CarOS’s success had been predicted long ago.
After all, it was equipped with Level 5 autonomous driving technology capable of unmanned driving and an OTK battery capable of driving over 1,000 kilometers.
However, the public’s reaction was far more enthusiastic than expected. The ripple effect of the pre-order jackpot was immediately evident.
Seosung SB’s stock price, which holds shares in TS Company, rose by over 20 percent, and the stock prices of suppliers providing parts to CarOS also surged simultaneously. And Seosung Electronics soared to its daily limit, driven by a flood of buy orders from institutional and foreign investors.
– Wow, insane! I’m actually seeing Seosung Electronics go up 30 percent in my lifetime.
– Ugh, sob… I sold it yesterday. The brokerages said the stock price had risen too much in a short time and would be adjusted down. Bastards…sob.
– LOL, the brokerages snapped up all the shares you sold.
– Seosung Electronics is the only company holding shares in CarOS and the top company in the automotive electronics sector. Its growth potential is endless.
– Just wait a year, you’ll think even this price is cheap.
– That’s ridiculous. Seosung Electronics is the best in automotive electronics? Nvidia, Continental, etc., have superior technology. Saying Seosung Electronics is the best is just nationalistic pride. Learn something before you speak.
– You should be the one to know something before you speak. There are many companies with technology in the world, but how many can handle the order volume? Seosung Electronics is the only company in the world that can produce electronic equipment for millions of vehicles annually.
– It’s the ability to produce, sell, and manage 100 million smartphones a year that’s really paying off.
– Rather than that, isn’t it more important whether CarOS can produce that many? Even if Seosung Electronics meets the demand, it’s useless if CarOS can’t build enough cars.
– If they mess up, they’ll end up like Nikola.
Now, the market’s attention turned to CarOS’s production capacity.
Production volume and quality have a trade-off relationship, so maintaining quality while increasing production is not easy.
Increasing production volume rapidly often leads to quality degradation. This is a common problem for other companies as well.
CarOS had also emphasized this issue from the beginning, and that’s why they had been steadily working to establish a mass production system for two years after acquiring Chrysler.
Although in a different field, the company that excels most in this is Seosung Electronics. This is because it has the most vertically integrated structure among all electronics companies. Unlike competitors who opt for contract manufacturing or parts ordering, they produce most components themselves, from APs to memory semiconductors and batteries, and also handle assembly and sales directly.
As seen in the Eunsung Motors airbag recall incident, in automobiles, production can be disrupted if even a single part out of tens of thousands is missing. SCM (Supply Chain Management), which can systematically manage order volume, production volume, inventory, and defect rates, can be considered the know-how of the company.
Chairman Im Jin-yong willingly offered his help. Seosung Electronics holds 24.5 percent of CarOS’s shares, and it was natural since the more cars sold, the more money the Seosung Group could also earn.
The TS Company factory in the US churned out batteries, and the finished vehicle assembly plant ran non-stop.
Daryl confidently stated,
“CarOS has already gained experience from AD1 and AD2 sales. We will gradually stabilize production and increase it to 3 million units annually, and then to 5 million units. We will complete the delivery of the initial 1 million pre-orders within 6 months.”
***
Investment firms worldwide focused on the ripple effects of AD3 and AD4 sales, pouring out various forecasts. Concerns were as high as expectations, but the change had already begun.
I had a video call with Daryl. He looked tired, as if he hadn’t slept properly for days. His eyes were bloodshot and swollen, and dark circles reached down to his cheeks.
“Are you very busy?”
“Not really, but I’ve been suffering from insomnia for a few days.”
“Take a good rest now.”
Having overseen everything from development to launch, he must have been under a lot of pressure.
Daryl shook his head.
“GM and Ford are strongly protesting right now. They are complaining that unmanned vehicles are premature and that the relaxed regulations are preferential treatment for CarOS. They are continuously lobbying the political circles and pressuring their partners. And the media seems to be on their side.”
Unlike the newcomer CarOS, GM and Ford have long histories. And they have built deep relationships with political circles and the media over that time. Thanks to that, they were able to receive large-scale bailouts during the financial crisis. The degree may differ, but connections and personal networks are important in any country.
“There’s talk circulating that both companies might undergo large-scale restructuring due to the ripple effect of CarOS’s new car launch.”
Since CarOS’s primary sales market is the US, GM and Ford are facing an immediate crisis. In fact, sales of cars classified as competitors to AD3 and AD4 have noticeably declined.
Nikola had created an electric vehicle boom several years ago, but neither sales volume nor production volume threatened existing manufacturers to a significant extent. However, CarOS was different.
CarOS had clearly taken customers away from GM and Ford, and would take more in the future. If large-scale layoffs and reductions occur at other US automakers due to CarOS, public opinion could worsen significantly.
Because of Big One, I became an American hero and am loved by many Americans. However, truck drivers who lost their jobs due to unmanned trucks must resent me. The same will be true for those who become unemployed in the future.
“If possible, we should avoid such a situation.”
I had already thought of a solution to this problem.
We don’t necessarily have to compete with the Big Two. The global car market is vast. No single company can dominate this huge market, and if it did, it would create a monopoly issue.
Monopolies negatively impact the market. That’s why Standard Oil, created by Rockefeller, was forcibly dismantled by antitrust law.
As CarOS’s sales increase, monopoly controversy will intensify further. Sherman Act discussions are already emerging in the US.
So how have companies like MS, Google, AMZ, and Disney, which monopolize operating systems, search markets, online markets, and content markets, avoided this law?
Fortunately, the US has a system that exempts companies from antitrust law if it’s in the public interest or doesn’t hinder competition. The companies mentioned above also avoided antitrust laws that way.
“I should talk to their CEOs.”
“Will you come to Detroit?”
