Chapter 171: Profiteering

In April, in several key areas around Anhui, including Shanghai, a low-cost car called 'raindrops' was put on the market. Thanks to the sales network built by Yushi Group in 17 provinces across the country, many Chinese people soon became interested in this low-priced car priced at only 700 US dollars.

As for the atmospheric shape and higher cost, the 'Liulan' is only for internal use for the time being because there is only one assembly line at present.

In April alone, 100 units of Raindrop were sold in places like Anhui and Shanghai, mostly for local celebrities and wealthy businessmen.

However, compared to the number of cars that have been put into the European and American markets, this sales are nothing.

In addition to 100 of the 1,500 'raindrop' cars produced in March, almost all of the remaining 1,400 were put into the European and American markets.

The lowest-priced car in the U.S. was Ford's Model T, and thanks to a large number of simplifications, the labor hours required to produce the Model T were not only reduced to 12.5 hours, but the cost was also reduced to a record-breaking $850, which was at least 3 or 4 times lower than other cars of the same period...

In 1911, the average annual income in the United States was about $644, and those cars that cost $2, $3,000, $3, or $4,000 were undoubtedly unaffordable for the average American. So the $850 Ford Model T was just hit the market and was popular with ordinary Americans.

But when another car that was $100 ($750) cheaper than the Model T hit the market, Americans quickly shifted their enthusiasm to the new car.

Benefit from the sales network of Gillette and Coca-Cola. Yan Shao doesn't need to work hard to publicize at all, he can use the above two to promote his products.

100 dollars, although the income of Americans is dozens of times higher than that of ordinary Chinese at this time, but after taking into account the problem of prices. In fact, the life of ordinary Americans is not much richer than that of ordinary Chinese, so $100 is also a lot of money for them.

So even though the new cars on the market are made in China and have a slight gap in performance compared to the Model T (because the simplification is not enough), the 1,000 cars that were put into the United States in April were quickly sold out, and many Americans have even begun to wait in line for the second batch of cars.

The success of the car has greatly stimulated the enthusiasm of Yan Shao and others, in addition to increasing the speed of the existing assembly line to one every 10 minutes, or 3,000 vehicles per month. Yan Shao also invested considerable manpower and material resources, planning to assemble four more assembly lines in the automobile factory, so that the monthly output must reach 10,000 vehicles. And to take the opportunity to completely conquer the whole of America ...

After taking over this task, Li Yin also gave Yan Shao a guarantee.

"Within 1 month, you will definitely be able to see 4 new assembly lines..."This time, Yan Shao gave him a lot of manpower and material resources, even if it was based on people. He was also able to pile up 4 assembly lines for Yan Shao within 1 month. "But...... Boss. 4,000 people are needed for four assembly lines, so many people..."

Hearing Li Yin say this, Yan Shao also had a headache.

Due to the problem of automobile design, there are more than 9,000 assembly steps in the whole car, and each assembly line requires 5 or 600 people. This is still a situation where only 8 hours a day are worked, and more than 1,000 people are needed for two shifts, and nearly 4,000 people are needed for four assembly lines...

At present, almost all adult men of appropriate age in Wuhu have already served in the group, and more than 4,000 people are not many. He didn't know where to look for it.

In addition, the institute is now working on the optimization of the car and the assembly line, and has also used Ford's Model T as a reference. Now we have a clue. If we build four assembly lines now, then by the time the optimized new car comes out, the existing assembly lines will probably have to..."

"Is there a hurry here..."Yan Shao smiled and shook his head. The most important thing now is to increase production capacity, and the current production line should be able to be improved, right? ”

"Of course!"

After receiving Li Yin's affirmative answer, Yan Shao continued. "If we can improve it, we can just make improvements to these assembly lines when the new assembly lines and new models are put into use..."

"I understand..."Seeing Yan Shao say this, Li Yin naturally didn't have any doubts.

4,000 people, counting the original 1,000 people, adds up to 5,000 people. Fortunately, with the experience of the textile factory, it will not be too difficult to manage so many people, so after looking back at the workers who were still busy, Yan Shao took the car back to the headquarters.

After returning to the headquarters, Yan Shao summoned his subordinates for a meeting.

"Now I believe that everyone is clear about the current situation of the automobile factory, I decided to expand the scale of the automobile factory, add 4 new assembly lines, so that the assembly line of the entire automobile factory reaches 5, naturally, the number of workers will reach more than 5,000 people."

"In addition to this, I decided to build a new engine plant dedicated to the development and production of new engines..."

Naturally, there are no opinions on these people here, but some people have spoken. "Boss, are the 4 new assembly lines all used to assemble 'raindrops'?"

"That's right." Yan Shao nodded his head. "At the moment, I believe that everyone is also seeing the sales of this car in the United States and Europe, so I decided to expand production capacity and strive to occupy the entire European and American markets as soon as possible..."

