Reborn as a Noble’s Son
Chapter 1209 - Chapter 1209 Chapter 1165 Reaching an Agreement

Chapter 1209: Chapter 1165: Reaching an Agreement Chapter 1209: Chapter 1165: Reaching an Agreement Following the escalation of negotiation standards, LT Investment Group Company, after receiving the official communiques from Longxi Province and Huaxia Group, accordingly raised their own standards, with Chairman Fran personally participating in the negotiations.

“Mr. Fran, regarding the project site for the joint venture enterprise, the intention of Longxi Province is to first set the overall framework, and then, prior to the official formation of the joint venture company, we will form a joint inspection team. This team will conduct an in-depth and meticulous survey of various cities and regions in Longxi Province to ultimately decide the location of the project,” said Liu Zhentao, as the chief representative of Longxi Province, expressing the province’s position.

In the large conference room at the Provincial Committee guesthouse, Liu Zhentao naturally understood Nie Zhenbang’s arrangements. As for which city would ultimately be chosen for the Auto City, there wasn’t a clear plan yet, but since negotiations had begun, it had to be handled in this manner.

The message was translated and relayed to Fran, who immediately began shaking his head vehemently. “No, no, this is no way to handle things. It’s irresponsible. I absolutely disagree with this approach,” he said.

Although Fran appeared to be agitated, after Liu Zhentao’s elaborate explanation, Fran came to understand the rationale. Just as Liu Zhentao had said, picking a location was an easy task for the local government, but it was undoubtedly rash. Forming a joint inspection team to choose the factory location with a more rigorous and scientific approach was greatly beneficial for all parties involved.

Subsequently, consensus was reached on some issues that had previously been points of contention.

Finally, the most important and closely tied to stakeholder interests, the issue of equity distribution, was once again brought to the table.

This time, it was Zhang Xu who took the lead. This was to be expected, as Huaxia Group’s insistence on equity exceeded that of Longxi Province, so naturally, Zhang Xu had to step forward on such matters.

“Mr. Fran, after our prudent discussions and research on the issue of equity distribution, our side and the Longxi Provincial Committee insist on our viewpoint. The distribution of shares should be divided in the pattern of forty percent to each of us, with the remaining twenty percent for the third party. I would like to know your opinion,” Zhang Xu once again raised the issue, reaffirming their position.

Upon Zhang Xu’s statement, Fran jumped up, his facial expressions becoming extremely exaggerated as he waved his hands. “No, that’s impossible, forty-nine percent, that’s our bottom line. Otherwise, negotiations cannot continue,” he said.

As his words ended, Liu Zhentao, smiling, interjected, “Please, Mr. Fran, don’t get agitated. Let me say a few words.”

At times like these, the advantage of three-party negotiations became apparent. When the discussions reached a deadlock, having one party step forward to speak could undoubtedly ease the conflict.

“Mr. Fran,” Liu Zhentao said with a smile, “Huaxia Group’s background is that of a comprehensive large-scale industrial corporation that integrates equipment design, production, and sales, and possesses qualifications for the export of military products. Such a background dictates that Huaxia Group also has their unavoidable difficulties. To share equal equity with you is already the greatest concession we can make. Otherwise, we cannot pass our country’s approval process. I hope you can understand this.”

“Of course, to show our sincerity, we can also offer appropriate compensation in other areas to your company. What do you think about that, Mr. Fran?”

With this alleviation, Fran’s demeanor noticeably improved, and he calmed down, nodding and saying, “Governor, I would like to know what kind of compensation you can offer. That way, we can have a clear comparison and assessment. We understand your challenges, but as a businessman, my focus is on profitability, and I must be responsible to our shareholders. I cannot compromise without any limits.”

For the next half a day, and the entire following day, representatives and participants of the three-party negotiations stayed within the conference room, excluding meals, deliberating and with intense arguments occasionally emerging from the room–all of which testified to the fierceness of the negotiations.

Finally, at three o’clock in the afternoon on the second day, the negotiations finally concluded with all parties reaching a consensus. First, on the matter of equity distribution, shares were divided among the three parties in the ratio of forty-forty-twenty. The joint venture company was named Huaxia Automotive Group StrongengineAutomobilCompany, and the registered capital was set at 5 billion renminbi.

As compensation, Huaxia Group would give LT Investment Group Company ten percent of the profits from each military and civilian vehicle sold overseas by StrongengineAutomobile Group, as compensation for losing nine percent of the shares.

Furthermore, Longxi Province offered StrongengineAutomobile Group a one-year tax exemption. The second year would have a fifty-percent reduction policy.

According to the agreement, Huaxia Automotive Group was authorized to use all patents of StrongengineAutomobile Group without paying any patent fees. Based on this, China Auto Group would commence research and production of its own automotive brand, Huaxia Automobiles.

