Chapter 453 – Taught a lesson by Zhang Ruiqiang (1/2)

Feng Yu’s face was all black when he left Zhang Ruiqiang’s office! This Zhang Ruiqiang was too evil. Only half of the orders were the cheapest version of the Olympic model. There were also dozens of orders for the most expensive version. Zhang Ruiqiang happily walked Feng Yu to the door and even told him to come by his office often for a chat.

But in his car, Feng Yu smiled. Zhang Ruiqiang ah, Zhang Ruiqiang. You thought that the City had taken advantage from me? Hrmph! Just the quant.i.ty of your orders will be our promotional tools. This is not a loss for us!

There was no way for Feng Yu to accept these cars to be sold at cost price. After some haggling, he was able to convince Zhang Ruiqiang to let the Machinery Company have some profits. If not, Feng Yu would not be able to answer to Fu Guangzheng.

Feng Yu must tell Li Mingde to add in the marketing cost, management cost and all sorts of cost into the vehicles. He must not let Zhang Ruiqiang use the Machinery Company’s money to please others so easily.

Feng Yu had asked Zhang Ruiqiang about his orders. Even if the Police Department wanted so many cars, but those old cars can still be issued to the counties and districts. Why did they still need to order so many vehicles?

Feng Yu found out that Zhang Ruiqiang had helped the Provincial Government to order a batch of vehicles! The Provincial Government had wanted to purchase a batch of Audi vehicles from First Automobile Works. But they heard that Bing City had started to manufacture their own cars, and the performances of these cars were better and cheaper than Audi. Thus, the Provincial Government decided to use the Songjiang brand. On the surface, they claim to be supporting the local industry, but in reality, they just wanted more value for their money.

It was okay if the Machinery Company does not make any profit from selling the cars to the City. But to not make money from selling to the Provincial Government? Feng Yu quarreled with Zhang Ruiqiang on the spot. How can the City make such decisions for the Machinery Company?

What? You will give us some tax subsidies? This year’s tax will be exempted and 50% taxes for next year? You should have mentioned this earlier. The Provincial Government can enjoy the same rates as our Bing City.

Feng Yu agreed immediately. There will only be 5% profits from each vehicle. But actually, the profits were at least 10%.

Although the profits were minimal, it was still acceptable. The most important thing was his taxes for this year was waived, and next year, the Machinery Company will only need to pay 50% taxes. This will help his automobile project development.

Although Bing City only have a branch factory, from the current demand, they will be selling mostly the Olympic model. This should be the same for next year.

On the way back to the Machinery Company, Feng Yu felt something was off from the way Zhang Ruiqiang smiled at him.

Feng Yu arrived at the Machinery Company and pa.s.sed the City’s order to Li Mingde.

“Old Li, this is the City’s order. 316 vehicles. You make the arrangements to deliver the cars as soon as possible.”

“Over 300 vehicles? This is a big order. I knew this order will be big when you are the one handling. There should be almost 10 million in profits from this deal if each car’s profit is 30,000 RMB.” Li Mingde was overjoyed. Although 10 million RMB was nothing compared to the billions invested, it was still a good start.

“The profit is not so high. You add in all the materials, manpower, machinery wear and tear cost into the vehicles’ cost and add in a 5% profit will do.” Feng Yu sighed.

Huh? What’s with Li Mingde’s expression? Not happy? He does not know that the taxes for the automobile branch factory was also quite high?

“Manager Feng, this tax exemption is what I had discussed with the City last week, and they have already agreed.”

Huh?

Feng Yu was stunned. F*ck! The City had already agreed to this last week? I have been conned by Zhang Ruiqiang!

“Is Mayor Zhang aware of this?” Feng Yu asked/

“Of course. This is not a small matter. How can the Mayor not aware of this?”

“Old Li, take that order form with you. We will go to the City Government now!” Feng Yu was furious. Using some conditions that were already approved to con him? This was too despicable!