Chapter 284: Automobile Industry
Among the entries for the Science and Technology Prize, one project caught Carlo’s attention: the automobile project developed by Benz and others.
Speaking of which, Carlo had not personally visited the automobile factory to check on automobile research and development for several years.
It was not that Carlo did not value automobile development; mainly, due to technological limitations of the era, the automotive engine currently had significant instability.
The last time Carlo visited the automobile factory, Benz clearly told him that existing automobiles needed maintenance after traveling about 200 kilometers, or unpredictable problems might occur—the mildest being automotive engine damage, and the worst the entire car being scrapped.
Although automobile speed had improved to over 30 kilometers per hour, the shortcoming of only being able to travel continuously for 200 kilometers greatly limited automobile commercialization.
More importantly, the automobile industry at the time was immature; at the rate of producing just a few hundred automobiles per year, the automobile factory could not achieve full commercialization.
Several years had passed since Carlo’s last visit to the automobile factory, and Carlo finally remembered the automobile developed by Benz and planned to visit the automobile factory in person to see the current state of automobile research and development.
Logically, the hallmark of rapid automobile industry development was the birth of the Model T. But the technology related to the Model T had appeared as early as the late 19th century, and various countries already had relatively stable automobile technology and corresponding engineering.
What limited automobile market development was not technology, but the scale of automobile industries in various countries and automobile construction speed.
Before the birth of assembly line production at Ford Motor Company, automobile production in all countries was done entirely by hand. This not only relied heavily on automobile workers’ experience but also greatly reduced automobile production speed.
Before the Model T was born, the largest automobile factory produced only a few hundred automobiles per year.
The annual output of most automobile factories was less than two digits; some automobile factories, even if they could produce automobiles, went bankrupt due to inability to sell them.
Because automobiles were purely handcrafted, their prices were extremely expensive at the time. Even nobles and capitalists might not afford expensive automobiles, which limited the automobile market scale; the combined annual automobile output of Europe and the United States was less than 10,
The appearance of the Model T greatly increased automobile production speed, which was also the reason for automobile scale expansion.
Carlo was full of expectations for Benz’s automobile factory, hoping they could develop relatively stable automobiles and then rely on assembly line production to quickly expand the automobile market.
The automobile industries of various countries in this era were still immature, and Spain had already taken the lead in the automotive field among all countries.
As long as Spain’s automobiles could occupy half of the global automobile market before other countries mastered mature automobile industries, plus good subsequent operations, automobile sales would bring Spain huge income.
Although the automobile company’s shares belonged to Carlo, the annual tax revenue could also provide the Spanish Government with substantial income.
The Model T was born in 1908; before that, the world’s automobile holdings were only a few tens of thousands. After the Model T was born, it sold 15 million automobiles in just 19 years.
This actually showed that as long as the automobile selling price could be controlled at a reasonable level, the automobile market was quite large.
If Spain’s developed automobiles could sell 15 million units, even with a profit of only 100 pesetas per automobile, that would be a net income of 5 billion pesetas.
The tax revenue obtained by the government would similarly not be small; automobile industry development was a good thing with a hundred benefits and no harm for both Carlo and the Spanish Government.
August 18, 1881, in the large industrial zone on the Madrid Outskirts.
On a main road in the industrial zone, a factory with a large area appeared somewhat quiet at this time.
The factory gate was open, and the workers were not working in the factory; instead, they picked up brooms and other tools, carefully sweeping the road bit by bit.
The area they were cleaning was not limited to inside the factory; the main road outside the factory was also a target for a thorough cleanup. When such a strange scene appeared in the industrial zone, it actually indicated that this factory was about to welcome a distinguished guest.
This distinguished guest was naturally Carlo. Upon learning that Carlo was about to arrive at the automobile factory for inspection, Benz gathered all the workers of the automobile factory and required everyone to clean the factory’s sanitation environment thoroughly to welcome His Majesty the King with a more hygienic and tidy setting.
When the automobile factory workers learned that the king was about to inspect the factory, they were all filled with enthusiasm, and cleaning turned into a quite enjoyable task.
“Everyone, work harder; His Majesty the King is coming soon. If His Majesty the King sees this messy scene, he might lose confidence in our automobile factory.” As the director of the automobile factory, Benz was also holding a broom at this time, cleaning alongside the factory workers.
Under the director’s leadership by example, the workers were full of vigor one by one, and the factory roads were soon cleaned spotless.
