Return to 2000: Captain of the Great Powers

Chapter 429: Capture Bombardier!
"One dollar?" Reinvarette was full of anger: "You want to use one dollar to buy our aircraft business, how could you come up with such a ridiculous idea?"

In the conference room, Renvalet laughed angrily when he heard the purchase price given by Xu Cang.

Just as Renvret said, the price Xu Cang bought Bombardier Group's aircraft business was one dollar, which made Renvret feel a great insult.

"Won't I still bear your corresponding debts?" Facing Renvalet, who was blushing and thick-necked with anger, Xu Cang was really leisurely and contented: "Your large commercial aircraft business is simply a loser, and you have invested so much money. Scientific research, but did not sell a few planes. Isn’t this a bottomless pit of burning money? There is still some profit in the business jet business, but once the two are offset, there is basically no profit, and even a lot of money. The money goes in. My bid of one dollar is not bad, and I haven’t asked you to pay back.”

Xu Cang's meaning is very simple, Bombardier's debts incurred in the aircraft business will be assumed by him, which is actually quite a lot of money.

However, for the valuation of the aircraft business itself, Xu Cang said that one dollar is enough.

Although it sounds outrageous, what Xu Cang said still makes sense.

The scientific research investment of the C series aircraft is too high, which belongs to Bombardier's desperate move.This will generate huge sunk costs, so that before Bombardier could only bite the bullet and continue to invest money in it, the debt piled up higher and higher.

In this situation, he either had to decisively find another home, or he had to persevere.

Obviously, Bombardier couldn't hold it anymore and could only choose the first option.

Rain Valet's blood vessels were about to burst, and Xu Cang showed the excellent performance of the CS300 in Europe before.Since then, the sales of Bombardier's C-series aircraft have expanded a lot at once, and they are almost on the right track.

Xu Cang single-handedly cut off the cooperation of AVIC, causing the cost of Bombardier's aircraft to soar, and the cost management of the C-series aircraft collapsed all of a sudden.

However, Boeing sued Bombardier for anti-dumping, which directly blocked Bombardier's possibility of entering the United States. Europe is Airbus's home base, and there are many restrictions on sales to Europe.

These two largest aircraft consumer markets in the world are all hopeless, directly crushing what little confidence Bombardier had left.

However, all of this is thanks to Xu Cang.

Just here, Xu Cang is still making sarcastic remarks!
"Why, don't you think it's not enough?" Xu Cang smiled and said, "It's okay to add some more, double it, two dollars?"

Renvalet's face gradually became gloomy: "Xu Cang, since you think our aircraft business is so worthless, are you afraid that we won't sell it?"

Qin Xin frowned, and called softly: "Xu Cang."

In her opinion, the price Xu Cang offered was a bit outrageous.Bombardier's aircraft business is already in its pocket, and there is no need for extra complications.

"You still have grievances against us." Renvalet said coldly.

Xu Cang laughed and said, "Don't you think I'm fighting a battle of spirits?"

"Isn't it? Your price is simply insulting us." Ren Valet roared.

But soon he saw Xu Cang's expression and realized a problem.Although Xu Cang had an unclear smile on his face, it looked sincere, which was the scariest thing.

"Do you really think our aircraft business is worth that price?" Renvalet looked at Xu Cang in disbelief: "You really think so?"

Xu Cang sighed: "Just before I came to the United States, I answered a phone call, and everything changed. Your aircraft business, or the value of the aircraft design and assembly technology carried in it, has been greatly reduced. Now I am with you. The transaction does not involve any technical things, it is just a commercial exchange based on the balance of interests. C-series aircraft have lost money at least for a long period of time, and business jets can make money, but after all, there is a ceiling in the industry and there is limited room for growth. ...a dollar, that's how much I value your aircraft business."

Xu Cang's voice was so sincere, but it was the truth that hurt the most.

Ryan Valet knew that Xu Cang needed Bombardier's internal logic, and he wanted to use Bombardier's experience and technology in aircraft design and manufacturing to fill the gap in his country's large aircraft design and manufacturing.

This is a rigid demand, as long as it is a rigid demand, it can become a bargaining chip.

Previously, Reynvarette felt that even if he agreed to sell the aircraft business, he would surely be able to get a sufficiently generous price.But when things turned around, Xu Cang was no longer interested in Bombardier's aircraft design and manufacturing. Isn't that the hell?
Such a change, not to mention that Renvalet couldn't figure it out, even Qin Xin didn't expect it.

Xu Cang patted the back of Qin Xin's hand and comforted him, "I'll tell you later."

Qin Xin didn't say anything more, but hummed obediently.

In fact, the phone call Xu Cang mentioned was the phone call made by Lin Ming before departure.

In Xu Cang's original idea, the research speed of domestic engines would only be slightly slower than that of domestic large aircraft.The batch of PW6000 engines saved by Xu Cang was temporarily used during the transition period after the domestic large aircraft came out and before the domestic engines were not commercialized.

