Chapter 381 |
Though Chancellor Meisner had brought along a Korean-speaking interpreter, her English was so good that there wasn't really any need for one.
But to my surprise, Ellie greeted her in German.
I was slightly surprised.
“Oh! You know German too?”
“Just some basic conversation. I had a German friend in college, so I picked some up.”
“A guy, perhaps?”
Ellie nudged me lightly in the ribs and whispered.
“This isn't the time or place for silly talk.”
“……”
I chatted with Chancellor Meisner over drinks.
“I deeply respect you, Chancellor. It's a great honor to meet you like this.”
She smiled.
“I've heard a great deal about you too, CEO Kang Jin-hoo. You've truly accomplished remarkable things.”
“I was just trying to make money.”
“If that were true, you wouldn't have risked everything to prevent the damage from the Big One.”
Chancellor Meisner was smiling, but the look she gave me seemed complicated. Could it be because of Brexit?
Brexit was the worst event to occur since the EU's founding. It wasn't as if it happened because of me, but I did seize the opportunity to rake in astronomical profits.
And Germany is a country where the automotive industry plays a huge role. Mercedes-Benz, BMW, Audi, Volkswagen, Porsche, MAN, and so on. They haven't just built their own brands; they've also acquired companies like Mini, Bentley, Rolls-Royce, and Lamborghini, making them subsidiaries.
While Korea and Japan are also automotive powerhouses, Germany's market share in the luxury car segment—vehicles priced over $100,000—is overwhelming.
It's not for nothing that people say, "When you think of cars, you think of German cars."
There was a time when I, too, dreamed of driving a Mercedes. Back in school, when Gi-hong-sunbae drove up in his dad's car, I remember eagerly sitting behind the wheel just to take pictures.
Who would have thought that someone like me back then would end up owning a car company?
Unlike the American and Korean companies that partnered with CarOS, German automakers, much like Japanese ones, pursued their own independent development.
However, the gap with CarOS in the future mobility sector was visibly widening. There was a palpable sense of concern that if things continued this way, automotive dominance might shift to the United States.
Given that I could be either a competitor or a partner to German automakers, the entire industry was paying close attention to my visit.
As I was conversing with Chancellor Meisner, a murmur went through the crowd. I looked towards the entrance and saw a Caucasian man in a suit walking in.
Sébastien Blanc, the French President.
Now in his early forties, though his hairline was receding a bit, he possessed the handsome looks of a movie star.
A familiar face, I'd seen him often on the news. He arrived sooner than expected. He was originally scheduled to come tomorrow, but I heard the French side had suggested he come today instead.
Ellie whispered to me, “France wouldn't just idly stand by and watch Germany prosper, would they?”
Even though they're bundled together under the EU umbrella, each country has its own distinct interests, of course.
He first exchanged greetings with Chancellor Meisner. The two leaders appeared as warm as old friends.
Neighboring countries often don't get along. Thailand and Vietnam, Ireland and England, Brazil and Argentina, to name a few.
Originally, the dominant power in mainland Europe was France, not Germany. Then Germany began to rise, which eventually led to two World Wars.
Given their history of numerous conflicts, Germany and France are as well-known for their rivalry as Korea and Japan. However, they have now joined hands to lead the vast community that is the EU. (The UK used to be part of it, too, but they've decided to leave.)
It's true that French manufacturing lags somewhat behind Germany's. But on closer inspection, France is also a manufacturing powerhouse.
They have two major automotive companies, Renault and Peugeot (though their quality isn't quite on par with German cars), and they boast Europe's largest aerospace industry, spearheaded by Airbus.
And another sector where they hold significant strength is energy.
France's EDF is a massive and impressive company, comparable to Russia's Rosatom. It's responsible for over 20% of the electricity generation not only in France but across Europe.
What's noteworthy is that 80% of its electricity generation relies on nuclear power plants. When it comes to nuclear power or related technologies, France is second to none.
Needless to say, their nuclear technology is advanced, but they also possess high-level technological capabilities in all aspects related to electricity, including generation, management, and transmission.
Beyond that, fashion and apparel hardly need mentioning. When you think of luxury goods, don't France and Italy immediately come to mind?
