Chapter 151 – Soviet Union’s Motorcycles
Finally, after a long wait, Kirilenko brought good news. He had helped Feng Yu get the motorcycle production lines!
In that era, the Soviet Union had 5 motorcycles brand, namely, Minsk, Voskhod, Ural, Dnepr and IZH Jupiter. Among these brands, Voskhod and Ural were the most popular in China compared to the other brands.
But regardless of which brand, these motorcycles were more advanced than China by at least 5 years. The demand for transportation was rising in China, and because of the prices of these motorcycles, it was the best choice for the Chinese. The cars were too expensive for most people.
First, motorcycles were convenient, light, fast speed and could drive into tight alleyways. It was the most suitable mode of transport in that era. Furthermore, the fuel consumption was lower than cars. Learning to ride a motorcycle was faster if one knows how to ride a bicycle and it was easier than learning to drive.
There was another advantage. In that era, there were not many regulations on motorcycles. People could ride bikes without a license and the number plates. There was not a lot of traffic police and people just ride the motorcycles as long as they were not caught.
Feng Yu had been preparing to take over the Machinery Company all these while. He had been taken advantage off, but that was because he wanted to work with a state-owned enterprise. However, even if he were willing to pay more for the shares of the Machinery Company, the City Government would not sell to him. But Zhang Ruiqiang had promised him that he could uses technologies to exchange for shares.
Feng Yu had agreed to let the 3 professors join the Sumer Camp and made the arrangements to tour the research facilities of the Moscow University was because Zhang Ruiqiang would conform to one of his requests.
At that time, Feng Yu’s request was to be allowed to continue using technologies to exchange for shares in the Machinery Company and to set up a motorcycle business with the Machinery Factory.
If he had requested Zhang Ruiqiang to permit him to purchase the shares of the Machinery Factory, Zhang Ruiqiang would surely reject. Even if he approved it, the number of shares Feng Yu could buy would not be a lot. But if Feng Yu could use the motorcycle production line and technologies to exchange for the shares, that would be different.
One production line and some technologies would be another revenue source for the Machinery Company and were sure to make money. Everyone could see for themselves that motorcycles were selling well.
As for how much would this production line and the technologies were worth, Feng Yu would not be soft again. This time he must be the one taking advantage of the Machinery Company! Feng Yu planned to increase his father’s shares of the Machinery Company by 20%. He will not settle for anything less!
At first, Feng Yu still felt that this was a bit difficult if he had only one production line and some technologies. If Li Mingde does not agree to it, there was nothing Zhang Ruiqiang could do. Furthermore, Zhang Ruiqiang was also on the Machinery Company’s side.
But Kirilenko told Feng Yu that he got 2 motorcycles production lines and the latest motorcycle technologies from the 5 Soviet Union motorcycle brands. Although it was not cheap, it was definitely a bargain!
“How much was the total?” Feng Yu asked excitedly.
“5 million Rubles?” Kirilenko replied. He was afraid that Feng Yu would think that this price was too high and started to justify: “There would be no problems with motorcycle sales now, and the technologies were the most advanced. Those 2 production lines were built in 1985. Guaranteed to be in perfect working conditions. Also, I can give you 3 years warranty for the production lines.”
Feng Yu looked at Kirilenko. Oh, there’s still after sales service? 3 years warranty? It should be enough. 1985 production facilities? Even if it were 1980 production line, it would still be more advanced than the technologies in China. China’s motorcycle manufacturing industry was currently still in its infant stage.
Even though the appearances, accelerations, fuel consumptions, etc. of the Soviet motorcycles were inferior to Japanese bikes, but their suspensions, headlights and engines’ technologies were one of the best in the world.
Current the road conditions in China was not that good, and therefore, the suspensions and engines were important. It can be said that the Soviet motorcycles technologies suit China more.
As for the appearances, Feng Yu, himself, could overtake Japan easily. This was never an issue. In Feng Yu’s eyes, the Japanese motorcycles in that era were hideous!
Feng Yu showed four fingers and said: “There must be 4 experts to guide us for a year, help us with the setting up and calibration of the machines, and teach us everything about these technologies!”
Kirilenko smiled: “This is not a problem!”
His cost was less than 4 million Rubles, and he sold it to Feng Yu for 5 million Rubles. This was a good deal. Although this time, he got to split the profits with his partners, he will still be getting a good amount.
Furthermore, they had paid only a small price for big rewards in return. They would be paying the deposits to the factories first, and after the machinery, technical documents and the experts reached Feng Yu, Feng Yu would make payments to them. After that, they would pay the remaining sum to the factories.
The whole process, they only need to come up with less than 1 million Rubles at the start and got more than 1 million Rubles profits!
Also, they saw Feng Yu was satisfied with this deal, and Feng Yu would definitely go back to them in future.
“Brother Ki, I will not say much about other things. Help me look out for Volda’s production line and technology. I hope you would be about to help me get at least one production line and the related advanced technologies. We are brothers, and I will take care of you.”
The motorcycles will only be popular for the next few years, and after that, it would be the 4 wheelers! There was a billionaire that said: Car is just an engine on a chassis with 4 wheels. If you can manufacture a motorcycle, you can build a car!
There were talks that the billionaire had used Volda’s manufacturing technologies, which he bought at a low price when he started out. Later, his company went on to acquire some of the world’s most famous cars brands, and his market value kept rising!
Feng Yu believed that he had started earlier than that billionaire in creating a domestic car brand and with the advanced manufacturing technologies, he would be able to capture China’s market. At least, he would be able to capture future Germany and Japanese joint venture market share. He wants to prevent these foreign companies earning from his fellow countrymen!
He got to take one step at a time. If he starts a car manufacturing plant now, he would have to make huge investments, and the profits might not be as good as motorcycles. The returns were not worth it.
Kirilenko nodded and agreed. All these were profits to him, and even those Factory Directors would feel grateful to him.
Without his help to sell off these idling production lines, the factories could not pay their workers. These idling production lines would also depreciate as time passes. Why not use them to help the workers.
Because of the economic changes in the Soviet Union, many factory directors had full control of their factories. As long as they agree, no one could change their decisions. They were more overbearing than the Chinese.
As such, Kirilenko only needs to talk/bribe to the Factory Directors. Some might not dare to sell the production lines, but they do not mind selling their technologies to someone from the Soviet Army.
Needless to say, Kirilenko buying these technologies under the Soviet Army was really useful.
After signing the contract, the Summer Camp also came to an end. Feng Yu and the rest of the students boarded the plane for Bing City…