CarOS originally started as a company developing automotive operating systems, including self-driving technology.
Some companies install the software they develop only on their own hardware, while others actively sell it to other companies.
If the former is Npple, the latter are MS and Gooble. Neither approach is necessarily right, but we are leaning towards an open platform. This is because the former approach has limitations in terms of scalability.
The automotive industry is technology-intensive and labor-intensive. As it has a significant impact on technological development and job creation, every country is actively supporting its domestic companies.
Countries without an automotive industry from the start may not be affected, but nations like Germany, Japan, and India are highly likely to impose sanctions to protect their own industries.
However, if we have GM and Ford as allies, no country will be able to raise objections to CarOS's monopoly issue.
Messing with us could turn the entire United States into an enemy.
Everyone stiffened their expressions and remained silent. They must be furiously doing calculations in their heads right now.
If they accept the proposal, GM and Ford will also be able to create unmanned electric vehicles at a similar level to CarOS.
However…
Now is the era where cars, like computers and cell phones, need operating systems.
The more cars equipped with CarOS OS, the more data we can collect on roads and vehicles. Considering vehicle-to-vehicle communication, it is also advantageous to have more self-driving cars operating on the same software.
Just as MS's Windows dominated computers and Gooble's Andromeda and Npple's NOS dominated smartphones, CarOS will dominate the automotive operating system market in the future.
Once you become dependent on an operating system, it's hard to break free. This is tantamount to abandoning the technological prowess you've built up in the field of autonomous driving.
Seosung Electronics also effectively gave up on developing its own smartphone OS after adopting Gooble's Andromeda.
They could refuse and further develop their own technology, but the possibility of surpassing CarOS is almost nonexistent. It's not like we'll be idle either. Rather, as we've launched mass-produced vehicles first, the gap is widening even further.
Chairman Theresa McFarland asked,
"What if we don't accept it?"
"Then you can continue to make cars with your own technology. And I will make the same proposal to other automakers."
Even without GM and Ford, there are many automakers. Latecomers, who are considered to have weaker technology, will eagerly take our hand if we reach out.
Simply by adopting CarOS's technology, they can close the gap with the leading group in an instant. Eunsung Motors is such a case.
Eunsung Motors was assessed as lagging behind in self-driving and electric vehicle technology. However, the situation changed after they formed a technology partnership with CarOS.
Chairman Han Chanyoung officially announced that he would increase the proportion of electric vehicle sales at Eunsung Motors to 70 percent within three years.
Eunsung Motors is building an electric vehicle industrial complex with OTK Company, but sales of internal combustion engine vehicles still overwhelmingly dominate. Increasing the proportion of electric vehicles meant they chose to be under CarOS's umbrella instead of independent survival. Investors cheered this decision, and Eunsung Motors' stock price soared.
But GM and Ford are companies that have literally grown up alongside the history of the automobile.
Lowering their heads to us would be quite a blow to their pride. But the world of business is cold and unforgiving. Pride doesn't put food on the table.
I leaned back in my chair and said,
"The choice is yours."
Since they are both professional managers, they cannot ignore the wishes of investors. The stock price will tell which choice is right.
I added an explanation to help them make the right choice.
"As you know, the current production capacity of OTK batteries is far insufficient compared to the future demand for electric vehicles. If you want to secure priority for supply, it would be better to decide sooner than other companies."
GM and Ford tentatively accepted my proposal, and working-level teams secretly entered negotiations.
Chairman Im Jin-yong met with Chairman Theresa McFarland and Chairman Hugo Patraeus separately to talk.
To create Level 4 or higher autonomous vehicles, various hardware components are essential, including vehicle APs, semiconductors, sensors, and modules.
Of course, other companies are also making them, but Seosung Electronics is the only company that can stably supply them at a reasonable price. It has already been proven that their compatibility with CarOS's operating system is excellent as well.
Chairman Im Jin-yong smiled and said,
"It looks like it will be difficult to make money for the next few years. We might not even be able to give out dividends this year."
Although the stock price is breaking record highs every day, Seosung Electronics' net profit is actually plummeting. This is because they are constantly reinvesting the money they earn.
It's all just complaining.
Automakers around the world were paying close attention to the situation and were busy formulating their future strategies.
"It seems Japan has decided to unite related companies under government leadership. Prime Minister Okazaki has promised maximum support from the industry."
"That's how significant the automotive industry is to their economy."
No one can deny that CarOS is the absolute leader now. The choice is one of two: go under CarOS, or unite and resist.
I finished the call and went into the room. Ellie was leaning against the headboard reading a newspaper. I was startled when I saw her. It was partly because she was so beautiful… but also because she was wearing black horn-rimmed glasses.
"Oh! What are those glasses?"
"My eyes have been feeling tired lately, so I thought I'd try wearing them when I read. Do they look weird?"
I quickly shook my head.
"No. They look really good on you."
Just by wearing glasses, she has a slightly different feel than usual. She even looks kind of cute.
Ellie smiled softly at my words.
"What is it? Do you like this kind of thing?"
"Well…"
I don't dislike it.
Ellie closed the newspaper and said,
"Did your call with Chairman Warren Buffett go well?"
"Yes. He asked me to send his regards."
