The Industrial Giant Reborn

"Yes, Volkswagen once sent people to the British government department and expressed its intention to acquire Mini. However, the conditions proposed were far inferior to ours. The acquisition funds were not as high as ours, and they were not willing to assume the employment of the original workers. They even wanted to If the Mini factory is moved to Germany, even if the British government wants to use Volkswagen to suppress us, it will be difficult to do so." Tian Xuecheng said with a smile.

"Volkswagen is probably just talking loudly. The Germans are not that stupid." Chen Zhiwen shook his head and said: "It seems that British car brands are really not popular in Europe at the moment."

In the original history, many British car brands began to be sold one by one in the late 1980s. No one knew the reasons for this. Based on Chen Zhiwen's speculation, it is estimated that many European and American car companies and even small Japanese companies were sold a few years ago. They have all been in contact with the British government, but these people are not doing charity. It has always been a business principle to kill you while you are sick. Everyone wants to take advantage of the British government's automobile industry to buy it at the lowest price when it is at its lowest point.

There is also the possibility that in the mid-to-late 1980s, the U.S. government reached an agreement with OPEC in the Middle East to jointly suppress oil prices in order to hit the economic lifeline of polar bears. This incidentally revived the car market and made life for British cars a little easier. Assets became After the quality of the company is high, large automobile companies will show a stronger desire to acquire. This is actually a normal acquisition pattern. In the history of human business, there are very few cases of daring to buy a company that is about to go bankrupt at the bottom because the risk is too great. Especially automobile companies, which themselves are still gold-eating beasts. Only people like Chen Zhiwen, who had a golden finger to know the future, dared to take action against Hutchison Whampoa and Land, which were heavily in debt at the time.

"Some automobile giants from other European and American countries are indeed interested in some British companies, but they are all listed companies with many internal factions and long work processes. They simply cannot match our efficiency. If we negotiate a deal with them, Leaving aside the final price and conditions, it is estimated that when the deal is completed, it is not certain whether Prime Minister Thatcher will still be the British Prime Minister, and the same will be true for other members of the Parliament. This reason alone is very tempting to the current high-level officials in the UK. They are all human beings and need current political achievements." Tian Xuecheng added.

"A very good angle." Chen Zhiwen nodded and smiled. If he competed with European automobile giants, he would not be able to compare with him in many aspects. However, for a sole proprietorship or a company with a controlling shareholder, one advantage is that one can tell the story very quickly. make decision.

Of course, the latter is not absolutely better. If many uncertain investments are made by one person, one mistake may lead to heavy losses. Voting with multiple people may be less efficient, but it may be more risk-free. .

"Now it depends on whether the British government is in a hurry to sell the Mini. If they are not in a hurry and delay for another year or two, we will have to wait." Tian Xuecheng said helplessly.

Mini's current situation is actually more serious than AMC's back then, but the British government is behind it, and it can ask for money even if it loses money.

"From 1972 to now, the British government has been running a fiscal deficit, and inflation has continued for more than ten years. It has eased a little in the past two years, but it is still quite serious. Coupled with the burden caused by high welfare, although it is still It can be sustained, but Thatcher should want to solve this problem earlier, otherwise her reputation as prime minister will not be very good in the future." Chen Zhiwen thought for a moment and said: "A mini company, although not very large, But it can at least send a signal, now it depends on how long Thatcher is willing to persist.”

The British economy was at its worst peak in the 1980s. This was also due to the various chaos in the 1960s and 1970s, the continuous impact of general strikes, oil crises, and inflation, which led to the collapse of two governments. After she re-formed her cabinet, she also encountered unprecedented pressure. However, she was smarter and transferred the internal conflicts to the outside. She used the Falklands naval battle to temporarily unite the entire UK while at the same time currying favor with the US government. With the support of the Bald Eagle, the UK won the battle. By conquering Argentina, it not only gained prestige, but also made the entire UK temporarily obey Thatcher. From this point of view, although the Falklands naval battle cost 6 billion pounds in military expenditure, it was still worth it.

