Holy Roman Empire

The huge cost of capital invested in the early stage alone is beyond the reach of ordinary enterprises and individuals.

After all, the auto market is very limited these days, and financial consortiums still look down on such small profits.

The capital's favorite thing to do is to go directly to pick the fruit when the fruit is about to ripen, instead of running to plant fruit trees by itself.

Entity giants are mostly limited by business concepts, and generally focus on their own fields. Even if they expand, they are also entering related industries.

This is a lesson learned from countless classic cases. The chance of failure is much higher than success if you cross borders into an unfamiliar field rashly.

Before the risk can not be estimated, most people will choose to wait and see.Of course, the more important thing is that there is no money in the pocket.

Now the family car market has just started, and the future is still unclear. No one can guarantee whether today's internal combustion engine cars will be yesterday's steam cars.

The automobile industry is in the stage of burning money, which is equivalent to just planting a small sapling, and it is still far away from flowering and bearing fruit.

Then, of course, it was handcrafted.The technical difficulty of large-scale industrial production is too high. If you want a copycat, you must have industrial support, and it cannot be completed overnight.

In contrast, it is much simpler to build by hand.If the precision of spare parts is not enough, let them go up and polish them manually.If the engine horsepower is not enough, increase the number of cylinders.

Now the main competitor of the Austrian Automobile Group in the market is a bunch of manual workshops.

Because the car has just come out not long ago, it is still a high-end luxury product, and the price is relatively high. Even if the production cost of the hand-made workshop is higher, they can still make a lot of profit.

After smoothing out all this, Franz frowned all of a sudden.

It is clear that many in the Austrian Automobile Group have been blinded by the current results and ignored the existence of competitors.

Since the launch of the product in 1882, the market share of the Austrian Automobile Group has been declining year by year.

The decline in market share is inevitable. Unless the market is completely monopolized, otherwise as competitors continue to join, the market share will definitely decline.

It's just that the Austrian Automobile Group's market share has fallen too fast, and it has fallen by nearly a quarter in just three years.

This is his own industry. If he stops moving forward, he will lose his own interests. This is absolutely intolerable to Franz.

"Opreya, aren't you planning to build a cheap car to keep your market share?"

Franz no longer has extravagant hopes for expanding market share.

You know, the Austrian Automobile Group has a 70.00% share of [-] in the car sales market, how can it increase?

However, we can work hard to keep the market share as much as possible, or reduce the rate of market share decline.

Oprea hurriedly explained: "Your Majesty, the launch of cheap cars will not only reduce our corporate profits, but will also damage our car brand value.

At present, the Beetle, Walker, Brady and other models promoted by the group are all high-end cars.

Although price reduction sales can gain a larger market share in a short period of time, cars have been destined to be a luxury product since its birth.

No matter how much we lower the price, it is impossible for ordinary people to afford it.Now we are trying to make cars a status symbol, so it is very important to maintain the brand value of the car. "

Being able to realize the "brand value", Oprea is obviously not an ordinary person.

However, limited by the times, he still did not expect that cars may enter thousands of households, falling from luxury goods to means of transportation.

Judging from the current global car consumption market with only tens of thousands of vehicles per year, it is reasonable for Oprea to abandon the development of low-end models and focus on the operation of high-end brands.

Franz shook his head: "No, there is still a lot of room for reduction in the production cost of cars. It is not impossible for the price to fall to a range acceptable to ordinary people in the future.

In the short term, under the existing technology system, we can all reduce the cost to the acceptable range of the middle class.

If we continue to expand production capacity, the current production cost will continue to decrease.

Perhaps the sales of individual cars have declined, but the number of the middle class is much larger than that of the rich, and our total profits will only be higher.

Moreover, lowering the selling price of cars can also hurt our competitors.Unlike us, the production cost of their small workshops cannot be reduced at all.

As for brand value, it's even simpler.Re-register a company, and use the name of the new company to change the brand to focus on low-cost cars. "

Now the production cost of a car is generally between 400 and 700 Aegis, and the sales price on the market is basically above 1000 Aegis, and the luxury version of the car is easily sold at a high price.

Such a high gross profit still cannot conceal the fact that the Austrian Automobile Group is losing money.

The main reason is that the R&D investment is too high and the post-maintenance cost remains high, which has led to the company's long-term loss.

Oprea's focus on corporate profits, in fact, is a last resort.The company's financial situation is not good, so we can't ask the boss for money every day, right?

If it weren't for Franz's mandatory request, it is estimated that Oprea would cut off the research and development funds and devote all his efforts to car sales.

