Start from 1980

Chapter 620 Refinance

AMC.

a car dealer.

This company can be said to be the most historic one among many American car brands. Like the brand name, the company's Logo is composed of the red, white and blue colors of the American flag.

However, AMC's products are not the well-known large American luxury cars, but the forerunners of medium and small cars and later SUVs.

AMC was originally formed by the merger of Nash-Kelvinator and Hudson Motors in 1954, which was the largest merger in the United States at the time.

The newly established AMC had total assets of US$3.5 million and liquidity of more than US$1 million, which also made it the fourth largest automobile company in the United States at the time.

Later, in order to expand the AMC product line, the company acquired the then Kaiser-Jeep company.

In 1980, AMC formed a partnership with Renault. At this time, the bank's refusal to lend to AMC forced Renault to become its largest shareholder.

As the oil crisis has been effectively alleviated, people began to favor large-displacement cars, but now AMC, which is short of funds, cannot produce new products that conform to the market trend, and Jeep is also in trouble after being exposed to the risk of rollover during this period.

The workers of the AMC factory also began to retaliate in various ways because they could not get the promised salary increase. AMC cars frequently had quality problems.

And this company is inextricably linked with BJ Jeep, that is, BJ Jeep Cherokee.

The cooperation with BJ Jeep was a cooperation project launched by Renault to save AMC’s losses. At first, China hoped to carry out joint development with the US, but was strongly resisted by the US. With no choice, BJ Jeep had to introduce the Jeep brand under AMC. The second-generation Cherokee had just been launched at the time.

In September 1985, the first batch of BJ Jeep Cherokee produced by CKD rolled off the production line
However, Renault, AMC's largest shareholder, is also in deep financial crisis at this time, and it is imminent to get rid of AMC's burden.

The investment letter of intent clearly stated Renault's equity and the approximate required price.

Reynolds needs about 59% of the equity in the hands of about 8 million U.S. dollars, and the remaining equity also needs about 7 million U.S. dollars.

In other words, this acquisition will cost about $15 billion.

Shengshi's current working capital in New York is only 7 million, plus Hong Kong, it can probably be made up.

But once the 15 billion is withdrawn, there will be no liquidity in New York and Hong Kong.

Now it’s not only Su Chen’s heart, but also Chrysler’s. Chrysler had previously borrowed AMC’s factory to assemble some of its models. Chrysler intends to win AMC, a brand that is facing bankruptcy. Everyone knows that Chrysler’s most wanted thing is Jeep.

Su Chen was really excited, and really wanted to buy this company, because the Jeep brand has the highest gold content.

He looked at Bernice: "We don't have that much money now."

"It's simple, we will first repay Wells Fargo one billion, and then we will lend another two billion." Bernice was confident, "In fact, Mr. Eaton will definitely approve of this business."

"What's more, so many of our industries are already on the right track, and with so many equity and real estate in hand, Wells Fargo will definitely not reject our loan request."

Su Chen thought for a while: "I'll talk to Mr. Eaton."

"Okay boss, but I need to remind you that Chrysler has coveted this company for a long time. If possible, I think we should start as soon as possible."

Bernice reminded, "I will sort out our current real estate rights as soon as possible, so that we can get a loan from the bank at any time."

Su Chen nodded: "Okay, you did a good job on this matter. I will tell you my decision when I go to see Mr. Eaton."

Because Shengshi is very short of money now, and it costs money to buy Rolls-Royce in the UK. It needs about seven or eight billion US dollars.

Leaving aside the question of whether it can be acquired, just buying AMC or Rolls-Royce now requires a lot of money.

The speed of making money cannot keep up with the speed of spending money.

But the good news is that the dollar is still depreciating and the yen continues to appreciate.

Just to buy these things, he personally spent [-] million US dollars, and also invested [-] million US dollars with Eaton and Brian.

Calculated in this way, his investment in this area has reached as high as [-] million. It's not that he didn't make money, but he was suppressed. If he didn't know the direction of the dollar and yen, he would want to sell it now.

……

I found time to call Eaton and said that I would visit at night, and Eaton naturally said that there was no problem.

In the evening, Su Chen went to visit Eaton.

Seeing the gift he brought, Eaton smiled and said, "Man, what good things have you prepared for us this time?"

"It's just a small gift, you know, the damn customs are very strict on certain aspects, and many things are not allowed to be brought in." Su Chen handed over the gift in his hand.

Mevis smiled and said, "Su, you came just in time. I was telling Eaton just now when you will be coming, please come in."

Because Miranda was still studying in Boston, there were only the Eatons and his wife left in the family.

During the meal, Mevis mentioned that Miranda went to China for the Spring Festival, "Su, we brought a lot of delicious food when Miranda came back from China, and also showed us a lot of photos of your China. It looks like she Had a great few days.”

"I hope she can be happy for the rest of her life." Su Chen said seriously, "I will always take care of her happiness."

"That's good, you decide between you." Eaton said, "But I hope you can take your time to bring your family to New York to spend Christmas with us, so that they can experience the customs of New York."

"That's for sure."

After dinner, Eaton called Su Chen to the study.

"Man, what do you know about AMC?"

You are really my father-in-law and timely rain.

Su Chen said: "I came here today mainly to meet you, and I also want to talk to you about some things about AMC, but I don't have that much money on hand."

"So what do you do in your current industry?" Eaton asked.

Su Chen picked out some of the current layouts and said roughly.

"It seems that you no longer need the blessing of Wells Fargo Bank. It is the right thing to go to the Soviet Union to open a bank." Eaton nodded, lit the cigar in his hand, and said: "And industrialization is also a very right thing, but you Are you sure you want to get another loan from Wells Fargo?"

"Of course." Su Chen said, "I never make such a joke, and I am confident that I can pay it back. I believe you have also investigated our financial report. After borrowing for such a period of time, we will not only repay the interest, but also pay the debt. Accumulated more than 7 million working capital."

Eaton took a puff of smoke and said, "I know, I check your financial statements carefully every quarter. How much do you want to borrow this time?"

"In any case, it will cost 30 billion. I will use the property rights in my hands as collateral for you. It is just the patents of Fox Film and Media Group, ILM, Tiangong Laboratory, and my real estate. It must be no problem."

Su Chen said, "If you can grant me 50 billion, that would be the best thing."

"Cough, cough..." Eaton was choked by a puff of smoke in an instant, "Fuck, do you really think I opened Wells Fargo Bank?"

(End of this chapter)