The expiration of Hong Kong's lease could have been an achievement for Thatcher to regain her glory. Unfortunately, it failed. In addition, as the Falklands naval battle lasted longer, Thatcher began to lose control of those below her, especially the trade unions. They don't care about the country's economic problems, they just organize strikes desperately and demand various high benefits and benefits. Because of the previous policy, the UK also provides large subsidies to the unemployed, which in turn leads to too many people. If you don't work, you'll just be able to get subsidies.

In the original history, Thatcher was able to save this mess. Even with the help of the global economic recovery in the 1980s, her personal ability was still very strong. During her term, almost all state-owned enterprises began to be privatized. , although there were many problems with internal transactions, she also succeeded in getting rid of a lot of big burdens for the British government. Even in the 1990s, Li Jiacheng began to invest in the British telecommunications business, which also benefited from the economic policies established during the Thatcher era.

Now, it is also the beginning of Thatcher's privatization of state-owned enterprises. This can be said to be almost the only opportunity for herself to acquire a British car brand. Otherwise, if we wait a few years and many European and American automobile giants recover from the economic crisis, we will have no chance.

"Yes, the commissioners of Standard Chartered Bank said the same. They are also using their connections to try to convince the British government." Tian Xuecheng said.

"What about Rolls-Royce? Is there any chance?" Chen Zhiwen asked again.

"It's not going well. The state-owned enterprises behind Rolls-Royce seem to look down on us. Moreover, they are really not short of money, even though Rolls-Royce is losing money." Tian Xuecheng said.

"Well, try to communicate a few more times. If it doesn't work, give up. The focus is still on talking to the Italian side and taking over Maserati. This car is actually much more important than Rolls-Royce." Chen Zhiwen didn't care too much. said.

Rolls-Royce or Bentley are just a face-saving thing. They have no strategic value in themselves. It’s good to be able to acquire them. It doesn’t matter if they can’t. In the automotive industry, the real big players are in the civilian car business like Volkswagen Toyota and the high-level business like BBA. Such luxury business, which is too high-end, basically has no market.

"Maserati actually has little to do with the Italian government. It's mainly negotiations with Argentina. They need U.S. dollars, and the price quoted is 80 million U.S. dollars. We are still checking Maserati's accounts, and it may take some time. "Tian Xuecheng said again.

"Well, okay, the speed is already very fast. Since it's almost done, you don't need to stay in Europe. Now, I have some important arrangements in the mainland. Tomorrow, you can go to Yanjing Jeep with me. "Chen Zhiwen also said that acquiring a company cannot be so fast. If it is acquired in good faith, a lot of information needs to be checked, which is very time-consuming, but you can't make mistakes. Otherwise, you can make a quotation after checking the accounts. If it is due to your own problems. If the quotation is too high, then you have no choice but to accept it, unless the other party makes false accounts.

"Okay, I heard that Wuling's new model has been designed?" Tian Xuecheng asked with a smile. Although he is a Chinese senior executive in AMC in the United States, his core mission is still in the United States, and now it has also begun to involve Europe. The sales channels in the mainland and even Asia are controlled by others.

However, he also knows that the domestic side is developing a car called "Wuling" because the domestic side has repeatedly transferred people from the design team in the United States and has also visited some of AMC's suppliers in the United States. It was all arranged by Tian Xuecheng. We also know something about the progress of Wuling's new models.

"Yes, this is one of the things. Wuling's car is mainly for the domestic market, but it may also go to overseas and even Europe and the United States. We will see the details later." Chen Zhiwen nodded and said.

Historically, when domestic car brands began to rise, the relationship between China and the United States was no longer very good. The U.S. market began to close itself off and did not accept cars from the mainland. But now the relationship between China and the United States is very good, and Yanjing Jeep is half the price. It is normal for US-funded companies to reverse export to the United States.

Historically, Wuling models have developed well in Southeast Asia and other overseas regions, and are very suitable for small-scale commercial use. Unfortunately, with the rise of electric vehicles, the various fuel-saving and convenient advantages are no longer comparable to electric small trucks.

