Investor That Can See The Future

Chapter 128

Eunsung Motors office building in Suseo-dong.

A meeting of the CEOs was convened under the presidency of Vice Chairman Han Chan-young. The president of each affiliate, the head of the corporation, executives of important departments, and the development team of the research institute gathered in one place.

The faces of the people sitting in the seats were all dark. This is because the current situation of Eunsung Motors is not good.

Last year, sales declined for the first time not only in the US but also in the global market. Fortunately, sales and operating profit did not fall thanks to good performance in the domestic market, but the slowdown in growth is fatal for the company.

The problem is that the decline in sales is not temporary, but is highly likely to lead to a trend.

Chanyoung Han got up from his seat and said.

“As you know, the end of the internal combustion engine is only a matter of time.”

Countries in Europe have already announced plans to start reducing sales of internal combustion engine vehicles from 2020 and ban the sale of gasoline and diesel vehicles entirely by 2030 at the earliest.

The change was a planned trend. For this reason, for a long time, most automobile companies have started developing future cars with the money they earned from internal combustion engine vehicles.

It was the same with the silver car. Unfortunately, the opportunity was missed at the most important time.

The people at the meeting were probably thinking the same thing.

‘If it wasn’t for hydrogen cars… … .’

Initially, the development direction for next-generation automobiles was divided into two.

electric and hydrogen cars.

In the early stages of development, electric vehicles seemed to have many problems. Even if performance improves over time, it seemed impossible to solve the short cruising range and long charging time.

Battery price was also an issue here. Because of the battery, there was no price that could possibly replace an internal combustion engine vehicle.

The high cost was the same for hydrogen cars, but it was considered that this could be sufficiently overcome through technological development and mass production.

Hydrogen cars do not have a cruising distance problem, and because only hydrogen is injected into the storage tank, the charging speed is no different from that of an internal combustion locomotive.

Eunseong Motors was convinced that the hydrogen car is the ultimate car of the future. So, ahead of others, the group’s capabilities were generously invested in hydrogen car R&D.

As a result, the world’s first mass-produced hydrogen car, PotenHY, was released. The price is 150 million won. It was five times the price of an internal combustion engine vehicle of the same class.

No matter how much subsidy is paid, the price is not competitive. In addition, hydrogen refueling stations were insufficient.

In the end, PotenHY was purchased on a trial basis only in government offices and research institutes and ended. The sales figures were at a level that was meaningless.

Not even a profit was made, not even the investment in development cost was hardly recovered.

However, this was the signal that signaled the beginning of the hydrogen car. From now on, all companies will enter the hydrogen car market, and if the number of hydrogen cars increases, the problem of shortage of charging stations will be solved naturally.

Toyota launched the Mirai with the support of the Japanese government, and Honda, Audi and BMW also started development.

Up until this point, the future of hydrogen cars seemed bright, and Eunsung was convinced that it had become a leader in the next generation of cars.

But something unexpected happened.

The electric vehicle, which can be called a competitor, is developing at a tremendous speed and improving various problems.

The range increased, the charging speed increased, and the performance was comparable to that of an internal combustion locomotive. The most decisive factor is the decline in battery prices.

The price of battery packs for electric vehicles has fallen by more than 70 percent in recent years. Thanks to this, electric vehicles were able to have price competitiveness.

Unlike hydrogen cars, where private demand was zero, electric vehicles were sold like wings. And Nikola was at the forefront.

In fact, when the electric car won by decision, the companies that were researching and developing hydrogen cars quickly withdrew and turned to electric cars.

Now, in the hydrogen car camp, Eunsung was standing alone.

Realizing the Awakened of the situation, Eunsung Motor belatedly started R&D for electric vehicles. However, it was already far behind in technological prowess compared to forerunners such as Nikola and BID.

Fortunately, Eunsung Motors had the technology, production capacity, and sufficient capital it had accumulated as a finished car maker.

For this reason, we quickly launched two electric vehicles and looked at the market response. If they had acquired the Seoseong SB, they would have started mass-producing electric vehicles in earnest.

However, Im Jin-yong protected Seoseong SB and joined hands with Carlos.

From the perspective of Eunsung Motors, the company had no choice but to revise its future car strategy.

Chan-young Han said looking around his bosses.

“From now on, Eunsung will focus on investing in the hydrogen car sector.”

At those words, the conference hall roared.

It failed once, but now that you are bringing out the card of hydrogen car development again.

“After all, electric vehicles are just a transitional product on the way to the next generation of automobiles.”

No matter how much improvements have been made, the cruising range and charging time are still issues. As long as the underlying problem is not resolved, there are plenty of opportunities for hydrogen cars.

Therefore, other automakers who turned to electric vehicles did not completely stop developing technologies for hydrogen cars (there are many overlaps in terms of driving motors with electricity).

Eunsung MD President Kang Min-cheol said cautiously.

“It is true that hydrogen cars are superior to electric vehicles in many ways, but the charging infrastructure is currently insufficient.”

There are only 12 hydrogen refueling stations in Korea.

How would you ride a car that couldn’t be refueled?

“There is nothing to worry about. The government will soon designate hydrogen cars as a future growth engine and actively support them. In addition to increasing subsidies for hydrogen cars, the government will directly build hydrogen charging stations and provide installation subsidies to the private sector.”

After Eunsung Motors started developing electric vehicles, the government actively supported electric vehicles. To be precise, the subsidy was concentrated on silver cars by limiting the price of the vehicle and the battery capacity.

But now, are you going to support hydrogen cars again?

Among the people gathered here, there was no one who was unaware of the relationship between Eunseong-cha and the government.

