The Evans Family was Immediately captivated by Mr. Riley’s perspective.
For the Evans Family, the vehicle manufacturing and power battery industry was not solely about making money. They had a deeper desire to invest in the Chinese manufacturing industry and contribute to its growth and development.
Mr. Riley‘s viewpoint gave them a newfound hope for their endeavor.
If they could transform this industry into a behemoth like Tesla, the business opportunities and profits would be immense. Not to mention the significant advancements and improvements it would bring to the manufacturing industry and the domestic automotive supply chain in China.
The biggest difference between manufacturing giants and internet giants lies in their market domination. Internet giants tend to monopolize the market, continuously offering benefits and even heavily subsidizing the end market until they gain enough users and make them entirely dependent. Then, they shamelessly seize profits.
A few years ago, when they subsidized online ride-hailing services, passengers only had to pay five dollars for a ten-kilometer ride, while drivers earned ten dollars. But now, for the same distance, passengers might have to pay thirty dollars, while drivers only receive eight dollars.
Furthermore, internet companies tend to maximize output with minimal positions, squeezing both the upstream and downstream sectors to attain maximum profits.
However, manufacturing giants operate differently. Manufacturing giants support the entire industry chain.
A car manufacturing company with ten thousand employees not only provides jobs for those employees but also creates numerous job opportunities for upstream steel mills and aluminum plants, as well as transportation jobs for various materials. It also supports a large number of small and medium-sized enterprises that provide components. This driving force is incredibly powerful.
In China and many cities around the world, the economic lifeline often relies on large-scale manufacturing industries. Take Toyota City in Japan, for example, with a population of four hundred thousand, which is almost entirely comprised of Toyota employees and their families.
Toyota itself has over three hundred thousand employees worldwide. If we include the supply chain that depends on Toyota, it can generate employment opportunities for at least a million people.
Such a manufacturing giant can benefit millions of people in the industry chain, rather than squeezing their profits and survival space.
Currently, the domestic production rate of new energy vehicles has already surpassed 90%. If a new energy vehicle giant can be established, all the value it generates will be used to drive the development of related domestic companies. Therefore, Mr. Riley’s proposal immediately sparked the interest of everyone present.
Charlie was also intrigued by this plan. He spoke up, adopting a casual tone, “I’ve got a substantial amount of cash on hand. Even if I need to invest hundreds of billions It won’t be a problem. Uncle Riley, what do you think would be the best way to increase the chances of success for this project?”
Mr. Riley replied, “We don’t necessarily need that much money. Two or three billion dollars would be more than enough. As for Increasing the success rate, in my opinion, we need to focus on taking advantage of unconventional opportunities. Not only do we need to surpass traditional fuel vehicle companies, but we also need to outshine most of the current players in the new energy field, who are mostly in the bottom tiers. Catching up with our peers is already a challenging task.”
Marcus asked, “Professor Riley, in your opinion, how can we achieve this unconventional advantage? Or rather, what does it mean to gain an edge through unconventional means?”
Mr. Riley pondered for a moment, organizing his thoughts before explaining, “In my understanding, gaining an edge through unconventional means is not just about excelling at one specific aspect. It’s about taking a shortcut throughout the entire race track, going where others haven’t gone or even thought of, and reaching the finish line faster.”
“For example, in the past, our domestic fuel engines were always lagging behind Europe, America, and Japan and South Korea. No matter how hard we tried, we were always slightly behind. But domestic new energy vehicles completely changed the game. They didn’t try to catch up in terms of engine technology. Instead, they stopped making vehicles with engines altogether…”
“You’re not as good at electric motors, right? You’ve been focusing on internal combustion engines for decades, but you’re clueless about electric motors. I took the opportunity to dive into electric drive technology and gained a competitive advantage in electric propulsion. By the time I develop electric drive technology, I‘ll be ahead of you in the new energy field. When that happens, even if you cry and tell me that you’ve been working with internal combustion engines for decades, from L4 to W16, mastering every aspect, I won’t pay attention to you. Why? Because I’m no longer playing that game…”
“This is similar to a martial arts master who spent thirty years practicing swordsmanship in the era of cold weapons. He thinks he’s invincible when favonovel.com comes out, but I invented a firearm in just a year and a half. One bullet can end his life. He says that his thirty years of practice are useless and meaningless…”
“Of course, the one who truly turned the tables on traditional car companies globally was not a domestic new energy company, but the industry pioneer Tesla. That was their strategy for gaining an unconventional advantage. However, we also have our own original examples of gaining an edge through unconventional means in the new energy field, such as the three major components of new energy vehicles: refrigerator, television, and sofa. Tesla pursued a minimalist and simple style, right? So we pursued a luxurious and comfortable style, and we also captured a significant market share.”
