Chapter 699 Nanbo Bay is here again

During the subprime mortgage crisis, Ford not only sold Jaguar Land Rover, Volvo and Aston Martin, but also sold a 20.4% stake in Mazda.

20.4% of Mazda's shares were sold for $540 million. In this calculation, Ford's 33.4% of Mazda's shares were worth about $884 million.

If you meet interested buyers, it is not a problem to sell the 33.4% of the shares for 1 billion US dollars.

Mazda is only a third-tier car brand, while Jaguar Land Rover is a luxury brand, and its market value is obviously much more expensive than Mazda's shares.

In 1989, Ford bought Jaguar for $2.52 billion. But after all, it was 2.5 billion US dollars in 1989, and the purchasing power was dozens of times that of later generations!

However, at the time, the deal was still a good deal. In the 1980s and 1990s, Jaguar was still a leader among the first-tier luxury brands. In terms of D-class cars, Jaguar was even more luxurious than Mercedes-Benz and BMW, and was one with Bentley. Level, only in Rolls Royce.

If you look back at the old Hong Kong films in the 1980s and 1990s, you will often see that the cars of many Hong Kong Island rich people are Jaguar cars with a standard, and the little leopard on the front of the car is particularly conspicuous.

At that time, the Jaguar was regarded as a symbol of aristocracy. Compared with the famous Hutouben, it was used by the upstarts or gangsters.

The future Jaguar is considered a waste in China, and the relatively poor reputation has reduced Jaguar to a second-tier luxury brand, and even was named 30% off the leopard.

However, in the perception of consumers in European and American countries, Jaguar is still a first-line luxury brand, not inferior to Mercedes-Benz and BMW.

Especially in the former British colonial countries, people will think that Jaguar is more luxurious than Mercedes-Benz and BMW, and it is a luxury car of the same level as Porsche.

For example, the exclusive car of the British Prime Minister is a Jaguar. Affected by this, many British officials also ride in Jaguar, which also affects other Commonwealth countries.

Another example is that when British people get married, they often choose Jaguar as their wedding car. Because the British believe that only a Jaguar can handle this solemn and formal occasion. Even when Prince Harry got married, he chose a retro Jaguar convertible.

So in 1989, Ford spent $2.52 billion to buy Jaguar, which is equivalent to buying a car brand of the same level as Porsche, which is still very cost-effective.

As for Land Rover, it was purchased by Ford in 2000 for $3 billion.

This deal is also a good deal, because at the time, there was only one Land Rover Range Rover that could be called a first-tier luxury brand SUV.

Americans are very good at making large-displacement models. GM's Cadillac and Ford's Lincoln have luxury SUVs. However, in the minds of European and American consumers, the most luxurious SUV is Land Rover Range Rover.

For example, when the Queen of England was reviewing the troops, she took a Land Rover Range Rover with the trunk changed to an open top. For European and American countries, especially those former British colonies, there is no better advertisement than this.

In terms of off-road vehicles, Land Rover Defender also comprehensively slams other vehicles of the same type. Look back at those adventure blockbusters shot in Hollywood, what archaeologists, explorers, and all the Land Rover Defenders are driving in the wilderness.

After Ford purchased Jaguar and Land Rover, they integrated the two British luxury brands into what is today Jaguar Land Rover.

Later, Jaguar Land Rover was bought by India's Tata Group at a price of $2.3 billion. That is to say, Ford spent a total of 5.5 billion US dollars to buy the Good News Land Rover, and tried hard to integrate it. The result was less than half of the price, which is obviously a huge loss.

And if the inflation of the currency is considered, Ford lost even more. How can the 2.5 billion US dollars in 2008 be compared with the 2.5 billion US dollars in 1989!

More importantly, the $2.3 billion from the sale of Jaguar Land Rover, Ford can only get 1.7 billion, and the remaining 600 million is to the American Auto Workers Union.

At that time, the psychological price of Ford selling Jaguar Land Rover was 1.7 to 2 billion US dollars.

