Zhang Ruiqiang knew Feng Yu inside out. Feng Yu really donated 3 modern school building and all the facilities in it. Each building cost over 1 million RMB. Of course, this donation was not from the Machinery Company. It was from Feng Yu’s pocket.
Tai Hua building will be a brand in the future and how can the buildings be ordinary? 20 years from now, these buildings should still be in good shape and can satisfy the demands of the schools!
After Feng Yu left, he reflected on himself. Most importantly, he must set up a professional team for business negotiations.
Feng Yu cannot rely on his current skills and his experiences from his previous life. He must look for the elites in negotiation. It was impossible for Feng Yu to train someone that specialized in this field.
Just look at the people in Tai Hua Trading. All of them had performed well, but they were still far from the elites. If they were outstanding, they would leave the company to set up their own business.
Although Zhang Ruiqiang had taught Feng Yu a lesson with this deal, it had also helped Feng Yu a lot. At least he could show Kirilenko that the City had purchased more than 300 vehicles.
Russia’s economy had declined severely, but the government’s expenditure did not reduce much. The country’s budget will issue their money to the government agencies first.
If Bing City could purchase more than 300 vehicles, then it should not be a problem to sell these cars to the Russian Government.
“Feng, I will be returning to Moscow tomorrow. I will surely purchase your cars, and I am willing to accept the price you offered. But I do not have so much cash with me. Ii will place a deposit, and after I sold the cars, I will transfer the balance to you. Is this fine with you?”
“Why not? I trust you. It’s a deal then. You can transfer to Tai Hua Trading’s account. Tai Hua Trading is the main distributor for Machinery Company’s vehicles.”
The both of them had worked together for quite a long time and trusted each other.
The prices offered to Kirilenko was higher than the prices Feng Yu sold to the City. Even if he deducts the export taxes, the profits were still a lot higher than what he got from the deal with the City.
Why did Kirilenko still accept this price? It was because the Russian market only has the top range and the lowest range cars. The cheapest imported English cars will cost more than 80,000 USD. The top tier cars will cost a few hundred thousand USD. The Russian Volga cost less than 20,000 USD. There were very few mid-range vehicles.
Kirilenko discussed with his men and felt that even if these cars were used as family cars, the market would be vast. Kirilenko can still use his connections with the government.
Kirilenko was confident that he could sell 10,000 vehicles to the government easily. If he put in more effort, he might sell even more.
10,000 vehicles, even if Kirilenko earns 2,000 USD per car, that will be 20 million USD. This was much more profitable than his commodities trade. Most importantly, he does not need to put in much investment.
Kirilenko would receive the deposits from the Government in cash and then he would use these deposits to place orders from Tai Hua Trading. After he delivered the vehicles, he would collect the balance from the government and then transfer the payments to Tai Hua Trading.
As for selling these vehicles to the individuals as family cars, Kirilenko decided to target only those businessmen.
“Brother Ki, do you think the Russian automobile market is only this small? You can only sell 10,000 vehicles in a year?” Feng Yu showed his index finger to Kirilenko.
Kirilenko looked at Feng Yu in surprised: “10,000 cars is still considered little?” How many cars can you sell in China annually?
Feng Yu sighed and asked: “Brother Ki, did you forget what your family is doing?”
Kirilenko paused for a second. What is my family doing? My father and brother are in the Russian Army…… Wait, my father was the overall in-charge of the Army’s logistics, and he does the procurement of the military equipment!
Kirilenko opened his eyes wide: “Feng, are you telling me to sell your vehicles to our Russian army?”
“Why not?”
“But only your Songjiang Off-roads model suits our army.”
“I am talking about Songjiang Off-roads. Especially the diesel engine model. This model has a lot of power, durable, uses lesser fuel and suits the cold environment. Also, we can help you paint the vehicles into Army Green color or camouflage paint. What do you think?”
Kirilenko was still not smart enough. Actually, Feng Yu felt that all the Songjiang models can be sold to the Russia army. It was just up to Kirilenko.
This diesel engine Off-road vehicle will not be popular in China. It was not because the Chinese do not like this technology. But it was because of the quality of diesel in China. China’s diesel quality was the worst in Asia and cannot be compared to Europe.
If the quality of diesel was not good, then the vehicle will consume more fuel, and there will be wear and tear. Furthermore, the acceleration of diesel vehicles was slower and loud. The sales of such vehicles will not be good.
The most frustrating part was that many petrol stations in the Cities do not have diesel! It was the villages that use more diesel due to the tractors.
But for the family car market, the Cities will be more popular. This was because the cities’ residents had more spending power. This diesel engine off-road model was specially designed for military use.
The quality of diesel in Russia was excellent and could withstand the harsh and cold environment there. Russia had the most advanced diesel technologies in the world.
Of course, if the Russian thinks the diesel engine model was not good enough, they have the option of choosing the petrol engine model. This model also uses the turbo-charge technology and the power will not lose to the diesel model.
Kirilenko was thinking. If he could sell the vehicles to the army, then this could be a new revenue source for him. The number of cars sold will inevitably increase.
But now, Kirilenko was not short of money. If he were to use his father’s connection, will it affect him? What would others think about his father if he were to sell these vehicles to the army?
But Kirilenko’s father was not in charge of the logistics now. His influence in logistics was not as powerful as before. Kirilenko could give the one in-charge now some benefits in exchange for selling these vehicles to the army. His father should not be affected much.
Kirilenko was also tempted by the profits. If the Russian military were to purchase these vehicles, it would be more than 10,000 units. He had also received news that the army was considering replacing some equipment. Vehicles were one of the equipment in the list.
If Kirilenko could become the military’s vehicles supplier, his profit might be more than 100 million USD!
100 million USD of profits was really tempting to Kirilenko.
“Feng, can you guarantee that your vehicles have no problems?”
“I cannot be 100% sure. All the automobile factories in the world cannot guarantee this. But you have checked the quality of our vehicles. I am confident that our vehicles will meet your military’s requirements. Don’t tell me you are not tempted by the profits from this deal?”
If the Russian army were to use Songjiang Motors vehicles, then would China’s army will need to purchase foreign cars? Feng Yu could use this as an example to sell his off-road models to China’s military!
“Feng, I need to consider about this. I will let you know about my decision later.”
“No problem.” Feng Yu smiled. He could see the ‘$$$; symbols in Kirilenko’s eyes!