Pausing for a moment, Mr. Riley continued, “If we want to find another opportunity for gaining an edge and disrupting the industry, to be honest, it’s very difficult. But it’s not impossible. As long as someone can find the right entry point, they can become the new emperor in the automotive field.”
Marcus understood that finding that entry point would be extremely challenging. If they could find it, it would likely unlock a market value of hundreds of billions of dollars. So, favonovel.com immediately asked, “Professor Riley, if we can’t find a unique and winning strategy for now, what can we do to increase the chances of success for this project?”
Mr. Riley replied, “If you want to further increase the chances of success, in my personal understanding, you need to delve into more critical upstream areas. Power batteries are naturally one of them. You also need to focus on electric control technology and driving technology. Additionally, the development of in-car software is crucial…”
“Penetrating the power battery sector is important for technology reserves, cost reduction, and ensuring a stable supply. The Evans Family has already made some progress in this area…”
“As for electric control and driving technology, improving the hardware competitiveness of the vehicles is crucial. With the same battery capacity, aerodynamic resistance, and weight, the vehicle with more efficient electric control will have a higher range, while the one with better driving technology will have superior performance. These are key factors that influence the overall driving experience…”
“If you don’t have your own research and development team or strategic partnerships with relevant companies, you will always rely on standardized solutions provided by third parties. In that case, your vehicle will have the same power parameters as a dozen other models on the market. What’s the point of claiming to be a leader then?”
Speaking of in-car systems, Mr. Riley said, “In my opinion, it is of utmost importance. Since I started researching new energy vehicles, I have attached great importance to in-car software. Building a new energy vehicle is similar to building a smartphone. It’s not just about assembling hardware, you also need to ensure compatibility between hardware and software. Even with the best hardware, if the software lags, the vehicle will be like a strong-bodied but simple-minded fool.”
At this point, Desmond interjected, “Oh, I… I’ve always driven fuel vehicles, and I don’t have any requirements for in-car systems. Having Bluetooth for phone calls, listening to music, and listening to the radio is enough for me. I don’t have any concept of this.”
Marcus nodded and said, “I don’t understand either. I’ve never been involved in the new energy vehicle industry, and I haven’t even driven a new energy vehicle.”
After speaking, favonovel.com turned to Charlie and asked, “Charlie, do you understand?”
Charlie smiled and replied, “Me? I’m not afraid of my uncle’s jokes when I say this. It was only after Butler Thompson found me that I started driving regularly. Before that, I never even bought a car for myself. The only cars I own are two supercars that were given to me, and i’ve probably driven them only once, twice, or three times. These days, I still drive the BMW 5 Series I originally bought for my father-in-law.”
As favonovel.com spoke, favonovel.com suddenly remembered Angela Lombardo’s Tesla and added, “I did drive a friend’s Tesla on Hong Kong Island once, but it was just for a short while. I never really looked into the car’s engine or its so-called assisted driving features.”
After hearing their responses, Mr. Riley smiled and said, “How would you describe the in-car system? Are you familiar with, Balotelli, the football player?”
Except for the elderly patriarch, the other male members nodded.
Mr. Riley continued, “In my opinion, favonovel.com represents top-tier hardware but third-rate In-car systems. If you give favonovel.com the football Intelligence of Lionel Messi or Ronaldo, favonovel.com would undoubtedly be a superstar. Unfortunately, favonovel.com can’t compensate for his shortcomings in this area.”
Everyone immediately understood what Mr. Riley meant.
