Chapter 488 Reform Plan
Shirakawa Kaede knew that if he wanted to expand the automotive business market, it would be unlikely that Subaru alone could achieve this vision.
If automobile OEMs want to increase sales, a cost-effective and popular route is inevitable.
However, because of Subaru's previous brand image, Shirakawa Kaede decided to start from scratch and establish a new car brand.
The purpose of SIKADE's establishment is to take the economic route, and its market positioning is basically in the mid-to-low-end field.
According to popular sayings in later generations, the models produced by Shirakawa Motors are probably hovering between A00, A0, A, and B levels.
In China, it can also be translated into micro cars, small cars, compact cars and mid-sized cars. Its target market is basically the general public.
As for Subaru, the mid-to-high-end market was handed over to it. At this time, Subaru's models were mainly B-class, C-class, and D-class.
Even after entering China, Shirakawa Kaede plans to directly translate SIKADE into "Shirakawa Automobile", after all, that is its original meaning.
When Nakamura Takao and the others heard Shirakawa Kaede's plan, they looked at each other, not knowing how to respond.
If you want to re-establish a brand, especially in an overseas market, it will surely cost a lot of money.
As if knowing what they were worried about, Baichuan Feng knocked on the table forcefully.
"In the next year, the 240 billion yen that Shirakawa Holdings will inject into Subaru Corporation will be received in batches.
This part of the funds will be used primarily to improve Subaru's operations, such as adjustments to the U.S. market and maintenance and development of the Japanese market.
In addition, the production of the Legacy series is also a top priority, and the production line in Gunma can start preparations now.
In order to increase its competitiveness in overseas markets, Subaru needs to relocate its remaining production capacity to Southeast Asia where the labor force is relatively low.
For example, in areas such as Lijiaopo and Huaxia, the budget for this part of expenditure is about 80 billion yen.
As for the new SIKADE car brand, considering the construction and R&D costs, the funds it requires may exceed 100 billion.
The remaining funds will be used to maintain operations of Subaru's other divisions and adjust its management structure.
The specific budget details are jointly formulated by the Finance Department and various departments, and are presented in the form of reports after completion.”
As expected, the huge injection of funds instantly made Takao Nakamura and others smile.
Previously, due to the financial deficit problem, the funding of various departments of Fuji Heavy Industries was quite tight.
Now that life has become more affluent, no one even objects to the establishment of the new SIKADE brand.
However, although Baichuan Holdings injected a lot of money, there were also many places to spend the money.
First of all, global market adjustments and relocation of production capacity will cost a lot of money, and investment in heavy industry cannot be accomplished with just a few billion yen.
Another big money-maker is the new brand SIKADE (Shirakawa Automobile), which has Subaru's previous technology as a foundation.
However, technological updates and iterations are always necessary, and the research and development of new platforms and the construction of factories all require huge amounts of money.
Finally, there are other departments within Subaru that also need financial support, such as the aircraft business department and the environmental technology department.
Especially the former, the research and development of aircraft is even more excessive than that of automobiles.
In order to accumulate his own political assets and increase his foundation, Baichuan Feng has not given up this part of the business for the time being.
The last one is the Environmental Technology Department, which is the Special Vehicle Division.
Although the sales volume is not large, as long as it is profitable, there is no reason to give up.
The manufacturing industry, especially heavy industry, generally requires large investments, average profits, and a long payback period.
Therefore, it will probably take five or six years to recover this huge amount of money.
However, for Baichuan Feng now, some things can no longer be considered solely based on profit.
When it comes to the chaebol level, perhaps more consideration should be given to influence.
Although heavy industry has a long payback period, it is an integral part of a country's foundation. For a country, its importance is self-evident.
In fact, Baichuan Feng's requirements are not high. As long as he can make money, it's enough, even if it takes a longer time.
However, Subaru's profit margin for the entire vehicle was somewhat beyond Shirakawa Feng's expectations.
The profit margin per vehicle of general car manufacturers is around 8% to 9%, but Subaru used to be able to reach 13%.
This profit margin may be slightly lower than that of Tesla in the future, but in the current era it is definitely among the top three automakers in the world .
For example , Subaru makes a net profit of more than 200,000 yen for each LEON E series sold, which is priced between 2 million and 3 million yen .
The Alcyone series is positioned as a luxury model, with a price tag of over 3 million yen, and a higher profit for each car sold.
Unfortunately, due to the appreciation of the Japanese yen, overseas sales have dropped sharply. Otherwise, although Subaru is a niche brand, it can still live a comfortable life.
But Shirakawa Kaede's adjustments to Subaru go beyond that, they are also intended to increase its popularity worldwide.
Shirakawa Kaede decided to establish an STI subsidiary under Subaru Corporation. This company does nothing else but take Subaru cars to participate in rallies around the world.
Horizontally opposed, full-time four-wheel drive, and a ring-shaped body structure, all of these are perfect for racing.
In fact, Subaru has done this before and achieved good results.
It’s just that Fuji Heavy Industries didn’t treat it as a business in the past.
But Shirakawa Kaede had different ideas. He believed this was a good opportunity to operate the Subaru brand.
