The Aviation Minister had taken into account the histories of the four firms, including their records of reliability, quality control, production, and financial standing. He had made his decision and was ready to recommend it to the Governing Council.
Before the end of the Great War in 1918 there had been many small and medium sized aircraft manufacturers in Europe. The end of that war, and the ensuing glut of surplus military machines thrown onto the open market, had resulted in considerable rationalisation within the industry. Some manufacturers went out of business. Others merged or were taken over by bigger concerns.
The same thing was now being repeated following the end of the European War. Kesselring had noted with concern that six British aircraft builders had closed their door in the last four years. In Germany Arado, Blohm & Voss, and Henschel, three previously well-known names, had also ceased operations. All his research convinced him that this trend would continue over the longer term.
To compete in future years with the Americans, the British and possibly soon, the French, there would be no room for small, undercapitalised aircraft manufacturers. What was needed were well capitalised firms with large capacity production lines, able to control their unit production costs to ensure a viable and sustainable business.
Kesselring was going to ask the Interior Minister, as part of his Department of Industry domain, to look into the desirability of Focke-Wulf, Junkers, and Heinkel, and possibly Dornier, merging into one large efficient and cost effective aircraft manufacturing corporation. Such a detailed task was beyond his own capabilities as a military person.
His preferred design for the new proposed jet airliner was Focke-Wulf’s.
Albert Speer put a team of his best industrial analysts and accountants onto the project handed to him by Kesselring. The Aviation Minister had needed to exercise his considerable powers of persuasion to obtain the co-operation of the four aircraft manufacturers, each jealous of their reputation and proud of their history.
The manufacturers eventually accepted the arguments for the need for economies of scale in the second half of the twentieth century. And all were apprehensive about America’s large manufacturing capacity. Junkers, however, fiercely opposed being incorporated into a larger entity. As things stood they were operating profitably, and had plans for new aircraft in the near future. They were emphatic. They wished to remain independent.
Heinkel saw the writing on the wall. They agreed to sell out, lock, stock and barrel, to Focke-Wulf. Deutsche Bank gave an undertaking to provide all necessary finance that Focke-Wulf might require to complete their transformation into the largest aircraft manufacturer in Europe, conditional only on the Economics Ministry underwriting the development costs of the future jet airliner. This guarantee was agreed upon by the Governing Council within two weeks.
Focke-Wulf were lukewarm about integrating with Dornier. There seemed to be some difference in management styles, and some lingering antagonism from the past. That firm was left to fend for itself.
Everything was finalised. The Aviation Minister now used this opportunity to announce to the world another first for Germany, a jet powered long range airliner. In an arrangement similar to the Starflight, this one would also have British Rolls Royce engines and would be known as ‘the Komet’. Anticipated date of first delivery was late 1949 or early 1950.
Jamie and James were quietly conversing over a drink at the same Thames-side pub where the idea of financing refurbished Junkers JU52s had first been put into James’ head.
After receiving James’ letter, Jamie had sent a telegram the next morning to say he would be back in London the following week. Katherine would sail the yacht into the Aegean as planned, but with a friend of hers who’s husband was based in Greece, and who was looking forward to a couple of weeks sailing. Jamie would make his way to London. Depending on how things went with the discussions with James, he would either come back to Greece, or Katherine would organise a permanent crewmember to help her bring the yacht back to England.
James had fully briefed Jamie the evening before they were due to meet with Nigel Thornberry at the bank. Jamie found he actually liked the ideas he was hearing. In fact, he liked them very much. James had explained that an American bank, Mercantile Bank of California, was now owned by a partnership between Bradlington Thornberry Bank, Deutsche Bank, and an American businessman called Frank O’Donnell.
Jamie’s job would be to build a small US based team to sell German built ships, equipment and machinery in the US. He would be appointed President of a new subsidiary of Mercantile Bank. All financing would be placed with the bank.
Any job offer to Jamie would have to be approved first by Nigel Thornberry and then by Frank O’Donnell. Deutsche Bank had given Thornberry discretion in the choice of staff. Thornberry in turn, would defer to O’Donnell. Strangely, the English gentleman and the American businessman had both taken a liking to each other when they met in London to clinch their deal. O’Donnell was fascinated by Thornberry’s upper crust English accent, and Thornberry looked upon the American’s straightforward no-nonsense approach to business, as a breath of fresh air in their normally stuffy banking environment.
Things went well at the meeting with Thornberry. Although Jamie’s connections with President Roosevelt were considered impressive, and hopefully would prove to be useful in the future, it was Jamie’s positive and enthusiastic attitude, combined with his common sense, that got Thornberry’s approval. The next day he was on his way to San Francisco to meet O’Donnell.
O’Donnell kept two days free for Jamie. In that time he introduced him to four different shipping lines, several engineering companies, and a couple of machine tool suppliers. O’Donnell talked and asked questions non-stop. After two days he was satisfied. Jamie was his man.
It was while they were having a last beer together before he left, that Jamie mentioned to O’Donnell that he thought someone should consider snapping up the US agency for Mercedes cars. O’Donnell, always a compulsive listener to new ideas, quizzed him about it.
“It’s simple” Jamie said. “Mercedes are exceptionally good quality built cars. Many Americans would be attracted to their different style. I also hear that they are planning some really exciting new models. They are European champions in the Grand Prix series this year, as they were before the war in Europe. There is no doubt they will also dominate next season, which will have more races on the calendar. Great free publicity! Financing them would be no problem with the arrangements you now have between Mercantile Bank and Deutsche Bank.”
O’Donnell’s mind was in gear. He liked it. He would investigate it some more tomorrow.
Jamie was asleep on the plane before it took off for Washington. He was taking the opportunity to visit his father while he was so close.
Franklin D Roosevelt was re-elected as President of the United States of America on 7 November. He was the only President ever to be re-elected for a fourth presidential term. In fact no other President had even served three terms.
Some people were concerned. Roosevelt, a chain smoker, had been in declining health for the past four years. Despite knowledge to the contrary, during the presidential election campaign his personal physician publicly denied several times that Roosevelt’s health was poor. There had also been suggestions that Roosevelt had used his authority to suppress press reports about his deteriorating health.