Chapter 998 Exchanging the market for technology

Deputy Director Tian smiled slightly when he thought of this, looking very relaxed: "I originally wanted to leave the issue of equity until the end and then talk to Mr. Sam, since Mr. Sam has brought it up now, then let's talk about it in advance, I wonder what Mr. Sam thinks about the distribution ratio of equity?"

Sam said unabashedly according to Niu Xiaoqiang's previous instructions: "We want to get 55% of the shares of the joint venture." ”

Deputy Director Tian suddenly felt two shocks in his heart, and said secretly: Sure enough, I guessed correctly, Packard Automotive Company, like the Bavarian Machine-Building Plant, wants to obtain a controlling stake in the joint venture.

Deputy Director Tian thought for a while, and then spoke: "This...... I wonder how much money your company is going to invest in this cooperation project?"

Sam asked rhetorically, "I wonder why Your Excellency is asking this question?"

Deputy Director Tian explained: "According to the business rules, the proportion of shares is determined according to the amount of investment by both parties, if you do not contribute as much as our factory, of course you will not be able to obtain more than half of the equity." ”

Sam nodded slightly: " Your words are very reasonable, for this joint venture project, our company is ready to take the technology plus cash shares, cash will not be less than 10 million US dollars, as for technology, this needs to be determined according to the actual situation, for example, if your company lacks any technology, we will provide what technology, because we master the technology is very advanced, so the value is also very high, for example, we master the V16 engine technology, in the international leading level, this technology alone is worth at least 15 million US dollars, other technologies are also about the same price, very few technologies may be more expensive。 ”

Sam said this, staring at Deputy Director Tian with blazing eyes: "As far as I know, the technical strength of your factory is relatively poor, and many places need us to provide you with technical support, and we can take out a few new technologies that can be worth tens of millions of dollars, such a large amount should be enough for us to obtain more than half of the equity, right?"

Even at a valuation of US$50 million, this is equivalent to a total of 150 million yuan invested by Packard Motors, plus US$10 million in cash.

If the total value of the joint venture plant reaches 300 million yuan, Packard Motors will be able to take half of the shares. This shows that Nanfeng Automobile Factory will have to shell out at least 150 million yuan in capital to compete with Packard Automobile Company in terms of equity.

This amount of money is not a small amount for Nanfeng Automobile Factory, and Deputy Director Tian does not have the power to make decisions on the spot, and it needs to be voted on by the factory committee.

He secretly calculated in his heart, and felt that there was still a great hope of passing the vote. The main reason is that there is no joint venture automobile enterprise in China, and Nanfeng Automobile Factory and Yuejin Automobile Factory both want to take the lead, which is a remarkable political achievement, and the leadership of both sides is naturally strongly supportive.

Although the hope of passing the vote is very high, Deputy Director Tian still has some concerns. Just now Sam has made it very clear, they take out a new technology worth tens of millions of dollars, and the technology of Nanfeng Automobile Factory is relatively backward, and it is difficult to understand that there are more than a dozen technologies needed on their side, so that Packard Automobile Company is equivalent to investing hundreds of millions of dollars in capital, and even with their own side, they must contribute this amount, otherwise they will be at a disadvantage in the distribution of equity.

What's even more difficult is that the amount of technology investment is not fixed, and it may only need five new technologies at the beginning, which will be increased to 10 in the future, and may be increased to 20 in the future.

As the amount of technology investment increases, Packard Motors will inevitably ask for more shares, and by that time the joint venture plant is already on track and no longer needs additional cash investment, which means that Nanfeng Automobile Plant can no longer balance the equity of both parties through additional investment.

If this issue is not discussed in advance, this joint venture project may often be disputed in the future. If Packard Motors is provoked, it is impossible for Nanfeng Automobile Factory to continue to receive technical support from the other party, which is a very serious problem for Nanfeng Automobile Factory, which urgently needs to improve its technical level.

In fact, anyone with a discerning eye knows that the biggest reason why domestic enterprises seek joint ventures with foreign investors is not because of other people's dollars, but because of other people's advanced technology.

As long as there is advanced technology, domestic companies can stand on the same starting line as foreign companies and compete with each other. Without these advanced technologies, you would never have to look up to each other. No matter how strongly the country supports you, it will be in vain.

There is a good saying: science and technology are the primary productive forces, and it is not difficult to see the importance of technology from this sentence.

The reason is actually very simple: with technology, you can produce high-quality products, and through high-quality products, you can gain market recognition, and then you can seize market share, so you can make a lot of money.

Sooner or later, China will have to open up its market in an all-round way, otherwise the economy will not be able to truly develop. At present, many large state-owned enterprises rely on monopoly to obtain profits, and once the state opens up its market, foreign products will inevitably flock in, and if these state-owned enterprises have not upgraded their own technological level, then what awaits them will surely perish.

The top management has seen this for a long time, and after some thought, they proposed a relatively simple and effective solution, which is to trade the market for technology.

First use the market to obtain the opportunity of joint venture with foreign businessmen, and wait until the domestic enterprises have mastered the advanced technology of foreign enterprises through joint ventures, and then snatch back the market with their backhands, so that foreign businessmen can earn money, and domestic enterprises have obtained technology, and both sides will not suffer losses.

China's market size is quite huge, and no one can ignore this, otherwise those foreign companies will not be able to come in large numbers after the reform and opening up.

The country's attitude towards investment in key industries is very clear: Do you want to enter the Chinese market? This is actually very simple, as long as you cooperate with China's enterprises, as long as you set up joint ventures with China's enterprises, you can obtain super high profits through our huge market, and we will also give many preferential policies.

I'm sorry, we haven't opened up the policy of wholly foreign-owned enterprises in this field at this stage, you can only wait for the day when the policy is opened, but I must remind you: China's market is so huge, when you wait for the day when the policy is opened, most of the market has already been robbed by other joint ventures, and at that time you can only drink the northwest wind, and it is too late to regret it.