Chapter 243 Ford goes south
As a Dixiean, Sheffield certainly doesn't care about whether Detroit disappears or not. Anyway, the territory of Yang's at that time, and Detroit's production efficiency is actually not high, it just has a first-mover advantage.
Detroit is a northern city, with all the shortcomings of northern cities. For example, the cold winter looks nothing, but it will cause a lot of extra costs. Heating requires coal and a warm factory. I understand this in Sheffield, the northernmost part of the Republic in her previous life, and I understand the disadvantages of these invisible expenses.
Detroit only turned the first-mover advantage into a scale advantage. With its huge scale, it offset this disadvantage, resulting in other cities being unable to compete in the automotive industry. However, once globalized, this disadvantage was magnified and became part of the Rust Belt of the United States in later generations.
In this era, automobiles can be called high-tech industries, but they are still labor-intensive industries. Detroit has gone from a less famous city to a big city in the United States, relying on the automobile industry to attract a huge population to settle down in Detroit. In the end, success or failure of automobiles. Due to the decline of the automobile industry, Detroit has struggled a hundred years later and became the base camp of the black population.
And population is a huge disadvantage of the southern states. If it can attract many people to settle in Texas, it can enrich the strength of the South. As for how Detroit develops in the future? He is not from Yang Ji, so he can't control so many.
It can be said that the Detroit pillar industry, which is still brewing, was still seeds, and before it broke out, it was beaten to death by Sheffield in Houston.
"Do you know, no one can compete with me in the field of automobiles now, because the electricity used is from Southern Electric, the production line is made by United Machinery, the oil of the car is from Texas oilfield, and I have calculated how much a car costs, and the pricing is stuck at this cost. Ford is not very profitable at all. The scale of a hundred thousand cars can only make me two million dollars, but I make less. Other engineers who want to intervene in the automobile industry, even with Morgan's capital injection, cannot compete with me. I earn less. They even hope to make less money." Sheffield looked at the busy factory, pinched his waist and looked at John Connor and Ramon Hess, with arrogance in his mouth, "After the goal of 100,000 cars is completed, the salaries of United Automobile workers are still higher than ordinary workers. Do you know what to do at this time?"
"Does the boss want to expand production?" Ramon Hess said uncertainly, "but this profit may be reduced."
"In recent years, Ford Motor has pursued market share. Of course, making money is also important, but it has to focus on the pricing of possible competitors. However, every 100,000 extra car on the market is equivalent to an extra 100,000 yuan of oil-eating tiger. I can also make money from increasing production in the Texas oil field. Auto companies would rather make less money than give competitors room for profit. If you want to enter the automotive field, you can, and you can raise money and burn money to enter, there is nothing wrong with it."
Sheffield concealed his ideas at all. He just hated competitors and pursued monopoly. He also had to monopolize the banner of low-price monopoly and earn another penny by increasing oil production.
The automobile industry is controlled by itself, and Texas Petroleum shares it with Standard Petroleum, and its monetization ability will be greatly improved. Moreover, the automobile industry can drive the emergence of many industries, which is equivalent to supporting many workers. In addition, it has a position in agriculture and animal husbandry, which will gain huge influence.
In addition to being full of confidence in Sheffield in Houston, Rockefeller in New York was so happy that he couldn't sleep for several days. Starting from the boastful words of producing 100,000 vehicles per month, the stock market received timely feedback. Standard Oil's stock price entered a slow climbing stage. As more and more news came, until Sheffield Automobile completed the boastful words of producing 100,000 vehicles per month, Standard Oil's stock price also ushered in an explosion.
Many investors understand that Sheffield United Automobile's cars are internal combustion engines and require oil as power. Once these oil-eating machines are put into the market, the importance of oil will be greatly improved. As a representative of the United States Trust, Standard Oil will benefit greatly from it.
If you don’t buy Standard Oil’s stocks, investors everywhere are simply stuck in the door. Moreover, once the automotive industry is established, it is impossible for investors to judge who will be the leader of the automotive industry in the future and whether newcomers will enter the market. However, as a related industry, Standard Oil has been standing for decades, and is even lower in terms of risk.
