Chapter Seventy-Nine: Cooperation Finalized
Philip looked at Karl with a smile and said, "Mr. Karl, don't be scared when I say it!" According to our most conservative estimates, it would cost about $5 million to complete the development of the ME15 jet engine in the Thunderbolt program, which translates to almost 20 million Swedish krona. During the development process, we needed to build at least 10 prototypes for testing, and even after mass production, the ME15 jet engine would be worth at least $30,000 each. ”
After listening to Philip's words, Carl was so shocked that even the female secretary next to him widened her eyes and covered her mouth with her slender hand, for fear that she would make a sound.
Karl rolled his eyes and said loudly, "Oh my God, this investment is too big!" Philip, are you sure this project will make money? ”
Philip glanced at the confused Karl, and a faint smile appeared on his face: "Okay, Mr. Karl, let's calculate whether this jet engine is profitable or not." First of all, we can say with certainty that within ten years, we will be the only one in the world that can produce this kind of jet engine, and even if someone can make it in ten years, it will be far behind us, so we don't have to worry about sales. ”
Karl nodded and said, "Well, that's good. You continue. ”
Philip continued: "Let's talk about the future of jet engines. It is important to know that future aircraft, especially military aircraft, have higher and higher requirements for flight speed, and the power plant of piston engine and propeller will not be able to meet this requirement. The propeller drops dramatically after the propeller reaches a speed of 700 km/h, and the jet engine has a great advantage precisely in terms of high speeds, allowing the aircraft to reach and exceed the speed of sound propagation. How important this is for a fighter, Mr. Karl should be able to imagine it, right? ”
Carl smiled and nodded, "Not bad! In air combat, if one side has an advantage in speed and altitude, the odds of victory will be much greater. ”
"That's right!" Philip's tone was firm, and he didn't dragged his words: "In air combat, speed and altitude are the key to victory. A fighter with a jet engine not only has a speed far exceeding that of a propeller fighter, but also has a maximum ceiling that exceeds that of a propeller fighter, and can fly at least 13,000 meters at an altitude of 20,000 meters. And in terms of climb speed, jet fighters are even more than propeller fighters by several times, or even more than ten times! When a propeller fighter is up against a jet fighter, the result can be imagined! ”
The more Karl listened, the more excited he became, and patted his thigh: "That's right, in this way, isn't the jet engine the only choice for fighters of various countries?" How profitable is that? ”
Philip still said indifferently: "Not bad! If the aviation industry is compared to the crown of modern industry, then the jet engine is the crown jewel, representing the highest wisdom of engineering technology. Jet engines are the most complex and sophisticated industrial products in human history due to their high speed and long-lasting high reliability, while maintaining high speed and long-lasting high reliability. I make a bold prediction here that in the next ten years, the new increase in global military aircraft will reach more than 100,000, of which the main fighter and bomber will reach more than 50,000, and the resulting demand for jet engines will be about 100,000 units. Assuming an average price of $30,000 per engine, the future jet engine market size is about $3 billion. Based on a profit of $5,000 per jet engine, the total profit can reach $500 million, which is equivalent to 2 billion Swedish krona. How big this cake is, we can imagine. ”
Both Karl and Messerschmidt couldn't help but exclaim: "God! I heard you right! ”
The two spoke almost in unison, and Philip said calmly, "You heard you right! The total market profit of jet engines in the next ten years can indeed reach 500 million US dollars, even if it is more conservative, it is absolutely no problem to reach 300 million US dollars! Therefore, once the jet engine is developed and put into production, coupled with the production of jet aircraft, our three companies will soon enter the stage of explosive growth, and it is not far away to become the world's top ordnance manufacturer! ”
Karl's eyes lit up, and he said eagerly: "Philip, tell me quickly, how much I need to invest, even if I smash the pot and sell iron, I also have to vote!" This is a once-in-a-lifetime opportunity for Bofors, and I can't afford to miss it. ”
Philip laughed and said, "That's right, Mr. Karl is a man who understands!" In fact, this time, BFW and Zhisoul Aircraft Manufacturing Company have raised $3.5 million, and you only need to invest $1.5 million to share the big cake of $500 million in profits within 10 years. ”
Karl exclaimed, "Okay, no problem! It's only $1.5 million! It's a slick business. Thanks to getting to know you, Philip! What a surprise you've given me! ”
Messerschmidt said: "Mr. Karl, the future return of your investment of 1.5 million US dollars will definitely exceed the investment dozens of times!" However, as you know, the difficulty of developing such a complex and sophisticated engine can be imagined, so this future profit-sharing plan cannot be calculated entirely according to the amount of investment, and the technical aspect will account for a large part of the shares. What do you think? ”
Karl's eyes rolled and he smiled, "Dr. Willie has a point!" We should take a good look at this issue of profit sharing and risk sharing. If the development fails, how should this loss be shared? ”
Philip laughed, "Mr. Karl is a shrewd businessman!" At this time, the issue of risk is in mind. In fact, you can rest assured that the development of jet engines will be successful! Even if it fails, as you said, your $1.5 million is indeed a lot of loss, but with the current business situation of Bofors, this is just a drop in the bucket and will not have much impact on the company's operation. Moreover, the return on this $1.5 million investment is dozens of times! Can make Bofors stand at the top of the world's arms dealers! ”
Karl waved his hand and said, "Philip, why can't I even talk to you now?" Well, I'm not going to talk about the risks. Let's talk about profit sharing, you can just say how much percentage of profit can I share with my $1.5 million investment. ”
Messerschmidt nodded and said, "Well, Mr. Karl is really a simple man. We believe that the $5 million investment will be able to share 30% of the net profits in the future, knowing that all the technology, including production, is done by BFW and Dragon Soul Aircraft Manufacturing Company, and this $5 million is just the research and development fund. What do you think? ”
Karl thought for a moment and said, "Okay! Since Dr. Wiley said so, I agree! ”
In fact, Carl also understands that this $1.5 million can get almost 10% of the total profit, which means that after ten years, this $1.5 million investment can earn back tens of millions of dollars, where can such a good thing be found? Because of Philip's involvement, Carl is also full of confidence in this wind and thunder plan.
In this way, the matter of tripartite cooperation was finally decided.