Chapter 196: Chapter 190: Profits Brought by Cars

Theodore Korbel and Ludwig Durrell, hearing the detailed classification of reconnaissance aircraft, fighter aircraft, and bombers for the first time, felt that such naming was reasonable, reflecting the specific purpose of each type of aircraft.

Through the conversation between the three of them, Australia’s future naming and classification of aircraft was basically determined: the code name for reconnaissance aircraft would be Eagle Series, the code name for fighter aircraft would be Bengal Tiger Series, and bombers would be called Phantom.

However, to actually design and build the three types of aircraft, the talents of the aerospace laboratory’s experts, as well as engine expert Disel and the military factory’s improvement of onboard heavy machine guns and shell designs were all needed.

Only after all these aspects were completed could the reconnaissance aircraft, fighter aircraft, and bombers be developed.

This was very similar to the dreadnought concept. Arthur knew the massive impact that dreadnoughts had on the warship industry, but it was impossible for Australia to build a dreadnought without first upgrading the relevant tech in all aspects.

After providing Theodore Korbel and Ludwig Durrell with sufficient research funds and time, Arthur left the Aerospace Laboratory.

For the time being, Arthur wouldn’t disturb the aircraft research work at the Aerospace Laboratory and Military Factory, as both places had important tasks and breakthroughs to achieve.

Arthur’s next stop was still in the Industrial Area, at Benz’s Car Factory.

It had been more than a year since Benz One, the first car produced by the Benz Car Factory, went on sale.

As a groundbreaking product in the automotive industry, the achievements of the Benz One could rival those of the historic Ford Model T.

Because it was backed by the nobility from both Germany and the United Kingdom, and because it was simultaneously launched worldwide, the achievements of this car even surpassed that of many others.

Arthur didn’t often pay attention to the sales of Benz cars because he knew that the sales of this model were bound to set records.

Instead of expecting the total sales volume, it was more practical to expect the sales revenue and profit of the car.

However, the actual profit of the Benz Car Factory still surprised Arthur.

Since its launch on February 17th, 1903, nearly a year and a half had passed.

During this time, the Benz One had undergone many improvements in performance, safety, and cost-effectiveness, continually getting better.

Of course, this was due to Arthur’s insistence. In history, the Ford Company became complacent due to the excellent performance of the Model T and didn’t make further improvements, leading to other car companies surpassing it.

This problem should be avoided early on, so the Benz Car Factory became one of the most active companies in solving car issues and making improvements.

Over the course of a year and a half, the Benz One had improved many issues, including the installation of seatbelts, further improving the safety of drivers and passengers.

For cars produced before the seatbelt was added, Benz Car Factory consistently provided a free installation service.

Old Benz One cars could have new technology and equipment installed for free, ensuring that all cars produced by the Benz Car Factory have the same technology and equipment.

This move not only attracted the goodwill of many users, but it also greatly increased the global sales volume of the Benz One in just one week following the implementation of this policy.

It’s worth mentioning that the Benz Car Factory chose to make the seatbelt technology public and free for use by all car factories.

Although this resulted in some loss of profits for the Benz Car Factory, it earned the goodwill of many onlookers and other car factories, at least the Benz One’s current monopolistic dominance has not sparked public outrage.

For the world car market, 1903 and 1904 were two years of extraordinary expansion.

In the entire year of 1902, the total number of cars sold worldwide was just over ten thousand, with Europe contributing more than six thousand and the vast majority of the remainder in the United States.

However, starting in 1903, the production and sales of cars increased nearly thirty-fold in both categories. In 1903 alone, the combined production of the Benz Car Factory and its three partner factories exceeded 400,000 cars, with total sales of nearly 320,000 cars.

Although this year was a year of market expansion, the actual sales volume was still an astonishing number.

Of these, the Benz Car Factory’s headquarters in Australia produced more than 63,000 cars, while the remaining nearly 340,000 vehicles were produced in the United Kingdom, Germany, and the United States.

With sales points spread across the world, there was no need to worry about the oversupply problem. As for the specific market share, it was up to the United Kingdom and Germany to compete for it.

