Empire Rising: Spain

Only by partnering with local capital can we gain acceptance from local investors. At the same time, we can use the influence of local capital to make the expansion of the automotive company faster.

After all, the Royal Mercedes Company will hold a significant portion of the shares in the branches, and the profits earned by these subsidiaries are also shared with the parent company.

The profits for the parent company are equivalent to profits for Carlo, although half or more of the subsidiary’s earnings might be taken by the local nobility. However, considering the benefits that such cooperation brings to the subsidiary, the lost profits are almost compensated.

When Benz stated that there were no plans to sell automotive technology for the time being, the person who asked the question visibly showed disappointment.

But when Benz mentioned the establishment of branches in various European countries and the willingness to collaborate with other foreign capital, the person’s smile returned.

The conversation between the two was overheard by more people, and many investors were interested in such collaborations.

For capital, whoever can make them money is their friend. The current role of automobiles already surpasses that of carriages, representing enormous business opportunities in the automotive market.

Capital has a keen sense of smell, and they naturally perceive such opportunities. Although it’s not guaranteed that cooperating with the Mercedes-Benz Company will lead to profits, the chances of making money through such partnerships are certainly high.

These investors are naturally willing to take a gamble, investing some funds for the sake of the current functionality of automobiles.

Of course, before partnering with the Royal Mercedes-Benz Company, they wouldn’t mind buying a few cars to experience them firsthand.

Watching the long queue of people eager to experience the cars, some directly expressed their intention to purchase a vehicle to Benz.

The Royal Mercedes-Benz Company was well-prepared, having produced 1,000 cars in advance for those interested in buying.

During the three months of preparing for the car exhibition, the Royal Mercedes-Benz Company completed the setup of an assembly line and successfully produced 1,000 cars within that period.

The benefits of the assembly line include not only increased production speed but also effective cost reduction for the automobiles.

Previously, Benz reported to Carlo that the cost of each Mercedes-Benz was as high as 12,600 Pesseta, which was an obviously exorbitant figure.

After extensively using assembly line production methods, even though not many cars have been produced yet, according to company statistics, the average cost of producing these 1,000 cars has already decreased to around 12,000 Pesseta, a significant reduction per vehicle.

Therefore, after discussions with Carlo, Benz decided to set the price of each Mercedes-Benz at 15,000 Pesseta, ensuring that each car yields a profit of over 3,000 Pesseta.

The price of 15,000 Pesseta is relatively expensive, but for most investors and aristocrats, this is just a small amount.

Poverty gaps have existed in every era; what is astronomical for those at the bottom may just be a breakfast expense for those at the top.

Although the price of a Mercedes-Benz is not that exaggerated, 15,000 Pesseta indeed doesn’t count as a significant expenditure for most aristocrats and capitalists.

Of course, there will certainly be many ordinary people interested in cars but ultimately deterred by the price.

Currently, carriages are the main mode of transportation, and although expensive, many ordinary people can afford them.

After all, a carriage is essentially just one or several horses and a wooden carriage. Given the costs, it can’t become exorbitantly expensive, right?

Cars are different; whether it’s the engine or other components, they are all new innovations.

New inventions also mean higher costs, which inevitably makes the price of a car quite astonishing.

Indeed, the facts prove this. The price of a carriage ranges from a few hundred to over a thousand Pesseta, while one Mercedes-Benz is enough to buy at least 15 ordinary carriages.

Although the high selling price of 15,000 Pesseta deterred a significant portion of the general public, many capitalists and aristocrats still placed orders.

After all, the prefix of the Mercedes Company carries the word "Royal," and this car exhibition is hosted by the Royal Family.

Although the Royal Family did not make an appearance, the Spanish nobility knows well that Carlo is the largest shareholder behind the Mercedes-Benz Company.

No matter the genuine interest in cars or simply to support the event, the Spanish nobility felt the need to purchase several cars.

Thanks to the support from the nobility and the genuine interest of many investors in the cars,

more than a hundred people signed car purchase orders with the Mercedes-Benz Company on the first day of the car exhibition alone.

Most people purchased only one car; they were merely curious and wanted to experience such an automobile.

However, there were some who saw the associated business opportunities and purchased several cars in succession, seemingly planning to set up a car company.

Of course, the term "car company" here does not refer to a car factory, but rather to companies that use cars for passenger or cargo transport.

The popularity of the car experience event on the day of the exhibition shows just how many people are interested in this new form of transportation.

Although the price of each car is quite high, the cost of a short ride is not too expensive.

Whether it’s a real need to ride a car or just the desire to experience a novel mode of transport, setting up a car company now can definitely be profitable.

Selling over a hundred cars on the day of the exhibition alone was undoubtedly great news for Benz and the car company.

Although 100 cars might not seem like much, considering each car yields a net profit of 3,000 Pesseta, the earnings from these 100 cars reach as much as 300,000 Pesseta.

If sales continue at this pace, Carlo’s investment in the automotive industry can be fully recouped within just a few days.