Chương 58: The Acquisition of Daimler
"Your Highness, the time has come. Paul Daimler of Daimler AG, Mr. William Maybach, his son Karl Maybach, and Mr. Emile Jelinek, the main investor of Daimler AG, are already waiting for you in Stuttgart," Carl von Jonareit said to Oscar.
"Well, get ready, let's set off for Stuttgart right away!" Oscar nodded.
"Okay, Your Royal Highness."
With the success of Oscar's various enterprises, and at the same time, William II's perception of him improving, Carl von Jonareit even believed that Oscar would definitely become the emperor of the German Empire in the future. Although the possibility still seemed small, Carl had always thought it was a real possibility.
Oscar went to Stuttgart with the aim of acquiring Daimler. Although both Daimler and Mercedes-Benz were prominent companies in the German auto industry, neither was particularly large at the time when cars were considered luxury items only affordable by the elite. Additionally, both companies were facing troubling circumstances.
In this era, probably no one besides Oscar would have anticipated just how bright the future of the automobile industry would be. After Oscar established the Deutsche Motor Vehicle Manufacturing Company, he intended to acquire either Daimler or Mercedes-Benz. By doing so, the Deutsche Motor Vehicle Manufacturing Company could rapidly gain the ability to manufacture various motor vehicles. With Oscar's financial backing and his foresight in understanding the future potential of the automobile industry, they were destined for success.
Oscar chose to target Daimler instead of Mercedes-Benz for a simple reason: Mercedes-Benz was performing much better, and acquiring it would be a greater challenge. Daimler, on the other hand, had been in decline after the death of Mr. Gottlieb Daimler. Although the "Phoenix" car had excellent performance and looked good, it was still at a disadvantage compared to Mercedes-Benz. The company was facing increasing losses, making it a more viable target for acquisition.
Additionally, Daimler held the patents for motorcycles. Motorcycles were cheaper and easier to produce than cars, and Oscar planned to develop military motorcycles and three-wheeled motorcycles to secure orders from the military. In the future, the company would also produce military trucks, jeeps, and eventually tanks and armored vehicles. These developments would greatly enhance the combat effectiveness of the German Army, already regarded as one of the most powerful forces in Europe. With these new military vehicles, Germany's chances of victory in a future world war would increase significantly.
Daimler AG's headquarters was located in Stuttgart, a city that was far from the scale of Mercedes-Benz. Compared to the massive operations of Mercedes-Benz, Daimler AG appeared quite small.
On May 12, 1906, Oscar and Carl arrived at Daimler in Stuttgart. A group of shareholders and executives had already gathered to greet them at the gates.
"Is this Daimler? In the future, after we merge with Daimler, it will become the world's top car manufacturer," Oscar mused as he gazed at the small factory building and the worn three-story office building in front of him.
"Your Royal Highness, welcome to Stuttgart. It is an honor for our entire company that you could come to Daimler," Paul Daimler, the company's general manager, said. As the eldest son of the late Gottlieb Daimler, Paul inherited most of his father's shares.
"Mr. Daimler, it's a pleasure to meet you. I have always admired your father, Gottlieb Daimler, and I firmly believe that the cars he invented, along with his other patents, will have an epoch-making impact. They will surely shine in the years to come!" Oscar replied with genuine respect.
Paul Daimler smiled at Oscar's praise of his father, his face filled with pride.
After greeting Paul Daimler and other senior executives, Oscar toured the Daimler facilities. He was struck by how primitive the current automobile manufacturing process still was. The "Phoenix" car, which was considered quite impressive at the time, seemed unattractive and outdated in Oscar's eyes.
After the tour, Oscar and the Daimler team sat down in the conference room. Paul Daimler and his colleagues had already guessed the purpose of Oscar's visit. Despite Oscar's youth, he had already earned a legendary status in business circles, having founded the immensely profitable Deutsche Welfare Lottery Company, the most successful company in Germany.
"Everyone, I'm sure you have guessed the reason for my visit," Oscar began, a smile playing on his lips.
"Your Highness, do you intend to take a stake in Daimler?" Paul Daimler asked cautiously.
"That's somewhat accurate, but my goal is to fully acquire Daimler. I want at least 80% of the shares," Oscar stated.
The faces of several Daimler executives immediately changed. Daimler had been their brainchild, and if Oscar were to acquire it fully, would it still be the same Daimler?
"Everyone, we all know the current situation of Daimler. Your old rival Mercedes-Benz is growing rapidly, while Daimler has stagnated. Its market share is being steadily eroded by Mercedes-Benz. Before long, there may be no place left for Daimler in the automotive market," Oscar continued.
Although his words were somewhat exaggerated, they hit a nerve with the Daimler team. It was clear to them that the company's prospects were grim.
"After I acquire Daimler, you will all remain in charge. Mr. Daimler, you will continue as the general manager. Mr. Maybach, you will still lead the company's new product development. Mr. Jelinek, your investments will turn into a significant return," Oscar reassured them.
While the offer was tempting, it remained to be seen whether Daimler's executives would accept Oscar's proposal. The future of the company was at a crossroads, and Oscar's offer could be the lifeline they desperately needed.
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