Only by winning the honor that belongs to Subaru in the rally will its performance and reliability be recognized by the media around the world.
STI's operating expenses will be temporarily incorporated into Subaru's marketing budget, and will be allocated separately later.
The relocation of production capacity, the creation of new brands, the transfer of operation centers, the establishment of a rally company, etc., are all major surgeries that Shirakawa Kaede performed on Subaru.
Of course there are major surgeries, but there is also no shortage of minor surgeries.
In order to strengthen the coordination between departments, Shirakawa Feng cancelled some positions with duplicate functions.
At the same time, the responsibilities between departments will be clarified, and the project responsibility system and performance evaluation system will be introduced. The previous lifeless seniority system will gradually fade out of the stage.
Shirakawa Kaede was busy for more than a month regarding Subaru's affairs.
This is the first time that Shirakawa Holdings has entered heavy industry, and it may also be the last time that Shirakawa Feng invests in the real economy for a long time in the future.
However, Subaru's adjustment and transformation cannot be completed in one month. It may take one or two years to truly digest and run smoothly.
After setting the general direction and goals, Baichuan Feng will no longer pay attention to the rest of the things.
Time flies and it is already the end of the year. Everything in the golden age has passed by like a storm.
This year, Shirakawa Kaede witnessed the rise of buildings of various shapes in Tokyo and the birth of the 4 million yen stock NTT.
Witnessed that the total output value of Neon's catering industry exceeded 20 trillion yen, ranking first in the physical industry.
The second and third places were the department store industry with 3.9 trillion yen and the construction industry with 3.6 trillion yen respectively. As for the manufacturing industry, it is already at the end of the physical industry.
In the same year, a Haagen-Dazs ice cream shop opened in Shibuya. There were more than a thousand people queuing up every day, and the lines were several hundred meters long.
Still in that year, total corporate social spending exceeded 4 trillion yen.
Entertainment expenses, 4 trillion yen, and 80% of them flowed into the pockets of hotels and restaurants.
French cuisine such as foie gras, caviar, high-quality foreign beef, champagne and wine are the most popular.
SABATINI in Ginza is a place frequented by dignitaries, and spending several million yen a night is common.
Shirakawa Feng has been to such places many times, but this is just the tip of the iceberg of the bubble era.
If you want to see the real social street scenes at that time, go to a convenience store and buy a copy of "Obasan Brigade", which contains a more detailed introduction.
This comic was just launched this year. The cover features a plump old lady with a thick gold necklace around her neck and a Nikon camera.
Both arms are filled with large and small bags of various foreign luxury goods, and the background is the Hawaiian beach.
If it weren't for the Japanese words above, Shirakawa Feng would have thought that this was a satire on the aunties in China.
Although the comic style is exaggerated, the story is based on real events that happened in the current era.
Since getting rich, Japanese middle-aged women have started to travel overseas like crazy.
They either travel in groups or as a family. When they are abroad, they behave in an exaggerated manner and never ask the price of the things they buy.
Cutting in line in public places, making loud noises, littering, stealing public property, and shopping frantically are the true portrayal of the Japanese aunties at this time.
Because of the Japanese behavior, European and American media directly mocked them for being "stupid and rich", and Louis Vuitton even introduced a queuing and purchase limit mechanism for the Japanese.
As he flipped through this comic, Shirakawa Kaede always had an inexplicable sense of familiarity.
Tsk, history always repeats itself in an amazing way.
Another hotly debated issue in Japan near the end of the year is the official establishment of the consumption tax in December.
Although everyone had no shortage of money in the golden age, people were always unhappy about the sudden increase in taxes.
However, although consumption tax has been legislated, taxes on some high value-added luxury items have also been cancelled accordingly.
Because there are many people buying luxury goods now, generally speaking, although people have some complaints about the consumption tax, they can still accept it.
However, these things did not affect Baichuan Feng's happy mood when he returned to his hometown in Northeast China to celebrate the New Year. But the most excited ones were not him, but Xiao Qingkong and the others.
"Dosan, is the snow in Akita really as thick as mine?" Little Qingkong, who was round and almost like a ball, stretched out his short arms and awkwardly gestured his height.
"Hai~" Baichuan Feng once again answered this question that Xiao Qingkong had asked countless times.
"Dosan, Xue'er is so white, can I eat her?"
"No~" Baichuan Feng touched Xiao Yasheng's head lovingly.
Like Haruzora, she also dressed like a furry ball to cope with the severe cold in Akita.
Compared to Qingkong's playfulness and restlessness, Yasheng, curled up in her winter clothes, is undoubtedly much more delicate and cute.
Baichuan Feng couldn't muster the heart to reject Xiao Meisheng. Even though they were separated by winter clothes, he couldn't help but pick her up and rubbed his nose hard on her little face.
Amidst the laughter, Shirakawa Kaede pulled the noisy little Qingkong, turned back and greeted Tanaka Yuko who was around them, and the family boarded the plane back to Akita.
Before setting off, Xiao Qingkong was clamoring to go skiing at Lujiao ski resort.
However, when he arrived at the place, Baichuan Feng was also stunned by the scene before him.
