Chapter 122: Plans for the Joint Automobile Factory
Seeing that Arthur was very satisfied with the performance and data of the new model car, Benz finally let out a sigh of relief.
As long as Arthur provided strong support, this new model, which had lowered the price, would certainly be able to enter the global market. Unlike the cars Benz had invented previously, which had failed to sell due to various flaws, this new model was poised for success.
"Mr. Benz, how is the car production going? What are your plans for pricing and the release date?" Arthur asked.
Although the new car was several years ahead of the historical timeline, Arthur believed that Benz's new model would likely rival the T-Ford, and might even surpass it slightly.
If the T-Ford had sold 15 million units, then what kind of sales record could this new model achieve?
"Your Grace, based on our current workforce of three hundred regular workers and over a thousand indigenous laborers, our daily output can reach over a hundred cars," Benz replied. "But that depends on one condition: we need to ensure our steel and hardware supplies are stable."
Though the use of assembly lines had greatly reduced the time it took to produce a single car, enabling Benz's factory to speed up production from just a few cars a week to dozens a day, the pace was still not unlimited. In addition to the workers' familiarity with the production process, the supply of materials and hardware also played a role in balancing production speed.
"One hundred cars a day?" Arthur thought for a moment and nodded. "We can't just rush production. At least, we need to focus on opening the American and European markets first before pushing for higher production speeds. For now, it's fine to maintain the current production scale, but we should be prepared to expand quickly when necessary."
Benz nodded in agreement, as that was also his plan.
Although Benz, Diesel, and Arthur were confident that the new car could become a pioneer in expanding the automobile market and could potentially set new global records, it was still just a hypothesis until that day came. Even with a high possibility of success, they had to be prepared for failure.
"Your Grace, there's another issue we need to consider," said Benz, furrowing his brow. "The cost of transporting cars from Australia to the United States and Europe, as well as the tariffs in different countries. This will significantly increase our expenses and raise the production cost of our cars. In some regions, it may even bring our production costs up to the level of hand-crafted cars, which would greatly diminish our pricing advantage."
At that time, transportation could only be done by transport ships, which would be a considerable expense and take a lot of time. At the same time, industrial nations would likely adjust and raise tariffs to protect their own markets.
With the combined impact of transportation costs and tariffs, Australia's proud automobile production costs might face changes. In some areas with high tariffs, production costs could rise to the same level as those of hand-crafted cars.
"This is indeed a problem, Mr. Benz," Arthur nodded, furrowing his brow and thinking deeply.
In fact, most of the T-Ford sales in history had been in the United States, with Europe contributing very little to its sales due to tariffs.
The solution to both the tariff and transportation cost problems was clear: establish automobile factories in Europe and the United States, or even form joint ventures with European and American powers to run these factories.
Although this would mean sharing some of the profits, it would solidify the position of the automobile factories. After all, a powerful dragon can't crush a local snake, especially not a dragon as weak as Australia.
"Here's the plan: select some of the better-performing cars and send them to the UK and Germany to seek their support. We will establish new automobile factories in the UK and Germany," Arthur said after thinking for a long time. "Through cooperation with local powers in the UK and Germany, especially the nobility and official authorities, we will establish joint automobile factories. This will be handled by the royal consortium, and you just need to authorize the relevant technology. Of course, the inventors and owners of the technology will still be you, and the new factories will only have production authorization."
Cooperating with the local powers in the UK and Germany to establish joint automobile factories was a good idea.
First of all, the UK and Germany were the two leading powers in the world at that time, and their automobile factories didn't need to worry about competition from other automobile manufacturers or countries.
Secondly, both the British Empire and the German Empire had top industrial and technological capabilities, and their production speed could easily match the expanding automobile market.
Furthermore, Arthur was from the British royal family and had a strong connection with the British people. He also had a good relationship with Emperor Wilhelm II of Germany, and Australia had cooperation with Germany.
Whether from personal relationships or national interests, the UK and Germany were the top choices for cooperation and could definitely protect the massive interests in the automobile industry.
The only problem was that Arthur might have to give up some of the profits, but the automobile market was incredibly vast, potentially surpassing one billion pounds.
Such a huge market was definitely beyond the capacity of Arthur alone, and Australia's own size and capabilities could not match it.
After authorizing the UK and Germany to set up joint automobile factories for production and sales, the factories would be divided between the British Empire, the German Empire, and Australia.
Arthur would not concern himself with how the British Empire and the German Empire fought for the profits, as long as Australia's interests were guaranteed. Other details were minor.
It wouldn't hurt to let the British Empire and Germany earn some extra money. After all, when the war broke out in the future, Australia would make a fortune from arms sales, not to mention the other benefits related to the war.
The United States also had a large automobile market, but Arthur didn't agree with drawing the US into the deal.
First, the United States was a purely capitalist society where capital ruled above all else. While Australia could compete with American car manufacturers with the right investment and maneuvering, the true threat lay in the United States.
The United States had risen rapidly during the two world wars, and its rise had been fueled by massive profits from arms sales, putting many European countries into debt.
Afterward, the US used its advantage to attract a large number of European immigrants, including scientists and talented people, who contributed greatly to Europe's industrial revolution and technological development.
(End of Chapter)
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