30: The prototype of Longguo Ordnance Industry Group!

“Let’s go to Changhe Automobile Factory!”

Factory Director Gu’s excitement was no less than Chief Designer Peng’s.

He still had great faith in Chief Designer Peng’s R&D capabilities.

Since Chief Designer Peng wanted to develop wheeled infantry armored vehicles and high-mobility off-road assault vehicles, the technology must be very advanced.

There would be no shortage of military orders and sales in the future.

Therefore, he was naturally willing to merge with or acquire Changhe Automobile Factory… Twenty minutes later.

Chief Designer Peng and Factory Director Gu arrived at the main gate of Changhe Automobile Factory in a Yanjing brand jeep.

Changhe Automobile Factory was slightly smaller than Chief Designer Peng’s military factory, with only about a few thousand workers.

In earlier years, this automobile factory had also seen glory, with its Changhe brand off-road trucks being procured by the military.

However, since last year, when military factories nationwide were the first to adopt the “contract responsibility system” and gain autonomous operating rights,

Changhe Automobile Factory began to decline.

Because the performance and quality of their off-road trucks were inferior to those of Jiefang and Dongfang Automobile Factory,

they could no longer receive military orders.

Currently, they could only survive by producing some parts for other military factories.

They even had plans to transition from military to civilian production, manufacturing civilian vehicles.

“Chief Engineer Gu, no, it’s Factory Director Gu.”

“Welcome to our automobile factory!”

Liu Liang, the director of Changhe Automobile Factory, was very enthusiastic, shaking Factory Director Gu’s hand excitedly as he spoke.

“Director Liu, we are old acquaintances, so there’s no need for formalities.”

“Let me introduce you, this is Chief Engineer Peng Lin from our factory.”

Factory Director Gu smiled, shook Liu Liang’s hand, and introduced him.

“Chief Designer Peng, your reputation precedes you!”

“Welcome to visit our automobile factory, and I hope you can give us some guidance!”

Liu Liang did not slight Chief Designer Peng because of his youth, and also shook his hand with unusual enthusiasm, saying.

After all, the two military factories were not far apart, and he was very familiar with the situation next door.

He even believed that Changhe Aircraft Manufacturing Factory’s current development was almost entirely due to Chief Designer Peng’s research achievements.

“Director Liu is too kind.”

Chief Designer Peng shook hands with the other party and said.

Subsequently, the two, under the warm hospitality of Director Liu Liang, went to his office.

“Factory Director Gu, you’ve come this time, have you agreed to the loan conditions for our factory?”

Liu Liang brewed tea for the two and then asked with great anticipation.

Because they couldn’t get military orders, coupled with the automobile factory now operating under the “contract responsibility system” and having autonomous operating rights,

they couldn’t even pay their workers’ salaries.

In desperation, Liu Liang could only mortgage several machine tools as collateral to borrow money from Factory Director Gu to pay salaries.

“It’s not about agreeing to a loan.”

“It’s that our Chief Designer Peng wants to merge with or acquire your automobile factory.”

Factory Director Gu replied.

Chief Designer Peng kept an eye on Liu Liang’s expression from the side.

He noticed that the other party, upon hearing that the loan had not been approved, was initially incredibly disappointed.

However, upon hearing the words “merge and acquire,” he actually stood up excitedly.

“Chief Designer Peng, is this true?”

“We agree!”

Liu Liang clasped Chief Designer Peng’s hand again and said directly.

“Don’t you need to discuss this matter with the factory’s key personnel and workers?”

Chief Designer Peng asked in surprise.

“Discuss what? They would definitely be more willing than I am.”

“Currently, our automobile factory can’t even pay salaries, while your salaries have increased to more than three times ours!”

“If the technical backbone and workers in the factory knew that I refused the merger and acquisition, they would eat me alive!”

Director Liu Liang said with a slight hint of embarrassment.

After all, as a factory director, he was ashamed to have managed the automobile factory to such a state.

“Alright then, Director Liu, please tell us about the detailed situation of your automobile factory.”

“For example, the factory area, machine tool equipment, production lines, number of workers, debt situation, and so on.”

Chief Designer Peng said to the other party.

“Okay, no problem.”

“Our Changhe Automobile Factory has over 5,000 technical backbone personnel and employees, with a total factory area of 500,000 square meters.”

