Tech Overlord Starts from New Energy Vehicles
Chapter 43

Plan

1,621 words5 min read1 views
5mo ago

As Xu Yifan and the others saw them off, the officials left in a hurry.

Watching the vehicles drive away, Xu Yifan said to the people around him.

"Since everyone is here, go back and prepare. In one hour, all department managers will have a meeting."

"Okay, Factory Director!" everyone replied.

Nodding, Xu Yifan walked towards his office.

The hour was mainly for him to think, to consider how to implement things in detail.

Back in his office, sitting behind his desk, Xu Yifan opened a notebook and picked up a pen. He jotted down important information while contemplating the factory's future development.

According to the officials, the loan and land should be no problem and would be finalized in about half a month.

Then Jiuzhou Automobile Factory should also start preparing early. What he said at the previous meeting was not alarmist.

If Jiuzhou Automobile Factory didn't develop rapidly, it would likely be completely consumed by its competitors.

Actually, if there was a way, Xu Yifan wouldn't want to take out a loan.

This feeling always reminded him of a period in his previous life when he had no income and felt like he was borrowing money from Huabei.

However, building cars is not like other products. Insufficient funds mean inability to expand production, inability to research and develop, and ultimately being eliminated by other car companies...

With a large plot of land, the cost of building new factories would be greatly reduced, and there would be enough funds for now to expand the scale.

It was foreseeable that this year would be a year of great development for Jiuzhou Automobile Factory. Whether it could withstand the pressure and even defeat some car companies that were shifting to manufacturing low-speed electric vehicles depended on Jiuzhou Factory's performance this year.

Now, he still needed to wait for news from the officials. Although according to the hints Chen Qianjun had given, a thousand mu was basically no problem, and four hundred mu was definitely achievable.

However, when officials handled these matters, they needed to go through meeting reports and then sign contracts with Jiuzhou Automobile. All of this took time, and even with acceleration, it wouldn't be very fast.

And Jiuzhou Factory didn't have much time right now.

Therefore, some preliminary preparatory work needed to be completed.

On the notebook, Xu Yifan wrote "Preparatory Work" in the center.

Then, next to "Preparatory Work," he wrote "New Factory Construction." Following this train of thought, he continued to list more issues that needed to be addressed in the construction of new factories.

The preparation for building two new factories, the very first step of which was the construction work. Although the land hadn't been acquired yet, preparations could still be made.

First of all, since there would be a large-scale construction, there must be talent in construction.

If everything was outsourced to construction companies, it was unknown how long the construction period would be, and there might be many pitfalls.

In that case, it would be better to establish a construction department for the factory and recruit a group of construction management talents.

When large-scale construction was needed, they could recruit workers in the city and have them managed by the management talents.

This way, the progress of the project could be monitored through the factory system, and it could be completed faster.

This would also avoid some construction pitfalls, allowing the factory to be built at a lower cost, while also ensuring the quality of construction materials and workmanship.

The factory buildings could be as simple as possible, as long as all functions were met.

This needed to be prepared in advance. He would have to ask the human resources department to start recruiting soon.

If they recruited when construction began, the system wouldn't have enough time to evaluate the Star Rating, so it would be more efficient to prepare earlier.

Then there was the purchase of equipment. This would be handled by the procurement and R&D personnel in collaboration to decide what equipment to buy, its specifications, etc.

After a few minutes, a large amount of text was written behind "New Factory Construction" by Xu Yifan.

He felt that the overall idea was fine. Professional matters could be handled by professionals later.

Turning back, he wrote "Fund Allocation" next to "Preparatory Work."

Apart from factory construction, the next issue to prepare for was the allocation of funds.

A total loan of 200 million yuan would be disbursed in two installments. The bank would also need to verify Jiuzhou Automobile Factory's operating status, capital, etc.

This would be handled by the finance department and the bank. If everything went smoothly, the first installment of 100 million yuan would be credited in about a week.