Berkshire Hathaway was busy investing in related companies. It's amazing that he can be so passionate at his age.
Or is it more amazing that I'm talking to Warren Boat?
"What were you reading?"
"The Financial Times. There's an interesting article, do you want to see?"
I took the newspaper.
[Who Will Survive in the Future Automotive Market?]
In January 2007, a phone was unveiled in San Francisco. It was the smartphone made by Npple.
At the time of its unveiling, the impact of the Nphone was not expected to be that significant. However, in less than 10 years, smartphones, spearheaded by the N-phone, dominated the mobile phone market, and existing giants like Nokia, Motorola, and BlackBerry fell one after another.
Now, let's look at the automotive market. CarOS has released self-driving cars called AD1 and AD2, and now they are launching unmanned electric vehicles AD3 and AD4.
The AD series is like the N-phone of the automotive market. Among the current top 10 automakers, how many will remain in 10 years?
Ellie said,
"The back page also mentions that CarOS's corporate value is $1 trillion."
I chuckled.
"That's just talk."
The estimated market capitalization of CarOS varies among financial companies. Some say it exceeds $1 trillion, while others say its actual value is only $300 billion.
Since it's a private company and hasn't received investment, accurate valuation is not easy.
The typical PER (Price-to-Earnings Ratio) for an automotive company is around 8. A PER of 8 means that the expected earnings for the next 8 years are equal to the current stock price. Compounded, this is about 9 percent per year.
However, CarOS cannot be measured by PER. This is because expectations for future value are reflected more than current profits.
If there is confidence that you will dominate the market later, what does it matter how much profit you make right now?
Whichever is correct, it's the largest market capitalization for an automotive company in history.
"How does it feel to have that much money?"
"Well, it doesn't really feel real. It's not like I'm holding it in cash, it's just that the equity value of OTK Company has increased."
There are many people in the world with more cash than me, and there are also companies with more cash holdings than OTK Company and CarOS.
Not to mention the Saudi Arabian royal family or dictators of authoritarian countries.
To put it in perspective, it's like owning a house, and suddenly that house is worth 3 billion won, 10 billion won. (Korean Won, likely referring to a significant increase in value)
The fact that I have one house remains unchanged from before. As long as I live in this house, I can't sell it.
No one knows what will happen to the house price in the distant future.
"It could go bankrupt someday."
It is surprisingly common for companies at the top to collapse.
Of the companies included when the Dow Jones Index was created, not a single one remains today. Many have gone bankrupt or been acquired somewhere, and very few are still alive. GE was removed once and then re-entered, but was recently removed again.
Ellie said confidently,
"Don't worry. If that happens, I'll take care of Jin-hoo."
"Can I trust you?"
"Of course. Just relax at home and manage the household."
"Hmm, I should probably start learning to cook then."
Ellie burst into laughter at my words.
"Actually, I thought the biggest money we made was during the L6 explosion incident."
At that time, we invested in short selling and put options and earned 50 times our investment, over 600 billion won. I was speechless when I saw the money printed in my account, and I even wondered if a person was allowed to make this much money.
Rather, after exceeding the trillion-won unit, my sense of reality began to fade. It almost seems like it's not real money, but just numbers on an account going up.
"Jin-hoo, is there anything you want to do with the money you earn?"
Money is opportunity. There are also many things you can do if you have a lot of money.
Even with a house and a car, human greed is endless, so people want a better house and a better car. The late Chairman Im Il-kwon used to go to car dealerships and buy supercars whenever he was bored.
But since I'm in the position of making and selling cars, it's a bit awkward to go to another company's dealership and buy a car.
So…
"I'm thinking of buying a private jet."
Due to frequent business trips, I had been thinking about the necessity of a private jet.
Senior Manager Sang-yeop was the most delighted when I said I would buy a private jet.
"That's a very good idea. You should have bought one a long time ago."
Then, as if he had been waiting for this, he handed me a pamphlet. It had everything from Boeing to Gulfstream, categorized by type.
I was dumbfounded and asked,
"When did you prepare this?"
"I received it in advance, knowing this day would come. Just pick one you like."
Not all wealthy people or all large corporations own private jets.
In the case of IKEA, the world's largest furniture company, they don't have a private jet, and even the chairman only flies economy class. There's a famous anecdote about an executive who asked if he could fly business class because economy class was sold out for an urgent business trip, and was told not to go on the trip at all.
This company policy is partly because the chairman is cheap… but also because of IKEA's image of selling low-priced, flat-pack furniture.
In any case, the number of super-rich people worldwide continues to increase, and the demand for private jets is also on the rise.
"How much do they cost?"
"Since they are made-to-order, it varies widely."
Roughly starting from $50 million, and expensive ones exceed $100 million.
Royal families from oil-rich countries, who don't know what to do with their money, sometimes spend tens of millions of dollars to decorate the interior with gold.
Ronald also owns a Boeing 757 as a private jet. Separate from Air Force One, which the US President uses, he traveled around campaigning in this private jet during his candidacy.
In modern society, consumption is one of the means of showing off. Having sold to the world's richest man becomes a good selling point.
As soon as I expressed my intention to purchase a private jet, manufacturers immediately rushed over with promotional materials.