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 20.4% of Mazda shares.

20.4% of Mazda shares were sold for 540 million U.S. dollars. In this way, 33.4% of Mazda shares in Ford's hands are worth about 884 million U.S. dollars.

If you meet an interested buyer, it is not a problem to sell this 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 spent $2.52 billion to acquire Jaguar. 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 a good deal. Jaguar in the 1980s and 1990s was still a leader among first-line luxury brands. As far as D-class cars were concerned, Jaguar was even more luxurious than Mercedes-Benz and BMW, and it was on the same level as Bentley. Level, only in Rolls-Royce.

If you look back at the old Hong Kong movies in the 1980s and 1990s, you often see that the cars of many rich people on Hong Kong Island are Jaguar sedans with standing logos, and the little leopards on the front of the cars are particularly conspicuous.

At that time, Jaguar was regarded as a symbol of nobility. Compared with the famous Tiger Head Ben, it was used by nouveau riche or gangsters.

The future Jaguar will be sold out in China, and the relatively poor reputation has reduced Jaguar to a second-tier luxury brand, and even dubbed the 30% off Leopard.

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

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

For example, the exclusive car of the British Prime Minister is a Jaguar. Many British officials are affected by Jaguar, which also affects other Commonwealth countries.

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

So in 1989, Ford spent 2.52 billion US dollars 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, Ford bought it for $3 billion in 2000.

It's a good deal, too.

Because at that time, there was only one Range Rover that could be called a first-line luxury brand SUV.

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

For example, when the Queen of England inspected the troops, she took a Range Rover with the rear compartment changed into an open top. And for European and American countries, especially those former British colonies, there is no better advertisement than this.

In terms of off-road vehicles, the Land Rover Defender also comprehensively beats other similar vehicles. Look back at the big adventure movies made by Hollywood, what archaeologists and explorers drive in the wilderness are all Land Rover Defenders.

After Ford bought Jaguar and Land Rover, it integrated these two British luxury brands together, which is today's Jaguar Land Rover.

Later, Jaguar Land Rover was bought by India's Tata Group at a price of 2.3 billion US dollars. That is to say, Ford spent a total of 5.5 billion US dollars to buy Jiebao Land Rover, and took great pains to integrate it. As a result, it sold for less than half of the price, which is obviously a huge loss.

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

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

Back then, Ford’s psychological price for selling Jaguar Land Rover was 1.7 to 2 billion U.S. dollars. After some bargaining, it had already negotiated a 2 billion U.S. dollar deal with Tata Group. As a result, the auto workers union came out to make troubles and wanted to get a share of it .

The auto workers' union is also black-hearted, seeking benefits from both sides of the transaction, and finally raised the price of Jaguar Land Rover to 2.3 billion, of which 600 million US dollars is for the benefits of Jaguar Land Rover factory auto workers, such as medical insurance, pensions and the like thing.

Volvo, another brand owned by Ford, is also a huge loss of investment. When Ford bought Volvo in 1999, it spent 6.2 billion U.S. dollars. When it was sold to Geely, it only sold 1.8 billion U.S. dollars, which shrank by one third. more.

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

As early as the 1980s, there was a popular prediction in the world that there would only be six remaining global automobile companies in the future, two American companies, two European companies, and two Japanese companies.

Other car companies either went bankrupt or were swallowed up by big companies.

The powerful Ford company has embarked on the path of annexing other brands. Since the acquisition of Jaguar in 1989, Ford spent a total of 20 billion US dollars to acquire other brands in ten years.

Ford at that time was also really rich. At the beginning of the 21st century, Ford had already completed a series of acquisition plans. The company held more than 20 billion US dollars in cash. It didn't 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. One brand loses one billion, that brand loses eight hundred million, and then pays a protection fee to the auto workers union. used up.

Every brand acquired by Ford ended up making a lot of losses, and then sold off by Ford at a discount.

...

Bill Ford was indeed surprised by Li Weidong's proposal to acquire Jaguar Land Rover.

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

If the president has a bad temper, just ask the security guard to take you out!

In the eyes of Bill Ford, 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 of Mazda. Who gave you the courage to buy Jaguar Land Rover?

Li Weidong is indeed considered a top industrialist in China, and his self-made experience can be called a business legend, but it is certainly not enough to see in the United States.

There are many business families in the United States with more than one hundred years old, and there are a lot of young business upstarts. Li Weidong does not stand out.

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

Although Bill Ford ridiculed Li Weidong for being self-indulgent, as an excellent entrepreneur, he still has basic self-cultivation. He smiled slightly and said:

Mr. Li, Jaguar and Land Rover were originally first-tier luxury car brands, each with a market value of billions of dollars. Now that we have integrated Jaguar and Land Rover, their brand value will exceed 10 billion dollars. of!

If it was the Jaguar and Land Rover back then, it is really not bragging to say that the brand value is 10 billion US dollars. But the current Jaguar Land Rover is 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 the future mother-in-law who looks down on the poor son-in-law from the mountainous area, and asks for a large gift, so that the poor son-in-law will quit.

