Perfection of Rebirth

Chapter 764 Acquisition of Jaguar Land Rover (Part [-])
American lunch is like breakfast, nothing fancy.

Fortunately, everyone didn't go for other people's food. After eating something casually, everyone discussed again in a conference room specially arranged by Ford Motor for Guanghui Group.

Immediately afterwards, at two o'clock in the afternoon, a new round of negotiations officially began.

"Jiang, we discussed it internally. If Brilliant Motors can offer 28 billion US dollars, then we can directly enter the signing process." Mulally did not procrastinate this time, but directly stated his conditions.

"Alan, the price of Ford I'm crying is not sincere at all. You should know the current market value of Jaguar Land Rover. Several other competitors have also offered quotations. I know, maybe Ford will think I spent more than 50 billion dollars to buy Jaguar Land Rover. After so many years of tossing, not only did I not earn a penny, but also lost money. I may feel a little bit unwilling. But business is business, and it is impossible to make money forever", Jiang Hui said.

Jiang Hui's words can be regarded as confirming the psychology of Ford Motor.

It is difficult for everyone to accept the situation of buying things at a high price and expecting to make money to appreciate, but not only did not earn the money, but also lost all the investment.

However, no matter how unacceptable it is, you have to accept it, and stop the loss in time is the correct approach. Mulally is also aware of this, but he is still struggling at the end!

In fact, this is also worth learning for Jiang Hui in the future. Stop losses in time, and business is business.

Regarding the importance of stop loss, professionals often use the crocodile rule to illustrate.

The original meaning of the crocodile rule is: suppose a crocodile bites your foot. If you try to free your foot with your hand, the crocodile will bite your foot and hand at the same time.

The more you struggle, the more you get bitten.So, in case the crocodile bites your foot, your only chance is to sacrifice one foot.

In the stock market, the crocodile rule is: when you find that your trading deviates from the direction of the market, you must stop loss immediately without any delay or luck.Crocodile cannibalism sounds too cruel, but the stock market is actually a cruel place, and people are engulfed by it or disappear sadly every day.

The same is true for other investments. Just like Ford Motors, if companies such as Aston Martin and Jaguar Land Rover are not sold in time to stop losses, they may end up going bankrupt like GM Chrysler.

Then the Ford family lost control of the company.

"Jiang, 23 billion US dollars is too low, we have no way to accept it, so let me give in, 27 billion US dollars, as long as you agree, I will make the decision to sell Jaguar Land Rover to you," Mulally said.

Sometimes, negotiating in the mall and buying vegetables in the vegetable market have the same purpose, but most of the time the two parties will not bargain with each other so directly.

But when it comes to critical moments, bargaining with each other is basically inevitable.

"24 billion US dollars, this is already a very sincere price." Jiang Hui also took the initiative to give in.

In fact, for Guanghui Group, there is not much difference between a few hundred million more and a few hundred million less. Anyway, it can be used anyway, and it can make a lot of money in the future.

But judging from the current situation, if the Guanghui Group's bid is too high, it will be regarded as being taken advantage of.

Therefore, in line with the principle of saving what can be saved, Jiang Hui and Mulally are still grinding.

"26 billion, take away and license the engine technology currently used by Jaguar Land Rover to you for free." Mulally also made up his mind and must sign the contract today.

"Let me confirm that you are referring to Jaguar Land Rover or Kwanghui Group," Jiang Hui asked.

For Jaguar Land Rover, Ford's engine was originally used. Even if it obtained the authorization to use the technology, it was impossible to build an engine production line that was about to become obsolete. It was better to continue to buy the finished engine.

However, it would be different if Guanghui Group could use these technologies for free.

Guanghui Group itself has introduced several engine technologies and production lines from Ford Motor, but the displacement is generally relatively small.

If all the engine technologies used by Jaguar Land Rover can be adopted, then the engine displacement layout of Brilliant Automobile is basically complete.

As for Ford Motor, it has already sold part of its engine technology to Brilliant Motors. There are some similarities between engine technologies with different displacements. One is sold, and several models are also sold.

If the price of Jaguar Land Rover can be increased by matching some engine technology, Mulally thinks it is still very worthwhile.

"Jiang, as you wish, it is Guanghui Group or Guanghui Automobile. You can use our existing engine technology to develop a new generation of engine belonging to Guanghui Automobile. This is very meaningful for Guanghui Automobile, isn't it? ’ said Mulally with a smile.

Selling Jaguar Land Rover, along with some soon-to-be-obsolete engine technology, makes the Mulally easy to sell.

Ford's new generation of engine technology has been in trial production, and it will be mass-produced in less than two years.

At this time, the previous generation of engine technology has been disposed of. If it is disposed of to Toyota and Honda, let alone whether they want it, Mulally dare not sell it to them.

But it’s different for Brilliant Motors. In Mulally’s eyes, Brilliant Motors is like a car novice, and it will not pose any threat to Ford Motors at all.

Most companies are absolutely willing to sell a technology that is not very advanced to a manufacturer that poses no threat to them.

However, many years later, when Brilliant Automobile has defeated the joint venture brand in the Tianchao market, I don’t know if Mulally still thinks so.

"Well, 25 billion US dollars, according to the package sale of engine technology you said, this is already the highest offer I can accept. This is also the highest offer received by Ford Motor? I think whether it is Tata Group or others It is impossible for potential opponents to offer a better price," Jiang Hui said.

After hearing Jiang Hui's words, Mulally thought for a while, "Jiang, the price of 25 billion is a bit different from my expectation, but it's not impossible to consider. It's just that when we were negotiating with the Jaguar Land Rover union , promised that after the sale, the new owner would increase investment in research and development, and this was the union's consent," Mulally said.

"Alan, just tell me what you want me to do," Jiang Hui said.

"Well, I'll just say it directly. After Guanghui Motors acquires Jaguar Land Rover, it must promise not to lay off employees, and then invest more than [-] million U.S. dollars in research and development within three years," Mulally said in one breath.

"No problem, I agree," Jiang Hui said straightforwardly.

"Ah! You agree?", Mulally said a little surprised.

(End of this chapter)