When the domestically produced engine comes out, the plan to use the domestically produced power system on the domestically produced large aircraft is well planned.

The problem is... Now the domestic engine is out of order.

Even with the help of a complete set of blueprints, according to Lin Ming, it would take three to five years to fully understand the blueprints, and with the subsequent re-engraving time, it would probably take ten years.

Xu Cang's domestic aircraft plan is anchored on the time node of domestic engines.Because the difficulty of self-development of the airframe and related systems is simpler than that of the engine.

Many other domestic products will be ridiculed as "only the shell is made". This is the reason. The top product of the industry, such as aero-engine, is the core of the aircraft, and it is the most likely to be regarded as a bargaining chip.

In this regard, Bombardier has perfectly demonstrated to Xu Cang what sanctions are.

Xu Cang can tolerate a certain time lag between the localization of aircraft and engines, but the time lag should not be too long.Otherwise, this kind of thing can easily become a weakness.

For example, it has spent a lot of money to acquire Bombardier's aircraft business. AVIC already has some foundation, and with the support of Bombardier Aircraft Industry, basically all work on the airframe can be completed within three years.

However, according to Lin Ming, the domestically produced engine will be ten years later, what about the seven years left in the middle?
Once the aircraft is built, it can't just sit there. Therefore, we can only turn to foreign engines.Perhaps, those foreign manufacturers will not cut off supply, but it is definitely not impossible to rip off, raise prices, and shoddy.

Looking at it this way, the effect of hard work to acquire Bombardier's aircraft business to supplement itself is not obvious, but it will cause an exaggerated time difference in the progress of the two sides.

In this way, the value of Bombardier's aircraft business will be much smaller. It is better to calm down and take it slowly. Anyway, we have to wait for the progress of the engine.

Three years is an appropriate time difference that Xu Cang thinks is acceptable.

In other words, there are still at least seven years of research on the body.

Compared with the elementary school level of aero engines, the design of aircraft body can still reach high school in China, and it will definitely be usable if you make up for it.

In addition, more than seven years is enough for Xu Cang to plan calmly instead of just counting on Bombardier.

After the 9 incident, Boeing's life was also very difficult, and Airbus's previous class action lawsuit because of the delayed delivery of the A11 was also a bag.

At the same time, the industry's pessimistic predictions about the industry's prospects have also provided various conveniences for Xu Cang's layout. He is confident that he can obtain better airframe design and manufacturing materials from Airbus and Boeing.

Before that, he had been obsessed with Bombardier because compared with Airbus and Boeing, Bombardier's weaknesses were more obvious, its size was smaller, and it was easier to control.

And his previous miscalculation of the development progress of the domestic engine made Xu Cang feel that he didn't have much time.

But after the real demonstration, Xu Cang realized that he still had to wait for a long time, so the problem of time urgency would no longer exist.

In this way, Bombardier's aircraft business really has only a commercial role.

With this kind of cognition, Xu Cang spoke very hard, because he really didn't care whether Bombardier sold or not.

"Maybe the situation changed a little too fast, but things are so wonderful." Xu Cang pondered for a moment, then pursed his lips: "Mr. Vallett, Bombardier has lost most of its value to me. One dollar, that's Your true price in my heart. Of course everyone is happy if you are willing to accept it, and it doesn’t matter if you don’t want to accept it, just find someone else.”

Xu Cang stood up: "Besides, this price shouldn't be an insulting price, right? Isn't this kind of symbolic asking price very common?"

"That's someone else, we're Bombardier!" snorted Ren Valet.

Xu Cang smiled: "Mr. Vallett, you can't talk too much, it's easy to slap your face."

In fact, the reason why Xu Cang asked for one dollar mainly came from the later acquisition of Bombardier's aircraft business by Airbus.

That's right, even without the influence of Xu Cang, according to historical development, Bombardier still cannot support its investment in commercial large aircraft, and will eventually sell the commercial large aircraft business to Airbus at a symbolic price of one dollar.

Of course, unlike this transaction, historically Bombardier's subsequent transactions with Airbus did not involve business jets.

After acquiring Bombardier's C-Series aircraft, Airbus converted them to the A200-Series aircraft, and they are selling well.This shows that if it were not for some other factors, Bombardier's C-series aircraft might really be able to grow, at least the quality of the aircraft itself is no problem.

From a commercial point of view, Bombardier's C-series aircraft is profitable, otherwise Xu Cang would not have made a special trip to Canada after learning about the development progress of domestic engines.

Even the largest CS300 in the C-series aircraft has a smaller passenger capacity than the 737-700 and A319. In fact, in a strict sense, the C-series aircraft is actually smaller than the mainstream Airbus Boeing narrow-body aircraft. Heavyweight, not a track.

Of course, Airbus and Boeing are used to being domineering.I just think that your 319 and 700 are the same size aircraft as mine. No matter what Bombardier can do, they will still be hit.

However, if the C-series aircraft can be obtained by Xu Cang, Xu Cang may be able to persuade Boeing and Airbus to give up their suppression of the C-series.