Surrounded by the good news from the stock market of Rockefeller, now she didn't feel uncomfortable when she thought of Sheffield. Isn't it just a sister? He doesn't have only one sister. In addition to Edith Rockefeller, there is also...
Some people are happy and some are worried. There are beneficiaries like Rockefeller, and there are frustrated people. Detroit, which is not far from New York on the map. The pioneers of the automobile industry here are like a basin of cold water. The previous passionate heart has long been extinguished with the success of a monthly output of 100,000 vehicles.
Their mood was like the budding car city, and they entered the dead stage. In the past few days, many people have started packing their bags and are preparing to go to Houston to try their luck and enter the real place of birth to cars to look for opportunities. It can be said that the establishment of a car company in Houston has completed the production of 100,000 vehicles in just a short time, which has destroyed the confidence of most pioneers in the automotive industry.
How could they fight against such a powerful opponent? On their own land, they use their own electricity, use their own production lines, and pour their own oil into it. Such a closed-loop structure is too desperate for pioneers who are still in the alone stage of fighting.
These pioneers of the automobile industry did not say it completely, because Sheffield also received several rubber plantations from the Spanish colonists in the Philippines. Southeast Asia itself is an important place for rubber. In terms of his relationship, rubber is not difficult for him at all, and he can even handle the materials for wheels by himself.
But the car pioneers who have not grown up do not know this desperate fact, and reality is always more desperate than they imagined.
In the simple rental factory, Ford, covered in oily bodies, sat dejectedly on the bench. Not far from him was a newly built car, but compared to another car with the same name as him, the style in the newspaper. The car he made himself was like an ugly duckling, and people who saw Ford would not even look at the car again.
Ford, with a sad face, remembered the scene when he had just built his first car and was found by someone two years ago. At that time, he was full of energy and felt that he could create an emerging industry so that citizens of the entire United States could own a car of his own, and he would also write his own chapter in history because of this move.
With this feeling, Ford, after learning about the other party's invitation, he refused the other party's kindness after not too long consideration. He began to work hard for his dreams with his like-minded companions in Detroit.
After a long period of persuasion, the man who came to find him finally returned in vain and left the final persuasion, "You don't know what kind of support your dream needs, and you don't know what kind of strength the company you reject has. I hope you will understand this problem one day."
Today, Ford finally understood the meaning of the other party's words, and the opponent he was about to face was so powerful that it was invincible.
"Ford, look at this!" Ford's friend went straight into the factory and shouted. He soon saw his friend in a daze, holding a newspaper in his hand and said, "The price of Ford's car is out, it's 220 dollars."
This news made Ford, who was sitting on the bench, stunned. Thinking of his long-term assembly experience, Nain said, "It's not surprising. Such a large scale and efficiency have pushed the pricing to this point? If a person saves money for a year, he can own his own car. But my friend, do you know what this means?"
"What does it mean?" The person who came was full of doubts. He was just a senior repair pilot and didn't know much about many things.
"This means that in the current pricing, no one can compete with Sheffield Automobile's products. Sheffield Automobile has lowered the price to this point, resulting in other competitors in the automotive industry being no profitable at all!" Ford said with a wry smile, "This company has eliminated all its competitors at the beginning."
Just as the two were talking, the well-dressed William Durant walked in and saw the two who were dejected. He sighed in his heart and felt sorry for their prospects. As a millionaire, William Durant also foresaw that the automobile industry was ready to go, so he came to Detroit to find like-minded partners. However, unexpectedly, the outbreak of the automobile industry occurred in Houston, and he made a mistake in his judgment.
"Ford, I'm going to Houston soon. If you want, you can go with me and we will meet the boss of United Automobile Company. What do you think?" William Durant seriously proposed in front of Ford that he had heard about Ford's initial lure in the past few days, and he felt a little sorry for the other party.
Chapter completed!