It’s only the 1980s, and there may be huge market potential. This is what Chen Zhiwen wants to try. If you keep following history, you can indeed make money, but it is too unfulfilling. And if you develop future best-selling industrial products, you may achieve different results in many countries. Of course, the most convenient one is domestic. The low-cost Wuling will be very convenient for many people’s travel and cargo transportation needs.

"I also want to see this car." Tian Xuecheng said with a smile.

The next day, Chen Zhiwen took Tian Xuecheng and a group of people from AMC, accompanied by Director Wang from Yanjing City, to the Yanjing Jeep factory.

Yanjing Jeep's Huamei executives also received the reception at the door. The entire factory was also newly cleaned, and various green plants and flowers were placed on both sides of the road. Under the leadership of Director Qian of the Jeep factory, everyone walked through the Jeep production line.

"Director Qian, what is Yanjing Jeep's current production capacity per day?" Chen Zhiwen asked.

"Mr. Chen, the current capacity is 25 vehicles per day, which is mainly adjusted according to the demand of domestic orders." Factory Director Qian replied.

"In other words, it's not that the production capacity is insufficient?" Chen Zhiwen asked.

"Yes, our production capacity is 30,000 vehicles a year. If we work harder, 50,000 vehicles will not be a problem. We can only produce so many for domestic orders." Director Qian said.

"Is it because of the price?" Chen Zhiwen asked again. Obviously, Yanjing Jeep and SAIC-Volkswagen are in reverse order. SAIC-Volkswagen has a serious lack of production capacity, while Yanjing Jeep is limited by terminal orders and dare not produce at full capacity.

"For this reason, many of our parts currently have to be imported from overseas. Although the Midea factory in Shenhai City balances foreign exchange for us, the tax rate on the import of parts is very high. In the end, the selling price of our cars will be evenly divided. It is still a bit high, and most of the current purchasers of our cars are state-owned enterprises from the military and some engineering institutions. They are the largest purchasers, and the government orders are relatively small." Director Qian replied, one of the biggest advantages of Yanjing Jeep is that There is no need to consider foreign exchange issues, because my boss's Midea factory in Shenhai City has a large amount of foreign exchange export capabilities, and the data there is used by Yanjing Jeep. In other words, even if Yanjing Jeep sells 30,000 units a year, There is no need to worry about foreign exchange balance issues.

"Well, the localization of parts is indeed a big problem. Although my investment fund has invested in part, it cannot be all, so we still need to continue to find suitable suppliers in the country, and then cultivate or invest." Chen Zhiwen thought for a while Said: "In addition, I have reached an agreement with SAIC Volkswagen in Shanghai. We will work together to cultivate domestic local parts companies and strive to reduce costs in the shortest possible time."

This can be regarded as a conspiracy of the mainland government. If your car company comes to do business in my territory, it must cultivate a local industrial chain. Otherwise, the foreign exchange balance problem and high tariffs will make this car unable to compete with the mainland market. However, , the mainland government could not have imagined that in another ten years, the domestic foreign exchange problem would be completely solved, and many restrictions on foreign investment would be relaxed. From then on, companies such as Volkswagen and Toyota would transfer a large number of small parts back to their own countries. Now, we can use the mainland market to increase employment in our own country.

"This is the best, but if SAIC-Volkswagen's costs are also reduced, then we can also be regarded as competitors, especially in the government acquisition area. Many provinces are waiting for SAIC-Volkswagen's cars." Qian Chang Chang said with some worry.

"There is no way to change this kind of market demand. We can't stop SAIC Volkswagen, so we might as well cooperate with them first." Chen Zhiwen said with a smile. Jeep's strengths are in passability and off-road capabilities, but comfort is far behind. Well, if domestic officials have a choice, they will definitely choose Santana. After all, they don't need to go off-road.

"Yes, I think too much." Director Qian said quickly.

"Director Qian, you are actually right. It is impossible to compete with SAIC Volkswagen in the car market with Jeeps. Therefore, we are going to propose to the Yanjing Municipal Government to introduce a car production line from the United States." Tian Xuecheng said with a smile.

"Car production line?" Director Qian was surprised, and then overjoyed. This was equivalent to adding a factory.

Director Wang on the side also understood after hearing this sentence. It turned out that he wanted to convey the message through himself.

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