this brand are becoming more and more degenerate, and they are no longer as brave as they used to be.

With GM's consecutive years of losses, as well as the global contraction of operations, tightening the state of monetary management, the Saturn brand because of poor performance, there are also many factories to face the state of closure.

Although GM does not want to give up the brand at the moment, it has also had to close several large factories of the brand as the number of models of the brand becomes less and less in the market.

Earlier this year, they closed a Saturn-branded residential plant in Springhill, Tennessee, which was designed to produce between 500,000 and 800,000 vehicles a year.

And after its establishment, it has carried out several equipment updates and technical upgrades, so the production line in this factory is still very well maintained, and even more than 40% of the machinery is less than eight years old new machinery and equipment.

There are also 50 percent of the machinery and equipment, which are old machinery with a history of about ten years, and the remaining 10 percent are the latest machinery production lines, and the purchase and service life is not more than five to three years.

For other automobile manufacturing companies in Europe or the United States, it can be said that such second-hand machinery and equipment, from demolition to handling, in their country, are enough to buy a new production line just for the cost of labor and transportation.

And even if GM doesn't sell this production line to other car manufacturers, it will not be able to spend a lot of money on maintenance and maintenance every year, which is not the price that GM wants to pay at present!

But for Huayang Power, if you can buy such a production line, there is no doubt that you have picked up a big bargain, after all, even if it is a production line that has been used by people for more than ten years, it is still a good thing to get it now, as long as it is properly maintained, it will not be a problem to use it for another twenty or thirty years.

Moreover, from the parameter design of their production line, we can also reverse study the technical design of many general motors, as well as the means of production management, which are very valuable experiences and are exactly what Huayang Power needs.

Moreover, the Saturn products born on this production line back then were the products that once pressed the Toyota Camry and Honda Accord under him, so such a production line is completely what Huayang Power needs.

So for such a good deal, how can Jin Xiaoqiang miss it?

"Oh buy karma! Misterkin, you're so good at business, you actually thought of our Saturn production line......"

After hearing Jin Xiaoqiang's request, Nick couldn't help but laugh dumbly, this guy is really a businessman, he is so cunning!

"Haha, I'm also in line with the principle of not wasting it, work, anyway, the production line is also put there, and it costs a lot of money to fly maintenance and maintenance costs every year, and you sell it to other car manufacturing companies, do you want to buy it? According to the labor price in Europe and the United States, to buy such a second-hand production line, they might as well buy a new one......"...,

Jin Xiaoqiang began to lobby Nick constantly, but what he said was also the truth.

"Alright! I admit that what you said makes sense, so this production line will be sold to you for a billion dollars? ”

Nick thought about it, and then said to Jin Xiaoqiang that the brand of Saturn happened to be within the scope of his management, so he could still call the shots in this deal.

It just so happens that the company wants to deal with this production line as well! If someone is willing to take over and sell it for a good price, that's not bad!

"A billion dollars? Did I hear me right? Nick! At this price, you can buy a brand new production line! ”

Haggling is certainly inevitable.

"Alright! Nine billion dollars, it can't be lower! ”

"Five hundred million dollars!"

"Eight hundred and fifty million!"

"Five hundred and fifty million!"

“……”

In the end, the two sides finalized the price of this second-hand production line at a price of 750 million US dollars!

Indeed, it is no longer the time when Jin Xiaoqiang just founded Huayang Power three years ago, and at that time, with such a price, it is completely possible to buy a new automobile production line.

However, in the past three years, the United States has made a windfall in Iraq, robbed almost the entire Iraqi oil fields, and by the way, through the binding of the dollar and oil, it has kidnapped the whole world, made the dollar depreciate sharply, and printed money to make the world pay for their war, so three years later, the actual purchasing power of the dollar has indeed fallen a lot compared with three years ago.

Coupled with the rise in international raw material prices, as well as the rise in labor and other problems, it is almost impossible to assemble a complete automobile production line at a price of 500 million US dollars three years ago, and the current market price is at least 2 to 2.5 times that of that time!

So now it is quite worthwhile to be able to get a second-hand Saturn production line from GM at a price of $750 million.

Of course, this includes the cost of dismantling, transporting, and installing and commissioning the production line from the new!

This deal can be said to be a joy for both parties!