Charlie added, “Since in-car software compatibility is crucial, we should establish a strong software development team. We’ve already spent a lot of money, so we shouldn’t cut corners on this.”
Mr. Riley agreed, “Exactly. That’s what I mean. Many traditional car companies that transitioned to new energy vehicles couldn’t keep up with in-car software development and chose to outsource it. Most of the time, the results were disastrous, like the days of counterfeit smartphones. The user experience was very poor. Since you have chosen to directly enter the new energy race and have abundant financial resources, you must prioritize the development of in-car software…”
Mr. Riley continued, “By the way, there’s also high-precision mapping, which is very important. In-car navigation, driver assistance, and even more advanced autonomous driving all rely on it. Currently, most companies integrate services from common service providers. If there’s an opportunity, you can consider acquiring or even investing in one.”
Marcus nodded and said, “These are valuable suggestions, and we will seriously consider them and try to implement them as soon as possible.”
Then, Marcus looked at Mr. Riley and asked, “Professor Riley, since you have such in-depth research on new energy vehicles, would you be interested in joining us to lead this project?”
Without any gesture from Charlie, Marcus could already see the immense value in Mr. Riley.
When they acquired Nio, they had already decided that, given the scale of the project, which amounted to tens of billions of dollars, and the high level of expertise required, they must find a true expert to lead the project. Otherwise, with just money and impulsive decisions, they would inevitably pay a hefty price.
Even if they hadn’t met Mr. Riley today, Marcus had already planned to have headhunters search for suitable candidates nationwide. However, favonovel.com didn’t expect that as soon as they returned to Aurous Hill, Charlie would present them with a top candidate.
Mr. Riley smiled and politely declined, “To tell you the truth, Mr. Evans, my current focus is on teaching and educating people. Besides, I’ve been away from practice for too long, and all I can offer are theoretical insights. When it comes to actual execution, I lack the necessary skills.”
Samuel Evans, who had been silent until now, waved his hand and said seriously, “Professor Riley, don’t underestimate yourself. I believe you are definitely qualified for this position. The key question is whether you want it or not.
“If your true passion lies in teaching and educating, then no matter what we say, you won’t agree. But if you still have any interest or ambition in managing such a significant project, you must consider it carefully… We have already invested $3 billion in Nio Automotive. Including power batteries, our investment exceeds $10 billion. We are prepared to invest an additional $30 billion in this endeavor, making it a $40 billion project…”
“This scale is unmatched by any new car company In the world. Even the top players in the industry would find it challenging to shine on a $40 billion stage. This is a once-in-a-lifetime opportunity!”
The old man’s words immediately captured Mr. Riley‘s attention. A $40 billion startup is unprecedented in the history of new energy vehicles. Even Xiaomi, which recently gained nationwide popularity, only announced an investment of 10 billion dollars. Forty billion US dollars is representing not just a car company, but an entire industry chain.
For professional managers worldwide, who would dare to dream of such an opportunity?
This isn’t just an opening, it‘s a dream come true!
How fortunate would it be to realize one’s ambitions on such a stage?
The potential achievements are beyond imagination.
At this moment, Mr. Riley’s initially unwavering heart began to crack under the pressure.
Charlie, seeing his hesitation rather than an immediate refusal, knew that favonovel.com had started thinking.
So, favonovel.com immediately added fuel to the fire and said, “Uncle Riley, you said it’s difficult to find an opportunity for gaining an edge, right? Well, I have thought of an opportunity. I don’t know if it’s reliable or not.”
Mr. Riley asked eagerly, “What opportunity?”
The others also looked at Charlie with great interest.
Charlie said, “The Rothschild family is developing the world‘s most advanced AI model for me in Northern Europe. The only restriction is that I can‘t use it for commercial purposes. However, I am confident that they will grant me exclusive commercial rights in the automotive field!”
Currently, the main revenue stream for AI models comes from providing AI computing services to individuals and enterprises across thousands of industries. While AI has not yet found practical applications in the automotive sector, this is set to change.
Although Charlie couldn’t guarantee that Howard would grant favonovel.com commercial rights for the AI across numerous fields, obtaining exclusive rights for the automotive industry alone seemed entirely feasible.
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