Becoming a Russian Oligarch After Rebirth
Chapter 1168 - 984: Skyrocketing Success

Chapter 1168: Chapter 984: Skyrocketing Success

All things considered, sixty billion US dollars had already been spent, leaving Wang Ye with only one hundred and forty billion US dollars.

He divided this remaining amount into three parts.

Forty billion continued to be invested in The Great Infrastructure Project.

To be honest, for such large-scale infrastructure works, forty billion US dollars was not really a significant sum; it couldn’t accomplish much.

However, having some investment was better than having none; as long as the capital investments remained consistent, improvements were certain to follow.

Another forty billion US dollars was directed to the automobile industry, but not into his own Russian Auto Group. Instead, it mainly targeted state-owned enterprises like Gorky Automobile Co.Ltd.

Of course, it wasn’t about directly handing over billions to these automobile companies because that would have been counterproductive, inflating their worth unreasonably. Wang Ye feared that such an influx might "overfeed" them...

The best strategy was to establish an Automobile Industry Fund.

Any company related to the automobile industry, if in need of funds, could apply for them.

As long as their applications were rational, lawful, and conducive to corporate growth, after the Economic Committee’s approval, they would receive low-interest or even interest-free loans!

This way, the entire automobile industry’s healthy development would be encouraged, and the funds would have a broad application scope. After a few years of nurturing, the industry should be revitalized.

It might be too much to expect a return to its former glory of the 1970s and 1980s, but at least the entire industry wouldn’t collapse, and not only foreign brands would dominate the domestic automobile market...

Speaking of Russia’s automobile industry, it had indeed seen glorious days.

In the 1970s and 1980s, Volga and Lada were global brands. The older generation should be quite familiar with these two brands which were prevalent on the streets of major cities.

Especially, the Lada Automobile factory had nearly two hundred thousand workers at that time, with an annual production nearing one million units!

Keep in mind, this was during the 1970s and 1980s; that production volume was incredibly impressive.

Unfortunately, after the Former Soviet Breakdown, due to a lack of investment, Lada was acquired by Renault of France, becoming a joint venture.

Now the only remaining state-owned automobile company is Gorky Automobile Co.Ltd.

However, this automobile company should not be underestimated; it owns both the Volga and GAZ brands.

Volga focuses on the sedan market, while GAZ primarily manufactures SUVs and military vehicles.

In the hearts of the older generation of Russians, Volga might be considered the best automobile...

Of course, as time went on, Volga gradually declined. Its positioning shifted from mid-to-high-range sedans to mainly low-range now, and its sales are quite average.

As for GAZ, everyone knows these vehicles are durable and tough. They are very practical in Russia’s harsh environments, but the problem is that their technology hasn’t advanced in years and their production processes are still dated from the last century, so their competitiveness has been declining.

The only domestic automobile brand in Russia selling decently might be Lada.

Its price is very low, and the maintenance costs are cheap, so on the streets of cities all over Russia, you can see boxy Lada cars running around.

Oh, Zhang Ke, Wang Ye’s old classmate from Friendship University, even bought a Lada to run as a taxi back then.

Unfortunately, the brand was acquired by Renault, otherwise Wang Ye would have liked to support it properly.

The new cars only needed less than ten thousand US dollars, whether they are good quality is debatable, but they are undoubtedly cheap!

According to Wang Ye’s vision, that would mean Russia’s automobile industry would have high-end brands like Land Rover Range Rover, mid-range brands like Volvo, and low-to-mid-range brands like Volga and GAZ.

If all these brands could establish themselves, that would cover all market segments from high to low.

And the market scope is sufficient, not to mention the "home turf" of Eastern Europe.

Through the newly initiated Economic Cooperation Organization, penetrating the markets of those member countries with Russian-made cars would be effortless, offering a natural advantage over competitors.

Then by fostering good relations with Asian countries, especially China, in a few more years that gigantic automobile market would take off. Starting preparations now could ensure a share of it.

A few days ago in Peng City, Wang Ye was discussing with the mayor about investing in a large-scale complete automobile production base, precisely for this reason!

With brands and markets, now supported by substantial funds and policy support, Wang Ye couldn’t see any reason why Russia’s automobile industry wouldn’t develop...

......

As for the remaining sixty billion US dollars, fifty billion of it was planned by Wang Ye to be invested entirely into the chip industry.

Honestly, this industry should be led by state-owned assets; there’s hardly any private capital that would want to venture into it.

The investment is substantial, the return on investment is very slow, and even the profit margins seem slim at the moment...

However, this venture holds strategic importance!

Once an advantage is established, it would be irreversible. Wang Ye’s "past life" experience had already thoroughly demonstrated the importance of this industry.

It’s still 2005, the timing to enter the chip industry is adequate, not too late.

Currently, the competition in the global chip industry is still fierce, with many countries involved, no monopolistic dominance by one or two regions yet.

Fifty billion US dollars can still make a splash...

In truth, Russia isn’t lacking in talent. Among the top technological personnel in high-tech enterprises in Europe and the United States, many are Russians who emigrated from Russia.