After all, it is impossible to sell electric or hydrogen cars without subsidies. If the government pushes it properly, it’s worth a try.

Chanyoung Han smiled.

“Hydrogen cars are the ultimate eco-friendly car. The future lies in hydrogen cars.”

* * *

We started investigating PAS.

If you move in Korea, of course, you will recognize it. So, I secretly commissioned the Golden Gate Asian branch.

First, we will take a closer look at the money flow.

We have strengthened the security around the building and the house in case of any unforeseen circumstances. And he kept a close eye on the movements of the politicians and Eunsung Cha.

I got a call from Chairman Im Jin-yong.

[The government has decided to push hydrogen cars. Sooner or later, the president will come forward and announce the hydrogen car support plan.]

I was taken aback by that.

I’m sure they’ll pull out the hydrogen car card!

There was only one company that could launch a hydrogen car in Korea.

“This is an open statement about supporting Eunsung Motors.”

It failed to incorporate Seosung SB as an affiliate and it is lagging behind in R&D for electric vehicles, so are you thinking of winning with hydrogen cars?

[Eunsung Motors is evaluated as having technological prowess for hydrogen cars that surpasses Toyota and Honda. Above all, it is the only car maker to have a mass production system, so it would have been a waste to just tease him.]

Politicians need to understand the context well.

The budget does not come out of digging, and the amount of money that can be used is limited depending on the purpose.

Significantly increasing the hydrogen car subsidy and the supply of hydrogen charging stations is the same as reducing the electric vehicle subsidy and the supply of electric vehicle charging stations.

“Thanks for letting us know in advance.”

[Then let me go.]

I thought after hanging up the phone.

Unlike the start-up OTK Company, the Seosung Group has long been deeply rooted in Korean society. There will not be one or two people who have been planted in politics. So, I could have known this information in advance.

It’s convenient to be close with the Seoseong group.

??after a few days.

As President Lim Jin-yong said, President Park Si-hyeong took part in the economic policy meeting and announced new and renewable energy, robots, contents, Internet of Things, big data, and hydrogen cars as future growth engines.

He focused on double hydrogen cars and even presented a step-by-step roadmap.

[Hydrogen car called the ultimate eco-friendly car!][Direct installation of hydrogen charging stations in each municipality!][To more than triple the number of hydrogen refueling stations within this year][Expansion of subsidies for hydrogen cars]

While the news was pouring in, Eunsung Motors announced plans to release two hydrogen cars as if they were waiting.

Taek-gyu asked.

“A hydrogen car going to hydrogen?”

“right.”

There are two types of hydrogen cars. Hydrogen internal combustion locomotives that use hydrogen to drive engines, and FCEVs, which generate electricity with hydrogen to drive motors.

In the case of the former, development is not actually made, so when we say hydrogen cars, we usually mean the latter.

“Then there is not much difference with electric cars, isn’t it?”

“It’s the difference between a secondary battery and a fuel cell.”

Electric vehicles (EVs) store electricity in batteries. On the other hand, a hydrogen vehicle (FCEV) generates electricity directly by reacting hydrogen with oxygen.

One side carries a charged battery, while the other carries a mini generator.

“price is?”

“Hydrogen cars are much more expensive.”(Read more @ wuxiax.com)

A hydrogen vehicle is equipped with a hydrogen fuel tank and a fuel cell stack (a device that generates electricity) instead of a battery. However, fuel cell stacks are currently more expensive than batteries.

“So did you fail?”

“There is, but the biggest problem was the lack of a charging station.”

The lack of charging stations in the early days is the same for electric vehicles. However, electricity has the advantage of being relatively easy to install. All you have to do is pull the power cord and install the charger.

If not, it is possible to charge it with a household outlet.

“Electric vehicle charging stations have been installed everywhere in highway rest areas, government offices, apartments, large buildings, marts and shopping malls, but there are only 12 hydrogen charging stations.”

“You can build it.”

“Damnly expensive.”

“How are you?”

“At least 3 billion.”

Taehyung was surprised.

“You hear that much?”

“By the way, this is pure installation cost to the last, and the cost of the site is separate. To make it in downtown Seoul, you will need at least 5 billion won.”

No matter how much money it costs, it is worth the investment if there are many users. By the way, how many hydrogen cars did you make such an investment?

“It’s a question of which came first the chicken or the egg.”

There are no hydrogen cars because there are no hydrogen charging stations, and there are no hydrogen charging stations because there are no hydrogen cars. So, the government plans to build hydrogen charging stations even by paying subsidies and then increase the number of hydrogen cars.

In fact, looking at South Korea alone, the hydrogen car promotion policy is not in the wrong direction. Korea is a small country and has the highest population density in the world. Moreover, 40% of the population lives in the metropolitan area alone.

If only a few charging stations are built in the center of the metropolitan area and each local government, the problem will be solved to some extent.

“It’s not that Eunseong Cha got in the wrong line. But no one stood behind him.”

Economies of scale are very important in new industries.

There were many problems with electric cars or hydrogen cars. If the price of lithium-ion batteries had not fallen significantly, hydrogen cars might have had an edge in price competitiveness.

Then, several companies would have started R&D and mass production of hydrogen cars, and if they did, they would be able to create a virtuous cycle structure that lowers costs and increases charging infrastructure.

“Isn’t the trend already leaning towards electric vehicles?”

“It is, but… … .”

It is highly likely that hydrogen cars will remain limited to domestic demand only if the government supports them now.

But after a while, surprising news came.

Toyota, Audi, BMW, etc. have signed a patent partnership with Eunsung Motors and announced plans to develop hydrogen cars all at once.