YM778.TV Chapter 123: Chapter 123 Expand Production
The newspaper also praised the actions of the \'N.Y.T\' TV Company and encouraged more businesses to take such measures to care for the veterans.
Hardy smiled lightly after reading the newspaper.
These politicians really have sharp instincts, blatantly riding on the wave, adding glory to themselves and gaining achievements without spending a penny.
However, this report also greatly benefits \'N.Y.T\' Company. More people went to Citibank to apply for loans to buy TVs, most of them were veterans.
There were over 12.5 million American soldiers in World War II.
According to statistics, less than 300,000 died, meaning the remaining 12 million are all the country\'s young and strong labor force, the mainstay of the future, and also the main support of families.
If these people become their customers.
What a huge consumer group that would be!
By doing this promotion, at the very least, the \'N.Y.T\' brand has established a good reputation among this group, which will greatly benefit future business development.
Because of this article, more people went to the bank to apply for loans to buy TVs. The next day saw a peak, with more than 5,000 people applying.
And according to feedback from other places, people in other cities also went to Citibank branches, asking when their cities would have this promotion.
Michael approached Hardy again.
"Hardy, I want to expand production!"
Hardy was taken aback.
"Didn\'t we already discuss this the day before yesterday? I agreed to add new production lines, right?" Hardy was puzzled as to why Michael was bringing this up again.
Michael shook his head.
"This time, I want to expand much more than what we discussed before. I hope to build a company that produces 400,000 TVs annually," Michael said.
Hardy was shocked. 400,000 units. That\'s ten times the current scale.
"Do you believe in the future development of the TV industry?" Michael asked.
"Of course I do." Hardy nodded.
He even knew that due to the rise of the TV industry in the future, even the film industry would be squeezed and gradually shrink, with many major film companies struggling later on.
Ten years after World War II, the number of TVs in the United States soared from about 1 million to 10 million. By 1965, TV had become ubiquitous, with 30 million households owning TVs.
The TV industry will be a high growth, high profit industry in the next 20 years, no doubt about it.
"I believe it too, so we need to increase production capacity. I\'ve already talked to Citibank management. They also see the future of the TV industry and are willing to lend us money. They\'ve agreed to a loan of $6 million."
Hardy was also surprised. $6 million. Citibank is very generous. They must really believe in this industry.
"I\'ve already planned. I intend to set up 8 production lines for 14 inch TVs. At least for the next few years, 14 inches will still be mainstream. Then I\'ll add 6 production lines for 17 inch TVs and 2 lines for 19 inch TVs."
Previously, when he discussed increasing production with Michael, they talked about the cost of production lines. A 14 inch production line costs about $500,000, a 17 inch line $800,000, and a 19 inch line $1 million.
Hardy did some quick calculations. According to Michael\'s numbers, the total cost would be $10.8 million. The bank loan of $6 million wouldn\'t be enough.
But Michael had his own ideas.
"Hardy, I plan to negotiate with the companies that manufacture the production lines. First, we\'ll squeeze the cost. With such a large order, we should get at least a 10% discount. Also, I plan to pay in installments. First, we\'ll pay 30% as a deposit.
After construction and acceptance, we\'ll pay 20%, and the remaining 50% will be paid off in three years, of course with interest, calculated at bank rates."
Hardy found that Michael\'s approach was very smart. It was equivalent to letting the assembly line company lend them a second loan.
By then, the TV company would be profitable, and repaying the loans wouldn\'t be a problem. Michael\'s boldness was impressive. No wonder he was the second generation Godfather, showing remarkable courage and business acumen.
"Alright, I agree!" Hardy said.
Michael smiled.
The support of a partner is the greatest support for him, making him more confident in achieving this.
"Hardy, I plan to have two factories. Our TVs will be sold nationwide. If all production is in New York, transportation will be a big issue. I plan to build a factory in Los Angeles equivalent in size to the one in New York to handle sales on the West Coast."
"I will send the management team and technicians over. You don\'t have to worry about these. You only need to be responsible for the safety of the factory."
Hardy laughed "I am good at taking care of safety matters. Don\'t forget that I have HD Security."
In fact, Michael was talking about the gangs, and Hardy knew what Michael meant, but he deliberately said HD Security because they are a formal company.
Listening to Hardy\'s words, Michael also laughed.
The two of them continued discussing some details. Michael had already investigated that there were TV manufacturing companies in Los Angeles. If suitable, he planned to acquire one directly. This would be much faster than building a new factory and would also provide a skilled workforce.
While they were talking, Hardy glanced at his watch. Michael noticed this and asked, "Do you have something to do?"
"My movie company\'s promotion team is arriving in New York today. I\'m going to pick them up. They\'ll be doing a promotional event for a movie I invested in."
"Do you need any help from me?" Michael offered, being the local.
"Not at the moment. The promotional event has been outsourced to MGM. They\'ve arranged everything and signed a contract with a performance company in New York for a Broadway show," Hardy explained.
Michael checked the time. "I\'m free now, so I\'ll come with you to the airport."
"Are you sure?"
"Of course, it\'s no problem," Michael shrugged.
The two of them took the same car to New York Airport. While waiting, they continued discussing the factory details. Hardy realized that Michael had more to say about the topic they were discussing earlier.