I leaned back in my chair and crossed my legs.
“Is there any reason for me to go? The party in need should come to me.”
Daryl burst out laughing at my words.
“You’re right. I’ll convey that.”
***
GM Chairman Theresa McFalland and Ford Chairman Hugo Petreus entered Korea with their presidents and executives, and the world’s attention focused on it.
[GM Chairman and Ford Chairman Enter Korea Simultaneously]
[Pre-departure Meeting Between the Two Companies Reported]
[US Big 2 CEOs, Why Enter Korea?]
[Competition or Cooperation?]
– Obvious. They came to meet Kang Jin-hoo.
– LOL, when the Korea GM factory closure issue happened and the Korea Development Bank begged them to meet, they brushed them off saying they were busy, but now they are bringing their whole executive team.
– Since CarOS acquired Chrysler, is it like the US Big 3 meeting in one place?
– LOL, but meeting in Korea.
– I’m so curious what they will say.
– Aren’t they going to beg and cling to his pant legs?
***
OTK Company shareholders gathered in one place.
Hyun-joo noona, who returned after maternity leave, looked almost exactly the same as before. Her figure was also as it was before. Even when she was pregnant, she was worried because she didn’t gain much weight.
The only thing that had changed was…
“Noona, did you really quit smoking?”
Hyun-joo noona nodded.
“I smoked for over 15 years, it was time to quit.”
“Wow! Our noona has changed.”
“Shut up.”
We were looking at materials and talking in preparation for the meeting with the Big Two.
Hyun-joo noona said while drinking coffee.
“Even in the US right now, they are worried about CarOS’s unmanned car monopoly. Public opinion is also worsening, especially among related workers. As sales increase, the checks and balances will become even greater.”
I nodded.
“No matter how good the cars CarOS makes are, the whole world can’t drive the same car, right? Regulations differ by country, climate and road conditions vary by region, and people have different lifestyles.”
Some regions have sub-zero temperatures and snow, while others have scorching sun and heat haze rising from the roads. Some people carry their families and travel short distances, while others travel long distances alone. Naturally, there will be differences in desired vehicle size, shape, durability, and convenience features, etc.
Taek-gyu said,
“Above all, people have diverse tastes.”
It’s impossible to satisfy all those tastes with just a few car models. We are no longer in an era of small variety, large quantity production, but rather an era of large variety, small quantity production. Henry Ford’s famous quote, “You can have any color car you want, as long as it’s black,” is now a thing of the past.
The conclusion is that each country needs cars that are suitable for that country. This is why global automakers increase their brands and release various car models.
While we were talking, the secretary came up and said.
“Meeting preparations are complete.”
“Yes. I’ll be down now.”
I headed to the meeting room with Taek-gyu. Even though it was the largest conference room in headquarters, it was packed with people.
The faces of GM Chairman Theresa McFalland and Ford Chairman Hugo Petreus were visible. Not just them, but GM and Ford executives were also present.
“Nice to meet you. I’m Kang Jin-hoo.”
We exchanged greetings. We had known about each other for a long time, but this was the first time meeting in person.
GM, befitting its name General Motors, can be called the national car of the United States. It entered Korea by acquiring Daewoo Motors and once sold under the brand GM Daewoo. Now it’s just integrated under its own brand.
Theresa McFalland is the first female CEO in the automotive industry. Just reaching the top position in this industry, which is mostly dominated by men, was enough to show her capabilities.
Her actual management skills were also surprisingly outstanding, and it was said that GM had completely revived after she became CEO.
She was welcomed by shareholders, but not by workers. She implemented a global restructuring strategy, closing unprofitable brands and factories and withdrawing from markets with low profits. The closure of the Gunsan factory in Korea was also part of that.
Thanks to this restructuring, company profits increased significantly and the stock price also rose sharply. And through massive investment, they have been developing future car-related technologies.
Autonomous driving technology is also rated as top-tier… of course, compared to other companies, and not comparable to CarOS.
Ford, as everyone knows, is the automobile company founded by Henry Ford. He was the first to devise a production system using conveyor belts, and through this, he ushered in an era of mass production and mass consumption.
Until then, cars were luxury goods for the wealthy, but mass production greatly lowered prices to the point where even workers could afford them.
If it weren’t for Henry Ford, the popularization of automobiles would have been delayed considerably. In many ways, he was a figure who had a huge impact not only on automobiles but also on world history.
Current Ford CEO Hugo Petreus has the ambition to lead the second conveyor belt revolution through the popularization of unmanned cars and electric cars, just as founder Henry Ford led the popularization of automobiles, and has invested heavily in mergers and acquisitions.
Ultimately, we triggered the second conveyor belt revolution, so it seems he spent money in vain.
We sat down and began the full-fledged meeting.
CarOS’s estimated market capitalization is higher than that of GM and Ford combined. However, if you combine the sales volume of the Big Two, they rise to the top global position. They have immense infrastructure and influence in the global automotive industry.
The CEOs of both companies were determined not to be pushed back.
They first raised the issue of TS Company exclusively supplying OTK batteries only to CarOS. Mentioning monopoly concerns, they also expressed their intention to participate in joint development or projects.
I nodded.
“I am well aware of your concerns. The reason I brought you together like this is to discuss our future cooperation.”
Chairman Petreus said,
“What kind of cooperation are you suggesting?”
I answered as if I had been waiting for this question.
“I will supply autonomous driving OS and batteries. You can use them to build the cars you want and sell them in the market.”
These two are core technologies for future cars. By receiving just these two, they can create unmanned electric vehicles at the same level as the AD series.
Whether it was an unexpected proposal, surprise flashed across both of their faces.
I looked at both CEOs and said,
“Wouldn’t it be better for the US Big 3 to join forces and pioneer the market together?”
