"His wife-to-be, the daughter of an industrialist, set a similar goal for herself. But instead of vehicles, she chose textiles.
Together they have become a driving force in Taiwan's bid for a spot in the industrial sun. The husband, Yen Tjing-ling, is board chairman and general manager of the Yue Loong Motor Company. His wife, Vivien Wu Yen, is the board chairman of the Tai Yuen Textile Mill Company.
Yue Loong is Taiwan's only auto manufacturer. Its buses are widely used on Taiwan highways. Its small sedans dominate the island's taxicab business. Its diesels are used on farms and in boats.
Tai Yuen is playing an important part in the textile boom. The making of cloth has become Taiwan's second largest industry, second only to food processing, which includes sugar, the island's most important product.
Industrial interest of the Yens is not surprising. They both were born in Shanghai to families that were pioneering in China's efforts to escape the domination of handicrafts.
Even as a small boy, Yen was interested in engines. His father took note of this, and after the boy's graduation from middle school, he was sent to Germany to study mechanical engineering at the Advanced Institute of Technical Engineering in Berlin. Even then he looked to the auto industry as his special interest.
Back in Shanghai he helped his father with the Oriental Engineering Works Ltd. At 25, he was chief engineer and manager. Seven years later he became general manager of the family's Union Iron & Foundry Co.
To the elder Yen, all this was fine but a family was even more important. He introduced his son to Miss Wu, the daughter of a friend who also was an industrialist.
When Miss Wu first met Yen, she had just been graduated from middle school and wanted to go on with her education. Marriage would only interfere, she thought. Yet she was bound to a society that still regarded marriage as the ultimate objective of a woman's life.
They soon were married. Mrs. Yen showed herself to be a good housewife, but she could not put aside the drive for more learning. Fortunately, she had found the right husband. With his approval and encouragement, she entered St. John's University in Shanghai four years after her marriage. She majored in political science and received a bachelor's degree in 1942. She did not plan to go into politics and has not, but has no regrets about her major. "It has helped me in business," she said.
Mrs. Yen thought that to help her husband toward his aim of an industrialized society, light industry also would be essential. She chose textiles. Her family was active in the field and she therefore had some acquaintance with the possibilities and problems.
First, the menace of Communism had to be overcome. The Reds were just about to take over in Shanghai, and the Yens had no use for the Communist way. In 1948 she and her husband decided to seek their future in Taiwan. They shipped from Shanghai 20,304 spindles of the Oriental Engineering Company, of which her husband was general manager.
Before starting the new adventure, they went to the United States together. She took a master's degree at Columbia University. They visited Europe and South America to study industrial methods.
Girls at work in the Tai Yuen textile plant (File photo)
In 1951, they returned to Taiwan. In that year she established the Tai Yuen Textile Company with capitalization of NT$2,000,000 (US$50,000).
Rapid Growth
Under her direction, Tai Yuen now has 34,560 spindles and 920 automatic power looms and 2,369 workers. Capitalization is US$1,000,000.
Tai Yuen produces an average of 282,936 pounds of cotton yarn and 12,689,627 yards of cotton fabrics annually. In 1961, gross income from exports was US$1,772,743.70. From January to September of 1962 the figure was US$2,640,182.27. Gross income from exports for the two years leads the industry.
Export areas include the United States, England, Australia, Vietnam and Thailand.
In the view of Mrs. Yen, welfare of the workers is even more important than production figures. She is an ardent supporter of the eight-hour day, the year-end bonus and many other measures to help workers. She also seeks to improve their way of life so as to raise their living standard.
Her 57 administrative assistants receive an average salary of US$80 a month, high for Taiwan. Similarly, workers are well paid at up to US$40 a month. The bonus totals two months of additional pay. Her plant was the first to adopt the eight-hour day.
Mrs. Yen has pioneered with assistance to employees in housing, transportation, education and recreation. She built dormitories for families as well as for the single.
Second Home
"The workers consider the factory their second home," she said. "They like their dormitories and they have fellow-workers for friends."
Basketball and tennis teams have been organized. Chinese opera performances are a popular recreation.
Mrs. Yen has established nurseries and kindergartens for children of the workers and adult education classes for mama and papa. To encourage older children, she grants scholarships.
"Transportation is also a problem. Some of them live far away from the factory," she said.
Company buses make regular runs. For those who want to buy a bicycle, installment buying is available.
A free clinic provides medical treatment. Preventive medicine is stressed.
On Sundays she invites workers to her home for dinner and learns of both their employment and personal problems. Once a month she personally inspects working conditions at the factory in Hsinchu, an hour and a half's drive from the head office in Taipei.
Her own experience tells her that women can work just as well as men. She provides equal opportunity for women workers. She says promotion is based entirely on ability.
Most of the workers are girls and young women aged from 16 to 27.
"Textile work requires nimbleness of fingers," she said. "So girls are more suitable for it."
Under her supervision and thanks to ceaseless improvement, her company produces cotton yarn of top quality.
Mrs. Yen has received two citations. She was one of eight persons honored May 1, 1962, for promotion of enlightened labor-management relations. The Ministry of Economic Affairs gave prizes to 21 manufacturers on the 16th Industrial Day November 11, 1962, for outstanding performance in raising productivity, improving quality and promoting exports. Mrs. Yen was recognized for the high quality of cotton yarn produced by her mill.
