Start with a college teacher

Chapter 781 Triangle Debt (1)

How could such a good factory of standard parts fail to pay wages?
Without him, there are too many triangular debts.

Standard parts factories can actually be regarded as steel reprocessing enterprises, which are limited and affected by upstream raw material supply and downstream customer payment progress.

In this turbulent era, "triangular debt" is a hot word of the times. It began to form in the mid-to-late 80s, reached its peak in the early 90s, and even once affected economic development.

Beginning in 1985, the central government began to tighten money, and the amount of "receivable but not collected" and "payable but not paid" on corporate accounts began to increase significantly.

Later, after it became more and more serious, it became: the enterprise wanted to collect the payment but failed to receive it, and the enterprise should pay the payment but deliberately delayed the payment.

Over time, some companies with insufficient background will be the first to fail.

The standard parts factory encountered such a situation. Their upstream raw material factory no longer provided credit service, while the downstream customers deliberately delayed the payment.

In terms of supply chain, Great Wall Group's financial situation is the healthiest.

In this era, everyone is learning from Toyota, and Shen Guanglin's Great Wall Group is no exception.

Although the little devils are very bad, some of their management experience is indeed worth learning.

Of course, there are also some entrepreneurs in China that are worth learning. For example, Ms. Dong, who single-handedly turned a small local factory into a national leader, set a precedent for payment and delivery.

Therefore, the Great Wall Group's operating conditions are very safe, there is no problem, and they buy things on time and pay according to the contract, and when they sell things, they must pay first and then deliver the goods.

It's not that no one has called their attention, and they also wanted to pay on credit first and then repay the debt, but they were not allowed at all.

Boss Shen asked: I would rather not do this business than set such a precedent.

There is no end to desire, first look, then touch, then rub, then don't move, and then you die.

You must know that the consequences of "triangular debt" are quite serious, much more serious than briefs.

Due to mutual arrears, most state-owned enterprises, township enterprises, and private enterprises in this era faced the problem of not receiving gross income.

This also makes it difficult for enterprises with good economic benefits to expand production due to lack of funds, and the huge unpaid debts make it difficult for enterprises to further apply for loans from banks.

These are all operational crises, and the standard parts factory has already reached this situation, or even worse.

"Hello, Professor Shen." After shaking hands with Shen Guanglin, the factory manager Liu Dahai sat directly in front of him, looking neither humble nor overbearing.

He is the director of a large state-owned factory, and he is not convinced that he was transferred to a Xiangjiang company.

In particular, the professor at Capital University whom I met today is the chief scientist of the other party. Since he is a professor at Capital University, he should not work for capitalists.

If the company hadn't encountered operational difficulties, he would definitely not have come to see Shen Guanglin.

"Pour a cup of tea for Factory Manager Liu." After Shen Guanglin signaled the assistant to treat guests carefully, he also said: "Director Liu, I asked you to come here to see what difficulties our company has."

After all, this is a company that the Demon City government has given to them. If it is not difficult to operate, they will not lose it to themselves.

Although the SY City Explosion-proof Equipment Factory went bankrupt as early as August 1986, it was the first state-owned enterprise in China to officially declare bankruptcy.

But so far, state-owned enterprises are still gods, and bankruptcies are rare, especially in Shanghai, where the economy is developed and the business is big.

Of course, the standard parts factory has not yet reached this stage.

However, Shen Guanglin had already known the predicament they were currently facing: Baoshan Iron and Steel Works no longer gave them credit for raw materials, while the Modu Automobile Factory, which they supplied components, had been delaying in paying their bills.

In particular, the Modu Automobile Factory has been restructured to a certain extent. They no longer produce Modu brand cars, but instead produce the joint venture Santana.

Most of this debt was owed during the production of Modu Automobile. As a result, their Modu Automobile Factory was a little bit wiped out and refused to accept the debt.

I don't want to pay back the previous bills, and the standard parts factory will continue to pay for the subsequent orders.

State-owned enterprises are like this. They have been relying on it for a long time, and they will make a report: let this debt be forgiven.

In many cases, the government considers the difficulties of enterprises, so it is exempted.

However, for the standard parts factory, this is an operational crisis. Baosteel does not give credit, the bank does not give loans, and Modu Auto has no plan to repay the money.

They didn't even have to ask Modu Automobile Factory to settle their debts.

What kind of company is the Modu Automobile, and what kind of enterprise is the standard parts factory?

However, after the Great Wall Group successfully acquired Skoda, it was determined to transfer the production line to China, and the standard parts factory was selected by the Shanghai Municipal Government as one of the supporting enterprises to undertake Skoda.

It's different now, they are also considered a joint venture, but everything has not been straightened out.

Facing Shen Guanglin's question, Factory Manager Liu said with a smile, "The company does not have too many difficulties, but the liquidity is insufficient. Now that it has a joint venture with Great Wall Group, it is serious to hope that Great Wall Group will deliver the equity capital as soon as possible."

It turned out that this director Liu had this idea.

The standard parts factory is a joint venture company, and you, the Great Wall Group, have invested in it. Shouldn't you pay in proportion to your shareholding?
"I think Director Liu probably misunderstood." Shen Guanglin didn't mean to pay, but said directly, "The debt relationship of the standard parts factory has not been straightened out yet. How much is this company worth? Whether it is insolvency or good assets has not been evaluated in detail, and the Great Wall Group will not take the money now."

You know, they haven't taken over the standard parts factory yet, and Baosteel Group is already asking Great Wall for money.

Great Wall Group purchased part of the steel used in the construction of skyscrapers from Baosteel. The relationship between the two companies has always been good, so they signed a strategic cooperation agreement with Baosteel after the Skoda Auto production line was ready to be transferred to China.

Therefore, the standard parts factory has to be transferred to the Great Wall Group, and they owe Baosteel a lot of money. Accumulated over the years, the number is really not small.

"However, it is difficult for the company to pay wages now. If you don't take the money, we will stop production, and the spare parts delivered to Modu Automobile will not be able to keep up. If this is the case, we will have to follow the city The leadership reacted to the situation."

Director Liu's complexion is not very good-looking. After all, he came to ask for money and was rejected. If he has a good-looking complexion, he will be damned.

"Go and reflect, isn't it that the cooperation has not been reached yet, and the Great Wall Group may not necessarily discuss cooperation with you. Besides, Modu Automobile owes you so much money, has it been paid?"

Shen Guanglin continued to ask.

I'm afraid that Director Liu didn't have a clear grasp of the situation, so he didn't collect the money that should be collected, but asked someone from Shen for the money.

(End of this chapter)