Chapter 148: Two Tracks: Family Cars and Dream Rides

Is it true that for older folks, the word ‘love’ is nothing more than a faded memory?

“Even if they don’t sell in huge numbers, we can create cars with a unique identity that people desire, cars with character. Love at first sight is great, but a love that slowly builds is just as good, wouldn’t you agree?”

“A car people desire, huh…”

“Was it ’96? Ajin Automobile acquired Lotus’s production line and designs from England and sold a two-seater convertible. It was designed for small-batch, handcrafted production, which meant mass production was impossible.”

President Jo Dae-ho frowned, as if he recognized the car I was talking about.

Based on an annual production of 10,000 units, the production cost alone was 30 million won.

Even selling them without any profit, adding value-added tax and special consumption tax would bring the acquisition cost to 40 million won per car.

You could buy a fully optioned mid-sized car for 15 million won, and even flagship sedans were only in the 40 million won range.

Ajin Automobile Chairman Song eventually set the price at just under 30 million won, including taxes, a move that guaranteed a loss with every car sold.

“I know it well. I was the one who discontinued that model.”

“Yes. Considering profitability, it was an insane thing to do.”

“So? Are you suggesting we produce sports cars like that?”

Considering my young age, he looked at me with an expression that suggested he understood why I’d bring this up.

The young owner of a car company wants a sports car. From his own company. That’s probably how President Jo understood my intentions. Isn’t that typical of a young owner who sees the company as a toy?

President Jo likely thought I was still naive.

“Why would we make cars that we’ll lose money on? And just so you know, I don’t even have a driver’s license yet. I have no interest in sports cars. My favorite car is the BMW 7 Series. It’s the car that saved my life.”

“Then what do you mean by ‘cars with character’?”

“An affordable compact car that working women can buy on installments, a coupe that a man in his 30s can splurge on with a three-year payment plan, a pickup truck that a middle-aged man would want as a second car. That’s what I’m talking about.”

President Jo’s frown remained.

“There are already plenty of compact cars and coupes out there. And pickups aren’t popular in our country.”

“They’re cars that nobody wants.”

“What?”

“Compact cars that look cheap and flimsy, coupes that aren’t pretty or stylish, pickup trucks that look like commercial freight vehicles. Who would want to buy those cars?”

Only then did my grandfather and President Jo understand what I meant. But they didn’t hide their skepticism.

“Even if you make those cars desirable, you won’t sell many. The cars that actually sell are family cars. Anything else will never break even. You know that now, right? The car industry is a capital-intensive industry that relies on mass production.”

“What if we used a two-track production system? Would that make it possible to break even?”

“Family cars and cars that are loved? Like that?”

“Yes.”

“You’re not planning on making money.”

“It’s fine even if we operate at a loss for the next ten years. Things will change after that.”

That’s the case now, and it will be in the future.

We can never surpass the sales of Toyota and Volkswagen. If those two companies had only ever made family sedans, they would never have reached the top.

Their development of diverse, unique, and ambitious cars, and a company mindset that doesn’t ignore a small number of enthusiasts, is what put their flagship models, the Corolla and Golf, on top.

Daehyun Automobile announced its ambition to become a global top 5 company in the 21st century, and they will surely achieve it. But Daehyun still only has the image of being a practical choice due to its cost-effectiveness.

Cars need to inspire dreams.

The moment you imagine yourself driving that car, it’s loved.

“Heh heh.”

My grandfather, who had been listening quietly, suddenly burst into laughter.

Seeing this, President Jo Dae-ho slapped his forehead and started laughing along.

While I was looking back and forth between the two, puzzled, my grandfather stopped laughing and said,

“You’re saying the same things I said when I started Soonyang Motors. Ha ha.”

“That’s right. You said the same thing, Chairman. That it was okay not to make money for ten years. That you’d provide the funds even if it meant selling the underwear off your back.”

“Oh, really?”

“Yes. But exactly one year later, as soon as the financial statements came out, you told me my neck was on the line. And to start making a profit quickly. Haha.”

Damn it.

My sincerity is being twisted like this.

“It’s alright. Do-jun, I believe you’ll be different from the Chairman. Heh heh.”

“Hey! That was a joke. If I was serious, would I have kept you in that position?”

Unable to continue listening to the two elders reminiscing about the past, I subtly interjected.

“President, you understand my intentions, right?”

“The Chairman boasted endlessly about how much money you have… Can you handle it? The first condition for a car to be loved is its design. For a man, a car is just like a woman. A beautiful face is essential.”

“We’ll recruit the best designers. We can get Chris Bangle or even Peter Schreyer. Just name the designer you want.”

Hearing the names of BMW and Audi’s designers, President Jo smiled again, looking at my grandfather.

“Chairman, I think he’s serious? Thanks to him, it looks like I can collect my paycheck for the next ten years without worrying about performance.”

“Don’t be fooled. Whose blood runs through his veins? Heh heh.”

My grandfather chuckled lightly, then asked seriously.

“If a car company starts losing money, it’s hard to handle. You could lose all the money you’ve made from investments.”

“I have enough to invest for about ten years. Including China.”

“What? China?”

The two men were surprised again, but their reactions were slightly different.

President Jo, in particular, asked with an expression as if he were witnessing a rare spectacle.

“Did you plant a spy in Daehyun Group or something?”

“Excuse me?”

