Rebirth in 1989: Creating the Chinese Technology Empire

Xu Huasheng checked into the hotel, and Prince Salman did not disturb him too much. After all, it's very late now. Moreover, Xu Huasheng flew for eight or nine hours from Shencheng to Riyadh, and he was a little tired. Even if something happens, it’s not too late to talk about it tomorrow.

After checking into the hotel and taking a comfortable bath, Xu Huasheng fell asleep comfortably. Have a good rest, there are important things to do tomorrow.

The next morning, as soon as Xu Huasheng had breakfast, Prince Salman came to the hotel, and then the two left the hotel together.

"Xu, this car factory is now completed and can start work at any time..."

Salman and Xu Huasheng took a private plane to Jeddah. Jeddah is the second largest city in Saudi Arabia and the largest port in Saudi Arabia. It is located on the west coast of Saudi Arabia, close to the Red Sea.

Ships depart from here to go to Europe very close, and this city is also extremely important to Saudi Arabia.

The Royal Saudi Automobile Group's automobile factory is established in this city. This automobile factory was invested and built by the Saudi royal family. It is large in scale and has very complete facilities.

The annual production capacity of this factory is 25 million vehicles. All the equipment used in it comes from China, and most of the equipment is purchased from Huasheng Group. The entire factory has an investment of 25 billion U.S. dollars. In this era, billion U.S. dollars is a big investment.

When he came to the workshop and saw the advanced production line in the workshop, Xu Huasheng was very satisfied. This factory is fully equipped and is not a simple assembly plant, but a complete automobile production plant.

Raw materials will be processed into various parts in this factory, and finally assembled into cars, including engine and transmission production lines. Not only that, the production line of this factory is more advanced than the production line used by Shanhai Automobile, and the degree of automation is much higher.

For a production line with the same production capacity, this factory requires only about one-third of the workers of Shanhai Automobile's Huaxia factory.

The reason why there is such a big gap is that in order to create more jobs, Shanhai Automobile's production lines in China have reduced automation capabilities in some links and used manual labor. It is equivalent to giving the money for these equipment to the workers in disguise.

However, the production lines in Saudi factories are as automated as possible and as advanced as they can be. After all, labor in Saudi Arabia is very expensive.

However, the product quality produced by Shanhai Automobile's production line and the production line in Saudi Arabia are the same, and the efficiency is similar. The difference between them is nothing more than that one employs fewer people and the other employs more.

"Your Highness, our Shanhai Automobile Group finalized several cars years ago. These cars can be authorized to be produced in this factory..."

Xu Huasheng took out an album from his entourage's bag and began to introduce it to Salman.

都是白虎系列的车型，白虎A8、A6、A4、Q7、Q5、Q3，这名字直接把未来奥迪的命名拿来了。而那款GL8车型，现在也换成了白虎M8，未来白虎品牌的MPV车型就是M系列。

In addition to these seven cars, there is also the re-shelled Land Cruiser. Under the Baihu brand, it is the T series. After the Land Cruiser is re-shelled, it will be the White Tiger T90. It focuses on luxury attributes and is a top-notch luxury off-road vehicle.

Eight models, plus Land Cruiser, now the factory can produce a total of nine models. After the Suzaku brand models are finalized in the future, more models can be produced in this factory.

"beautiful……"

Salman couldn't help but say after hearing the introduction.

These cars are so beautiful, Land Cruiser and T90 Salman are no strangers to them. The Land Cruiser is now selling very well in the Middle East, and the White Tiger T90 is one of its own. Salman knows best what this car is like.

Now the Baihu brand has come up with so many beautiful cars with good performance, advanced models, and I’m really envious of them. Look at this appearance, look at this design, look at this interior. When comparing the cars on the market, Mercedes-Benz, BMW and Cadillac have to stand aside, and they look like a country girl.

"Your Highness, after our internal discussions, we have also given our specific cooperation plan. Our Shanhai Automobile Group will provide the complete vehicle technology, and the Royal Saudi Automobile Company will be responsible for production and sales. Shanhai Automobile will take 55% of the comprehensive profit. The Royal Saudi Automobile Company takes 45%. This factory will have full production capacity in the future, and its main sales targets are not limited to the Middle East. It is relatively close to Europe. In the future, our Shanhai Automobile's cars in the European market will also be sold. As for how much you can sell from this factory, it depends on your sales ability. Your country has a good relationship with Europe. If the cars produced by this factory can get some preferential policies, these cars will probably be available in Europe. Very good competitiveness..."

Xu Huasheng looked at Salman and said the specific method of cooperation.

The cooperation method is very simple. Saudi Arabia is responsible for providing money and effort for production, while Shanhai Automobile only provides technology and charges technology licensing fees. Shanhai Automobile will take 55% of the final settlement profit, and Saudi Arabia will take 45%.

From this point of view, Saudi Arabia seems to have lost money. After all, they contributed money and efforts, but most of the profits were taken by Shanhai Automobile.

But in fact, it was Shanhai Automobile that suffered the loss. Except for Shanhai Automobile, no other car company would provide such conditions to Saudi Arabia.

The market in Saudi Arabia is not big, and there is no market capital for technology exchange. For other car companies, I can obviously get 100% of the profits, so why should I give out 45%.

From another perspective, Saudi Arabia is a foundry, and the foundry takes 45% of the profits, which is quite terrifying. However, this foundry in Saudi Arabia is different from other foundries. Saudi OEMs need to purchase their own raw materials and sell them themselves.

This is the price of not having the technology. If Saudi Arabia had the technology and developed its own car, it would not have to pay a penny to Shanhai Automobile Group, but it is a pity that Saudi Arabia does not. Not to mention that we don’t have it now, even in another twenty years we may not be able to develop a competitive car in the market.

The reason why Xu Huasheng gave Saudi Arabia 45% of the profits is still very simple. The interests are bundled and the car profits are transferred. The Huasheng Group can earn it back in other ways. At the same time, the interests between Saudi Arabia and China are bound more closely.

Saudi Arabia is the leader in the Middle East, and a good relationship with Saudi Arabia is of great significance to the entire Chinese national strategy.

The United States exports war in the Middle East, and China exports cooperation in the Middle East.

Now the entire Middle East is about to use the Chinese Internet standard. In the future, Xu Huasheng will output something on the Internet in these countries and form an information cocoon.

By that time, the people of the Middle East who are trapped in an information cocoon will be the best sword in China's hands. By exporting some values ​​through the information cocoon, public opinion can be controlled silently. Under this subtle change, the attitude of the people of this land towards European and American countries will become worse and worse. This is the real overall situation set by Xu Huasheng.