Leaving aside the fact that the people present feel that this purpose is realistic, the person who spoke just now continued. "The existing 'Liulan', as well as tractors and trucks..."

These are all originally in the planning, and now the four new assembly lines are used for 'raindrops', so the remaining three things must be useless.

"After the three car factories are on the right track, the most important thing at the moment is to expand production capacity and build a stable production team..."

After all, it has just been established, and if there are too many brands, it will be a little troublesome. Historically, Ford completely dominated the entire American market through a single brandβ€”β€”β€”β€”β€”β€” and then he cupped.

No way. For nearly 20 years, from '08 to '27, Ford only produced the Model T. Ignore the calls of his subordinates for the production of new vehicles.

The problem was that people were in demand for new, comfortable new cars, not old cars that had been in production for almost 20 years. So after years of losses, Ford had to give up his position to his son and live a life of retirement, and at that time Ford had abdicated from the original first in the United States to the third position.

Ford's lessons are naturally to be learned, but at the moment the car factory is just getting started, and the concept of a single brand is also very good. And at this time, the automotive market was also in its infancy. The most important thing is to think about how to occupy the market.

The company is owned by Yan Shao alone, so after Yan Shao gave the answer, there was no objection from anyone present.

After returning to the manor. Yan Shao, Elaline and Caterina had dinner.

However, when they saw Yan Shao, Elanon's and Katarina's faces were very ugly. When Yan Shao looked at them, he deliberately put on an appearance of ignoring him.

And after seeing the two of them like this, Yan Shao's face also showed a smug expression.

Before the assembly line goes into production. Yan Shao once mentioned this matter to the two. It's just that the two of them obviously don't believe in Yan Shao's work efficiency that has improved work efficiency by hundreds of times. After the end, Yan Shao made a bet with the two.

The bet is also very simple, that is, the loser has to promise the winner one thing.

And then the two lost...

Not long after the assembly line was put into use, Yan Shao took the two of them and Kaoru Otsuki and Lu Ying, who were notaries at the time, to the automobile factory.

When they saw the cars coming off the assembly line, all four had surprised expressions on their faces.

After that, after sending Lu Ying and Otsuki Kaoru away at night, Yan Shao and the two of them did many shameful games that they were unwilling to do in the past, and even used many props in the end. As a result, the two of them couldn't get out of bed for two days in a row, and since then, the expressions on their faces have become very ugly when they look at Yan Shao.

"That's right...", after swallowing the food in his mouth. Yan Shao looked at Elino, who still had a stinky face. "A gift for your father, do you like it..."

Although he wanted to ignore Yan Shao, hearing him ask, Elano could only nod and reply. "I like it very much, and I still praise you in the telegram for being very hearted..."When she said this, Elanon's heart was also a little happy, after all, it was a good thing for her that the relationship between her father and Yan Shao had improved.

Thinking of this, Elino's face also looked a little better.

However, compared to it, Katarina's face was still the same, and Yan Shao couldn't do anything about it.

Unlike Elaine, Yan Shao knows who her father is, and her background is also very clear. And Caterina's words, except for the fact that she seems to be from a Spanish aristocratic background, knows nothing else.

Of course, Yan Shao didn't think about sending someone to Spain to investigate secretly, the problem is that Spain is so big, and...

The special affairs department is all in charge, how can Yan Shao investigate...

After nightfall, Elaline was no longer very angry, and he forgave a little in his heart, and when he saw that Yan Shao seemed helpless to Katarina, he just smiled slightly and made a gesture of encouragement to him.

Yan Shao naturally knew what she meant, so after smiling, Yan Shao gently put his hand on Katarina, who was facing away from him, and stroked it carefully. At first, Katerina wanted to pretend not to care, but when Yan Shao's two hands climbed the twin peaks and her fingers pinched the two points of red, Katerina couldn't help it anymore.

"Don't touch me!" Turning around, Caterina said in a tough tone.

The slight trembling voice and the blush on her face seemed to betray her, and Eleno, who was facing away from them, snickered when she noticed this. And after hearing the laughter, Katerina's already red face suddenly became more ruddy, but just when she was about to break free from Yan Shao, she was firmly held in her arms by Yan Shao.

At first, Caterina was about to break free, but when Yan Shao's hand touched several sensitive points on her body, her body suddenly went limp, and at this time, Elaline came up from behind.

β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”

The head of the bed is noisy, and the foot of the bed is. It's probably Yan Shao them.

Anyway, after one night, the relationship between the three of them was restored.

And after that, Yan Shao and the three lingered for a few nights again. Until the three of them couldn't stand it anymore.

Compared with Yan Shao's leisure, Li Yin and Zong Wu were much more tired.

Li Yin's side not only had to arrange people to assemble the new four assembly lines, but also had to find a way to optimize the existing cars, and then the assembly lines could also be optimized according to the optimized cars. The whole work is estimated to be over at the end of the year, and now Li Yin and the others are busy with this matter almost every day.

