Chapter 1158 – Conditions
“The higher-ups want to split up Bing City Machinery Company? Why?” Feng Yu asked.
Bing City Machinery Company is China’s top machinery manufacturer and is famous throughout Asia. Japan, Korea, and many other countries’ companies are jealous of their market share in China. Bing City Machinery Company had successfully stopped Japanese cars from dominating the Chinese market.
Zhang Ruiqiang patted Feng Yu’s shoulders to calm him.
“The higher-ups are considering this, but this is not mandatory, and they are asking for our views. Bing City Machinery Company is a shareholding, and you are the major shareholder. You will have the final say over this matter.”
Zhang Ruiqiang does not know if breaking up Bing City Machinery Company is good or bad. But if this is good for the company, Feng Yu will surely agree. But if it is bad, Feng Yu will never agree to it.
Feng Yu is relieved to hear that it is not mandatory. He thought the higher-ups are going to interfere in the company.
Seems like Old Zhang still has some influence to stop the higher-ups from interfering with the company.
“What is the Province Government’s position? Do you all want to split the company or not?” Feng Yu purposely ask.
Since Zhang Ruiqiang asked this question, that means he is also thinking of splitting the company. Feng Yu wants to know what is Zhang Ruiqiang’s decision. He knows Zhang Ruiqiang is not someone who will snatch the fruits of one’s labor.
Furthermore, Feng Yu donated large sums of money to Bing City and Longjiang Province every year. The leaders in Longjiang Province should not be so short-sighted.
Without Feng Yu, can Longjiang Province become successful? Just their trade with Russia had helped Longjiang Province make lots of money. These trades are all because of Kirilenko’s help.
“Feng Yu, Bing City Machinery has several products. Agriculture machinery, automobile, motorcycles, and just the motorcycles are still split into two wheels and three wheels motorcycles. Of course, there is the special purpose of four wheels motorcycles.”
“Our business is expanding very fast, and our brand, scale, and profits are making others envious. I heard from Li Mingde that we will be implementing the electric bikes soon. He says this is your idea, and this electric bike can reduce carbon emissions and save energy. Although I don’t know what it means, the company needs to expand again, right?”
Feng Yu nodded. “Electric bike is running on electricity, and will not pollute the environment. Also, electric bikes are lighter and do not need petrol. The users can charge the batteries at home, and if the electric bike runs out of battery, the user can ride it like a normal bicycle. This is our company’s solution to motorcycle restrictions in the future.”
Zhang Ruiqiang looks at Feng Yu curiously. “Motorcycle restrictions? I had heard about this, but can it really be implemented? Motorcycles are currently one of the main forms of transport. If it is implemented, are people going back to take public buses or ride bicycles?”
“Didn’t you realize that our automobile sales had been increasing over the past few years? Our roads are just this wide, and if there are more cars on the road, those motorcycles will be weaving in between the cars. Also, the exhaust fumes from motorcycles are worse than cars. It will be ban sooner or later. At least, it will be restricted on the city’s roads.
“But that’s not right. You mentioned the electric bike will be replacing motorcycles. Still, other than the exhaust fumes, it can also weave in and out of the traffic.”
“How fast is the speed of a motorcycle? We can limit the electric bike’s speed to 60 mph/h or 40 mph /h. Most of the time, people will not go over 20 mph /h. Motorcycles can go up to 100 mph /h. You can always see motorcycles going above 60 mph /h in the busy streets. Traffic police might not even catch them at this speed, and motorcycle accident rates are much higher than cars.”
“Then why don’t you limit the motorcycle’s speed?” Zhang Ruiqiang asked and suddenly felt this is a stupid question. If the motorcycle’s speed is restricted to 60 mph /h, who will want to buy it? Furthermore, motorcycles are the main form of transport in villages where there are lesser cars.
“Alright. Let’s not talk about the speeding issue. Bing City Machinery Company is going to start the electric bicycle production soon, right?”
“It’s an electric bike, and it includes electric bicycles and electric motorcycles. An electric bicycle can be used as a bicycle, and an electric motorcycle will look like a scooter. The speeds for both are different. Electric motorcycles can go up to 60 mph/h, but electric bicycles cannot.” Feng Yu explained.
“Alright. Don’t tell me about these anymore. The company will be increasing its productions and scale, right? How many branch factories does this company have? How many employees do the company employ?”
“Leader, this company is expanding, and hiring more employees helps the cities solve their unemployment issues. Why are you sounding that I am not doing the right thing?” Feng Yu grumbled.
“Stop trying to change the subject. You should know what I am talking about. The bigger the company is, the harder it is to manage. I see your Tai Hua Holdings management model is quite good. The holding company only needs to manage the subsidiaries’ human resources and finance, and the subsidiary can operate independently. If the subsidiary encounters any issue, the holding company can step in to assist it. This way, it is easy to manage all the companies.” Zhang Ruiqiang rolled his eyes.
“You can say so. We can split the research center and the different divisions into many subsidiaries. It will be easier to manage them, and I plan to do this in the future. But since the City also think so, fine. I will get my men from Tai Hua Holdings to evaluate Bing City Machinery Company and start the restructuring.”
Breaking up Bing City Machinery Company is fine as the subsidiaries will still be under a holding company. They can continue to share the brand and distribution channels. This will also make the accounts clearer, and the subsidiaries can get listed on their own.
“Then, after the restructuring, can the company takeover with the tire factory, glass factory, etc.?”
Feng Yu looks at Zhang Ruiqiang from the corner of his eyes. This is your real motive, right? Those small factories acquired by Bing City Machinery to produce spare parts in the past are all doing well. Now, the Provincial Government wants to merge the tire and glass factory? The tire factory is fine, but is there a need to include that glass factory?
“Is this what you want, or is it an order from the higher-ups?”
“Both. Our tire factory is not bad, and although our glass factory is ordinary, it is not a loss-making entity.”
“Haha… if the tire factory can sell its products under the Songjiang brand, it will make a lot of money. This applies to the glass factory too. The City Government wants to make use of our brand to help you all make money. I can agree to take over that glass factory if you include Bing City Aviation’s bulletproof glass factory in it.”
Feng Yu crossed his legs and started shaking.
Zhang Ruiqiang gritted his teeth. This is all for the City’s benefit. Even if Bing City Aviation has a military background, he must also try.
“Alright. I will try it!”