thank you,” nodded Mr. Billings, taking the sheet, glancing at it and folding it into thirds before placing it in the inside breast pocket of his suit coat, along with the check. “Will there be anything more?” he asked, beginning to rise. He wanted to get going on this right away, to call his executive team together and share this news, as well as ensure he could meet the promises he had just made, perhaps too quickly.
“Yes, Mr. Billings, if you could wait, please, as we finish these other transactions.”
“Of course.” He sat again.
Qiang removed and handed a similar sheet to Mr. Park. “Here is similar contact information for you, Sir.” Park took the paper with a nod.
Qiang again turned to the automakers. “I would now like to ask you gentlemen,” he said, “to use the second card to tell me how many units you could be making annually, in addition to your current output, if you ran at three-shift capacity. In other words, your current, total capacity. Again, this can be extrapolated from current information, but we would like to ensure reliable data. Please do not add planned capacity, just what you have now. Thank you.”
The men, having entered the game this far, and having watched the previous transactions each quickly filled-out his card. Qiang gathered the cards from the men, looked at each for a moment and nodded.
“It seems, gentlemen, that amongst all of you is an unused capacity of approximately 317,000 units of annual American production.”
Again, the executives at the table remained impassive.
“On the next card, please write the revenue you would anticipate that your unused capacity would deliver to you if manufactured in your current plants, in your current ratio of cars-to-trucks and of the various model types, with your current employee base and sold at your current list price, minus 15%.” As he spoke he walked around the table and returned the cards to the men. “In short, approximately – we can finalize detailed pricing later - what you would charge me to buy all of the vehicles you can make over-and-above your current production, but within your current capacity, on an ongoing basis.
Because the information still seemed non-confidential, and each auto executive knew his prices were on the street anyway, each did a rough average calculation in his head and wrote down the number. Again, the Minister picked-up the cards, looked at them, handed them back, and continued.
“Please, now, Gentlemen, one last request, and this probably can be answered only in the broadest of estimates. We would like to purchase approximately one million new cars and light trucks annually for a minimum period of 10 years. What would it cost for each of your companies to build an expansion plant in the state of either Indiana, Georgia, Tennessee, Alabama, Mississippi or Texas, adding an annual capacity of, say, 150,000 autos and trucks?”
Mr. Jackson immediately saw the connection between this question and the lack of an invitation to his peers at General Motors or Chrysler. He looked at Minister Qiang for a long moment, then turned his gaze to Premier Fang, who returned it expressionlessly.
Qiang looked at Jackson steadily, waiting.
In for a penny, decided Jackson, and wrote a number on the card, as did the others.
Minister Qiang again picked them up and reviewed them.
Qiang again opened his checkbook and wrote two checks, handing them to Jackson. “The first is for your new plant. I would ask that it be online within twelve months. Can you do this?”
“Yes,” said Mr. Jackson, accepting the check.
“The second is for the first year of your third-shift capacity. But we do have one caveat,” said Qiang, “which I will tell you in a moment.”
He turned back to his briefcase and opened another checkbook, and wrote checks for the new plants and one year’s unused American capacity to the other automobile manufacturing executives, and then handed these out. The amounts of each check were the amount they each had written in response to the query.
Billions of dollars changed hands.
“We are buying,” Qiang said, “paid one year in advance, and are contracting for ten years, the number of cars you can build in America with your current capacity, and the additional capacity just discussed. A formal agreement will be in your hands by the beginning of next week. It is likely this agreement will be extended regularly.
“Regarding your manufacturing, we will not accept cars from any locations other than your current American manufacturing locations and the new ones we are asking you now to build.”
He turned to Mr. Jackson. “Mr. Jackson, your new plant will be built in one of the states I just mentioned – not in Michigan. Please be certain you understand this.”
Qiang then returned to addressing all of the men. “These vehicles should be delivered FOB under your standard three-shift schedule to the port of New Orleans, where they will be shipped by us to their destinations. We would like to ask that you use only North American suppliers for your steel, aluminum, engines, electronics, tires and other parts of these vehicles. Please ensure radios, tools, fittings, etc., meet Chinese standards.”
The men looked at him, stunned, as they pocketed the checks.
Jackson looked a question at him, not replying.
“Our intent,” said Minister Qiang, “which you need to know to understand and, which, I believe, Mr. Jackson, Mr. Billings, Mr. Board, will answer your question, is this.” He reached for and sipped from a glass of ice water on the table before him, and set it down.
“Russia recently has received from China one trillion dollars of US Debt. In return, Russia has sold Siberia to China.” He looked at the stunned men. “You will, of course keep this information confidential for the next several days or we will simply cancel the agreements and no more money will be exchanged and no jobs will be open to your employees.” He looked at each man, and each man nodded his understanding and acceptance.
Qiang continued, “China immediately will begin the exploitation of known, but un-used, resources inside Siberia, and to explore for more. This will require roads, railroads and vehicles. Have you any questions?”
It was a moment before anyone could respond.
“Yes,” Mr. Jackson finally said. “I understand the rail and engine purchases, and the indication of heavy equipment and trucks, which I hope will be ours, of course, but I do not understand the purchase of millions of cars. I mean … Chinese… make cars.” He paused. “Nor do I understand – completely – the manufacturing location you desire.”
“Yes, Mr. Jackson,” Qiang replied. “We do manufacture automobiles.” Qiang paused and then said, “And you are being disingenuous in your statement of location, are you not?”
When Jackson did not reply, Premier Fang spoke. “Mr. Jackson, even with the purchase of Siberia, China still holds over one trillion dollars of American debt. Japan owns over a trillion more. The only way that debt will be repaid by America, and people again put to work and consuming our manufactured goods, as I am sure you have figured-out, is if your economy is working. We are trying to ensure that your economy is working at capacity. Simple, yes?”
“And the location requirements?” continued Mr. Jackson.
“We do not believe, Mr. Jackson,” responded Fang,