In the end, the three parties signed the memorandum of understanding. Moreover, they will hold a grand signing ceremony tomorrow. After the ceremony, the three parties will carry out the preliminary preparations, and form an inspection group to ultimately determine the location of the automobile group project.

“Secretary, I just received news from the Provincial Committee guesthouse,” Xia Gang walked into Nie Zhenbang’s office within the Provincial Committee and Provincial Government Office Building, with joy etched on his face, “an agreement has already been reached.”

Upon hearing this news, Nie Zhenbang wasn’t too excited; having already known the outcome, he didn’t consider it that important.

With a nod and a smile, Nie Zhenbang said, “The contract is signed? Very good, Xiaoxia, go and notify the Secretary-General. After the official signing tomorrow, we should host a grand banquet to entertain representatives from the Huaxia Group and the LT Company.”

As Xia Gang left the office, Nie Zhenbang’s phone on the desk began to ring, displaying a familiar number, Zhao Xinglong’s number.

Once connected, Zhao Xinglong spoke with a laugh, “Big Brother, congratulations. You’ve taken another solid step forward with the automobile city project.”

Hearing this, Nie Zhenbang couldn’t help but smile mildly and chide, “You guy, it’s a pity you’re not in politics; such keen political insight, such prompt information. If you were in the system, I might not even be able to outdo you.”

Though the words were few, the meaning was clear, Zhao Xinglong’s words had indeed spoken Nie Zhenbang’s thoughts. The automobile city project, being of great resistance, had been in limbo. Suppressed by President Mu, this move was a fortuitous event for Longxi Province.

Moreover, Nie Zhenbang was very clear that this signified President Qiao and President Mu’s support for him. The purpose behind suppressing the project was to hope that he could carve out a path.

Now, with the contract signed with the LT Company, that was the solid step taken. Outsiders said Longxi Province was incapable in this and that, lagging in the automotive industry, lacking technological reserves, without any advantages, right? Now, by bringing in the LT Company, with the renowned luxury military SUV brand Hummer, the SUV and off-road vehicle segment would inevitably enjoy a broad market. Domestic Hummers would have a huge impact on the national automobile market.

The Hummer brand’s main reason for not doing particularly well in the domestic market was the single model offering, and secondly, weak after-sales service network. Now, with these two shortcomings gone, the other pseudo off-road vehicles would have no power to resist.

Add to that the Oldsmobile brand, a mid-range car brand. Within the passenger car segment, the China Auto Group would emerge as a new aristocrat, and other provinces would no longer be able to use this as a means to criticize.

“Ha ha, Big Brother, are you praising me or cursing me? Politics, I can’t play that game. I still prefer my life: waking up naturally, counting money until my hand cramps, being surrounded by ladies–the blessings of a life well-lived. That’s my life pursuit,” Zhao Xinglong joked.

After a pause, he spoke earnestly, “Big Brother, back to serious matters, with this chess move of yours, I have seen quite a few people getting ruffled. You need to be careful in your next steps.”

After chatting with Zhao Xinglong for a while, Nie Zhenbang then hung up the phone. He was very aware of Zhao Xinglong’s concerns; many were vying for the automobile city project, and now, he had made an unorthodox move, which was bound to aggravate these people’s sensitive nerves. Upcoming pressures from above would certainly intensify.

However, Nie Zhenbang had long anticipated this. Mediocrity breeds no jealousy. This wasn’t the first time in his life he was envied and hated. He never feared adversity, for obstacles are there to be overcome, like water is stemmed with earth. Competition wasn’t frightening; Nie Zhenbang was not afraid to compete.

At around four fifty in the afternoon, just ten minutes before the end of the workday, the red phone on the desk suddenly rang.

Seeing this, Nie Zhenbang didn’t dare to hesitate, immediately picking up the phone. Once connected, he heard Liang Yuan’s voice, “Zhenbang, congratulations.”

While speaking, Liang Yuan then said solemnly, “Comrade Zhenbang, I am formally notifying you on behalf of the leader, that tomorrow morning, the leader will personally travel to Longxi Province to attend the project cooperation signing ceremony with the Huaxia Group and the American LT Company. Please ensure proper reception work and preparations on your end.”

No wonder Liang Yuan had offered congratulations. This news was indeed cause for celebration; Nie Zhenbang’s heart was filled with indescribable joy at the moment–it was incredibly energizing.

President Qiao’s personal visit to Longxi Province to witness the project signing was a tremendous honor and affirmation, and it was also an implicit expression of attitude. The automobile city project in Longxi Province had the full support from above. With this, after tomorrow, many interested parties would stop to reconsider. After all, this was a project supported by President Qiao. (To be continued. If you like this work, you are welcome to visit Qidian (NovelFire.net) to cast your recommendations and monthly votes, your support is my greatest motivation.)