The Industrial Giant Reborn.

Chapter 275 Opportunities in the Automotive Industry: American Motors Corporation (AMC)

"Car company? Which one? Chrysler?" Jim suddenly became interested and asked.

"I don't have that ability. What I want to acquire is AMC (American Motors Corporation)." Chen Zhiwen said with a smile.

In later generations, American auto giants, except for the electric car giant Tesla born in the 21st century, are generally known as the Big Three of General Motors, Ford, and Chrysler.The American auto industry has been beaten by Japanese cars since the 80s. After decades, only these three giants survived.

But before the 70s, the auto industry in the United States was very developed. In addition to the three giants, there were many smaller auto companies.

AMC is the fourth largest automobile group in the United States. This name is unfamiliar to later generations, but it has a model named Jeep, which everyone should know.

However, although it is the fourth in the auto industry, it is far behind the top three. It can even be said that from the fourth to the last, the combined scale is not as good as the third Chrysler. In the US auto industry in the 70s, the top three Strong scale is monopolistic, and other auto companies have only obtained a small cake in a small market segment, or they are doing other commercial vehicles, such as buses and trucks.

AMC is a special company. It takes the route of miniaturization and fuel efficiency. Americans before the 70s basically liked large-displacement cars. Gasoline is cheap anyway, but a small number of women or urban cars. Small cars are more convenient, and this is the market where AMC has always existed.

"AMC? This company's profitability has been very poor in recent years. I also heard that AMC's shareholders intend to sell it, but Mr. Chen's identity may be a problem?" Jim said with a slight frown.

"If identity is not a problem, then Chrysler is what I want to acquire." Chen Zhiwen said with a light smile: "The scale of AMC is not very large. It has been losing money for the past few years, and its efficiency is getting worse and worse. Its market share is getting worse and worse. Low, if no one takes over, I'm afraid it can only go bankrupt, which is probably not a good thing for the current US economy, right?"

The American auto giants had a very good life before the early 70s, because firstly, there was the United States, the world’s largest market, secondly, the United States was industrialized, and there were more aircraft and carriers, and cars could also be sold around the world. Everywhere, at its peak, General Motors sold more than 400 million vehicles a year, using up 10% of the production capacity of the U.S. steel industry and 16% of the rubber industry.

However, an oil crisis changed the lives of people all over the world. The shortage of oil and the serious environmental problems of urban vehicle exhaust forced European and American governments to restrict high-emission vehicles. It is sold well all over the world, and even in the United States, several giants of American automobiles cannot bear it.

The outbreak of the second oil crisis made the American auto industry even worse. Even if they persuaded the White House to impose restrictions on imported Japanese cars, they still could not stop Toyota from building factories in the United States. As a result, localized production also avoided tariffs. prices will be lower.

GM and Ford have a stronger foundation. Even if they have been losing money for the past few years, they can still survive. Chrysler is not good enough. When it is on the verge of bankruptcy, even the White House wants to use it as an example to force American car companies to develop new ones. Fuel-saving technology.

However, Chrysler should not die. A CEO named Lee Iacocca was born, and he saved Chrysler, which was about to go bankrupt, in a few years. From 1979 to 1985, it took 5 years to make it lose 5 million U.S. dollars annually. With a net profit of 20 billion US dollars, if Chen Zhiwen is an American, then this is the best time to acquire Chrysler, but now?A Chinese who wants to get his hands on the most powerful auto industry giant in the United States?Even if it is going to go bankrupt, it is impossible. Even if it succeeds at a huge cost, when Chrysler re-emerges five years later, it will definitely be wiped out.

"Eric, if you are willing to immigrate to the United States, given Chrysler's current situation, you are still a little bit sure." Jim said with a smile.

"No, it's AMC." Chen Zhiwen shook his head and said, even if he became an American, if he bought Chrysler, there would be too many variables. Chrysler was able to come back to life. There is this money, but the core factor is Lee Iacocca.