Once the C-series aircraft is free from the pressure from Airbus and Boeing, it may grow into a good 110-130-seat series aircraft.

It's just that it is definitely not easy to convince Boeing and Airbus, and it will definitely take a lot of energy and financial resources.Therefore, Xu Cang had to acquire 50.00% of the shares of Bombardier Business Aircraft in exchange for blood. The two are bound and indispensable.

Bombardier's most profitable division, that's definitely not a joke.

"How, is it acceptable?" Xu Cang dusted off his clothes, looking very relaxed.

Ren Valette's face turned blue and red, as if juggling.However, it doesn't matter whether he is angry or not now, the biggest problem is that Xu Cang really doesn't seem to value Bombardier very much.

In this way, the biggest bargaining chip is not gone. What bargaining power does Bombardier have?
So far, Bombardier's debt has reached 43 billion US dollars.It is not terrible to have debts. What is terrible is that there is no future, and banks are unwilling to borrow money. Even Bombardier cannot bear such huge debts.

What's more terrible is that these debts are still increasing, and the longer they are dragged on, the more passive they will be.

I wanted to sell it for a good price before, but now it is only worth one dollar, and no one can change their minds.However, Ren Valette was in good control of his emotions.

He found a very important problem, or he believed in a prerequisite, that is, Xu Cang is definitely not a kind person.

Even though Bombardier's business jet business can make money, it can't make up for the sting caused by large commercial jets. What's more, Xu Cang only holds half of the business jet business, which means that the profit will be discounted.

Under such preconditions, Xu Cang is still willing to acquire Bombardier's aircraft business, which means that Xu Cang has the ability, at least he believes that he has the ability to bring Bombardier's commercial large aircraft business back to life.

"Can you find a way to reverse the situation of the C-series aircraft?" Ren Valette asked suddenly.

Xu Cang looked at Ren Valette silently, and said with a smile: "As long as you are willing to accept the acquisition, Boeing's anti-dumping petition will be withdrawn, and the order with Delta will remain as usual. Although it will not be possible to enter the US market for a period of time, But this time will not be too long. In addition, AVIC will continue to cooperate with you instead, and finally our domestic ARJ21 market will give way to CS300!"

Ren Valet's mind paused for a moment, and he quickly became ecstatic, but then immediately turned disappointed: "No, we don't have enough engines."

"Now that the situation has changed, I can free up part of the engine order. Give me some time, and I can persuade Airbus to drop the sanctions against you, at least in the engine field."

"You convinced Airbus?" Ren Valette was overjoyed: "Really?"

Xu Cang shrugged: "Airbus is having a hard time now, what's impossible?"

Ren Valette licked his lips, fell silent for a while, and quickly said: "Xu Cang, do you think this is okay? The commercial large aircraft business is the same as the business jet business. You pay a symbolic one dollar to purchase 50.00% One's shares, and the remaining 40.00% of Nine will continue to be held by us. Of course, in this case, you only need to bear half of the debt. What do you think of this plan?"

If what Xu Cang said can really be realized, then the C-series aircraft will not only be able to bring the dead back to life, but may even achieve a leap forward.The prospect of getting rid of the siege of Boeing and Airbus, once again having the cheap supply of AVIC, and gaining the vast market in China is undoubtedly bright.

Of course, the premise of all this is that Xu Cang is willing to help.

Therefore, Xu Cang must be given more than half of the shares in the commercial large aircraft business, otherwise why would Xu Cang contribute?Even if the control is given to Xu Cang, based on the future prospects of commercial large aircraft, half of the profit is still considerable.

Rennes Valette is confident of convincing the board of directors to accept the proposal.

In the end, Ren Valette had a beautiful idea, and Xu Cang directly rejected it without even thinking about it: "Although the ARJ21 is only a transitional model, it will not be developed in depth. However, I will make the ARJ21 market Transfer to CS300, what can you provide? Just this, you want to share half of the profits, dreaming!"

From the heart, the market positioning of ARJ21 is indeed awkward, the passenger capacity of more than 300 seats is a bit too small, and the passenger capacity of CS[-] of [-] to [-] is more suitable for regional routes.

In addition, from a technical point of view, the CS300 is still higher than the ARJ21, which can also reduce the scope of application and maintenance costs.

However, no matter how bad the ARJ21 is, it is still its own aircraft.Replacing ARJ21 with CS300 is equivalent to giving up the vast secondary route market. How can Xu Cang accept that Bombardier wants to share half of the profits without doing anything?

Ren Valette hurriedly said, "Then 40.00%?"

Xu Cang raised two fingers: "20.00%, one-fifth. You can just drink soup, but you still want to eat meat, can you clarify your position, eh?"

After finishing speaking, Xu Cang shook his finger: "Remember, this is the bottom line, don't go too far."

Ren Valette's face was flushed red, but facing Xu Cang's eyes, he quickly calmed down again: "Okay, we accept it!"

(End of this chapter)