After all, in the short term, sales-oriented enterprises are more profitable than R&D-oriented enterprises.Only by allowing the company to make money can everyone get a richer return.

In the current state of loss, just get some bonuses.Stock options are not yet popular, but profit sharing has appeared.

It's just that a research and development enterprise like the Austrian Automobile Group has been losing money for more than ten years in a row, and there is no dividend at all.

However, Oprea still has integrity. There is no way to learn from some unscrupulous listed company executives who only care about making money for themselves without considering the long-term development of the company.

Otherwise, if the concept is changed secretly, it will be very simple for the Austrian Automobile Group to turn losses into profits.Whether it is reducing R&D investment or slowing down the construction of maintenance points, it can achieve profitability.

If it weren't for the drag of these two gold swallowing beasts, the Austrian Automobile Group would definitely be the most profitable company in this era, and it would still be the kind that is incomparably rich.

Even if each car only earns 100 Aegis, the Austrian Automobile Group has a net income of 600 million Aegis every year.

In fact, there will only be more. The cars sold cannot all be ordinary models with the lowest profit.That kind of local tycoon car that usually costs tens of thousands of dollars can easily earn a few thousand dollars if you sell one.

Of course, the core competitiveness of the Austrian Automobile Group is actually technology and after-sales service.

Losing money in the short term, but these are the most profitable in the future.Once the channel is laid, there will be no competitors at all for a long time.

This point can be seen in Austria. In areas covered by the group's service outlets, the only cars that can be sold in the market are "Austrian Automobile" cars.

Other manufacturing companies, limited by their own strength, simply cannot afford to lay so many maintenance outlets.

Once the car is broken, you can only find a way to repair it yourself, or wait for the technical workers from the manufacturer to come.

"Yes, Your Majesty!" Oprea replied.

After a pause, Oprea added: "Your Majesty, in order to increase corporate earnings, reverse the current loss-making state, and increase corporate competitiveness.

The management plans to cover gas stations when laying out logistics channels, so that our users can refuel on the way. "

If we do this in later generations, the anti-monopoly law will have already come to our door before it has time to start.

The meaning of "convenience to our users" is already very obvious, which is full of exclusivity.Even when other cars arrived at the gas station, they could only watch from the side.

But in the era of great monopolies in the 19th century, this was completely commonplace.Just like now, the maintenance points of the Austrian Automobile Group do not provide services for other brands of cars.

After contemplating for a moment, Franz shook his head: "Gas stations can be operated, but they can't be so extreme. This is different from a maintenance station, and it is very likely to arouse public resentment.

The voice of anti-monopoly in the society is getting louder and louder, and it is only a matter of time before countries introduce anti-monopoly laws.Leaving such an obvious flaw now, it will be easy to be targeted in the future.

In this regard, you must pay attention.Even if it is to increase competitiveness, more covert means can be adopted.

For example: membership card service.

Anyone who buys the group's vehicles can enjoy membership services and get certain discounts at gas stations.

Other customers, who want discounts on fuel, can let them pay for a membership card out of their own pocket.

You can issue more membership cards, preferably different for each city, and a membership card can only enjoy discounts in one region.

You can find any excuse, as long as it makes sense on the surface and everyone can reluctantly accept it. "

The maintenance points of the Austrian Automobile Group do not provide services for other cars, and there are enough reasons to shirk.

For example: there is no matching spare parts, and maintenance cannot be carried out; or the car repair master has not been in contact with this car and does not know how to fix it.

Gas stations are no good. Anyway, everyone uses those oils, and they can’t be used if they don’t exist.

If you refuse to provide service, car owners will definitely cause trouble.Naturally, Franz would not do such a thing of hatred.

In contrast, member services are much easier for everyone to accept.As long as there is no fanfare, ordinary people will not be able to understand the complex relationship between enterprises.

Change the vest and let the gas station and the automobile group break away from the direct connection.The car group can also pay a membership fee to the gas station every year, so that everyone has nothing to say.

Anyway, there is no information networking technology these days. Membership cards cannot be used nationwide, and it can be said that they cannot be recognized, or that gas stations in various places are operated independently.

The card cannot be recognized, but the car can be recognized.If all the car manufacturers can pay the dues, Franz doesn't mind everyone enjoying the discount.

……

Chapter 74 Compromise in Helplessness

Compared with family cars, trucks and tractors are actually more likely to be favored by consumers in the market.

The former is a luxury and can only consume wealth; the latter is a means of production and can create more wealth.