Entering 1904, the sales data of Benz One became even more exaggerated. Although only a little over six months had passed in 1904, the total sales volume had reached nearly 300,000, almost equal to the total sales of the previous year.

In order to ensure that their factory maintains a share of the major sales markets, the Benz automobile’s four major factories have begun to increase output.

The Benz Automobile General Factory in Australia has produced nearly 50,000 cars in the first half of 1904, almost doubling the production number from the previous year.

That’s not all. The expansion of factories in the United Kingdom, Germany, and the United States is the real highlight.

If the production capacity of the three major factories in 1903 was basically maintained at around 90,000, this year’s German and American factories have already overtaken and are expected to break through 150,000 and 180,000 vehicles respectively in annual production.

It is precisely because of the crazy expansion of German and American factories that in 1904, the total production of Benz’s four major automobile factories is expected to reach around 600,000 vehicles.

Of course, this is not the blind expansion of the car factory. Judging from the sales results in the past six months, the sales of Benz One will at least stay around 600,000 vehicles in 1904, maintaining a balance with the production.

As the car market expands rapidly, the massive sales of Benz One have brought huge profits to Benz Automobile Factory and Arthur.

Up to now, a total of 623,146 Benz Ones have been sold, with a total sales amount of £93,471,900. It is not far from £100 million.

Although this is a year and a half of total sales from four major factories, it is undeniable that the automotive industry has already shown great potential.

As long as it is not affected by war, the car market will continue to grow, and the income and profits brought will definitely increase.

At present, the profit of each Mercedes car can reach 60 to 70 pounds.

In particular, the cars produced by the Australian factory can basically maintain a profit of over 70 pounds.

English and German car rivalry is fierce, but the half of the profits that they will inevitably lose is still a large income. If it were not for the support of local nobles, the development of Benz Automobile Factory would not have gone so smoothly.

The Mercedes General Factory sold 113,000 cars, bringing more than £7 million in profits for the-Benz Factory.

Not to mention that the total profits of other manufacturers add up to nearly £31 million, of which Benz Automobile Factory can also share more than £18 million.

Of course, the fact that it can be divided into so much is due, in addition to the half profit from the English and German car factories, to the absence of any other involvement in the American car factory.

Although the profit of each car from the American car factory is only over 50 pounds, the US has a developed market and the sales are the largest among all countries.

This £18 million, plus the £7 million from the sales of the car factory itself, has exceeded £25 million in income for the year and a half.

Arthur owns 90% of the shares in the Benz Automobile Factory. His royal financial group will get 90% of the £25 million, which is £22.5 million.

Of course, tax expenditures cannot be ignored. Although Australia’s tax revenue is equivalent to left hand to right hand for Arthur, it cannot be underestimated or neglected.

However, after Arthur’s tax reduction, Australia’s various miscellaneous taxes have disappeared compared to Britain. For the car factories, the biggest tax is nothing more than income tax, which is about 11%.

The income of the royal financial group will need to pay about £2.47 million in taxes, and the after-tax revenue is less than £20 million.

Don’t underestimate this income. Since coming to Australia, Arthur’s various expenses have not been so high. Of course, this is based on the exclusion of the £100 million loan to the government.

Investing in the Benz Automobile Factory not only allowed Arthur to earn back all the expenses over the years, but even made some profit.

At present, the royal financial group’s total assets excluding the Royal Bank, military factory, shipyard, some factories built in these years, and investments in some factories, still amount to a huge £250 million.

In addition to the £100 million in loans to the Australian Government, Arthur currently controls over £100 million in funds, which is being prepared for future deployment.

If you include the miscellaneous factories, the total value of the royal financial group is even as high as over £300 million.

If there are any rankings in this era, then Arthur and his royal financial group are definitely among them.

Moreover, for an autocratic monarch of a country, the money in hand cannot represent the monarch’s wealth.

Especially for a monarch like Arthur, as long as all the rights are still in control, the entire Australia is Arthur’s property.

How much money is Australia worth? It is innumerable and indescribable.