A country with a small population can surpass a GDP per capita of $30,000 by excelling in just one or two industries like finance or IT. But once the population exceeds 50 million, a nation must perform well across all sectors.
France has a broadly developed industrial base and possesses the second-largest economy in the EU, after Germany.
Furthermore, France possesses two assets Germany lacks: a permanent seat on the UN Security Council and nuclear weapons. Thus, in terms of political, diplomatic, and military strength, it could be considered Europe's most powerful nation.
I exchanged greetings with President Blanc.
“A pleasure to meet you for the first time,” I said in English, and he responded fluently in English as well.
“Pleased to meet you, CEO Kang Jin-hoo. You're much more handsome in person than on TV.”
Ellie greeted him as well. “Hello, I'm Ellie Kim.”
“Wow! I'd heard the rumors, but you truly are stunning.”
“You're too kind.”
“Haha, I very much enjoyed the video you appeared in as a model.”
His tendency to casually touch Ellie as they spoke kept irking me. Is this that infamous 'French hands' I've heard about?
As France's youngest-ever president, he initially projected a strong image of a young, capable leader. However, public perception of him has since shifted.
In truth, France's current economic situation is far from good.
With the downturn in manufacturing, companies are cutting back on investment. Since no new factories are being built, job creation has stagnated, and the conditions and welfare of workers have steadily worsened.
Yet, amidst this situation, President Blanc, claiming it would stimulate investment, announced cuts to wealth and capital gains taxes, while simultaneously unveiling a fuel tax hike of over 10 percent.
The fuel tax, levied on gasoline and diesel, was once seen as a tax primarily paid by the wealthy. This was because less affluent people relied on public transportation, while the rich drove cars with large, gas-guzzling engines.
But that's all in the past. These days, newer large cars often have better fuel efficiency than older small ones.
Moreover, wealthy individuals often live in city centers with less need for cars, whereas ordinary people, unable to afford high urban rents, are pushed to the outskirts where life without a car is often impossible.
Consequently, the fuel tax has effectively become a regressive tax, disproportionately affecting lower-income individuals.
The French government suggested people switch to more fuel-efficient or electric cars, but if they could afford to do that in the first place, why would they be protesting a fuel tax hike?
Eventually, the workers' frustration boiled over, and fierce protests erupted across France starting late last year. The fuel tax hike was essentially the spark that ignited the accumulated resentment in the hearts of the workers.
The media often criticizes the alleged violence of Korean labor unions, but watching French workers protest, it's practically on the scale of a civil war.
In the end, President Blanc attempted to defuse the situation by announcing he would scrap the fuel tax hike, but the protests and calls for his resignation persisted.
Besides me, the two leaders also exchanged greetings with other Korean business figures.
Everyone had just arrived and hadn't yet recovered from their flight fatigue, so the dinner banquet held at the hotel concluded quickly.
Though everyone was visibly exhausted, there was no time to rest. Representatives from large corporations and SMEs, along with their working-level teams, gathered in one place, and meetings stretched late into the night.
“Judging by the atmosphere, this isn't going to be easy.”
“They know we're the ones in a more pressing situation.”
“Dealing with the Germans is never easy.”
If Korea and Japan were to engage in a trade dispute, whose side would countries like Germany and France take? The answer is neither.
And in the meantime, they'd busy themselves securing whatever benefits they could from both sides.
The very fact that we had come to them spoke volumes about our disadvantageous position.
Well, it was pretty much what I'd expected.
Realistically, it's impossible to replace all the materials and components we've been importing from Japan with sources from elsewhere. However, if Korean companies can secure even 10% of their key materials and parts from alternative suppliers, our trade dependence on Japan will be significantly reduced.
This isn't like a one-time purchase, like buying clothes at Dongdaemun Market. When you sign a contract, it's typically for at least a year.
If Korean companies switch suppliers, then even if the sanctions are eventually lifted, they won't be able to use parts from Japanese companies for some time.
“Since the Japanese political establishment imposed these sanctions arbitrarily, they'll lift them on their own accord once they realize it puts them at a disadvantage. Our goal is to enhance our bargaining power by securing additional suppliers.”