A straight road branched off from the industrial zone’s main road straight into the factory, turning in the area near the right side and going straight north, connecting to the large square behind the factory, which was also the automobile testing area.
In this open square, several automobiles produced by the automobile factory were parked at this time. These automobiles had quite vibrant colors and appeared to have been produced not long ago.
After cleaning, everyone from the automobile factory stood straight at the factory gate, quietly awaiting the arrival of His Majesty the King.
Carlo did not keep them waiting long.
About ten minutes later, a convoy slowly drove over. Leading were two modified automobiles without roofs, convenient for the soldiers sitting inside to observe the surroundings and protect Carlo’s safety.
Three identical automobiles were at the end of the convoy, with the five automobiles protecting the middle automobile front and back.
The automobile Carlo rode was in the middle of the convoy; it was a specially modified automobile, much larger in size than the ordinary automobiles the soldiers rode.
The convoy slowly approached the factory gate and then stopped.
Guards exited from the five automobiles front and back; the guard captain first ordered the guards to line up, then respectfully stepped forward to open the car door for Carlo.
Carlo slowly exited the automobile, gazing curiously at this automobile factory he had never seen before.
The last time Carlo inspected automobile research progress, he went to the experimental area on the Madrid Outskirts.
Besides Gramme’s Electricity Laboratory, there was also the Engine Laboratory there. Automobile manufacturing and experiments were conducted there at the time, and that small experimental area was praised by Carlo as Spain’s industrial brain.
It was worth mentioning that both the Electricity Laboratory and the Engine Laboratory had achieved good results.
The Electric Company and Automobile Company, established on the foundation of these two laboratories, had long since moved to a larger industrial zone.
“Your Majesty!” Benz quickly stepped forward and said respectfully to Carlo.
“Mr. Benz, long time no see. Let the workers rest; isn’t standing here all the time tiring? Take a few technical experts and show me around the factory. I haven’t visited this factory yet,” Carlo said with a smile.
“It is my honor, Your Majesty.” Benz nodded respectfully, brought a few technical experts, and followed Carlo into the automobile factory.
Ever since the royal family’s property continued to expand, Carlo had reduced attention to some of his industries.
The reason was simple: the enterprises controlled by the royal family were simply too many, so many that Carlo could not keep track of them all.
For a high-investment industry like the automobile factory, Carlo only paid occasional attention. There was no way around it; there were many such high-investment industries, and if he paid attention to each one individually, Carlo would not need to worry about political affairs and such.
Fortunately, Butler Loren’s ability was indeed excellent, always managing the royal family’s industries very well. Butler Loren reported the development of the royal family’s industries to Carlo every year; although not as fast-growing as the Spanish Government’s fiscal revenue, it was steadily advancing, earning more each year than the last.
Carlo being able to take out 25 million pesetas at once to establish the Carlo Prize was precisely because the royal family’s funds were now abundant beyond measure.
Not to mention 25 million pesetas; even taking out 100 million pesetas at once would be effortless for Carlo at this time.
This also made Carlo have no concept of money anymore. Various investments started at millions, and sometimes expenditures of millions in funds did not even need Carlo’s approval; Butler Loren could decide on his own.
Benz naturally knew that Carlo had never visited this factory established just a few years ago, so he introduced it quite detailedly along the way.
“Your Majesty, our automobile factory has been established for six years now, with cumulative automobile production exceeding 600 units; the annual automobile production volume can reach up to about 500 units.
The workers in the current automobile factory are all senior technical backbones; if the automobile factory needs expansion, they can train a large number of automobile workers for the automobile factory.
Per your instructions, the automobile factory has prepared workshops for assembly line production; they only need to wait for the automobile to be confirmed qualified through experiments to start assembly line production mode.
Currently, most of our automobiles are handcrafted; if we can fully adopt assembly line production mode, perhaps our automobile output can surge in a short time,” Benz explained to Carlo with a smile.
Before coming to Spain, he had never imagined his company could develop to this extent.
Although he only held 2% of the company’s total shares, those 2% shares currently had considerable value.
Benz was well aware of the development potential of automobiles as a means of transport. Once the automobile market expanded in the future, this automobile company’s value would also continue to rise.
This also filled Benz with expectations for the future development of automobiles and the automobile company. Just relying on 2% of the automobile company’s shares, Benz had hope of becoming a millionaire in the future.
Hearing Benz’s introduction, Carlo nodded.
