Rebirth 99 to become a car giant

As an outsider in the automobile industry, Mulally became the CEO of Ford Motor Company. He has been taking various actions constantly, giving everyone a glimpse of what is meant by the three things a new official does when he takes office.

No matter how effective these actions are, at least in terms of financial reports, Ford's situation is getting better.

Especially the big brother, General Motors, recently filed for bankruptcy and reorganization, not to mention the third-largest company, Chrysler.

The performance of its second child seemed to be outstanding.

Ford can get through this on its own without a bailout from the U.S. government.

For many people, these are Mulally's achievements.

However, the situation facing Ford is actually not as good as imagined.

Throughout the first five months of this year, Ford's global sales fell by more than 20%.

And except for the Chinese market, there are no signs that sales will stop falling and pick up elsewhere.

Therefore, the "sell, sell, sell" plan that was decided before must be implemented quickly now.

Against this background, Geely Automobile's Li Su and his team came to Detroit, and Mulally naturally wanted to convene people within the company to discuss the response plan.

"Chris, didn't Nanshan Group express interest in Volvo Cars before?"

"Although they later chose to give priority to purchasing Jaguar Land Rover, if they are interested in Volvo Cars, we can continue to consider selling to Nanshan Group."

In recent years, the relationship between Nanshan Group and Ford Motor has always been quite good.

Not to mention the early parts supply, the cooperation on the rear gearbox and engine alone is relatively in-depth.

Not to mention that Ford also sold Jaguar Land Rover to Xingchen Motors and also acted as an agent for the sales of Xingchen Motors in the United States.

For example, Chris is very familiar with Cao Yang, and Mulally is also relatively familiar with this situation.

"Nanshan Group now has luxury brands Xingchen Motors and Jaguar Land Rover, and then established an electric vehicle brand Future Auto."

"At the same time, they also established a joint venture in China with Spring City Automobile Group, Nanshan Hongqi, to produce mid- to low-end models."

"According to my understanding of Cao Yang, Nanshan Group should have no plans or ideas to continue to acquire other brands now."

"Especially during this period, Nanshan Group has invested a lot of manpower and material resources in semiconductors, and it is estimated that it will not be able to spend more funds to acquire Volvo Cars."

Chris's analysis is obviously very reasonable.

He has also been paying attention to the development of Nanshan Group.

The acquisition of Nvidia by Nanshan Semiconductor some time ago was also a big news in the entire United States.

Both Chris and Mulally have heard about it and even went to learn about it.

Although they don't quite understand why Nanshan Group suddenly focused its development on such money-burning semiconductors, Nanshan Group is no longer a simple auto parts company or automobile company, and they are aware of this.

"Geely Automobile is a private enterprise in China. As far as I know, the models they produce are not very profitable, and they don't have much funds on their books to acquire Volvo."

"But they can certainly raise funds through various means such as bank loans."

"I think if Nanshan Group wants to do anything that Geely Automobile can do, there will definitely be no problem, right?"

When Mulally said this, Chris found it difficult to refute.

After all, Nanshan Group's status in China is definitely higher than that of Geely Automobile.

And according to Chris' understanding, Nanshan Group's debt situation should be relatively low and can fully support further borrowing.

So after hearing what Mulally said, he could only continue: "I'll call Cao Yang to express Ford's intention to sell Volvo cars and see if they are interested in participating."

"But I'm worried that Cao Yang knows that Geely Automobile is already in contact with us, and even people from Geely Automobile have communicated with Cao Yang."

“So for Nanshan Group to participate in the acquisition of Volvo Cars, I’m afraid we shouldn’t have particularly high expectations.”

Chris definitely doesn't want to take all the work.

If you are sure, it doesn't matter.

The key is that he doesn't have any confidence in this matter.

In the past six months, no one from Nanshan Group has communicated with Ford about acquiring Volvo Cars.

This obviously doesn't look like he's very interested.

Soon, Chris made a call to Cao Yang based on the time difference between the two places.

"Ford is preparing to finalize the sale of Volvo in the next few months?"

After Cao Yang received Chris's call, he briefly chatted with him and came up with this information.

Considering the historical timing of Ford selling Volvo cars, it is only a few months ahead of schedule, so the credibility is quite high.