I looked around at the working-level team and said, “We hold the key to these negotiations, not them. So, go in with the mindset that you will not accept an unfavorable deal.”
***
CarOS was set to unveil a new vehicle at the Detroit Convention Center. Though not explicitly stated, everyone had a good idea what kind of vehicle it would be.
An electric truck capable of autonomous driving.
Besides CarOS, nearly every automaker produces electric cars. However, electric trucks, as commercial vehicles, presented a whole new set of challenges.
Nikola had originally planned to unveil its electric truck, the Colon, this year. However, due to severe financial difficulties, development was effectively halted, and a large portion of their development team departed.
Daryl had brought in talent from Nikola to accelerate development. Rumors were already circulating that a concept car had been revealed or that mass production was imminent.
Then, suddenly, the announcement date was moved up by ten days from what was originally scheduled.
Some media outlets speculated this move might be connected to CEO Kang Jin-hoo's trip to Germany.
In any case, with the media and public gathered, CarOS CEO Daryl stepped onto the stage. Looking as weary as ever, he spoke in a composed voice:
“The vehicle I'm here to introduce today is CarOS's electric truck, the ADT1.”
CarOS had previously announced plans for mass-producing electric trucks and had showcased platooning (convoy driving) by fitting existing Eunseong trucks with autonomous driving modules. Even now, logistics trucks engaged in single-file platooning are crisscrossing the United States.
Excluding the lead vehicle, the following trucks operated without human drivers, which raised significant safety concerns, but to date, not a single accident has occurred.
Then, the curtain rose, revealing the ADT1. The truck's design, optimized to reduce aerodynamic drag, was reminiscent of a high-speed train.
The biggest challenge in developing electric trucks is the battery. Given that conventional diesel trucks have fuel efficiency roughly 20% that of passenger cars, electric trucks require batteries several times larger than those in electric cars.
One might think you could simply increase battery capacity, but managing heat generation and ensuring stability while scaling up capacity is no easy feat.
An even bigger problem is that increased capacity also means longer charging times.
In logistics, time is money. When rushing shipments to meet deadlines, stopping for an hour or more to recharge is simply not viable.
Other automotive companies have also explored various avenues to solve this problem.
Methods such as connecting a pantograph to overhead power lines, similar to trams, or embedding coils beneath the road for wireless charging were discussed. Some countries even piloted such systems on highways with heavy truck traffic. However, these approaches inevitably require road infrastructure modifications, leading to high upfront costs.
The CarOS research team and Professor Kim Ho-min proposed a different solution.
A battery swapping system, where a depleted battery is entirely replaced with a fully charged one.
Daryl played a video. An electric truck pulled into a station, and a machine automatically removed the depleted battery from its underside and inserted a fully charged one.
“The time required to swap the ADT1 battery is just 2 minutes.”
It might seem like a simple idea that anyone could conceive, but the actual implementation was far from straightforward. Yet, Professor Kim Ho-min managed to achieve this difficult feat. He succeeded in developing a high-capacity, swappable battery while also reducing heat generation and ensuring safety.
Adopting this method also naturally solved another major issue: the high cost of electric vehicles. Due to their larger battery capacity, electric logistics trucks are typically several times more expensive than their passenger car counterparts.
Experts had predicted a price tag of at least $250,000.
However, the price subsequently announced was nothing short of shocking: $150,000 for the ADT1. This was comparable to the price of existing diesel trucks.
Achieving such a price point, especially considering it was equipped with various autonomous driving technologies and safety features, seemed impossible.
Daryl offered a slight smile.
“You might all be surprised, but that is purely the price of the truck itself. The battery is not included.”
At his words, a wave of bewilderment swept through the audience in the presentation hall. How were they supposed to operate an electric truck without a battery?
“The batteries, being swappable, will be leased for a set fee. While there will be rental and swapping costs, these will amount to less than 30% of current fuel expenses. The ADT1, equipped with cutting-edge autonomous driving technology and our OTK batteries, can significantly reduce both labor and fuel costs. We anticipate it will cut overall logistics costs by more than 90% compared to existing diesel trucks.”
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