Zongwu's side is also busy recruiting new workers because there are about to have 4 more assembly lines.

In addition, he is also busy with the improvement of production efficiency, after his efforts. The existing production line quickly reached the point where one car per 10 minutes was reached, and today's car factories operate in two shifts, which means that they can produce at least 3,000 cars a month.

This figure is naturally nothing compared to the United States. But the fact that just 1,000 workers could produce so many cars is a miracle, at least for Americans in this era.

And with the sales of Yushi cars in the United States, those American automakers also feel a hint of threat...

β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”

"$750..."Listening to the report of the people under his hands, Ford was somewhat incredulous. How is this possible..."

No wonder he thinks so. After all, the Model T produced by Ford today is the simplest vehicle in the world. The cost is also very compressed. Then

Adopting an industrial vertically integrated approach to optimizing vehicle production, Ford specified how parts suppliers should make wicker boxes that transport components, so that the disassembled crate strips can be used as prefabricated parts in the main body of the car. Even the processed wood and wood chips were made into a charcoal called "Kingsford", which also became a leading brand in the market.

In this case, there are still people whose cars are cheaper than Ford's, and it is no wonder that he does not believe it.

However, seeing Ford like this, his subordinates said with a wry smile. "We've looked into it, and the cars are all from China. That is, the Chinese businessman we learned a few months ago who had bought 50,000 parts and components, because the relationship from China to the United States was only through the Pacific. So for the time being, it's only on the West Coast, but because even if it's transported by rail to the New York area, it's still profitable, so some car sellers even take the initiative to ship their cars to the East Coast to sell..."

"In addition, we also learned that Gillette and Coca-Cola, which are now very popular in the United States, are also the property of the Chinese businessman, who seems to have bought them a few years ago. Since both of these things are very popular in the United States, he can use them to promote them..."

"Coca-Cola..."Hearing the people under his hands talk about Coca-Cola, including Ford, everyone in the room couldn't help but glance at the bottles of Coke on the conference table.

"So, this Chinese is very rich?"

"That's right." The man in charge of the investigation continued. "According to our investigation, the Chinese seems to be the richest man in China, with a total net worth of more than 10 million pounds, and now the world's most productive Tampico oil field used to be his, and then Standard Oil bought Petroleos Mexicanos from him for $50 million and 30 percent of the annual proceeds, and he became the youngest multimillionaire in the world."

With a nodding of his head, Ford looked at Git. "Then have you found out why these cars can be sold at such a low price?"

"Thisβ€”" Git frowned. For the time being, we have not found out, after all, we are still too far from China, it will take more than half a month just by boat, but we have also learned some news from some local Chinese people, Chinese can sell cars at such a low price is likely to be related to this. According to our survey, the average salary of Chinese at this time is about 5 cents, and it is a daily wage, while the daily salary of our workers has reached 2.2 US dollars, which is equivalent to more than 40 times that of Chinese, in other words, they can make cars at a much lower labor cost than us..."

What Git investigated was the average salary in China, that is, 1 jiao to 1.5 jiao, and Yushi Group's 2 jiao per day, equivalent to 10 cents, 6 yuan a month for one person, and 6,000 yuan for 1,000 people, which is more than 2,200 US dollars when converted into US dollars.

And what about the Americans? If there are 1,000 people, it will cost 2,200 US dollars a day, and it will be 66,000 US dollars in 30 days, and the labor cost is 33 times that of China, not to mention that there are more than 13,000 people in Ford at this time...

In this case, it is really not easy to compete with Yan Shao.

Of course, after the use of assembly lines, the cost of greatly reduced, etc., after entering April, Zongwu even compressed the cost of each car to 400 US dollars, which means that each car can net at least 350 US dollars, and there is still room for decline...

At least in the eyes of others, this is already a kind of profiteering...

They were also taken aback by hearing such a huge gap, but when everyone else was surprised, Ford always felt something was wrong in his heart. At this time, he also felt that there seemed to be something wrong with Git's face, so he hurriedly asked. "Is there anything else you'd like to say?"

"Thisβ€”" hesitated for a moment, and Git continued. Labor costs are key, but I always feel that something is wrong. In order to do some research on it, the company once purchased a car for disassembly, and found that although the structure of this car is simple, it is still more complicated than our Model T, and the difficulty of manufacturing the car is very clear to everyone, even if it is a Model T, it takes 12.5 hours to assemble in the hands of skilled hands, and the Chinese car is more complex than ours, and the time required is probably more, in this case, do the Chinese have so many skilled auto workers to produce..."

Hearing this, Ford also understood what he felt wrong just now.

He still knows a little bit about China, so after thinking about it for a while, he looked up and said to Git. "Later you send someone to China and see what you find..."

"What a shame!" (To be continued......)