The Rise Of Australasia

Chapter 912 - 680: 1928

In the midst of the global economic crisis, where the people of various nations were wailing, the entirety of 1927 passed as if touched by a spring breeze, seeming to have experienced it, yet also having forgotten it.

Time quickly progressed to 1928, and the geopolitical situation had quietly accumulated anger, seemingly on the brink of eruption.

Due to the economic crisis, each country was implementing its own small measures to alleviate the economic downturn.

The British were maintaining the order of the Pound after abandoning the gold standard, while the Americans were promoting President Hoover’s pet project, the building of the dam.

The French were worried about the limited participation in the Franc group, and inside the Russia Nation, public discontent was boiling over, appearing to be on the cusp of a new war.

Only within Australasia remained relatively peaceful, and for this reason, it attracted a large influx of European and American population and technical talent, along with many enterprises from Europe and America choosing to take root in Australasia.

Numerous well-known corporations from Europe and America chose to open branches in Australasia, transferring a significant part of their business to the region to reduce losses during the economic depression.

The medium-sized companies did not have such substantial capital, and their only choice might have been to move directly to Australia.

Regardless of these enterprises’ choices, 1927 was a year of rapid enrichment for Australasia.

According to the relevant departments, during the whole year of 1927, the number of factories and branches set up by foreign enterprises in Australasia exceeded a thousand, with a total investment of over 200 million Australian dollars.

In addition, more than 2000 companies of varying sizes completely relocated to Australasia, and these companies were widely distributed across industries, including the much-valued chemical industy of Australasia.

Taking advantage of major changes across industries, Arthur also made adjustments to some of his own enterprises, making the distribution of businesses in each industry more rational.

First was the automotive industry that Arthur valued highly, which also underwent the most significant changes.

Because Arthur had acquired many of Germany’s automobile enterprises, many of them would become very famous luxury car brands in later generations.

For this reason, Arthur made considerable changes to the automotive enterprises, clarifying their main business operations.

Firstly, for the mainstream civilian automobile industry, Australasia would have Mercedes (Benz Car Factory), BMW Motor Group, and Audi Motor Company, three major manufacturers.

The automotive industry was no longer dominated by just Benz, but this would also promote the innovation of car brands, making Australasia’s automobile brands highly competitive, with rapid advancements in related technologies.

Monopolies in any industry were something Arthur did not want to see, as that would lead to the continuous loss of emerging forces within an industry.

If the civilian car industry continued to be monopolized solely by Benz, it would not only make the Benz Car Factory complacent and less innovative but also lead to aesthetic fatigue among the People, decreasing the appeal of Australasian civilian cars.

Allowing three brands to compete against one another could not only reduce car prices to a greater extent, benefiting the people, but also enhance the attractiveness of Australasian car brands abroad, laying a larger overseas market.

As for whether competition would result in the downfall of any brand, that was not Arthur’s concern.

However, compared to Bayer Group, which only set up a subsidiary, BASF Company’s approach was more extreme.

Perhaps unable to tolerate the chaos of German society, BASF Company had almost relocated its entire operation to Australasia, leaving behind essentially an empty shell of a headquarters in Germany.

For such a move by a chemical industry titan, Arthur was of course supportive.

BASF Company received the land near Saint Arthur Castle at the lowest price, and also secured an interest-free loan of 3 million Australian dollars from the Royal Bank.

Of course, just like with the Bayer Group, the royal family’s participation in the stock investment was inevitable.

After all, as a chemical industry giant, such an enterprise is quite strategic and significant in any country, and not nationalizing it would be out of the question.

But Arthur wasn’t greedy. The government was involved in this round of stock investment, so both the royal family and the government took shares in BASF Company.

The royal family used 1 million Australian dollars to acquire a 10% stake in BASF Company, and the government used 1.5 million Australian dollars and provided support in land policies to obtain a 20% stake.

Although together the royal family and the government only held 30% of BASF Company’s shares, this was definitely not a minor share, and it was enough to prevent BASF from acting recklessly.

With this, Australasia now had two chemical industry behemoths, the Bayer Group and BASF Company, putting its chemical research and development capabilities on par with the world’s best.

Together with the already existing thousands of small and medium-sized chemical companies, Australasia’s chemical industry was starting to take shape and was no longer lacking.

To formalize everything, Arthur also established the Australian Electrical Company, which was 100% owned by the royal family and the government.

The royal family contributed technology and held a 45% stake, while the government provided funds and various policy supports, holding a 55% stake.

Arthur consolidated all previous electrical companies into the Australian Electrical Company, charging it with the complete electrification of Australasia.

Having electrical industry control in the hands of a purely state-run enterprise was reassuring. Nearly half of the shares were held by the royal family and the government, with the royal family able to supervise the government to prevent corruption in future state-owned enterprises.

Of course, as a state-owned enterprise, the head of the Australian Electrical Company became a very important appointment.

Because of Arthur’s high prestige, he naturally had the final say on the choice of person to lead this new colossal company.

Although there wasn’t an official ranking system, the general manager of the Australian Electrical Company held an extremely high position, basically below the governor but above the mayor.

Arthur had no doubts about the profitability of the electrical company. As technology developed, the variety of electric appliances would increase, and the demand for electricity among residents would continue to rise.

Even in the future, the Australian Electrical Company alone could substantially increase the government’s revenue to a higher level.

The royal family expected significant returns from investments in numerous automotive and chemical enterprises and the electrical company. In fact, Arthur could no longer estimate how much wealth the royal family would possess in the future. It might even be measured by the number of World Top 500 companies.

This also meant that whether or not they were heirs to the throne, Arthur’s descendants would receive a considerable fortune, ensuring a life of financial security.