Rebirth 99 to become a car giant

Chapter 853 The stock price has plummeted, and there is no use regretting it. However, there are car companies that were shot while lying...

GM and Changan Ford have suspended production in China for a week.

At the beginning, there was no media coverage of this news in the United States.

After all, everyone knows that this matter must be related to the United States' suppression of enterprises in the Nanshan Group.

But capital news is very sensitive.

Naturally, they have known about the suspension of production of GM and Changan Ford for a long time.

But at the beginning, everyone felt that things should still be under control.

As a week passed, the news gradually became clearer.

It will take more than half a year for GM and Changan Ford to resume production.

This is going to kill him.

Everyone was not stupid and immediately started selling General Motors and Ford Motor stocks.

For example, General Motors just went bankrupt and reorganized a few years ago. In the past two years, the situation has finally returned to a relatively normal state.

Among them, the contribution of the Chinese market is very huge.

Take 2012 as an example, General Motors' net profit for the year was US$4.9 billion.

The profits contributed by the Chinese market are as high as 2 billion US dollars, accounting for almost half of the profits.

Even a large part of the profits in North America are contributed by Modu GM's technology royalties.

As for the European market, it is a completely loss-making market.

Now that the Chinese market, which has contributed the most, is about to die, General Motors' stock price will naturally plummet.

General Motors' stock price fell just a few points last week.

But after the market opened on Monday this week, it plummeted by 12%, with the largest intraday drop of more than 20%, and finally closed down by 13.3%.

It continued to fall sharply on Tuesday, eventually falling 5.6%.

In two days, the stock price fell by almost 20%.

For a listed company with a market value of tens of billions of dollars, this kind of decline is already very scary.

Along with this plunge, news spread immediately on the American Internet that Modu General had completely suspended production, had no hope of resuming production, and would even be forced to withdraw from the Chinese market in the future.

After all, for such a big drop, everyone must look for the reason.

"Exxon, we cannot allow this situation to develop like this, otherwise our stock price may fall beyond everyone's imagination this week."

"Once there is a continuous sharp decline, it will cause all kinds of problems."

"In the end, the stocks we pledge with the bank will be forced to make a margin call."

As GM's financial director, Hendry is very worried about the current situation.

Except during the financial crisis, General Motors has never seen its share price plummet like this.

"Austin also made a special report to me about the situation at GM. Nanshan Automobile Group has completely cut off supply. It is impossible for GM to resume production in a short time."

"You also know that because GM wants to develop in the Chinese market, the proportion of various parts produced by Nanshan Automobile Group on their models is much higher than that of our factory in Detroit."

"In this case, Nanshan Automobile Group directly chose to cut off supply without giving a day's buffer time. We are also very passive."

"This time we will suffer such a blow, it is inseparable from Boeing and others' push to suppress companies in the Nanshan System."

"To a certain extent, we bear the greatest pressure on Boeing's behalf."

Exxon now regrets that he did not raise objections when Boeing people came to the door.

It is enough to leave Nanshan Automobile Group alone and just target Venus Technology, Honor Technology, and Nanshan Energy Group.

But there is no such thing as regret medicine in this world.

It is in the overall interest of the United States to comprehensively suppress enterprises in the Nanshan Group.

At least companies such as Boeing, Northrop Grumman, Lockheed Martin, General Atomics, Raytheon, NASA, Qualcomm, TI, and Apple all support the comprehensive suppression of Nanshan-based companies.

Not a single subsidiary company was spared, causing Nanshan enterprises to completely lose the American market and then most of the international market.

Unfortunately, this wish is very good, but it is not so easy to fully realize it.

If it were an ordinary enterprise, it might really be killed.

But who makes the technological strength of Nanshan Group’s enterprises strong enough?

"Exxon, various investment institutions and stock investors will not consider it so much."

"They will only consider that our profits will drop significantly this year and will drop in the next few years, or even turn into losses."

"Then selling our shares was a natural choice."

Hendry looked sad.

Faced with this situation, he didn't know how to deal with it.

"The American market is our basic market. If the market we lost from China can be regained from the United States, then there is hope that the stock price will slowly recover."

"On the American side, Japan's Toyota, Honda, Nissan and Korea's Hyundai Motors are competing with us to compete for the market."