After some haggling, a $2 billion deal was negotiated with Tata Group, but the Auto Workers Union came out to do something again, and they also wanted to take a share of the pie.

The auto workers union is also a black heart. It wants benefits for both sides of the transaction, and eventually increased the price of Jaguar Land Rover to 2.3 billion, of which 600 million US dollars are benefits for the auto workers in the Jaguar Land Rover factory, such as medical insurance, pensions, etc. thing.

Volvo, another Ford brand, is also a huge loss of investment. When Ford bought Volvo in 1999, it spent 6.2 billion US dollars. When it was later sold to Geely, it only sold 1.8 billion US dollars, which was a third of the reduction. more.

At that time, Ford Motor had so many top brands in the world, thanks to their global expansion strategy.

As early as the 1980s, there was a popular prophecy in the world that in the future, there would be only six cars left in the world, two American companies, two European companies, and two Japanese companies.

Other car companies either went out of business or were swallowed up by larger companies.

The powerful Ford company has embarked on the road of annexing other brands. From the acquisition of Jaguar in 1989, Ford spent a total of 20 billion US dollars to acquire other brands in a decade.

At that time, Ford was really rich. At the beginning of the 21st century, Ford has completed a series of acquisition plans. The company has more than 20 billion US dollars in cash, and it does not know how to spend so much money.

It is a pity that although Ford has acquired so many car brands, it is not good at management. This brand loses 1 billion, that brand loses 800 million, and then pays a protection fee to the Auto Workers Union. Over the years, 20 billion will only be used up.

Every brand acquired by Ford eventually lost money and was sold at a discount by Ford.

...

Li Weidong's proposal to acquire Jaguar Land Rover really surprised Bill Ford.

Jaguar Land Rover is a first-tier luxury brand, which is equivalent to you going to the Volkswagen Group and saying, I want to buy your Porsche. Do you see if the president of Volkswagen will be shocked!

If the president is short-tempered, let the security guard take you out!

In Bill Ford's eyes, Li Weidong is just an ordinary Chinese entrepreneur, not a world-class car company or a first-class consortium. It would be good to buy some shares in Mazda. Who gave you the courage to buy Jaguar Land Rover?

Li Weidong is indeed a top industrialist in China. His self-made experience can be called a legend in the business world, but it is definitely not enough to watch in the United States.

There are many business families in the United States for hundreds of years, and there are a lot of young business upstarts. Li Weidong is not very prominent.

What's more, Ford has been the representative of American companies for nearly a hundred years. Even American business upstarts may not be able to get into Ford's eyes, let alone Chinese entrepreneurs!

Although Bill Ford ridiculed Li Weidong for being overly self-sufficient, as an excellent entrepreneur, he still had some basic self-discipline. I saw him smile slightly and said:

Mr. Li, Jaguar and Land Rover were originally first-tier luxury car brands, and their respective market capitalizations were billions of dollars. Now we integrate Jaguar and Land Rover, and their brand value is more than 10 billion dollars. of!

If it is the Jaguar of the year and the Land Rover of the year, it is really not bragging to say that the brand value of 10 billion US dollars. But now Jaguar Land Rover, to say that it is still worth 10 billion US dollars, that is nonsense.

Bill Ford made it clear that he looked down on Li Weidong and deliberately set a high price first. This is like in the future, the mother-in-law looks down on the poor son-in-law from the mountains, and asks for a large betrothal gift to let the poor son-in-law retreat.

Li Weidong had already seen Ford's intentions, he smiled slightly and said, Mr. Ford, I will not comment on the market value of Jaguar Land Rover of 10 billion, but as far as I know, the Jaguar Land Rover brand has been in a state of loss!

Jaguar should lose $500 million this year, while Land Rover's loss should be around $1 billion! In other words, Jaguar Land Rover will lose at least $1.5 billion this year! A brand with an annual loss of 1.5 billion US dollars, isn't it in Ford's slimming plan?