Assembly line production was the most important means for automobiles to increase production speed, and Carlo had long told Benz the secret of assembly line production.
There was actually no big secret; it was just breaking down the automobile production process into multiple steps, with each workshop responsible for only one step.
The benefits of doing so were obvious. Previously, a team had to build the entire automobile, which improved automobile workers’ familiarity with automobiles but caused subtle differences in every automobile.
Workers could make two parts have the same appearance and structure, but it was impossible for two automobiles to have the same appearance and structure.
Handcrafting was destined to have certain differences, and these differences led to high maintenance costs for handcrafted automobiles, even making maintenance difficult.
Using assembly line production, with one worker responsible only for producing one type of part, could reduce differences between different automobiles while lowering automobile maintenance costs.
One person responsible only for producing one part could also effectively improve worker efficiency. With improved worker efficiency, the time needed for automobile production naturally decreased.
Benz was quite excited about the assembly line production method proposed by Carlo. If produced in this way, the automobile company’s output could multiply several times at any time, even tenfold or more within a year.
Based on the current annual automobile output of 500 units, if it could multiply tenfold, it would mean the automobile company could produce 5,000 automobiles per year.
Such annual output would already satisfy the early expansion of the automobile market; if the automobile performance met Carlo’s requirements, it would mean automobiles were about to enter commercialization, and the automobile company was about to usher in its golden age.
After the not-too-long automobile factory introduction segment ended, Carlo and Benz and others came to the square behind the automobile factory to view the several newly built automobiles of the automobile factory.
Benz continued to introduce to Carlo: “Your Majesty, please look; this is the latest automobile we built. We adopted the newly developed EG-3 engine from the Engine Laboratory, which can provide the automobile with about 35 horsepower, driving the automobile forward at faster speeds.
We also made certain modifications to the tires; compared to previous automobile tires, the current automobile tires have a width of 6 inches, possessing stronger grip.
We added spring suspension to each tire, effectively reducing the bumpiness when the automobile runs at full speed. According to our preliminary tests, the automobile’s maximum speed can now reach 40 kilometers per hour and stably travel at least 500 kilometers.”
Carlo nodded again, quite satisfied with the current automobile data.
A speed of 40 kilometers per hour was a huge improvement compared to carriages. Being able to stably travel 500 kilometers was almost the distance from Madrid to Barcelona.
At a maximum automobile speed of 40 kilometers per hour, continuously traveling 500 kilometers would take 13 hours—who could drive an automobile continuously for 13 hours?
Current automobiles had no power steering assistance; turning relied entirely on arm strength. In other words, no one could persist driving an automobile for 13 hours straight, not even Superman.
This also meant that by building automobile maintenance stations every few hundred kilometers within Spain, automobiles could achieve commercialization.
Of course, fuel stations were also very necessary. After all, automobiles without fuel could not move; an automobile without fuel was not even worth a horse’s hair.
“What is the cost of such an automobile?” Carlo asked.
Cost was also an extremely critical factor, determining whether the automobile could win market favor.
If the automobile cost was too high, it meant the selling price could not be low. Too high a selling price would affect public choice; sometimes people preferred cheaper carriages over faster but more expensive automobiles.
“The cost of these few automobiles we built is 12,600 pesetas; if we can use assembly line production to increase automobile production speed, the automobile cost can at least be reduced below 10,000 pesetas,” Benz answered.
Carlo shook his head, dissatisfied with the current automobile cost. 12,600 pesetas was no small amount—6 pound sterling, 2,423 US dollars.
Such a figure was far beyond what ordinary families could afford, meaning automobile users would be limited to nobles and capitalists, not even middle class could enjoy it.
“We must find a way to limit the automobile cost below 6,000 pesetas to attract more people to buy our automobiles.
Of course, this is not a short-term goal. In the short term, just reducing the cost to 10,000 pesetas would allow such automobiles to enter commercialization,” Carlo commented.
With cost reduced to 6,000 pesetas, the middle class would have the ability to buy automobiles.
Before that, automobiles would remain luxury goods for nobles and the rich. However, there were still quite a few nobles and capitalists worldwide, fully sufficient for early automobile expansion.
After assembly line production effectively reduced automobile costs, it would not be too late to consider selling automobiles to the middle class and commoners.
In history, Ford Motor Company, with assembly line production technology plus cost reductions from mass production, lowered automobile costs to 260 US dollars, or 52 pound sterling.
Such a cost was quite exaggerated; at least Spain’s current automobile company was far from achieving it.