Chrysler does not have any major shareholders. Even if the CEO is in power, the CEO has the final say on everything. If someone else buys it, it is hard to say whether the CEO will continue to work. But it is hard to say whether he will work so hard and try to reduce costs. .

Once a large automobile company goes into decline, it needs to invest a lot of money. Hundreds of millions of dollars are just a drop in the bucket for the automobile industry. At that time, he does not know whether the money he makes in the gold market is enough to burn. with.

"Okay, Eric, in this case, I will first check all the information about this company, as well as the market situation, and whether there are other companies interested in acquiring it. When the news is almost ready, then I will contact you again. Talk to me," Jim said.

"That's fine, as soon as possible." Chen Zhiwen nodded and said.

In fact, the market value of AMC is not high. This car company, which has been losing money for several years and only occupies a small share in the US market, has a market value of only a few hundred million US dollars. It is not as good as Wharf and HK Electric. If it is a Hong Kong company , then why bother to ask an investment bank for help, just buy the stock market directly.

But the auto industry is more sensitive after all, even if it is a small-scale auto company, because the auto industry is born to have a super-promoting effect on employment, not only its own employment, but also the supply chain and the terminal sales industry Chain, coupled with high technology, many developed countries regard this industry as their lifeblood. In economies such as Germany, Japan, the United States, France, and Italy, a large degree of economic growth comes from automobiles, and the same is true for social stability. Only Great Britain, the empire on which the sun never sets, is so useless that the auto industry can only be allowed to die gradually.

After the 80s, the U.S. government did not know how much effort it had to keep its own American brand car market, but it was still snatched by Japanese brands, and high-end brands were also swallowed up by German high-end car brands.

Fortunately, the scale of AMC is really small. Even the well-known Jeep is actually a hobby of a small number of people. The only trouble is that Jeep has some military orders, which may be more sensitive.

However, in addition to the United States, many car brands in Europe are also very good, but it is not yet time. For example, some of the most famous British brands are still implementing a large-scale nationalization policy in the UK. sell.

Entering the automobile industry is something Chen Zhiwen has always dreamed of since he traveled back to the 70s. After all, with the memory of his previous life and sufficient capital, Hong Kong's real estate market, various opportunities for future reforms, global electronics and the Internet, etc. A place is enough to become a country as rich as an enemy.

The automobile industry is the crown of human industry, and it is worthwhile to have some achievements in this field.

However, if you want to develop the auto industry, you must be in a place with a large enough population and a strong enough economy, such as Europe, the United States, the mainland of later generations, and Japan. The first three are considered large markets, and Japan is half of it. With a large market, Only then can there be enough customers to share the high R&D costs of automobiles, the huge investment in production lines, etc., and the local industry must also have a sufficient industrial base to form a support for the automobile industry chain.

Basically, the world's large car companies will only be born in these regions. The only exception is South Korea. Its land area is not large, but fortunately after the 90s, the economy is not bad, and it can barely form two or so car companies. Then came the opening of the US market and the rise of the Chinese market, and then Hyundai Motor gradually developed into the top ten car companies in the world, but South Korea is only Hyundai Motor, and even Japan next to it has several companies. For the auto giant, that's the ceiling is too low.

Therefore, if Chen Zhiwen wants to develop the automobile industry, he must look for opportunities in these large markets. The European market is indeed not small, but the European Union has not yet formed, the euro has not yet appeared, and many countries are still doing their own things. One of the reasons for the decline of the industry, if it can last another ten years, it may be different.

The Japanese market is closed, and it is impossible to have a chance. The only thing left is the United States. Now the American auto industry is in a stage of decline from its peak. Many companies with some capabilities and technical reserves are gradually being eliminated by the market. At this time , he came forward to buy, there is still a great chance.

After all, the most important thing for the United States at present is to stabilize employment and the economy, but to be on the safe side, we still need to make another plan.

The time soon came to the beginning of February. Under the arrangement of Henry Morgan, Chen Zhiwen went to a large museum in Los Angeles, where he "ran into" a future heavyweight: Ronald Wilson Reagan.Future 2th President of the United States.