Hearing the data reported by Li Weidong, although Bill Ford's face did not change, his heart was tight.

Because of this data, it should not be known to outsiders!

Ford is naturally very clear about Jaguar Land Rover's losses. Although 2007 has not yet passed, Ford has already made a profit assessment of its various brands.

Among them, Jaguar estimated a loss of US$500 million, and Land Rover estimated a loss of US$1 billion, adding up to US$1.5 billion, exactly as Li Weidong said.

Of course, it is impossible for Ford to make this estimated result public. Otherwise, Ford's stock price will definitely fall, and Bill Ford will not be able to explain to shareholders at that time.

However, Li Weidong said this number accurately, which made Bill Ford's heart tighten.

The reason why Li Weidong knew this number, of course, came from the memory of his previous life.

This Chinese came well prepared, it seems that he is really interested in Jaguar Land Rover!

Thinking of this, Bill Ford immediately said: Mr. Lee, although Jaguar Land Rover is a first-tier luxury car brand, if the price is right, we don't mind selling this brand.

It's what you're waiting for! Li Weidong thought to himself, he immediately stretched out his right hand and said, Mr. Ford, since your company intends to sell the Jaguar Land Rover brand, I will send a negotiating team as soon as possible.

I'm also looking forward to reaching a cooperation with Mr. Li! Bill Ford replied very gentlemanly.

After seeing off Li Weidong, Bill Ford immediately picked up the phone on the table and called the public relations department.

Release the news to the major media and say that we intend to sell the Jaguar Land Rover brand! Ford commanded.

For Ford, since it is going to sell Jaguar Land Rover, many potential buyers are naturally much stronger than a single buyer.

...

A brand with an annual loss of 1.5 billion US dollars, of course, is in Ford's slimming plan.

Moreover, the consumer market in the United States is not sluggish. In this case, consumers will definitely give priority to buying practical pickups and cheap Japanese sedans, and the demand for luxury cars will be greatly reduced.

At this time, Ford holds the Jaguar Land Rover brand and will only lose more and more.

Although Bill Ford looked down on Li Weidong, a Chinese entrepreneur, he couldn't get along with money. As long as the price was right, whoever sold Jaguar Land Rover would not sell it!

Since Bill Ford was willing to sell Jaguar Land Rover, Li Weidong also left Ford with satisfaction.

This kind of transaction involving more than ten or two billion US dollars is naturally impossible to negotiate in one or two sentences like buying vegetables in the vegetable market. Even if both parties have the willingness to trade, it will take a long time to negotiate.

This is not only about trading the Jaguar Land Rover brand, but also involves a series of issues such as production plants and sales networks, which all need to be discussed a little bit.

Such a large transaction, even if it is negotiated at 1% of the price, involves tens of millions of dollars. Neither Li Weidong nor Ford is taking advantage of it, and they all want to make more money.

As for the negotiation details, Li Weidong and Bill Ford do not need to go out in person, and they can be handed over to professionals.

The United States has the largest number of lawyers in the world. The number of lawyers in the United States accounts for 35% of the world. The United States has only 4.3% of the world's population, or 35% of lawyers, serving 4.3% of the population.

And these lawyers are not just for lawsuits. In addition to litigation and civil disputes, lawyers are needed in many places in the United States, such as business investment, securities transactions, housing transactions, and even signing a labor contract. Sometimes a lawyer is required.

And many law firms are not only responsible for legal affairs, but also business negotiation and political lobbying.

If there is a negotiation between two companies, both parties probably don’t need to come forward. It’s fine to directly appoint their own law firm to do the negotiation. The legal provisions are also clear and clear, and they are directly signed to the enterprise.

As for political lobbying, an industry has formed in the United States. Lobbying companies use the names of legislative coordinators or directors of government relations to lobby politicians and formulate policies that are beneficial to the father behind the sponsor.

These so-called legislative coordinators and government relations directors are mainly lawyers. Lawyers know how to use the law, walk on the edge of the law, and legally give politicians some benefits.