"Yes, our previous cooperation on Jaguar Land Rover was relatively smooth. I heard that Jaguar Land Rover is also expected to turn losses into profits this year and become a high-quality asset of Nanshan Group."

"So this time we are also thinking about whether the two parties can cooperate again so that Volvo Cars can become even better through cooperation."

"Objectively speaking, I personally think the value of Volvo cars is actually higher than Jaguar Land Rover."

"The assets of Volvo Cars we sold this time include all passenger car-related patents, technologies, engines and other related technologies and production lines."

"It can be said that this is a complete car company being put up for sale, and the value is very different."

"Although Volvo Cars' brand power cannot be compared with Jaguar Land Rover, it is still a luxury brand and has left an impression of safety and high-end in the eyes of consumers."

"If Nanshan Group acquires Volvo Cars, it will complement Jaguar Land Rover and Xingchen Motors, making the product array more complete."

Now that I have taken over the task of the company, I want to be a lobbyist.

Naturally, Chris wanted to praise the situation of Volvo Cars.

Regardless of whether Nanshan Group will eventually acquire Volvo Cars, as long as the two parties formally initiate relevant contacts, it will be a stimulus for Geely Automobile.

This can increase the sales value of Volvo cars to a higher level.

Cao Yang was naturally aware of this.

Although Li Su did not communicate with Cao Yang alone before going to the United States this time.

But Geely Automobile is very interested in Volvo Cars, and Cao Yang knows this.

If Nanshan Group really wants to acquire Volvo Cars, forget it, competition is competition.

Now that Cao Yang has no thoughts in this regard, there is no need to trick others.

Although Geely Automobile is not as powerful as Nanshan Group, it is not a vegetarian.

In order to help Ford Motor and offend Geely Automobile, Cao Yang would definitely not do this.

Of course, when you want to reject someone, you definitely can't be so blunt.

"Chris, you should have heard that Nanshan Group spent US$1 billion to acquire Nvidia some time ago. At the same time, we are building a wafer fab in Shanghai."

“This alone accounts for over a billion dollars in funds.”

"At the same time, Future Automobile, a subsidiary of Nanshan Group, has also officially started the construction of a new factory, which is another investment of hundreds of millions of dollars."

"For the current Nanshan Group, cash flow is relatively tight, and it does not have the strength to acquire new car companies in a short period of time."

What he said was true, but the meaning he expressed was not what Chris intended.

Cao Yang's answer was not beyond Chris' expectations.

"I understand the situation you mentioned."

"Cash flow is indeed very important to a company."

"One of the important reasons why General Motors is filing for bankruptcy and reorganization is the depletion of cash flow."

"However, there are actually many ways to maintain cash flow. Most companies will seek loans from banks during the development process."

"With Nanshan Group's reputation and position in China, I think there is no problem at all in finding a bank to cooperate with."

"There are many buyers interested in Volvo Cars now. If this opportunity is missed, Volvo Cars will probably have nothing to do with Nanshan Group in the future."

"Personally, I think it's a bit of a pity."

Chris certainly couldn't give up so easily.

If he could really get this thing done, he could speak louder in front of Mulally.

He can also figure this out.

"It is indeed a solution to cooperate with banks, and it has certain feasibility."

"But now Nanshan Group has launched a lot of projects. Jaguar Land Rover's new factory is under construction, Future Auto's new factory is also under construction, and Xingchen Motors is also considering the planning of the new factory."

"Under such circumstances, there will be considerable internal opposition to Nanshan Group for further financing the purchase of new car brands."

"If we could postpone it for a year and wait until this time next year to consider this issue, the situation might be much better."

Aren't you helping me find a plan?

Then I don’t deny what you said.

A procrastinating tactic will leave you speechless.

Chris was a little helpless at Cao Yang's answer.

Ford's current situation makes it impossible to wait until next year to sell Volvo.

Mulally couldn't wait to get rid of the burden this month and make the reports better.

Otherwise, after General Motors collapses, many people are worried about whether Ford Motors can survive.

When the time comes, let the financial reports speak for themselves, and no one will have to worry.

"Our company internally wants to help Volvo Cars find the right buyer this year."

"Some are already in contact now, and it is unrealistic to wait until next year."

Chris sighed inwardly, knowing that his goal would not be achieved.

Fortunately, he knew that this persuasion would not go smoothly, so he was not too disappointed.