"At this special time, we can join forces with Ford Motor and lead relevant departments to deal with Japanese car companies and Koryo Motors."

"Let the Automobile Workers Union go on strike and force those car companies to stop production."

"Negotiate with those car companies and ask them to increase the sales prices of all models and stop dumping their models in the United States."

"The other thing is to see if we can expand some quality issues and conduct some large-scale car recall cases."

In the Chinese market, Exxon knows that it cannot handle it.

After all, everyone is at odds with each other, and it is impossible to expect Nanshan Automobile Group to re-supply to Modu General Motors.

But in the American market, he still has many options.

Anyway, from the perspective of America, Japan and Korea are just domestic dogs.

You can ravage as much as you want, there is no need to put too much psychological burden on it.

"If the tricks you mentioned can be effective quickly and let everyone see that our sales in the United States have recovered quickly, then it may have a certain effect in preventing the stock price from plummeting."

"But if you move slowly, you will continue to fall."

Hendry couldn't help but remind him.

Obviously, he feels that the plans mentioned by Exxon have a certain effect.

This is also a trick that can be used at this stage.

When it comes to its own vital interests, Exxon will naturally not hesitate.

After personally calling and communicating with the presidents of Ford and Chrysler, the three of them worked together, and something started to happen the next day.

Now Honda's factory workers in Ohio suddenly went on strike, demanding a 20% wage increase and the implementation of a four-day, eight-hour work week.

Immediately afterwards, workers at Toyota's factory in Kentuckey also went on strike.

These strikes were like a plague and soon spread to all Japanese and Korean car companies.

Relatively speaking, the treatment of workers in these car companies is worse than that of General Motors and Ford.

With the help of the media, this matter quickly became a hot news in the United States.

Immediately afterwards, Honda Motor and Toyota Motor were suddenly required by relevant U.S. authorities to launch large-scale recalls due to quality issues with Takata airbags.

It also requires all models of Toyota and Honda cars to not be allowed to continue production until the safety hazards of not having airbags are clearly explained to relevant departments.

This time, Toyota and Honda were immediately confused!

When did the style of relevant American departments become so rough?

They actually stopped letting people give birth!

What makes them even more surprised is that various media in the United States have begun to publicize some news about fraud by Japanese car companies and Korean suppliers, and even imply that Toyota and Honda models have fraudulent fuel consumption.

The image of low fuel consumption that they rely on for survival faces huge challenges.

These all made people at Toyota and Honda feel that something was wrong.

However, when representatives of the three major American car companies came to negotiate with them, forcing them to increase the prices of various models, and asking them to accept the union's request and improve employee benefits, everyone reacted.

This is because the boss's son is unhappy with you and wants to deal with you.

Who asked you to steal someone else’s cake?

"President, the stock prices of General Motors and Ford Motor have continued to decline in the past week, and it can even be said that the stock prices have plummeted."

"They suddenly took action against us to suppress our brand image and seize our market share. The main reason should be that they want to use these means to increase their stock prices again."

Tetsuaki Kobayashi once served as the head of Toyota Motor North America and is very familiar with the situation in the American market.

So when a big problem arose at the American branch, Watanabe Yoshiaki immediately assigned him to deal with the problem.

And Kobayashi Zheming did not disappoint him, and quickly gave a very accurate judgment.

"What does the drop in their stock prices have to do with us?"

“Isn’t that caused by Nanshan Automobile Group forcing GM and Changan Ford to suspend production?”

"In the final analysis, this is something they caused themselves."

Katsaki Watanabe felt that Toyota had been wronged.

He was shot while lying down.

Obviously this matter had nothing to do with them from beginning to end, but in the end they became victims.

"This is indeed the truth, but if GM, Ford, and Chrysler join forces, there will be a lot that can be done in the United States."

"When we entered the American market, we originally grabbed their market share."

"But their share in the Japanese market is very small, almost negligible."

"They were very dissatisfied with this situation before."

"Now, taking advantage of the worsening situation, to suppress us is probably what they want to see."

What Kobayashi Zheming said was very unpleasant.

But it's true.

So he still told it to Watanabe Yoshiaki.

"Faced with this situation, what should we do?"

"As for the labor union, I think as long as we negotiate with them and agree to some conditions, they can resume normal work."

