Chapter 191: The Profits from Automobiles
Although Theodor Kober and Ludwig Dür were hearing about the detailed classification of reconnaissance planes, fighter planes, and bombers for the first time, they felt that such naming made sense and would reflect the specific uses of each type of aircraft.
During their conversation, the three of them had essentially settled on the future three types of aircraft for Australia, with the reconnaissance aircraft being called the Eagle series, the fighter aircraft being called the Wild Tiger series, and the bombers named Ghosts.
However, to actually implement the designs and production of these three types of aircraft, it would not only rely on the experts at the aviation lab but also on engine expert Diesel, as well as the improvements to airborne heavy machine guns and the design of mounted shells at the military factory.
Only once these tasks were fully completed could the reconnaissance plane, fighter plane, and bomber have a chance at becoming a reality.
In fact, this was very similar to the battleship concept. Arthur knew how huge the changes that battleships brought to the naval industry were, but without updating the relevant technologies across various aspects, it would have been impossible to build the battleship using Australia's own resources.
After providing Theodor Kober and Ludwig Dür with sufficient research funding and time, Arthur left the aviation laboratory.
The next steps in aircraft research were crucial tasks for both the aviation lab and the military factory, and Arthur wouldn't disturb them unless there were breakthroughs.
Arthur's next destination was still the industrial zone, specifically Benz's automobile factory.
It had been more than a year since the release of the first car, the Benz One. As a groundbreaking product in the automobile industry, the Benz One had achieved a level of success comparable to the historical Model T.
Thanks to the collaboration with German and British aristocrats and simultaneous global sales, the Benz One's achievements were even higher than that.
Arthur didn't frequently follow Benz's sales because he knew that the sales numbers would inevitably set records. Rather than focusing on the final number of cars sold, he found it more practical to focus on sales revenue and profits.
However, the actual profit from Benz's automobile factory took Arthur by surprise.
Since the launch date of February 17, 1903, a year and five months had passed. In this time, the Benz One had undergone many improvements, becoming better in terms of performance, safety, and cost-effectiveness.
This was also a result of Arthur's constant demands. The Ford Motor Company in history had fallen behind because their Model T was too good, causing Ford to become complacent and not improve upon it, which allowed other car companies to overtake them.
Such issues should have been avoided early on, and Benz was one of the most proactive companies in improving their vehicles.
During this year and a half, many issues with the Benz One were addressed, including the addition of seatbelts to improve driver and passenger safety.
For those cars that had already been produced without seatbelts, Benz offered free installation of the new technology.
Old Benz Ones could be retrofitted with the latest technology and equipment, ensuring that all cars produced by Benz had the same features and capabilities.
This move earned Benz a lot of goodwill from users. In fact, in the week after this measure was announced, global sales of the Benz One increased significantly.
It's worth noting that Benz chose to make the seatbelt technology public and offered it for free to every car manufacturer.
Although this resulted in some loss of profits, it also garnered considerable goodwill from the public and other car manufacturers. As a result, the fact that Benz One was dominating the market did not cause widespread resentment.
For the global automobile market, the years 1903 and 1904 were years of extreme growth.
In 1902, the total global sales of automobiles were only slightly over 10,000, with over 6,000 coming from Europe and most of the rest from the United States.
But starting in 1903, the production and sales volumes of cars increased by nearly thirty times. In just 1903, Benz's factory and three partner factories produced over 400,000 cars, with nearly 320,000 sold.
Although this year was mainly about market expansion, the actual sales numbers were still astonishing.
Among them, the main factory in Australia produced over 63,000 cars, while nearly 340,000 cars were produced in the United Kingdom, Germany, and the United States.
Thanks to the global distribution network, there was no concern about unsold stock. As for the market share, it was up to the UK and Germany to compete for that.
By 1904, Benz One's sales numbers were even more extraordinary. Although only half a year had passed in 1904, total sales had already reached nearly 300,000 cars, almost matching the previous year's total sales.
In order to ensure a strong market share in each region, the four major Benz factories began ramping up production.
In the first half of 1904, the Australian factory alone produced nearly 50,000 cars, nearly doubling the output from the previous year.
But that wasn't the biggest news. The real highlight was the expansion of the factories in the UK, Germany, and the United States.
If in 1903 the three factories produced around 90,000 cars each, the German and American factories had significantly increased their production, with expected annual outputs now exceeding 150,000 and 180,000 cars, respectively.
As a result of the rapid expansion of the German and US factories, the total production of Benz's four factories was expected to reach about 600,000 cars in 1904.
This expansion wasn't blind, however. Based on sales results over the past six months, it was predicted that the total sales of Benz One for the entire year of 1904 would at least match the production output, keeping the supply-demand balance.
With the market expanding so rapidly, the massive sales of Benz One brought in significant profits for the company and Arthur.
So far, Benz One had sold 623,146 units, with total sales reaching £93,471,900, not far from £100 million.
Although this was the combined total sales of all four factories over a year and a half, it was undeniable that the automobile industry had shown immense potential.
As long as it wasn't affected by war, the automobile market would continue to grow, and the income and profits would keep rising.
At present, the profit per Benz car was around £60 to £70.
Especially for cars produced in the Australian factory, the profit per car was generally above £70.
Although half of the profit from the UK and German factories was divided among the respective countries, the other half was still a significant amount. Without the support of the aristocrats from these countries, the success of Benz's expansion would not have been so smooth.
The 113,000 cars sold by the Australian factory alone brought in over £7 million in profit.
Not to mention that the total profit from the other factories reached nearly £31 million, with Benz's factory getting more than £18 million.
The reason for such a high share was partly due to the profits from the UK and German factories, but also because the US factory operated without any local involvement.
Although the profit per car from the US factory was only around £50, the sheer volume of sales, due to America's developed economy, made it the highest among all countries.
Adding the £18 million from the US and the £7 million from Australia, the total income from the past year and a half exceeded £25 million.
Arthur owned 90% of Benz's shares, so the royal consortium would receive 90% of that amount—£22.5 million.
Of course, taxes were also a factor. Though Australia's taxes were essentially a matter of shifting funds from one pocket to another, it couldn't be ignored.
However, after Arthur's tax reduction measures, Australia's taxes were far less than those of the UK, with the largest tax being corporate income tax, at around 11%.
The royal consortium would need to pay about £2.47 million in taxes, leaving them with just under £20 million in post-tax income.
This income might seem small, but it was more than enough to cover Arthur's expenses since arriving in Australia. Of course, this was after subtracting the £100 million loan given to the government.
Investing in the Benz automobile factory had not only allowed Arthur to recover all of his expenditures over the years but also earned him a surplus.
Currently, excluding the royal bank, military factories, shipyards, and the various factories built in recent years, the royal consortium still had a massive total asset value of £250 million.
Excluding the £100 million loan to the Australian government, Arthur's available funds had reached over £100 million, all of which were prepared for future investments.
If we consider all the various factories, the royal consortium's total value even exceeded £300 million.
If there were a ranking for this era, Arthur and his royal consortium would undoubtedly be at the top of the list.
Moreover, for an absolute monarch of a country, the wealth in their hands isn't just about money.
For someone like Arthur, as long as he held onto all the power, the entire Australia was his property.
And how much is Australia worth? It is immeasurable, incalculable.
(End of Chapter)
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