Mrs. Yen also devotes herself to social welfare work, especially with women and children.
In 1960, she was invited by the U.S. State Department to a seminar on the civic responsibilities and leadership of women. She visited widely in the United States, studying the American approach to social work, then returned to apply the knowledge in Taiwan.
In 1961, she was elected chairman of the Taipei International Women's Club, the first Chinese citizen so honored.
To Mrs. Yen, work is a pleasure and she needs no other recreation. She has been teaching at Soochow University in Taipei for nearly 10 years. Students like her and consider her a friend, but fear her examinations. She is strict and requires hard work. "Justice to all" is her grading guide.
Mrs. Yen takes care of her own household, too. She says there is time for anything and everything, as long as time is not wasted.
Yen himself has made the family dream—to manufacture motor cars—come true. He established the Yue Loong Engineering Company in 1953 with capitalization of NT$2,000,000 (US$50,000), a small plant and a few score workers.
Capital now is registered at US$1,500,000 and property at US$2,500,000.
Precision Machinery
Located at Tapinglin near Hsintien, about 10 minutes from Taipei, Yue Loong has 211,900 square feet of plant and 14,850 square feet are still under construction. More than 1,000 employees operate some 300 precision machines.
Small sedans produced by Yue Loong (File photo)
At first, Yue Loong produced small engines and spare parts for automobiles. Arranging technical cooperation with the Japanese Nissan Motor Company and the American Willys Motor Company in 1957, it began the manufacture of various types of passenger cars and trucks including utility vehicles, light trucks, passenger wagons, 6-ton gasoline trucks, 6-ton diesel trucks, diesel buses and four-door small sedans.
The most popular car is a sedan similar to the Blue Bird Datsun of Japan. It is suited to taxicab use because of fuel economy and low maintenance cost. It sells for about US$3,000, cheaper than the retail price tag of similar cars imported from foreign countries.
Yue Loong plant has a capacity of seven vehicles daily. This year it has produced 400 diesel buses, 300 jeeps, 600 trucks and 800 small sedans. The company also produces weaving and spinning machines, and various kinds of diesel engines, ranging from 5 to 20 horsepower.
The multi-purpose five horsepower diesel enjoys a brisk sale. The first lot of more than 800 units was sold to Vietnam in May, 1961, at US$225 each. It can be used in tilling, pumping, power generation and rice hulling. Diesel engines of other types are used by fishing boats.
The Yue Loong plant makes automobile spare parts, including piston pins, piston rings, cylinder sleeves, valves and leaf springs.
It is expected that the number of automobiles produced will be increased to 2,600 in 1963.
In addition, the company will turn out 3,000 Lambretta scooters in the first year of a technical cooperation agreement with Innocenti S. G. of Italy. Thirty per cent of the parts will be made by Yue Loong. This will be increased by 10 per cent a year until 70 per cent of parts are made here.
Yue Loong's objective is annual production of 6,000 vehicles and 3,000 engines.
"We have met difficulties and have solved them, and still there is a long way to go,'" said Yen.
"China is an agricultural country. There has never been an auto industry. Skilled mechanics are hard to find. Most of the mechanics get their experience on the job with us.
"To solve the problem of skill, the plant has more than 200 apprentices learning all the time. They are given room and board and will become good mechanics."
Steady Improvement
Yen works hard to improve his products. He knows that good products require good technicians.
All senior engineers are graduates of universities and have at least 15 years of experience. Junior technicians are top recent graduates of universities.
The Nissan Company of Japan has sent senior engineers to work in the plant. Willys is sending engineers to Taiwan to help them.
"We hope the time will come when we can make all the parts in Taiwan" said Yen. "This does not mean we are not going to import parts, if the cost is cheaper. But we should know how to make all the parts ourselves.
"The auto industry is the central manufacturer. It will establish satellite plants, and prosperity will lead to rapid development of other industries.
"The automobile provides rapid, reliable transportation. In ancient times, with poor transportation, the Chinese people on the opposite sides of a bridge spoke different dialects.
"The auto industry provides transportation that will bring the people closer together and help build a prosperous nation."
Yen believes a law regarding installment buying will help sell more cars.
The Yens have their offices in the same building. But business is still business. If Tai Yuen buys engines from Yue Loong, proper procedure is required. Even bargaining may take place.
Both are satisfied that they are making important contributions. Her textiles lead in quality and export earnings. His sedans dominate traffic in Taipei and his diesel buses provide wheels for the nation.
"Ten years ago, on Chungshan North Road, one might see two cars pass in five minutes. Today all Taipei streets are crowded with traffic," he said.
Eyes on the Mainland
The Taiwan Highway Bureau uses Yue Loong buses on the fast and comfortable Golden Horse Express bus lines. Private bus companies at first hesitated to use domestic-made vehicles but finally tried and now have confidence.
For many years, the Yens have spent money and effort without any return. But they are confident an economic takeoff lies just ahead. The example of Henry Ford, whose first capitalization was US$100,000, is never forgotten.
But the really big goal is mainland recovery. The Yens want to lead the way in the establishment of light and heavy industries that will assure new life and prosperity for half a billion people.