Based on Ford Motor Company’s Model T production cost of 260 US dollars, converted to pesetas it was only 1,352 pesetas, about one-tenth of Spain’s current automobile production cost.
Not to mention 1,352 pesetas; even reducing the cost below 10,000 pesetas would take some time.
This also meant that in the short term, the automobile company could not replicate Ford Motor Company’s success story; having a certain scale in the automobile market would already be quite good.
Benz nodded; he was well aware of the current defects in automobile costs. No matter how excellent the automobile was, costs and selling prices had to be reduced.
Only when it became a means of transport affordable by ordinary people could the automobile truly enter thousands of households and become an important means of transport, rather than a luxury circulating only among the rich.
After the introduction, the next segment was the actual testing phase.
Carlo was very interested in the new automobile’s speed of up to 40 kilometers per hour; such speed already met daily needs.
It was worth noting that the currently most popular means of transport, trains, had speeds of less than 60 kilometers per hour.
This was still in plains where trains faced no speed restrictions.
Due to Spain’s many mountainous areas, Spanish train speeds generally stayed at 30 to 40 kilometers per hour, with few trains breaking 40 kilometers per hour.
This meant that driving a newly produced automobile from the automobile company between two Spanish cities might take less time on the road than a direct train trip.
After all, trains needed to stop at train stations for passengers to board and alight, wasting a lot of time, while automobiles could go straight to the destination without midway stops.
Unless fuel was insufficient or the automobile had issues, otherwise in journeys within 500 kilometers, automobile efficiency was higher than trains.
Of course, this efficiency was only for passenger transport. If using automobiles for cargo, speed definitely could not reach 40 kilometers per hour.
Currently, Spanish freight train speeds were generally 20 to 30 kilometers per hour, mostly below 25 kilometers per hour.
If using automobiles for cargo, speed would be around that level, perhaps hovering around 20 kilometers per hour.
Still the same reason: Spain had many mountains, and roads were not that flat.
Hauling heavy cargo was also a burden on the automobile engine; whether it could stably travel over 500 kilometers hauling heavy cargo was also a question Carlo was curious about.
Stably traveling 500 kilometers with passengers was no great achievement, but if it could stably travel over 500 kilometers fully loaded with cargo, that would absolutely be an excellent performance for current automobile technology.
If automobiles could reach such a level, it could be said that automobiles already had the ability to replace carriages.
Only when automobiles could fully replace carriages could the automobile golden age truly arrive.
Precisely because of this, Carlo was more concerned about the cargo hauling performance of such automobiles.
This new type of automobile had five seats total, two more than original automobiles, effectively improving passenger capacity.
Of course, all seats except the driver’s seat could also be removed, turning the automobile into a cargo automobile.
Benz and others successively tested the automobile’s passenger and cargo capacities; with five people fully loaded, it could indeed reach a maximum speed of 40 kilometers per hour.
However, such maximum speed was a bit taxing on the engine; most of the time it traveled at 36 kilometers per hour.
Only with one passenger could the automobile maintain 40 kilometers per hour for a long time. But there was not much difference between 36 and 40 kilometers per hour, which Carlo could accept.
In terms of cargo, this automobile also showed quite excellent performance.
Including the pilot, the entire automobile could bear 420 kg, 70 kg more than the previous generation.
This also meant the automobile’s cargo capacity had effectively improved; whether buying an automobile for passengers or cargo, it was a better choice than carriages.
In terms of speed, with 420 kg of cargo fully loaded, the new automobile’s maximum speed could barely reach 30 kilometers per hour.
But like with passengers, such maximum speed could not be maintained long. For long-distance travel, speed had to be reduced to about 27 kilometers per hour.
Under full load, the stable travel speeds for passenger automobiles and cargo automobiles were 36 kilometers per hour and 27 kilometers per hour, already quite excellent levels.
Due to time constraints, Carlo could not personally see these automobiles travel continuously.
However, the automobile factory dared not conceal this at all; since they said the automobile could stably travel over 500 kilometers, Carlo still believed their stated data.
Based on current actual automobile test results, aside from the high cost shortcoming, the current automobile had no defects.
Compared to carriages, automobiles were faster, had stronger passenger or cargo capacity, and required less meticulous care.
If it could be ensured that automobiles would not frequently have issues, compared to carriages, Carlo would definitely choose the more efficient automobile as a means of transport.
6400 words second update, seeking support!
