Extraordinary Genius - Chapter 212 - Subduing Li Mingde
Without surprise, Feng Yu became the Machinery Company’s Deputy General Manager and also the Motorcycle Factory’s Director.
The Feng family was now the company’s largest shareholder, and Fu Guangzheng was closer to Feng Yu than the City Government. Obliviously, he would support Feng Yu. If it weren’t for Feng Yu’s suggestion, Li Mingde would be replaced.
The Motorcycle factory’s authority was handed over to Feng Yu, but the General Manager of the Machinery Company was still Li Mingde. Many people felt that it was because the City Government had pressurized Feng Yu to keep Li Mingde in position.
It was not over when Feng Yu became the Motorcycle Factory’s director. Feng Yu changed the whole management personnel. He promoted two workshop directors to be his deputies, and the original batch of management staffs were replaced. The finance department staffs were all Feng Yu’s men, and the only person that was not changed was that workers’ union chief, who was waiting for his retirement.
Feng Yu felt that this person was a good person. He dares to fight for the rest of the workers, and he was not interested in getting more authority, not greedy for money, and he even dares to bang table in front of Li Mingde. Although this person was a bit stubborn, he was righteous. He was held in high regards by the rest of the workers. With this person around, Li Mingde cannot stick his hands into the motorcycle factory affairs.
The motorcycle factory still cannot do without the position of Secretary. So this worker’s union chief had to take on this position. But everybody can see that this Secretary position had no powers in the factory.
The replacement of almost the whole management level of the motorcycle factory showed everybody that now it was no longer the era of Li Mingde where he could control everything. If Li Mingde is the emperor, then Feng Yu will be the grand emperor!
Feng Yu also got a huge office at the Machinery Company. This time, no one dares to claim that it was a waste of space. Feng Yu gladly accepted this office. He was someone that enjoys a luxurious lifestyle.
This appointment of the management level had utterly ignored the City’s opinions. But there was nothing the city can do. The replaced leaders from the Machinery Company were not allowed to continue working in the company. To save himself, Li Mingde had no choice but to support Feng Yu’s decision. He went to the city government personally to arrange for these people to be transferred to other state-owned enterprises. The future of these people was considered gone.
The day after the shareholders meeting, Feng Yu went to look for Li Mingde for a talk. The development of the Machinery Company was critical, and Feng Yu must let the Machinery Company focus its attention on increasing the R&D of agriculture equipment. They had already employed engineers from the Soviet Union, and it would be a waste of money if these engineers had nothing to do!
Feng Yu still have another motive. He wants to subdue Li Mingde!
“Manager Feng, I understand what you are telling, but the city took away most of the profits every year. Where can we find the money to develop new technologies or products?” Li Mingde dares not to address Feng Yu by his name now. He clearly understands Feng Yu’s position in the company!
Li Mingde was not sitting in his position doing nothing for so many years. He knows that the importance of technologies in the company. The Machinery Company was able to do so well was also because of the advanced technologies they had.
The company also had an R&D department in the past, but they do not have any experts, and they only know how to dismantle other factories’ products and try to imitate. They can’t innovate at all!
The company also tried to hire engineers from the Soviet Union, but these experts were too troublesome. Their egos were huge, and it was difficult to ask them to do things. They would ask for money when they were a task to do some research. They don’t even prepare a budget before asking for money.
At first, Li Mingde gave them the money, but the products were not up to his expectations. Later, the City starts to siphon the company’s profits aggressively. The company was fortunate to have enough operation funds, let alone putting money into R&D.
Feng Yu frowned. So, it was not Li Mingde was myopic. It was some leader in the City Government that was short-sighted.
“Who is responsible for the state funds? You did not tell them that if this carries on, the market share of the company will drop and return to the original state?”
Li Mingde lowered his head and mumbled: “It was Deputy Mayor Xu. He is in-charge of the state funds.”
Damn, he is the one!
Li Mingde explained the situation to Feng Yu.
This Deputy Mayor Xu can be considered the person who pushed Li Mingde to power. Without him, Li Mingde would be nothing. Last year, Deputy Mayor Xu was vying with Zhang Ruiqiang for the position of Executive Deputy Mayor. To win, he must have some accomplishments. The accomplishments would be from the industries and the state funds he was in charge of. To increase the state funds, he took away almost all the available funds from the state-owned enterprises.
But the Mayor was clear that these were not the credit of Deputy Mayor Xu. The state-owned enterprises got banks loans from the banks to buy imported Soviet Union technologies and machines. All these were led by Zhang Ruiqiang. Furthermore, Zhang Ruiqiang was responsible for the restructuring of Bing City’s most successful company, the Machinery Company. That’s why Deputy Mayor Xu was not promoted even when there was a huge increase in the state funds.
“So this was the reason why all the profits were given out as dividends. Will he do this again this year?” Feng Yu asked.
“He seems to be thinking of doing this again. There were rumors that the Provincial state funds chief will be retiring early.”
Damn, taking credit for our accomplishment and ignoring the development of the company? Can this type of people even be promoted?
Feng Yu waved his hand: “At least 20% if this year Machinery Company’s profits will be reserved for R&D and another 20% kept as reserve funds. The remaining 60% can be given out as dividends!”
Li Mingde was shocked. Keeping 40% of the profits? Feng Yu was really daring. The City would never agree to this!
“Manager Feng, does the R&D department even need 20% of the profits? Also, there is no need for so much reserve funds. We don’t even need reserves. Nothing will happen to the Machinery Company.”
“If the city’s leaders are not happy with my decision, ask them to speak to me!”
Li Mingde was cursing in his heart. You are not afraid, but what about me? I am only an assigned General Manager at this company. What if the higher-ups replace me if I offend them?
You have the share and is still the major shareholder. I can never get such a high position if I leave this company! You can say this easily. Let the leaders look for you? You can say this because you are not in the government service. How can I tell this to the leaders?
Li Mingde was poking needles into a voodoo doll in his heart. Feng Yu’s name was written on the doll.
Feng Yu tapped Li Mingde’s shoulders and said as if he was giving advice to someone younger than him: “Old Li, are you afraid that you will be replaced? You still have not change your way of thinking. Ours is a shareholding and shareholders will make the call. The city no longer can make all the decision. If the city transfers you away, you can apply for unpaid leave or even quit your position in the government service. I will hire you back as the General Manager of the Machinery Company!”
Currently, Li Mingde was the most suitable person to be the General Manager. This was the reason why Feng Yu did not replace him during the shareholders meeting. If the City decides to replace him, Feng Yu would call for another shareholders meeting.
Li Mingde’s eyes widen in surprised: “Manager Feng, are you serious?”
Feng Yu rolled his eyes: “I am so busy every day, do you think I have the time to joke with you? Work hard, and I will reward you handsomely.”
Looking at Li Mingde’s grateful expression, Feng Yu knew that Li Mingde was leaning to his side.