Perfection of Rebirth

Chapter 762 Acquisition of Jaguar Land Rover (Part [-])
Regardless of whether it is Ford Motor, General Motors or Chrysler, the three major U.S. auto companies are having a hard time right now.

In the entire American market, the best-selling cars are basically the products of Japanese and Korean companies such as Toyota, Honda, Nissan, and Hyundai. Due to their relatively high fuel consumption and poor quality stability, local cars have been selling in recent years. go downhill.

Especially quality stability, in China, this may not be a problem that consumers pay special attention to, but in a country like the United States with a super expensive population, all car buyers need to consider this issue.

Otherwise, you have to fix it yourself every three days, or spend a lot of money to go outside to fix it.

In this case, consumers will definitely choose models with good stability.

"Jiang, you underestimate our Ford Motor Company too much. As a company with a history of more than [-] years, we have experienced various things. No matter how difficult it is, we can get through it," Mulally said with a livid face.

In the past 20 years, Ford has had good times, but crazy mergers and lax management have caused Ford to be dying for many years when Mulally took over.

In 2006, Ford lost $126 billion.In an initial meeting with employees, Mulally was asked if Ford could survive in the industry, and Mulally responded, "I don't know."

To this end, Mulally began drastic reforms, hoping to reduce Ford's product development costs by 60%.Mulally hopes Ford will learn how to produce more distinctive models on fewer and fewer platforms.

One theory is that by 2013, the number of platforms Ford uses to build cars and trucks will drop to 13, half the number in 2007.

However, in any case, the current Ford is still in the quagmire.

"I also firmly believe that Ford Motor can return to the track and enter a new climax of development. In China, there is a saying called Phoenix Nirvana, rebirth from the ashes. However, there is a prerequisite for this, that is, if you succeed in being reborn, if you fail, That will become history. Ford Motor is going to complete its own transformation, and I think it is better to get rid of some burdens as soon as possible," Jiang Hui said.

Since Ford bought Jaguar at a sky-high price of 1989 billion U.S. dollars in November 11, it hopes to enter the luxury car and sports car market that it has been struggling to gain a foothold in.

For a long time, the United States has been the largest consumer market for Jaguar cars in the world. However, in the mid-to-late 80s, the exchange rate of the US dollar against the pound sterling, coupled with the downturn in the US stock market, directly hit the desire of American consumers to buy luxury brand cars. .

At the same time, the three Japanese high-end car brands Lexus, Acura, and Infiniti entered the U.S. market with new cars with high cost performance, making Jaguar's situation even worse.

It can be said that in the 18 years since Ford acquired Jaguar, it has basically been in a state of loss every year, and even Jaguar's largest market, the United States, has shown a downward trend in sales year by year.

Since then, Ford has acquired Land Rover, another British luxury car brand, for US$2000 billion in 27.5.

These two acquisitions did not bring Ford a dime of profit!
There is nothing wrong with saying that they are "burdens"!

"Jiang, if you are not burdened, let's not say so many meaningless things. Before this, our Shuangfa team has conducted many rounds of negotiations and negotiations. Anyway, we know each other in our hearts, and our Ford Motor Co., Ltd. If you intend to sell Jaguar Land Rover, and your Guanghui Group also wants to buy Jaguar Land Rover, then let’s talk about the price directly.” Mulally didn’t want to talk about the situation of Jaguar Land Rover with Jiang Hui anymore.

If Jaguar Land Rover is doing well, why would Ford be willing to sell them?
"No problem, I think we have already expressed our attitude before, hoping to acquire all the shares of Jaguar Land Rover with 22 billion US dollars in cash. In order to show my sincerity, I will add 1 million US dollars today. If you agree, then 24 billion US dollars , we can sign the contract today," Jiang Hui said.

Historically, India's Tata Group, India's Mahindra Motors and a private equity firm owned by the US government have all submitted offers to Ford Motor for Jaguar Land Rover.

Among them, Tata's bid was 20.5 billion US dollars, the other two companies - India's Mahendra Group proposed a takeover bid of 19 billion US dollars, and Morgan Stanley's private equity firm One Equity bid even lower.

Ford spent more than 50 billion dollars to buy Jaguar Land Rover. Due to continuous losses for many years, no investor is willing to buy them at a high price.

After all, in 2007 alone, Jaguar lost $5 million, while Land Rover lost $10 billion.

It's no wonder no one wanted it at a [-]% discount.

In this life, there is an additional competitor, Brilliant Motors, because Brilliant Motors was the first to contact Ford, and the two parties have already cooperated in engine technology, and they are also very happy to cooperate in the marketing of Tianchao.

Of course, the most important thing is that Brilliant Motors has always been the company with the highest bid, so Ford Motor has been pushing forward with the sale of Jaguar Land Rover to Brilliant Motors.

"Jiang, I think you should be very clear. Ford spent a total of 52.5 billion US dollars to buy Jaguar and Land Rover. This is not counting the capital injection to Jaguar Land Rover. Now you want to buy more than 23 billion US dollars for 50 billion US dollars. Is it too insincere?", Mulally said deliberately changing the concept.

Although it is said that US dollars were more valuable in the past, especially when Ford bought Jaguar, the purchasing power of more than 20 billion US dollars at that time was definitely higher than the current 100 billion US dollars.

But so what?

"Alan, it's not that the longer you hold something, the higher the value. If the two companies were young and beautiful when Ford Motor acquired Jaguar and Land Rover, after so many years of devastation, they have become Turned into a broken flower and a lost willow, there is no longer the anger of yesterday. An unattractive girl in her dying years, it would be nice if someone wants it, how can she sell it at the original price?" Jiang Hui took a sip Said the coffee on the table.

"Jiang, you have to understand that Guanghui Motors is not the only company that wants to acquire Jaguar Land Rover. If you continue to belittle her, don't you consider that your competitors will take your cake away? Paraphrased In the words of you people from the Celestial Dynasty, all the cooked ducks are flying." It seems that Alan Mulally has also made a lot of preparations for today's negotiations.

'If I'm not wrong, my price of US$23 billion is already higher than all other competitors, right?At least 2.5 million U.S. dollars has already been raised, which is already very sincere.'

Hearing Jiang Hui's words, Alan Mulally's expression changed.

(End of this chapter)