In the history of the United States, many occupations have served as presidents: ranchers, farmers, merchants, priests, blacksmiths, doctors, lawyers, workers, rich men, soldiers, teachers, policemen, postmen, tailors, and the sons of other presidents.

However, Reagan was the only one who became the president of the United States as a Hollywood star. When Reagan was young, he made a breakthrough in Hollywood and starred in nearly 50 movies, but they were all movies in the 40s, so Now no one will watch it anymore.

"Mr. Governor, hello." Chen Zhiwen said politely.Reagan had been governor of California for more than a dozen years when he ran for president.

"Mr. Chen, hello, I'm very glad to meet you. First of all, I must thank you very much for your investment in California." Reagan said with a smile. He also knew Chen Zhiwen's name a long time ago. Many of the big electronics giants are jealous, and Silicon Valley is now one of the biggest bombers in California. As the governor of California, he naturally knows a lot about Silicon Valley. Besides, although he is old and He doesn't go to bars because of his identity, but the people around him go there often. He has also heard of and played several Midea arcade games.

"Under the leadership of Mr. Governor, Silicon Valley has become a holy place for the global semiconductor industry. Just like Wall Street's significance to global finance, in the next few years, I will invest a lot of money in Silicon Valley for various technological research and development." Chen Zhiwen smiled He said with a smile, this is also true. Some simple things can still be done in Hong Kong, but the complicated ones can only be done on the US side. As for the future of China, he also intends to make it the birthplace of Midea’s talents. But it takes a long time to develop.

"Mr. Chen's investment is very welcome." Reagan smiled and said, "I heard that Mr. Chen is still the major shareholder of Apple?"

"Yes, I invested in Apple when it was first established a few years ago." Chen Zhiwen nodded with a smile.

Apple's development is similar to that in history, or even smoother. By 79, Apple's personal computers almost dominated the American market. Even many universities or high schools in the United States began to place orders with Apple. Last year's sales reached 5000 million US dollars. , although not many, but the growth trend is scary, and the order volume in hand is also very large.

In addition, although Jobs doesn't know much about technology, he knows marketing well. In addition to his status as a college dropout, he has been touted as an entrepreneurial hero in the United States without knowing it, which is the dream of countless young people.As for the technical elite Woz, basically no one knows except the industry.

"If it's an ordinary investor, I'd just say they're lucky, but I know Mr. Chen, he must have discerning eyes, right?" Reagan said with a smile. He probably also knows about Chen Zhiwen's situation. A person who succeeds once may be lucky. But if you succeed many times, it must be your ability.

"Mr. Reagan is right. I still have my own understanding of future technological or economic development." Chen Zhiwen nodded and said with a smile. People of this kind who have been in politics for decades are all good people, and they have their own weaknesses. Ability, at this time, it is necessary to show one's own strength.

"Then what does Mr. Chen think of the current American economy?" Reagan asked. At the same time, a waiter with a glass of wine came by, and the two of them took two more glasses of wine.

"Then let me talk about it casually." Chen Zhiwen took a sip of red wine and said, "Fundamentally speaking, the root cause of the current economic problems in the United States and even the world is the two oil crises, and the price of oil has risen from $3 to the current $30. The US dollar is a very devastating blow to the economy that relies on logistics and transportation, and oil is not only the transportation of dyes, but also the raw materials of many industries, which will inevitably cause global inflation.

Considering that the current oil price is almost unlikely to drop any further, if we want to suppress inflation, we need to consider other aspects. "

In fact, the root cause of inflation is that after World War II, the welfare of the United States gradually disappeared, and it gradually came to an end. The decoupling of the gold dollar is the reason, because many European countries began to exchange gold from the United States after earning enough dollars. In the end, the United States had to decouple U.S. dollar gold, which indirectly led to global trade entering a difficult mode. It is not that many people do not believe in the U.S. dollar, but many people also believe in the yen, mark, pound, franc, etc. Too many international trade currencies will naturally affect international trade itself.

The oil crisis is actually one of the results of the weakening of the US national power. The polar bears in the north are now very powerful, and the Middle East countries have begun to seek their own benefits.