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

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

Hearing the data reported by Li Weidong, although Bill Ford's face remained unchanged, his heart tightened.

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

Ford is naturally aware of Jaguar Land Rover's losses. Although 2007 has not passed, Ford has internally assessed the profitability of its brands.

Among them, Jaguar estimated a loss of 500 million U.S. dollars, and Land Rover estimated a loss of 1 billion U.S. dollars, adding up to 1.5 billion U.S. dollars, which was exactly the same as what Li Weidong said.

Of course, it is impossible for Ford to make this forecast result public, otherwise, Ford's stock price will definitely fall, and Bill Ford will not be able to explain to shareholders by then.

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

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

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

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

What I'm waiting for is your words! 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 negotiation team as soon as possible.

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

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

Release the news to the major media, saying that we intend to sell the Jaguar Land Rover brand! Ford ordered.

For Ford, since Jaguar Land Rover is going to be sold, more potential buyers are naturally much better than a single buyer.

...

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

Moreover, the consumer market in the United States is not in a good mood. Under such circumstances, consumers will definitely give priority to buying practical pickups and cheap Japanese cars, and the demand for luxury cars will be greatly reduced.

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

Although Bill Ford despises Li Weidong, a Chinese entrepreneur, he can't be hard on money. As long as the price is right, Jaguar Land Rover will be sold to anyone!

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

This kind of transaction involving more than two billion US dollars is naturally impossible to be negotiated in a few words like buying vegetables in the vegetable market. Even if both parties have the willingness to make a transaction, 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 need to be discussed a little bit.

Such a large deal, even if the price was negotiated at one percent, would involve tens of millions of dollars. Neither Li Weidong nor Ford was taken advantage of, and they all wanted to make more money.

When it comes to the details of the negotiation, Li Weidong and Bill Ford don't need to do it in person, just leave it to professionals.

The United States has the most lawyers in the world. The number of lawyers in the United States accounts for 35% of the world. The population of the United States only accounts for 4.3% of the world, that is, 35% of lawyers serve 4.3% of the population.

And these lawyers are not just there to fight lawsuits. In addition to lawsuits 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 lawyers are needed.

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

If there is a negotiation between two companies, both parties probably don’t need to come forward, and they can just appoint their own law firms to do it. The result is that people from the two law firms will talk, and after the negotiation, the contract will be drawn up. The legal provisions are also clear and signed directly to the company.

As for political lobbying, an industry has already formed in the United States. Lobbying companies use the name of legislative coordinator or government relations director to lobby politicians and formulate policies that are beneficial to the father behind the money.

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 give politicians some benefits legally.

There are some lawyers with excellent lobbying ability, after accumulating some political capital, they can also run for parliamentarians, enter the political arena, and launch a sprint towards the presidential throne.

Since there are many professionals in the United States, Li Weidong can't afford to negotiate in person. He spent money to hire 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 US dollars, and Land Rover lost 1 billion US dollars, so whoever takes over Jaguar Land Rover will first lose 1.5 billion US dollars.

Coupled with the subprime mortgage crisis, the sales of cars of all brands are declining, and everyone's life is difficult. If you have to tighten your belt to live, naturally there are few takers.

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

Tata Group is India's largest business group, 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 to the British army, thus saving the first pot of gold.

Later, Tata began to get involved in the textile and steel industries, and under the British colonization, it was difficult for Indian national capitalists to develop.

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

Then it caught up with the First World War. The British needed steel to make weapons. Kaka 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 Tata, and Tata's steel also gained a monopoly in the Indian market.

At the same time, Tata Corporation began to get involved in fields such as hydropower, coal, and aviation. 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 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 Corporation has a special affection for the former colonial home country of Britain. Tata is also very keen on acquiring British companies. For example, Tata has become the world's No. Big steel manufacturer.

Perhaps for the Indians, the acquisition of a British company will feel like riding on the head of the colonial mother country. The slaves of the year stood up and sang, which can boost the national self-confidence of the Indians.

Therefore, when the news that Ford intends to sell Jaguar Land Rover came out, Tata Group immediately expressed its intention to acquire.

...

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

As a first-line luxury car brand in the colonial mother country, Jaguar surpasses the existence of Porsche and Maserati in the hearts of Indians, and 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, an Indian, are better than my colonial father!

The national confidence of the Indians exploded instantly. The inferiority complex left over from being colonized for more than a hundred years turned into nationalism in an instant, and the whole of India applauded the acquisition plan of Tata Group.

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

Tata acquires Jaguar Land Rover, and India is about to become a big car manufacturing country!

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

In front of Jaguar in India, BMW and Mercedes-Benz are scumbags! India is Nanbowan!

Indian Auto South Wave Bay!

In the future, the whole world will buy Indian cars! Nanbowan, India!

Although the media only revealed an acquisition plan, Indians have already begun to be obsessed with it. In the near future, India will become the world's largest automobile production country.

In the Indian lexicon, will is always the most frequently used word. Bring will when you speak, and you can blow it as you want! .