However, after hanging up the phone, Cao Yang felt that he could sell another one to Geely Automobile.

So I called Li Su directly.

"The Ford people asked you if you want to buy a Volvo?"

Li Su, who was far away on the other side of the Pacific, was stunned for a moment after receiving Cao Yang's call.

I had just arrived in Detroit, why did Ford take the initiative to find Nanshan Group?

What does it mean?

"Yes, I heard before that Mr. Li is interested in acquiring Volvo Cars, so I think this information may be of some reference to you."

"So let me tell you, let's see if we can talk to Ford about the acquisition in time."

"Now that something has happened to General Motors, Ford must be nervous internally and is very willing to sell Volvo cars as soon as possible."

"The next few months will be the best time for Geely Auto to acquire Volvo."

When Cao Yang said this, Li Su felt a little embarrassed.

They were so proactive in sharing information with me, but I didn't tell them about their trip to Detroit.

Thinking of this, Li Su felt a little regretful and quickly said: "Mr. Cao, we are actually aware of this, so now we are taking the opportunity of visiting the dealer to come over and have direct contact with Ford."

"We have made an appointment to formally meet with their CEO the day after tomorrow to discuss the purchase of Volvo cars."

"Now it seems that Ford hopes that more buyers will participate so that Volvo can be sold at a good price."

When Li Su said this, Cao Yang understood immediately.

Geely Automobile has really taken action, so Ford Motor Company took the initiative to find itself and wanted Nanshan Group to participate in the acquisition bidding activities.

It seems that Chris is not really so kind to remind himself.

This bunch of Americans really can't afford to lose money early, I can't believe it!

"Mr. Li, you grasped the timing very well."

"If everything goes well, maybe the acquisition of Volvo Cars can be negotiated within the next three months."

"Nowadays, except for China, the sales volume of the major automobile countries in the world is not very satisfactory."

"So there shouldn't be many manufacturers that will compete with you."

"Although the higher the price, the greater the chance of obtaining it, but the cost must also be taken into consideration."

Cao Yang knew that Li Su was already in the United States, so he simply reminded him a few more times.

Anyway, it's just a matter of selling a favor.

In the future, the competitive relationship between everyone will not be very obvious, but more of a cooperative relationship.

"Tata Motors in Tianzhu previously competed with Nanshan Group for Jaguar Land Rover. I wonder if they will compete with us for Volvo Cars this time."

Now that he has talked about it, Li Su is also thinking about getting more information from Cao Yang.

In terms of international acquisitions, Cao Yang is obviously more experienced.

"It's hard to say, but I think the probability is not very high."

"This financial crisis will also have a relatively large impact on Tata Motors."

"Also, Jaguar Land Rover used to be a brand of Angeli. People in Tianzhu still have a relatively unique feeling for Angeeli's brand."

"The situation with Volvo is different now, and the possibility of their interest is not particularly high."

"Geely Auto is more competing with yourselves."

"Even if Mr. Li is worried about this, you might as well see if some other domestic car companies will compete with you."

Cao Yang knew that several companies such as Didu Automobile and Chery Automobile were in contact with General Motors and wanted to purchase some of each other's brands.

For them, buying the General Motors brand is a purchase, and buying the Ford brand is also something they can consider.

It will be a pity when Chinese companies compete among themselves.

"Thank you, Mr. Cao, for reminding me. I'll go check it out again."

"This time Geely Automobile is determined to acquire Volvo, and I hope Mr. Cao will spare no effort to help."

The favors were already owed, and Li Su felt that it was not bad to owe more.

Just ask Cao Yang to help you.

"When the time comes, I will introduce you to the legal team responsible for acquiring Jaguar Land Rover. Some of them are American lawyers. They should be of some help to you then."

"If you need my help in other aspects, just ask Mr. Li."

There was no need to pay for the nice things to say, so Cao Yang naturally said them casually.

Li Su was quite grateful for this.

…

"Mr. Cao, Ford wants to take over everything."

Mi Ying, who listened to the entire conversation between Cao Yang, Chris and Li Su, naturally quickly understood Ford's plan.

This group of people is very loud in their wishful thinking.

"Last year's Olympic Games let many people know that China is actually not that poor, and let many people know that China has developed and grown."

"Coupled with the previous four trillion policy, it gives everyone a lot of confidence."