Of course, facing the future president of the United States, he will naturally not tell these "truths".

"Then how can we suppress inflation?" Reagan asked again.

"The current Fed's interest rate hike is doing the right thing. It must not be stopped. It even needs to be increased to make money disappear from the circulation market. But this alone is not enough. Although the essence of inflation is very complicated, the superficial phenomenon is the price. If it is too expensive, then it is enough to find a way to reduce the price, such as purchasing a large amount of daily necessities from Asia, where the labor cost is very low, and the simple products produced, such as clothes, will be much cheaper. If a large number of daily necessities come from Asia, then absolutely It can suppress the current inflation in the United States," Chen Zhiwen said.

"But if you do this, a large number of jobs in the United States will also disappear. What about this problem?" Reagan asked.

"Economically, there are many triangles that cannot exist at the same time. It is impossible for a country to have low prices, self-produced materials, and high wages for all workers." Chen Zhiwen smiled and said: "If Mr. Reagan is fried chicken The owner of the store, can you make a fried chicken for one dollar, and the salary of the employees is 2000 dollars a month, and then you can still make a profit?"

"Of course it's impossible." Reagan nodded.

"So, this is the problem. Now many people think that inflation has caused many people to have employment problems. At present, there are people in the United States who oppose imports to maintain employment. However, the economic crisis in 1929 has proved that mutual blockade is absolutely unworkable. "Chen Zhiwen said: "The only way is to give full play to one's strengths. From the perspective of the United States, after transferring away these low-end industries that suffer serious losses and cannot make profits, they should strive to develop high-end industries, such as automobiles and personal computers similar to Apple. etc."

"Can the market for personal computers be compared to automobiles?" Reagan asked curiously.

"From the perspective of the global market, the market for personal computers may not be as good as cars, but for the United States, it may be even higher. The current price of personal computers is relatively expensive, and even Apple's one needs more than 2000 US dollars. The cost is too high, but according to Moore's Law, the development of the semiconductor industry can double its technology in one and a half years, and the cost will definitely drop a lot. Maybe in a few years, a computer will only cost a few hundred dollars. , In this way, there will be tens of millions of households in the United States who can afford it, not to mention more in Europe and Asia. This will be a market with an output value of up to [-] billion US dollars, and now the United States Still in the leading position." Chen Zhiwen thought for a while and said.

In fact, the value of a personal computer plus its derivative electronics, software, future Internet, etc. may exceed that of a car, but it is still far away from now.

"Hundred billion dollars? Can there be such a big market?" Reagan's eyes changed. Although he knew about personal computers, he also knew that this thing would definitely have some achievements in the future, but he didn't expect a hundred billion dollars, such a big market. , If you stay in the United States, the employment formed may be as high as millions, which is really stronger than the gradually weakening cars in the United States.

"I think there is. What Mr. Reagan needs to do is to convince everyone in the United States that there is a future. Another point is that the theoretical value of technology in the semiconductor industry is still far away. That is to say, the future may In a few years, the performance of personal computers will undergo earth-shaking changes, and normal people will be willing to replace them if the price is not very high, and this market will continue to exist for decades.” Chen Zhiwen said with a light smile, Before it appeared, the global PC computer market was indeed booming for decades, and even smartphones can be regarded as a kind of "personal computer".

"I understand. Mr. Chen's words are of great help to me, thank you very much." Reagan nodded and said, it doesn't matter whether it is true or not, as long as it is theoretically possible, then it can become his slogan for running for president If you want to defeat Carter who is still in the presidency, you must seize the economic card.

"You're welcome. In the future, I will invest heavily in the United States. The better the American economy is, the better it will be for me." Chen Zhiwen hinted.

"No problem, I welcome any foreign investment in the United States." Reagan nodded.

The meeting with Reagan was not long, and the presidential candidate was still very busy. In the next few days, a total of 500 million US dollars was transferred to the fundraising account of Reagan's campaign through 3000 different American accounts.

(End of this chapter)