“Additionally, there is one stamping, welding, painting, and general assembly production line each, and these workshops cover about 200,000 square meters.”

“Warehouses for storing raw materials, parts, semi-finished products, and finished vehicles cover about 100,000 square meters.”

“The remaining 300,000 square meters are for offices, employee dormitories, family housing, and other areas.”

“Regarding debt…”

Director Liu Liang gave a detailed introduction.

Chief Designer Peng, listening to these asset details, sometimes nodded and sometimes frowned.

To be honest, Changhe Automobile Factory’s equipment and production lines were extremely complete, much better than Chief Designer Peng had imagined.

As soon as the design plan and manufacturing process for the new wheeled infantry armored vehicles were finalized, production could begin immediately.

However, correspondingly, the automobile factory’s debt was also a bit high.

In addition to owing a portion of workers’ salaries, there were significant debts to local governments and banks.

“Purchasing is not feasible; the automobile factory’s debt is too high.”

“We can only proceed with a merger by assuming the debt.”

“Our Changhe Aircraft Manufacturing Factory can assume all of your automobile factory’s debts and outstanding workers’ salaries.”

“However, after assuming the debts, all operational management, design, R&D, and production of Changhe Automobile Factory will be fully managed by our Changhe Aircraft Manufacturing Factory.”

“Of course, that also includes all assets.”

After a brief discussion with Factory Director Gu, Chief Designer Peng presented the conditions.

“Alright, whether I continue as factory director or not doesn’t matter.”

“But at least a good way out has been found for the workers.”

“After all, many families truly can’t make ends meet…”

Liu Liang sighed upon hearing this proposal and agreed.

“Director Liu, you can continue to serve as the director of Changhe Automobile Factory.”

“I forgot to tell you something: our merger with the automobile factory is not to reorganize the factory’s business, but to continue manufacturing vehicles.”

“Of course, I will design brand new military wheeled infantry armored vehicles and high-mobility off-road assault vehicles.”

Chief Designer Peng looked at Liu Liang and said.

In his eyes, Liu Liang was still a capable factory director.

As for the automobile factory’s current state, it was due to a sudden inability to adapt to institutional changes and outdated technology.

“Designing and developing new vehicles?”

“That’s wonderful.”

“Whether I continue to be this factory director or not doesn’t matter at all.”

“As long as Chief Designer Peng is willing to oversee our automobile factory’s design and R&D work, you can be the factory director, and I’ll be your assistant.”

Liu Liang said with immense excitement after hearing that Chief Designer Peng wanted to manufacture vehicles.

“Chief Designer Peng becoming the director of your automobile factory, that won’t do!”

“Old Liu, you continue to be the factory director, and Changhe Automobile Factory will operate as a branch factory, under the jurisdiction of the main factory.”

“Additionally, our Changhe Aircraft Manufacturing Factory is also preparing for reforms, and will be named Changhe Weapon Industry Group, according to Chief Designer Peng’s suggestion.”

“Temporarily, it will have three branch factories: Changhe Helicopter Manufacturing Factory, Changhe Weapon Manufacturing Factory, and Changhe Automobile Factory.”

“Each branch factory will have its own factory director and Chief Engineer.”

“Furthermore, the main factory will establish the Changhe Weapon Science Research Institute, which will serve as the overall department for the main factory’s weapon industry system, undertaking systematic research on equipment and tackling key technical challenges!”

“Chief Engineer Peng Lin, in addition to serving as the director of the Weapon Science Research Institute, is also the deputy factory director and Chief Engineer of the main factory, with direct leadership authority over the factory directors and Chief Engineers of the branch factories!”

Factory Director Gu explained in detail to Liu Liang.

As for the reform plan for Changhe Aircraft Manufacturing Factory, it was the result of their initial discussion on the way.

Of course, Chief Designer Peng’s idea was the most important part of it.

Because if wheeled armored vehicles and off-road vehicle businesses were added to the existing Changhe Factory, the entire military factory’s scope of business would be too complex.

Moreover, the profits of each business and field were different, and if the salaries of all technical backbone personnel and workers in the entire Changhe Factory remained uniform, it would not be conducive to long-term development.

Therefore, Chief Designer Peng simply reformed Changhe Factory using the development model of the future Longguo Industrial Group.

Now, Changhe Weapon Industry Group already had three branch factories: automobile, helicopter, and weapon manufacturing.

In the future, it would definitely involve more military industrial fields!