Rich people are not fools, and they can clearly distinguish which is more important.When doing multiple-choice questions, of course, you have to come according to your own needs.

Generally speaking, capitalists in cities prefer cars.Because cars can demonstrate their noble status and bring them convenience in business.

Well, this is just an illusion in my heart.Unless it's going out to be a liar, deliberately flaunting wealth to fool people, it will probably be of some use.

In a normal business field, you can still talk about what you want to do.In the face of interests, no one will give in easily.

The real function of the car is probably to be able to fool the employees.Operate in an invisible way of showing off wealth, telling everyone: the boss is rich, don't worry.

Buyers of trucks and tractors, apart from transportation companies, mostly come from rural farmers and some aristocrats.

Farmers really need it. Unlike expensive cars, tractors have been defined as cheap cars since their birth.

This has nothing to do with Franz. In a big agricultural country like Austria, after discovering the magic weapon of the tractor, it would be a problem if the Vienna government did not intervene.

Since 1883, the Vienna government has promulgated decrees to exempt tractor manufacturers from taxes and encourage them to sell to farmers at low prices.

So far, a number of state-owned enterprises have been involved in the tractor production industry and have directly lowered the sales price.

Compared with the high profits of cars, tractors are really the price of cabbage.

The market price of tractors for both pulling goods and plowing is only 200~300 Aegis, and 150 Aegis for single purpose can be bought.

Of course, this is what you pay for.The practical value is not low, so don't expect comfort.

In order to reduce production costs, some manufacturers don't even bother to equip the seats, and require consumers to install them by themselves after they buy them home.

The pungent thick smoke, and the ear-piercing sound of "sudden, sudden, sudden..." when running, if there is a sense of user experience, it is estimated that many people will give zero points.

In contrast, a truck can be seen as a modified version of a car.It is nothing more than adding a carriage at the rear, and adding a few cylinders below to act as power.

The comfort is much stronger than that of a tractor, but not as good as that of a car.The price is also somewhere in between.

After all, it is a big guy, the technical difficulty of production is much lower, and the cost is also slightly lower.

If it is not limited by traffic, it is estimated that the promotion speed of trucks will be much faster than that of cars that only operate in cities or surrounding areas.

Anyway, as soon as it was launched on the market, it was favored by the nobles.Whether it is pulling food from home, selling vegetables into the city, or hunting with your belongings, trucks are more worry-free than horse-drawn carts.

Demonstrating status is what nouveau riche need.Since the Great Revolution in 1848, the Austrian nobles have kept a low profile.

Emerging capitalists have taken their place as haters, as can be seen in the daily newspapers.

In most news that exposes social reality, the protagonists of the villains are mostly nouveau riche capitalists, or the second generation.

In contrast, the proportion of dudes among the nobles is much lower.Of course, this may be the social environment, which limits their space to play.

There are many classes for the children of the nobles. After they become adults, one counts as one, and they will all enter the army for a few years.

By the time they leave the army and return home, they are not too young, they are no longer middle school sophomores, and they know how to use their brains when doing things.

In fact, there are a lot of bad things among the nobles, and all kinds of weird freaks emerge in endlessly.

It's just that these people have to worry about the family's reputation. Except for a few idiots, most people know how to hide things and not expose them to the spotlight.

Compared with the old aristocrats, the newly-emerged military aristocrats have no experience in dealing with this matter.

After taking power, many people are addicted to power and cannot extricate themselves, causing more troubles.

For Franz, these are minor issues.

If the matter is not exposed, it is naturally hello, hello, hello, everyone, anyway, he, the emperor, will not know.

If the matter is exposed, then one counts as one, and it will be dealt with according to Austrian law.

After watching chicken after chicken get killed, it worked.I don't know if the monkeys were frightened, but the rest of the chickens were frightened anyway.

With the vigorous development of the automobile industry, around this new industrial chain, many surrounding industries have also benefited.

A series of industries such as iron and steel, machinery manufacturing, petrochemical industry, etc., have seen a significant increase in the speed of development in recent years.

Taking the steel industry as an example, it seems that the current production capacity of automobiles is not high, and it does not consume much steel every year.

But now the automobile industry needs refined steel, or special steel widely used in the military, rather than a pile of scrap iron that needs to be reworked.

Customers are God, and there will be services when there is demand in the market.As long as the money is in place, everything is negotiable.

There is no law in Austria stipulating that special steel for military use cannot be used for civilian use.Before that, no one used it because the price was too high.