Chapter 382 |
Daryl's announcement was a groundbreaking shock.
Even now, the cost of an electric car battery is comparable to the price of the car itself. So, what about logistics trucks with batteries several times larger?
That's why they devised a method to sell the truck but lease the battery for a monthly fee.
This way, consumers could significantly lower their initial costs, and the company could secure a stable monthly income.
“Within the next 10 years, 80 percent of logistics trucks on the road will be replaced by autonomous electric trucks.”
For passenger cars used by ordinary households, driving time is merely one or two hours a day, and the annual mileage is at most around 20,000 kilometers.
However, logistics trucks are a different story.
Excluding the time for loading, unloading, or refueling, drivers take shifts to keep the trucks on the road all day long. Annual mileage often exceeds 200,000 kilometers. As such, they age quickly, and most are scrapped within 10 years.
Autonomous electric trucks offer far superior economic efficiency compared to existing logistics trucks and are environmentally friendly. Depending on the timing of mass production, this prediction could very well become a reality.
Daryl stated, as if making a public pledge, “The ADT1 is scheduled for release in the latter half of this year, and we have already begun establishing the production line. Furthermore, we will build 100 battery swapping stations across the U.S. before the launch.”
Electricity, by its nature, is scarce during peak hours and abundant late at night. The plan was to alleviate the burden on the power grid by charging depleted batteries during off-peak, late-night hours.
Once the announcement concluded, the attendees rose in unison and applauded.
***
[CarOS ADT1, The Beginning of a Logistics Revolution!]
[The Era of Autonomous Vehicles Officially Begins!]
[GM and Ford to Collaborate with CarOS in the Commercial Vehicle Sector as Well…]
[Significant Concerns and Backlash Against Autonomous Vehicles Persist]
[Experts Evaluate Autonomous Electric Trucks Will Contribute to Logistics Efficiency and Price Stability]
As I was checking the articles coming out after the presentation, Ellie asked, “Jin-hoo, why didn't you attend the presentation?”
“The focus shouldn't be on me, you know.”
The ones who deserved the spotlight and applause for the new car launch were the executives and developers who had toiled away. Even though they had commercialized platooning technology, I hadn't expected them to create an autonomous electric truck this quickly.
In one sense, it wasn't a major change. It was merely existing logistics trucks becoming cheaper and more efficient. But from another perspective, it was a revolution in logistics.
Logistics contributes to the efficient allocation of resources.
An item useless in one region could be valuable in another. There were times when rice rotted away from a bountiful harvest in one area, while people starved in another.
Delivery apps transformed the process from directly calling restaurants to ordering and paying through an app. The consumers and restaurants remained the same; only the ordering and payment became more convenient, yet restaurant order volumes increased significantly. And the delivery apps themselves grew enormously.
In this way, simply revitalizing logistics could greatly enhance the added value of society as a whole.
There was no need for me to explain this in painstaking detail. The media was already churning out articles about the potential global impact on logistics.
Improvements in inland logistics would also affect shipping and air transport. Consequently, the entire industry was on high alert, revising its future strategies.
I called Daryl.
“I watched the presentation. It was great. You didn't overdo it because of me, did you?”
[The staff went through a lot. Still, I'm glad it ended safely.]
“Go home early today and get some good rest.”
Looking at his face during the presentation, the dark circles under his eyes reached his chin. Anyone seeing him would think I was a villainous shareholder.
But Daryl said excitedly, [Even though we haven't officially started taking reservations, we're already receiving pre-orders for hundreds of units from companies. Walmart said they'd pay the full amount upfront and wait.]
Even when combining battery rental and swapping fees, the fuel cost would be less than a third of the existing cost, and no driver would be needed. Compared to existing driver-operated diesel trucks, it would be possible to recoup the costs in as little as a year.
“The problem is unemployment.”
If five trucks were to platoon, only the lead truck would need a human driver for contingency situations.
Ultimately, that meant four out of five drivers would lose their jobs.