“I heard Daehyun is slowly turning its attention to China. They were aiming for local production around 2005, but I heard opinions are still divided.”

“It’s already a bit late. We need to hurry, even if it’s just a day sooner.”

Volkswagen had already entered China in 1984. They established Shanghai Volkswagen (Shanghai Dazhong) as a joint venture with Shanghai Automotive Industry Corporation and focused on capturing the southern regions of China, centered around Shanghai.

In ’91, they partnered with China FAW Group Corporation to target the northern regions, and by ’99, they had captured nearly 60% of the Chinese market.

“The Chinese market is about 1.5 million units. Excluding luxury cars for the wealthy Chinese….”

President Jo’s reluctance to rush was evident.

Since China only allows joint ventures, technology transfer is essential for entering the Chinese market. That’s the most unsettling part.

“Don’t you know that explosive growth is about to begin?”

“Well, well, it seems it would be best to follow Do-jun’s wishes.”

President Jo Dae-ho seemed surprised by my grandfather’s sudden interjection.

This was because he had never interfered with the management since Soonyang Motors and Ajin merged.

“Why is that?”

Furthermore, my grandfather seemed surprised by President Jo’s sudden provocative question.

“Oh? Look at this guy. Are you saying you won’t blindly follow my orders anymore?”

“Chairman, in this setting, you’re an advisor. There’s no reason I absolutely have to follow your advice. Of course, I’ll consider it if it’s good advice.”

“See? This is what this fellow is like. He’s protesting to you, Do-jun. He’s saying he won’t start anything, whether it’s a beloved company or entering China, unless he’s convinced himself.”

My grandfather was acting like a child who had discovered something amusing, making a fuss.

“Take a good look. Money from all over the world is flowing into China. ‘The world’s factory’? That’s a really scary term. Our Soonyang factories went there in droves because of cheap labor. What creates added value is labor. And the place for that labor is the factory.”

“You’re saying that as wealth accumulates, there will be a need to spend it.”

“The speed at which smokestacks are rising in China is getting faster. That means the economy will grow rapidly, right? And the first way to show off that accumulated wealth is with a car.”

“Once money piles up in their bank accounts, men naturally turn their eyes to cars.”

President Jo nodded and turned his gaze to me.

“It’s going to cost a lot of money. Time, quality, and money. These three are always on opposite sides. If you want to reduce time and increase quality, you need a huge initial investment. Are you sure you’re okay with that?”

“Can you estimate the amount? Right now?”

“China is definitely a 50/50 investment system… At least over 250 million dollars? That should be enough for an initial production scale of around 100,000 units.”

“That’s not as much as I thought. Let’s do this. Let’s push forward with the project with an initial investment of 500 million dollars as a base. That includes the cost of expediting things.”

When I immediately doubled the figure, President Jo Dae-ho’s jaw dropped.

“See? I told you this guy has a ton of money.”

My grandfather clapped his hands gleefully at the surprised President Jo and burst into laughter.

* * *

“My divorced… no, not yet. Anyway, my soon-to-be ex-wife asked to meet, and it felt strange.”

“You look good.”

“You’re still managing yourself well too. Who would think you’re over fifty?”

“Give me compliments like that more often. Why? Do I look different because I’m not your woman anymore?”

“Still sharp as ever. Let’s skip the small talk. What’s the matter?”

Mayor Choi Chang-je was secretly pleased by Jin Seo-yoon’s request to have a drink and even had some hopeful expectations. Namely, canceling their planned divorce.

“Let’s join forces again.”

“Are you serious?”

“Don’t misunderstand. I’m not thinking of sharing a bed with you again. A true business partner, not a spouse. How about it?”

“What is it? Haven’t you been compensated enough for leaving me? If your father finds out you’re joining hands with me, he’ll take everything back, won’t he?”

“He won’t. Or rather, he can’t.”

“Do you think your father would have handed things over to you without those kinds of safeguards?”

“Safeguards or whatever, it’s all useless. How can he take what I don’t have?”

“What? What do you mean?”

“Just as I said. I don’t have anything anymore. Just know that.”

Mayor Choi Chang-je noticed that Jin Seo-yoon wasn’t elaborating and understood. She was a proud woman. Everything she had received from Chairman Jin was gone, and all that remained was the title of Soonyang Group’s daughter. He didn’t know what she had gone through.

“If you don’t want to talk about it, fine. But what do you want to do by joining hands with me again? Is it the same as before?”

“Of course. Before I get even older and become a grandma, I need to sit in that study in Pyeongchang-dong.”

“You said you don’t have anything. How are you going to get to Pyeongchang-dong?”

“Getting to the front of the house is as simple as following someone. But getting from the massive gate to the study is difficult. It would be easier if you could take care of that someone for me.”

“Who is it that’s clearing the path for you?”

“Someone you know well. The kid who prepared your election funds.”

“Do-jun? Really Do-jun?”

Jin Seo-yoon put a finger to her lips, calming the surprised Mayor Choi.

“Whether it’s Do-jun or anyone else, you need power to deal with them in the end. Being the Mayor of Seoul isn’t enough, so you need to prepare well. I still have some personal assets, so even if I become penniless, I’ll support you.”

“I don’t want to touch my ex-wife’s secret stash….”

She offered a slight smile to Mayor Choi, who was making unnecessary jokes.

“Come on. The person who knows you best is me. What’s with the pretense….”

Choi Chang-je poured water into the empty glass in front of Jin Seo-yoon.