I watched TV with Ellie at a Western pub near the office.
On the screen, union chairman Dennis Block and CEO Darryl Segan held each other’s hands. It wasn’t live; it was the news.
Local Fox News covered the labor agreement as a major story, reporting on it daily.
Ellie said to me,
‘Luckily, it was resolved well.’
I smiled.
‘At least we can say the urgent fire has been put out.’
To keep the promises made to the union, the new car must be a success. There is still much to do.
‘The atmosphere here is nice. The beer tastes even better.’
‘There’s a reason everyone recommends this place.’
Since coming to Detroit, I had only been between the hotel, the office, and the negotiation room, without seeing the surroundings even once.
Even if we couldn’t go far, I thought about taking a break, so I went out with Ellie. I had been told the beer and hamburgers here were delicious.
I looked around the pub. True to its automotive city reputation, the walls were decorated with wheels and license plates. The aged interior seemed to tell the story of this place.
The owner, a white old man who likely had some strength in his youth, has been running this pub since his younger days.
It was still early for drinking, so there were only a few people. If I came in the evening after work, it would probably be a lively atmosphere.
After a while, our ordered hamburgers and fries arrived. They were enormous compared to franchise burgers.
Would we be able to finish these together?
While I was thinking this, the owner opened a bottle of liquor and filled two glasses, placing them in front of us.
‘What’s this?’
‘Singles malt whiskey. It’s the most expensive drink we have here.’
‘We didn’t order this.’
“That’s my life.”
“Pardon?”
The owner smiled gently.
“I thought you looked familiar from the moment you walked in, and I just remembered who you are.”
I felt a bit flustered.
Could he really recognize me? Typically, Westerners have difficulty distinguishing East Asian faces, so I hadn’t disguised myself in any special way.
“Thanks to you, Detroit is coming back to life. My son, who was unemployed, has found a job, and people are no longer leaving the city. I was actually considering closing up shop here, but as more customers come in, I can keep the business going.”
Not long ago, Detroit symbolized the decline of American manufacturing. In 2013, it filed for bankruptcy with $18 billion in debt, plagued by crime and deterioration throughout the city.
However, things turned around 180 degrees with Ronald’s election.
The manufacturing sector revived, factories that had moved overseas returned, and Detroit made a spectacular comeback.
The city’s atmosphere was certainly different from when I last visited. The downtown area was bustling with energy, and construction was happening everywhere.
New hotels and bars had opened, and there were many tourists.
The owner spoke to me.
“You saved this city. On behalf of Detroit, let me buy today’s drinks.”
Honestly, this was less about me and more about GM and Ford’s increased sales, as well as the large construction and financial firms that had come in to start various ventures. Of course, I had initiated those investments.
Nonetheless, thinking about how my actions sparked a big change in the city felt strangely rewarding.
Ellie smiled and said, “It’s too much for just the two of us, so let’s drink together.”
“I do need to prepare for the evening business soon, but… sure, let’s drink for now.”
The owner took out glasses and filled them generously.
As we clinked our glasses together, a voice came from behind us.
“Can I have a drink too?”
Turning my head, I noticed a muscular, bald middle-aged man standing over two meters tall. He looked unmistakably like a professional wrestler, but his name was not Big Show… it was Dennis Block.
“What brings you here?”
“I heard you would be here, so I came to check it out.”
Did he come just to see me?
The owner filled a glass and handed it to him.
“Watched you on TV, Dennis.”
“It’s been a while, Ben. How have you been?”
From their conversation, it seemed he was a regular.
Dennis downed his whiskey in one go.
“Last year, when some wealthy Asian said he would take over the company, everyone was worried. After all, American firms have had their fair share of trouble with Asian investors.”
Ellie asked, “Are you talking about Japan and China?”
Even after World War II, the U.S. was the manufacturing powerhouse. Ironically, it was Japan, a defeated country, that threw down the challenge. The influx of Japanese electronics and cars caused the American manufacturing sector to collapse.
Japan used that money to buy up American companies and real estate indiscriminately, even acquiring Columbia Pictures and Rockefeller Center. However, when the real estate bubble burst, Japan’s economy sank dramatically.
Then China took its place. After embarking on reform and opening up, China became the world’s factory in just a few years. Like Japan before it, it swallowed up global companies with its surplus capital.
“Some companies thrive with proper support, but many others are simply exploited and discarded.”
I nodded in agreement.
“There was a similar situation in our country.”
“Are you talking about Cheongryong Motors?”
“You know well.”
China’s Shanghai Automotive acquired Cheongryong Automotive for a low price, extracting only the technology before reselling it. In the process, mass layoffs occurred, causing many workers to lose their jobs.
Dennis said while drinking.
“I was unsure whether you had any interest in a manufacturing plant, let alone research and development. I was quite surprised to see you in the negotiating room.”
It’s rare for a CEO to negotiate directly with a union. However, we had the CEO personally oversee the negotiations from start to finish.
“Because of that, both I and the union members felt it was worth trusting you at least once.”
I smiled.
“After hearing that, it seems my trip to America wasn’t in vain.”
True feelings tend to resonate.
Dennis extended his hand.
“I hope to work well with you from now on.”
