Chapter 137 Market Positioning and Psychological Tactics
Chapter 137 Market Positioning and Psychological Tactics
Hearing Lin Yi's last words, Tony quietly breathed a sigh of relief.
He was genuinely worried that Lin Yi's words would anger Dison, and that the group would be kicked out of the car factory.
But the phrase "the greatest car company ever" was enough to appease Dison's discontent.
Even if he had some knowledge of the Dodge brothers, I doubt any car manufacturer would deny having such ambitions.
I'd also be very happy to discuss this topic.
Sure enough, Dison's expression, which had been unable to hide his anger, immediately softened after Lin Yi's words.
He shrugged: "My father and uncles did dream of making Dodge Brothers the greatest car company ever."
"So do I."
"We've invested a lot to make this happen."
"I would even say that we have invested no less in research and development than Ford."
"But the market is cruel. People always like to buy cheap things, even if they have many shortcomings. As long as they are cheap, people will like them."
"This is something we cannot change."
His expression was a little helpless.
In recent years, not only the Dodge brothers, but even car companies like Chevrolet and Chrysler have been struggling to breathe under the pressure of Ford's Model T.
Fortunately, customers who have owned a Model T car tend not to choose another Model T car when they change cars.
And this is a huge market, which is why everyone has the opportunity to survive.
With so many manufacturers vying for a share, fierce market competition has inevitably ensued.
In addition, the Dodge Brothers have changed many professional managers over the years, and their business strategies have been unstable, which has ultimately led to them becoming increasingly passive in this competition.
The main reason for investing in commercial vehicles is also for this reason.
Powerful performance is the best competitive advantage in this niche market.
"Mr. Dodge, technology is the foundation of competitiveness."
"Right now, all you need is a clearer market analysis, whether it's for commercial vehicles or passenger vehicles."
"The market determines the sales volume of any product."
Lin Yi said with a smile, and before Dison could react, he pointed to a crane and asked a question.
He knew the hanger.
In the absence of robotic arms, specialized overhead cranes efficiently compensate for the lack of smoothness in the production line.
After a cursory tour, Dison Dodge, having finally grasped some of the essence of the experience, enthusiastically agreed to a two-week learning period for the technical team.
Clearly, since this Chinese man is talking about market analysis, he must have some ideas.
Whether such an idea could truly solve the predicament facing the Dodge brothers, he had no way of knowing.
But it's always good to listen.
With this in mind, he extended a warm invitation to lunch.
Before Tony could agree, Lin Yi declined: "I'm very sorry, Mr. Dodge, but I have a very important appointment at noon today."
"To express my apologies, I will have my chef prepare some Chinese delicacies for you to enjoy another day."
"With great pleasure."
Dison smiled helplessly.
As the car drove away from the Dodge Corporation, the astute Tony couldn't help but ask, "Lin, are you interested in the Dodge Brothers?"
"I am interested in this company."
Lin Yi didn't hide anything and smiled, "Tony, don't you think the US car market has great potential?"
"Of course, the Ford family has already made a fortune with the Model T."
"Especially their stock price, it's enviable."
"However, Lin, although the Dodge Brothers are not in good shape, it will take a huge amount of money to complete the acquisition."
"Did you know that ten years ago, the Dodge brothers revealed that they already had $24 million in cash, when their total sales had just reached 100,000 units?"
"Back then, the cheapest Model T cost less than three hundred dollars."
"Over the course of ten years, the purchasing power of currency has declined, but their wealth has expanded rapidly."
"It's very difficult to acquire one."
Although he didn't know the exact amount of money Lin Yi made from his last stock trading, he could guess roughly how much.
Standard Oil of Missouri has almost completely exhausted that money.
"Therefore, a new form is needed to complete the equity acquisition."
Lin Yi chuckled and said, "Tony, if I reach a cooperation agreement with the Dodge brothers, we can short Ford's stock on the stock market."
"I guarantee we'll make a lot of money."
Tony: "..."
There were no important dates, and Lin Yi and Tony left Detroit that same day.
Now, he needs to wait for the Dodge brothers and Chrysler's acquisition negotiations to stall.
Today he dropped a seed.
To become a great car company.
This temptation was enough for Dyson Dodge to offer Chrysler a high price that would make him abandon his dreams during negotiations.
His chance will only come when the acquisition negotiations fall through.
Otherwise, the Dodge Brothers wouldn't have easily agreed to the performance-based equity investment offer...
I went back to Yorktown and spent half a month there.
Tolson delivered the detailed financial information for Dodge Brothers.
It's neither good nor bad.
As a once-glorious car company, Dodge Brothers' biggest problem now is the backlog of inventory caused by sluggish sales and idle production capacity.
Just as Tony had predicted, if this situation did not improve, the continued financial losses would completely bankrupt Dodge Brothers within a few years.
That's why we had this acquisition negotiation with Chrysler.
If you sell now, you can still get a good price.
“Lin, I have good news. Dison should be on his plane to Yorktown right now, and he wants to meet with you.”
Upon receiving Tony's call and hearing the good news, Lin Yi chuckled and asked, "The negotiations with Chrysler have broken down?"
"There's no concrete news yet, but the outlook is probably not optimistic."
"Otherwise, Dison wouldn't have come to Yorktown."
"Okay, I'll treat him to a Chinese feast tonight."
As Lin Yi spoke, he asked again, "How's the Standard Oil mortgage situation going?"
“Conditions on Wall Street remain very harsh, you know, and the continued losses have put us in a completely passive position.”
"Okay, they won."
"If we reach an agreement with Dison tonight, I hope we can sign a deal with the Wall Street banks tomorrow."
"no problem!"
Tony gave an affirmative answer before hanging up the phone.
After hanging up the phone, Lin Yi pondered for a while and couldn't help but sigh.
It seems we'll have to resort to Sheng Aiyi's secret stash of money.
Otherwise, they wouldn't be able to raise enough money to short Ford stock.
If it's too little, it's completely meaningless.
Thinking it over, he jotted down a brief note on a sticky note, then called Ah Sheng over and asked him to send a telegram back home.
Miss Seven should agree to a 50% cut of the profits...
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