The second installment would require Jiuzhou Factory to establish and officially put into operation the battery production plant and the two-wheeled electric vehicle production plant, with a gap of about two to three months in between.

"I won't consider the second installment for now, but I need to think about how to use the first installment of the bank loan."

"With a 100 million yuan loan, plus the current working capital of about 20 million yuan on Jiuzhou Factory's books, there is about 120 million yuan available this month."

Building two factory buildings was the top priority. Especially the battery production plant. With more funds now, they could build a larger factory and have more capacity for new lithium iron phosphate batteries.

The initial plan was to spend 15 million yuan to build the new lithium iron phosphate battery plant, but now with more funds, it could be built bigger and more comprehensively.

"In terms of funds, 50 million yuan will be allocated to the lithium iron phosphate battery plant."

Fifty million yuan would be used for the construction of the battery plant, with about 45 million yuan for the purchase of equipment and raw materials. This was a significant increase compared to before, and it would allow for the production of more batteries.

Five million yuan would be used for the construction of the factory buildings. The buildings didn't need elaborate designs; they just needed to be simple and practical.

Five million yuan might not seem like much, but it was a huge sum in this era.

Moreover, it was only for building simple factory buildings. There was no need to buy land. It would be used to purchase bricks, cement, steel bars, hire workers, etc., and could be built quickly.

At this time, finance and real estate were just taking off, and material and labor costs were not as exorbitant as they would be later.

"At the same time, the factory buildings will be constructed in batches. We need usable ones as soon as possible."

"Perhaps we can purchase some equipment first and place it in the current Jiuzhou factory, converting a warehouse into a temporary battery production facility. We could also train a batch of skilled workers. This will require discussion with the R&D team later."

"The remaining approximately seventy million yuan, originally budgeted at ten million for the two-wheeled electric vehicle factory, will now be increased to seventy million.

Of course, this money won't be spent all at once. It will be allocated in phases. Initially, perhaps only ten million will be needed to establish a portion of the facility, putting it into use as soon as possible, and then gradually increasing production capacity.

We don't need overly complex buildings. For just the factory, I wonder if it can be fully built and operational within about three months? We'll need to consult with construction professionals and technical engineers about that."

"Mm, and the profits from Jiuzhou Mini in the coming months can be used for some supplementary purposes."

As for the factory construction later, the final one hundred million yuan can be used for researching new technologies.

While batteries can give the current Jiuzhou Mini a significant advantage in this year of 2009, this advantage will diminish over time.

Only by continuously researching new technologies, and even developing truly new energy vehicles, can we ultimately break through and compete head-on with joint venture cars.

Technology is the most crucial aspect for an enterprise. With a loan of one hundred million yuan, we will have much more flexibility.

Spending around seventy million yuan on laboratory construction should allow us to establish a decent new energy vehicle research and development laboratory in this era.

The remaining funds will be used to hire R&D personnel, establish more comprehensive logistical support services, and provide a more comfortable R&D environment, among other things.

Before major car manufacturers enter the new energy sector, we should proactively recruit top talent with high salaries. Ideally, we should attract all the future leaders who will drive the rise of the new energy vehicle industry!

This is an investment in the future, and the sooner we start, the better. This will prevent us from lacking technology and having to wait when we need it later.

Furthermore, regarding the production capacity of Jiuzhou Mini, we will continue to follow Xu Yifan's previous strategy of outsourcing. The target locations have also been basically decided: the Huachen Automobile Production Factory within our province, and the Chuanqi Yema Automobile Factory, which is currently still called 'Xichuan Automobile Industry Group.'

We also need to discuss cooperation as early as possible so that these automobile factories can make certain modifications to their production lines.

As for whether these car companies will cooperate, the problem shouldn't be too big. Currently, the sales of most domestic cars are not very good, and their production bases are mostly not operating at full capacity. As long as there's money to be made, they'll likely agree."

End of Chapter
Novel
How was this translation?