I grasped that hand.
“I hope to do the same.”
“Please remember that the fates of countless workers depend on your leadership.”
“Pardon?”
Dennis grinned.
“Haha, I didn’t mean to put pressure on you.”
“……”
It feels like the alcohol I just drank is lodged in my throat.
Just then, a group of people entered.
“Hey, Ben! How have you been?”
The owner pointed at me and said.
“Welcome, Vernon. Perfect timing. Let’s see who’s here at our pub.”
They looked at me, blinking in surprise. Their expressions seemed to say, ‘Who is this Oriental guy?’ One of them gasped and exclaimed.
“Could it be Mr. Kang!”
“What? Is it really him?”
“That Kang Jin-hoo? Nice to meet you.”
“Yes… Nice to meet you too.”
I greeted them and raised a toast. But that was just the beginning.
Suddenly, customers flooded in after recognizing who I was. Without the owner needing to say a word, those who had already been there informed the newcomers, and they cheered.
Ellie playfully remarked,
“I didn’t know this city loved Jin-hoo so much. I’m feeling a bit jealous.”
Before long, the pub was packed. People eagerly offered me drinks. If I drank everything they handed me, I’d be in serious trouble.
“To CarOS!”
“To the hope of Detroit, Kang Jin-hoo!”
“……”
Before long, I might just die of embarrassment.
***
*The Next Day*
I groaned from a hangover as I met with the partner company CEOs. Most were white, but there were a few Black and Hispanic individuals as well.
I greeted them.
“It’s a pleasure to meet you. I’m Kang Jin-hoo, CEO of OTK Company. Fortunately, we have concluded our labor negotiations peacefully without a strike, but I believe everyone is aware that these are difficult times.”
The expressions of the CEOs darkened at my words. They were worried that I might ask for a price reduction.
The easiest way for an automaker to increase profits is by cutting costs. If a part that used to be supplied for $1 is lowered to 95 cents, they gain 5 cents per unit.
The partner companies facing declining sales were no exception. Some would be in worse circumstances than us.
I have no intention of squeezing partner companies for our growth. For instance, Eunsung Motors has a notorious reputation for continuously lowering supply prices by sending out an “outsourcing cost calculation sheet.”
Unless there’s a valid reason, such as a drop in raw material prices, lowering supply prices ultimately diminishes the competitiveness of partner companies.
When supply prices drop, partner companies have no choice but to reduce labor costs or cut back on technological development and investment.
This eventually harms the overall competitiveness of the manufacturing sector and rebounds negatively on the automakers.
It may be acceptable if we continue to produce the same cars, but in times of change, we all must contemplate growth together.
“Rest assured, I’m not here to discuss lowering supply prices first.”
At my words, the expressions of the partner company CEOs brightened.
I then spoke about the current trends in the automotive market.
“We must prepare for a transition to electric vehicles within a few years. Electric vehicles will be equipped with motors and batteries instead of engines and transmissions. The number of parts will reduce to a third, and all key components will change.”
While the production of electric vehicles may be limited due to battery supply constraints, we can transition faster than competitors since we are building our own battery factory.
“Our company, along with our partner companies, must adapt to these changes. In the future, we will share development plans and actively support technology and funding. You here are not merely subcontractors supplying parts but crucial partners in opening a future with CarOS. I hope we can continue to grow together.”
“Next, Daryl stepped up to explain the new cars set to be released in the second half of the year and requested assistance from partner companies.”
***
After the meeting with the partner company presidents, I reached out to the dealers this time.
Unlike the partner companies, which are mainly concentrated in the Rust Belt, the dealers are spread across the United States.
Considering they are likely busy, I couldn’t ask them to fly to Detroit. So, I sent an email.
It was similar to what I had shared with the partner company presidents.
Due to the last incident, several large dealer firms have already turned their backs and partnered with other car manufacturers. Many of the dealers currently with us are staying not out of preference, but out of necessity. If they had been offered better conditions elsewhere, they’d likely have switched long ago.
I informed them about the detailed plans for the new car launch and promised to meet supply quantities as a top priority partner.
In the future, we plan to engage in direct sales online like Nikola, but that doesn’t mean I intend to completely exclude the dealers we currently have relationships with.
I believe those who have remained loyal until the end deserve fair treatment.
***
This wrapped up my tasks in Detroit.
In the meantime, I heard news from Korea that OTK Company held the founding ceremony for its eSports team, OTK Magicians.
Kihong took the lead in the ceremony on behalf of the reclusive Otaku.
The already skilled players have either joined large eSports teams or moved to China, so the team was formed with second-string players and those whose skills haven’t been verified.
Netizens expressed concerns about whether that lineup could even make it to the finals, but… well, it’s just the vice president’s hobby, so it doesn’t really matter.
It’s not like a lot of money is being spent.
I checked out of the hotel with Ellie and greeted each executive from the headquarters.
I shook hands with Daryl and said, “Please keep up the hard work until the new car launch.”
“Of course. I’ve informed the lab, so they’ll be waiting for you when you arrive.”
“Okay. See you next time.”
My schedule in the U.S. isn’t completely over yet.
I boarded the plane to San Francisco with Ellie.