[We are currently discussing that issue with the government. As I mentioned before, we plan to prioritize hiring drivers for the expanding factories, and we intend to use a portion of the sales funds to provide unemployment benefits or assist with re-employment. We are also in discussions with companies purchasing CarOS trucks about reducing working hours and increasing welfare for existing drivers.]
Unemployment was indeed a problem, but they would find a way somehow. They always had.
After finishing the call with Daryl, I received a call from the White House.
[I saw the presentation. You’ve created another incredible vehicle.]
After the presentation, he had tweeted, "Another victory for American manufacturing."
“What have I done? It was all accomplished by American technology.”
Ronald offered his congratulations and then got to the point.
[The Japanese are lobbying heavily for us to mediate. Just the other day, the Japanese Ambassador to the U.S. visited the Secretary of State, complaining miserably.]
I chuckled.
“That’s strange. Japan imposed the sanctions, so what exactly do they want Korea to do?”
[Tell me about it.]
The big guy threw the first punch. But the one who was supposed to quiet down after one hit fought back tooth and nail.
At this point, the big guy lost the will to fight. Yet, having thrown the first punch, apologizing and backing down felt embarrassing with everyone watching.
The best scenario would be for the teacher to come and break it up. It would be even better if the teacher scolded the one who got hit.
Korea and Japan are important allies of the United States. Therefore, the U.S., regardless of who was right or wrong, just wants the two to get along.
Japan, with its diplomatic influence weaker than its economic power, had long been lobbying U.S. political circles. Thus, in past disputes between Korea and Japan, the U.S. had generally remained a bystander or sided with Japan.
So, from Japan's perspective, they wanted to resolve this issue with America's help as well.
Of course, I couldn't let that happen.
Truthfully, the current situation wasn't too bad for the United States. Some Korean companies with significant dealings with Japan were now negotiating with American companies.
Suseong Electronics and SSK Nix had decided to increase imports of American semiconductor equipment and materials, much to Ronald's satisfaction.
“Kids fight and then make up as if nothing happened. You’re well aware of the unique nature of Korea-Japan relations, aren’t you?”
[Hmm, that’s true. Still, there’s a lot of talk going around.]
Even if it was economically beneficial, with two major East Asian allies fighting, concerns were bound to be high in Washington D.C.
I reassured Ronald. “I'll wrap it up quickly so you don't have to worry about it.”
***
While working-level teams from individual companies negotiated urgent items, I met with people from the German automotive industry alongside Chairman Im Jin-yong.
Tobias Hilbert, Chairman of BMW Group; Günter Hartmann, Chairman of Daimler AG; and Georg Löhe, Chairman of Volkswagen Group.
The brands these three controlled numbered in the dozens, and if you combined all their market capitalizations… still, they didn't even match CarOS alone.
It was my first time, but Chairman Im Jin-yong had met them a few times before. He greeted them warmly in German.
“You speak German too?”
“I learned a little when I was young.”
Well, he was destined to inherit the company from birth, so he must have received quite an education, right?
After the greetings, Chairman Hilbert spoke. “We saw the ADT1 announcement. Congratulations.”
They had probably obtained the information long before the announcement.
I told them, “Since Europe is connected as a single continent, the logistics revolution brought about by autonomous electric trucks will strengthen the cohesion of the EU community and promote the economic development of European countries.”
Though everyone offered congratulations, their inner thoughts seemed complex.
Just because something is beneficial overall doesn't mean everyone will profit. Competitors, in particular, were likely to suffer losses.
They were probably busy calculating gains and losses in their heads.
I initiated the conversation. “These days, it’s rare for people to buy a smartphone because they don’t have one, or a car because they don’t own one. Most are just replacing existing products. But products are made so well nowadays that the replacement cycle is getting longer and longer.”
That's why they keep adding new features of questionable utility and make existing products look old-fashioned to induce replacement.
However, there are times when replacement demand surges all at once. That is the moment when the paradigm of the product itself changes.