"But we cannot easily agree to increase the sales price. This will shake our competitive advantage in the American market."

"And the relevant departments in the United States are directly making a fuss about Takata airbags, so we are very passive."

Watanabe Ketsaki found that he had very few tricks that he could use now.

When the American companies don't reason with you, the Japanese car companies have no recourse.

"I think it may be necessary to mobilize the power of relevant Japanese departments and ask them to urgently go to the United States to discuss and see how the two sides can resolve this matter amicably."

"And it would be best for us to join forces with Honda, Hyundai Motors, etc. to communicate with relevant American departments."

Although he was beaten up for no apparent reason, Toyota did not dare to have any thoughts of revenge.

Trying various solutions to solve the problem is what they dare to think about now.

However, as long as the stock prices of General Motors and Ford Motor do not return to normal, they will obviously not let go so easily.

In the end, Japanese car companies and Korean car companies became the most unlucky entities in this wave of conflicts.

Nanshan Automobile Group was not beaten to death, and the overall sales did not even show a significant decline.

Of course, with the export market to the United States gone, this part will definitely be missing.

However, the domestic business in China has actually increased.

As a result, the overall business is only slightly affected.

Because General Motors and Ford Motor suppressed Japanese car companies and Korean car companies in the United States, they also gained a large piece of fat. In the end, the real losses were still within an acceptable range.

This situation is a bit magical.

It's just that in real life, there are actually no shortage of magical things.

…

"Mr. Cao, this time we shorted the stocks of General Motors and Ford Motor and made US$810 million."

"Had it not been for the stock prices of General Motors and Ford Motor Co. recovering somewhat in the past few days, our profit would have exceeded $1 billion."

As the head of Nanshan's investment and finance department, Lin Ling followed Zhang Fugui to report to Cao Yang on the results during this period.

Although Nanshan Investment's reputation among ordinary people is very low, it is still well-known in the industry.

Behind many popular events, there is their active shadow in the financial market.

At the same time, the venture capital department of Nanshan Investment has also invested in many companies in China, and its hidden influence is considerable.

"General Motors still has a strong desire to survive, so they quickly came up with a solution."

"Originally, I thought that this time I would have to shed a layer of skin to prevent them from dying."

Naturally, Cao Yang also heard about the actions of General Motors and Ford in the United States.

It can be said that the other party completely regards Japanese car companies and Korean car companies as their stepping stones.

The losses in the Chinese market will be made up by the decline in market share of Japanese and Korean car companies in the United States.

I have to say that if this trick is implemented, it can still solve most of the problems.

Of course, this is estimated to be able to respond to emergencies.

In the end, after Japanese car companies and Korean car companies have slowed down this wave, sooner or later they will still have to take away a large part of the market share of local car companies such as General Motors.

"I didn't expect them to respond so quickly. After realizing that China would not be able to resume production within half a year, and might not even be able to resume production in the future, they took quick action."

"And these actions seem to be linked together, not just a single action."

"It is estimated that car companies such as Toyota Motor and Hyundai Motor will be very depressed at this time."

When Lin Ling said this, she couldn't help but smile on her face.

For them, whether they are Japanese car companies or Korean car companies, they are actually targets that need to be suppressed.

China's automobile market has developed to its current scale. Under the leadership of Nanshan Automobile Group, technology has been rapidly improved.

At this time, there is no need for international automobile giants to continue to engage in the so-called "market exchange for technology."

"The centipede is dead but not stiff. It is still not that easy to completely kill General Motors and Ford."

"At best, it will make their life difficult."

"Don't they always want to suppress us? Then let them suffer greater losses than us."

"We'll see who will regret it then."

Cao Yang is also confident now.

Backed by the world's largest automobile market, Nanshan Automobile Group can still live very well even if it only lives in the Chinese market.

However, the size of the American market is only half that of China. It is not that easy for car companies such as General Motors, Ford, and Chrysler to achieve the success of Nanshan Automobile Group.

As for the European market, there are still many car companies in Europe.

Not to mention the Japanese and Korean markets, they basically have no share.

In other markets, General Motors cannot stretch its hands that far, and it is impossible for them to do everything according to their own wishes.

In the end, Nanshan Automobile Group's life may be better than before.