There are some lawyers with excellent lobbying skills. After accumulating some political capital, they can run for congressional elections, enter the political arena, and sprint toward the throne of the president.

Since there are professionals in the United States, Li Weidong can't afford to negotiate by himself. He paid for a professional law firm and handed over the negotiation to them.

...

Although Jaguar Land Rover is a first-tier luxury brand, it does not have many potential buyers. After all, Ford releases financial reports every year, and Jaguar Land Rover's losses are visible to the naked eye.

For example, in 2007, Jaguar lost $500 million and Land Rover lost $1 billion, so whoever takes over Jaguar Land Rover will lose $1.5 billion first.

In addition, due to the last mortgage crisis, the sales of automobiles of various brands are declining, and everyone's life is not easy.

However, there is also a serious buyer who is very interested in Jaguar Land Rover, that is India's Tata Group.

Tata Group is the largest business group in India. It was founded in 1868. In terms of historical background, it is older than many European and American companies.

The Tata Group started as a comprador. When the British invaded Iran and Ethiopia, the old Tata provided military supplies for the British army, thus saving the first pot of gold.

Later, Tata began to get involved in the textile industry and the steel industry. Under the British colonization, it was difficult for the indigenous national capitalists in India to develop.

However, Tata was lucky. At that time, there was a boycott of foreign goods in India. The Indian people would rather buy inferior local products than imported goods, so Tata was able to gain a foothold.

Then caught up with the First World War, the British needed steel to make weapons, and the Kaka company received a large number of orders and became a first-class large enterprise in India.

In the early 1930s, Japanese industry gradually developed and began to dump steel to the world, which also violated the interests of the British. In order to fight against the Japanese, the British began to vigorously support the Tata company, and Tata's steel also achieved a monopoly in the Indian market.

At the same time, Tata began to get involved in the fields of hydropower, coal, aviation, etc. Air India was established by Tata. When the British colonists left India, Tata was already the largest company in India.

In the 1960s, Tata began to actively expand its overseas business. They first started as a consulting service company, and gradually extended their business to other industries, and gradually developed into today's Tata Group.

As an Indian company, Tata has a special affection for the former colonial home country of the United Kingdom. Tata is also very keen to acquire British companies. For example, Tata has become the world's fifth largest company by acquiring British steel giant Cannes Group. Large steel manufacturer.

Perhaps for Indians, when they acquired a British company, they would have a feeling of riding on the head of the colonial home country. The slaves of that year turned over and sang, which would boost the national self-confidence of Indians.

Therefore, when the news of Ford's intention to sell Jaguar Land Rover came out, Tata Group immediately expressed its intention to acquire it.

...

The news that Tata Group plans to acquire Jaguar Land Rover appeared in the Times of India, and the whole of India boiled instantly.

As a first-line luxury car brand in the colonial home country, Jaguar is in the hearts of Indians, but it surpasses the existence of Porsche and Maserati, and it is a symbol of the colonizer's father!

Now that this brand is going to be acquired by an Indian company, doesn't it seem that I am an Indian who is more awesome than the colonial father!

The national self-confidence of Indians exploded instantly. The inferiority complex left over from being colonized for more than 100 years was instantly transformed into nationalism, and the whole of India was applauding the acquisition plan of the Tata Group.

Newspapers, TV programs, and even online blogs were immediately filled with all kinds of touting voices:

Tata acquires Jaguar Land Rover, and we are about to become a car manufacturing power in India!

Jaguar is the best car in the world, we should make it in India!

In front of India's Jaguar, BMW and Mercedes-Benz are scumbags! I am India is the South Po Bay!

Indian Auto Nampo Bay!

In the future, the whole world will buy Indian cars! South Po Bay, India!

Although the media only revealed an acquisition plan, Indians have already begun to obsess, and soon, India will become the world's largest car production country.

In Indian dictionaries, will is always the most commonly used word. Bring will when you speak, and you can blow it however you want!

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