"That's why it gave Ford some ideas it shouldn't have."

"We just don't care."

Cao Yang was not angry.

Everyone's interests are different, and the angle of thinking about the problem is naturally different.

If Nanshan Group wants to sell any assets, it will definitely hope that there will be many buyers and it will become a seller's market.

Otherwise, you will be very passive when negotiating conditions.

Regardless of the difference between a buyer's market and a seller's market, the difference in process determines who is Party A and who is Party B.

If you can be Party A’s father, who would be willing to be Party B?

"This time, Ford and General Motors are really going to sell off their messy brands, right?"

"I feel that there may be quite a few car companies in China that are interested."

"Be it Geely Automobile, Chery, or companies such as Great Wall and BYD, they will probably have some ideas."

"This should be beneficial to the development and expansion of the domestic automobile industry, but I don't know whether it will eventually turn into tuition fees."

“The previous acquisition of Korea’s Ssangyong Motors by Modu Auto was a relatively unsuccessful case.”

"It is estimated that in addition to Modu Auto, some other major car companies will make moves this time."

When Mi Ying said this, Cao Yang couldn't help but nodded.

The next few years will indeed be the most active period for domestic car companies to launch overseas acquisitions.

All kinds of car brands that others look down upon may find suitable buyers in China.

Even gradually, outside companies know that Chinese people are stupid and have a lot of money. If they have any assets to sell, they are wondering if they can find Chinese companies to talk about it.

Even if people don't buy it in the end, it can still help support the market.

"You are right, there will definitely be a group of car companies that are interested."

"The automobile industry may no longer be a sunrise industry in the United States, but it is still booming in China."

"The market space will definitely expand further in the future, and there will be many opportunities."

"However, it may not be that easy for overseas acquisitions to become a successful case."

"Whether it is acquiring Volvo, or brands such as Saab, Opel and Hummer, there are all kinds of problems to face."

"Some people only see the benefits we gained after acquiring Jaguar Land Rover, but they don't realize that the situations everyone faces are different."

"We can directly solve Jaguar Land Rover's engine and transmission supply problems without having to continue to buy from Ford."

"We have our own luxury car brand and we are not afraid of Jaguar Land Rover causing too much trouble."

"The most important thing is that we have the confidence to fight with Jaguar Land Rover, and we are determined to bring Jaguar Land Rover into the management of Xingchen Motors even if the company goes bankrupt."

"Other companies are different."

"Whether it is Spring City Automobile Group, Didu Automobile Group, or Modu Automobile Group, they will have many problems with the car companies they buy from overseas."

"For example, when the management is disobedient, they don't have many tricks up their sleeves, and they don't have the determination to fight to the death."

"Under such circumstances, it becomes increasingly difficult to completely control the acquired companies."

"Those people are also bullying. When you are not strong enough, they will try to bully you."

"Among the domestic independent brands, which one do you think is strong enough to acquire other car brands?"

When discussing this topic with Mi Ying, Cao Yang expressed his truest thoughts.

In recent years, China has encouraged domestic companies to go global.

Therefore, the support for overseas mergers and acquisitions is relatively strong, not to mention the tuition fees paid.

To put it bluntly, out of ten overseas acquisitions, at most only one can ultimately prove successful.

Half of them may have been tricked into not wanting to give up.

Even if you are not trapped in the beginning, you will eventually fall into the trap for various reasons.

"We have acquired many semiconductor companies now. How can we fully control these companies? Do we need to think carefully in advance?"

"There are some precautions, but what needs to be done still needs to be done."

Mi Ying couldn't help but think of Nvidia, which was in the process of acquiring it, which would cost a lot of money.

It is expected that there will be other acquisitions in the future.

Even Nanshan Investment has purchased some lithium mines and other minerals in Australia and other places. How to avoid falling into the pit in the future seems to need to be considered in advance.

"I have already communicated this matter with Mr. Zhang."

"All acquired companies must obey orders."

“Unless the founder is really powerful and worthy of trust.”

"Otherwise, even if both parties suffer, we must let the other party know that Nanshan Group is not that easy to cheat."

Cao Yang arranged for people to acquire companies, not just to give money to others.

He has no interest in paying tuition.

What you want for yourself is profit.

If you can’t give any benefits, then everyone will finish playing together!