“You’ll remember when smartphones first came out. Initially, they were used by experts or a few curious individuals. People who were perfectly fine using feature phones didn’t even understand why they were necessary. There’s a saying that new technology doesn’t create convenience, but rather reveals inconvenience. Autonomous electric vehicles are the same. Once you try one, you realize how inconvenient existing cars are. The era of future mobility is just beginning. Before long, demand to switch from gasoline and diesel cars to electric cars will explode all at once. And the market share a company captures at that time will determine its future fate.”
After I finished speaking, Chairman Im Jin-yong smiled and said, “Shall we slowly begin our discussion then?”
***
After CarOS announced the ADT1, Kang Jin-hoo began to make serious moves in Europe.
Kang Jin-hoo openly declared his intention to reduce trade dependence on Japan and further strengthen economic cooperation with the EU.
This presented a new opportunity for Europe as well.
South Korea was the world's 11th largest economy. Among EU countries, only Germany, France, and Italy had a higher GDP than Korea (excluding the UK).
South Korea's economic growth rate was faster and more dynamic than that of European countries. And above all, with Kang Jin-hoo involved, Europe also desired expanded trade with Korea.
Unlike Korea, which was finding a breakthrough, Japan was in an uproar.
The sense of crisis felt by automakers, in particular, was severe. Germany and France alone were home to five of the world's top 10 automotive companies.
With the announcement of the autonomous electric truck, CarOS had extended its reach not only to passenger cars but also to commercial vehicles.
What if Kang Jin-hoo demanded a reduction in the use of Japanese parts, using the supply of autonomous driving technology and OTK batteries as leverage?
Companies wouldn't necessarily blindly follow his words, but they couldn't ignore Kang Jin-hoo, who held both capital and technology in his hands.
Japanese business organizations unanimously urged the political sphere to normalize relations with South Korea.
In contrast to a frantic Japan, South Korea seemed completely unconcerned about the matter. The South Korean government remained silent, quietly proceeding with the asset seizure related to the forced labor compensation ruling. They didn't even respond to Japan's protest statements, as if they were merely doing what was obviously necessary.
Come to think of it, economic cooperation with the EU was also being pursued by Kang Jin-hoo on his own accord; the South Korean government had no involvement.
There was talk in Japanese political circles of filing a complaint with the WTO, but since Japan had initiated the sanctions, it would only look like the aggressor running to the police.
The Japanese government attempted to make contact with South Korea under the table to find a solution.
South Korea had been a Japanese colony for a long time, and even after liberation, it had maintained close ties with Japan. As such, pro-Japanese figures were widely positioned in political and bureaucratic circles. Having lobbied them diligently over the years, they would surely be willing to act in Japan's interest.
However, for some reason, everyone tried to avoid meeting altogether. When asked why, they said they didn't mind confronting the government, but they didn't want to get entangled with Kang Jin-hoo.
The Liberty Korea Party (conservative opposition) was the only one that represented Japan's position, but… it wasn't very helpful.
Now, their only hope was the United States.
If the U.S. ordered, South Korea would have no choice but to comply. Japan mobilized all its lobbying power to move the U.S., but it seemed everyone had heard something from above, as no one budged.
In the meantime, Korean companies negotiated with European firms for precision machinery, core materials, and parts. Actual contracts would be finalized after reviewing various complex issues such as product specifications, production volume, transportation, and tariffs, but a series of MOUs, considered a pre-contract stage, were signed one after another.
As if to taunt Japan, Kang Jin-hoo announced the items and amounts each time an MOU was signed, and with each announcement, Japanese suppliers whose contracts were severed cried out in dismay.
Rumors also circulated that future additional production volumes of OTK batteries might be entirely directed to European companies. If German and French automakers also turned to CarOS for technological partnerships, Japan's automotive industry would become even more isolated.
While the Japanese government was busy formulating countermeasures, another piece of news broke.
An EU summit was scheduled to be held in Brussels, Belgium, shortly, and EU leaders were flocking to Belgium. And Kang Jin-hoo had been invited to attend.
Upon hearing the news, Prime Minister Okazaki was stunned.
‘What the hell is that bastard planning to do there now?’