This is definitely something that makes the people at General Motors very depressed.

"It's true. I feel like the people at General Motors and Ford probably already regret it in their hearts."

"It's just that when things have developed to this point, there is no use for them even if they regret it."

Lin Ling's judgment was obviously very accurate.

But Cao Yang was too lazy to care about the facts.

After communicating with Lin Ling and the others, Cao Yang went to meet the two brothers Guo Shuyin and Guo Shufu from the Yangcheng Huaqiang Group who came to visit.

The main business of Yangcheng Huaqiang Group is auto parts and 4S stores.

This time, parts supply was cut off to GM and Changan Ford, and Yangcheng Huaqiang Group also followed suit and took related actions.

At the beginning, they were already prepared for a decline in the company's business volume, but now they find that the situation seems to be better than they thought.

"Mr. Cao, we have told Yifeng and other domestic hot stamping parts manufacturers, hoping that they will not cooperate with Modu GM and Changan Ford, otherwise it will bring unexpected consequences."

"Originally, we thought that after losing the sales of GM and Changan Ford, the company's business would decline somewhat, but in the past few days, Chery Automobile and Changan Automobile have approached us to investigate increasing the production of some of their models."

"I feel that the part of the market vacated by GM and Changan Ford is likely to be eaten up by domestic independent brand car companies."

Guo Shuyin and Cao Yang are old acquaintances.

Although there is a big difference in social status, we can still meet and communicate from time to time.

"The competitiveness of self-owned brands such as Chery, Changan, and Nanshan Hongqi is constantly improving and is no worse than that of joint ventures."

"So it is inevitable that the markets of GM and Changan Ford will be wiped out this time."

"Mr. Guo, I remember that you should also have some 4S stores in Modu GM and Changan Ford, right?"

Cao Yang was not surprised at all by what Guo Shuyin said.

It would be surprising if independent brands failed to seize this opportunity.

"Yes, we have a total of seven 4S stores of these two brands. During this period, they are almost empty and there is no business."

"There are also supply problems with some after-sales parts, and Modu General Motors has not provided any countermeasures for the time being."

"Mr. Cao, I am considering whether to close these 4S stores and transform them into stores for other brands such as Nanshan Hongqi."

Guo Shuyin's vision is not bad either.

Although the current statement from GM and Changan Ford is that production will be fully resumed in half a year.

But he had a hunch that GM and Changan Ford would not be able to resume production smoothly in China.

Even if they recover, the market may not accept them again.

In this case, it would be better to close the 4S store as soon as possible.

"Mr. Guo, your idea is right. Take advantage of the shutdown to transform quickly."

“In the future, it will be impossible for the products of General Motors and Ford Motors to continue to be sold in China.”

"Their so-called resumption of production in six months is also wishful thinking on their part."

Cao Yang gave his opinion very directly.

He has already thought of various plans on how to deal with GM and Changan Ford. How could he just watch them resume production?

Nanshan Automobile Group has lost the American market, and General Motors and Ford Motor will inevitably lose the Chinese market.

Otherwise Nanshan Automobile Group will become a joke in the industry.

Cao Yang would never allow this to happen.

In China, with the influence of Nanshan Automobile Group in the industry, there are many ways to prevent the two main engine plants from normal production.

Unless you import all parts from abroad and only do CKD assembly in China.

But then, the cost of the entire model will inevitably be very high.

As long as consumers are not confused, they will not buy such a model.

General Motors and Ford Motor Co. are unlikely to be confident enough to resume production in this way.

That is not saving oneself, that is further destroying oneself.

"Understood. I will immediately make arrangements to close these two brand stores when I get back."

Guo Shuyin is not stupid, and he can interpret a lot of information from Cao Yang's tone.

Obviously, after Nanshan Automobile Group cut off supply to GM and Changan Ford this time, it had other fallback tactics that were not used.

There is really no hope for GM and Changan Ford to resume production in the future.

As for the fact that these two manufacturers are looking for other manufacturers to reinvest in equipment and molds to produce replacement parts, it is likely that they will end up in vain.

This time I came to visit Cao Yang, and I really came at the right time.

Otherwise, if we keep delaying the closure of these stores until then, the losses during this period will be in vain.

It may even delay your business switching to other brands.