The board of directors of Tongyong Automobile held a temporary meeting, and all directors came because the company's president Malfoy brought back important news.
They all knew that Malfoy went to see Ralph, CEO of Fengyu Holdings Group, and must have brought back good news. Now, who among these big businessmen don't know that Fengyu Holdings Group has too much money to spend.
If you say you don't know, it proves that you are not a big businessman yet.
"Malfoy, tell everyone what the situation is like." Sol Suo, chairman of Tongyong Automobile, had a neither sad nor happy expression on his face.
Malfoy nodded and said loudly: "Everyone, you see that there are two documents in front of you, right? The one with a red cover is the conditions issued by us, and the one with a blue cover is the conditions issued by Fengyu Holdings Group."
"The conditions of Feng Yu Holding Group are very simple. Fengyu Holding Group agrees to use cash to acquire some of our assets. Note that it is all in cash. There is no need to pay for stocks and there is no delay in payment. The conditions are better than those offered by the previous two companies. It’s much better.”
"But at the same time, the assets they want to buy are all our high-quality assets, including brand assets such as Chevrolet and Buick. But they have no interest at all in the brand assets we want to get rid of."
"The current situation is that our Tongyue Auto business has been seriously affected. After we were attacked, in order to stimulate sales, we made a sales method of providing zero-interest loans to consumers for five years, and In the following years, the models and brands sold through this sales method were continuously expanded, and more preferential measures were proposed.”
"In the first few years, our sales skyrocketed, firmly occupying the top spot in the world's production and sales, and we were recognized as the world's number one automobile group. At that time, our Tongyong Financial Credit Company was also able to pass the credit and investment, providing our company with high profits.”
"But when we decided to enter the real estate credit field, we went too big. Like some other real estate finance companies, we issued too many subprime loans, which left us with too much risk."
"This is different from cars. The selling price of cars is far less high than that of houses. Although there have been many cases of inability to repay the loans in car loans, the losses are not large. The profits of our financial credit company can fully bear the cost. Partial loss.”
"But real estate is different. The loan amount of real estate is higher. The inability to repay the loan has become more serious since last year. The proportion of bad debts has gradually increased. Our most powerful financial credit company also suffered losses. Those The mortgaged house has depreciated in value, making it impossible for us to recoup our investment.”
"I didn't agree to enter the field of real estate loans at the beginning, but no one on the board of directors supported me. I don't want to mention the past things anymore. If we want to get through the current difficulties now, we must sell some assets or shares. My personal My opinion is that I prefer to sell it to Fengyu Holdings Group. The specific assets to be sold need to be discussed by everyone."
Malfoy talked about some of the company's difficulties, and pointed out that these difficulties were not caused by his improper management, but the result of the decisions of these directors. He was just the president, a high-level wage earner.
He also did not say his final decision, but threw the burden to the board of directors. As for what the final decision will be, he only has the right to make a suggestion at most. If the board of directors decides, he can just implement it.
After listening to Malfoy's words, some directors had unpleasant looks on their faces. Is this Malfoy accusing them? He's just a CEO, but he dares to accuse these directors.
However, I heard that Chairman Thor intends to nominate Malfoy to the board of directors as executive director. Perhaps this is Malfoy's confidence.
None of the directors thought that Tongyong Auto would not be able to survive this difficult time. Just because they are Tongyong Auto, the world's number one automobile group!
Of course, they also know that some brands do not make money and lose a lot of money. The pace of expansion was too fast at first, but now I find that it seems to be excessive.
Getting rid of some non-performing assets and carrying out restructuring is something that many large companies have experienced, including many companies that are not losing money and have also made these decisions. Tongyong Auto has always had this idea.
But no one is a fool. Who is willing to take over those non-performing assets? They can only think of ways to tie-in sales, that is, to use some high-quality assets and combine them with non-performing assets, so that they can sell them.
Of course, there is another way, which is to transfer the non-performing assets to a company during asset reorganization and directly bankrupt it to get rid of this burden.
But in this case, not only is the operation very complicated, but it also requires a large amount of money to be circulated, and at least one shareholder needs to make sacrifices. Who is willing to sacrifice? Moreover, this will also have a negative impact on the brands that share the same car. The world's number one automobile company will actually have its business go bankrupt
Those directors looked a little unhappy when they saw some of the assets that Malfoy listed for sale. Are there too many high-quality assets listed
But after they saw the assets that Fengyu Holdings Group planned to acquire, they became really furious!
That's too much!
Listed above are all high-quality assets of Tongyong Auto, and they are all businesses that are still profitable. We need funds to tide over the crisis, but selling all the profitable businesses would be a fool's errand!
"Malfoy, do you recommend us to cooperate with such a company?!" A director couldn't help but angrily yelled.
Malfoy said calmly: "This is just the other party's goal. Everyone knows that this is absolutely impossible, and Fengyu Holdings Group must also know it. It's just a negotiation, how can the conditions of both parties be the same?"
Asking for a high price and then paying back the money is often the case in business.
When Saul saw that other directors wanted to speak, he said directly: "Malfoy has also told everyone about our situation. Now Fengyu Holdings Group is the only company that wants to acquire our business. It is the only one that can do it in the shortest time. Come out with plenty of cash.”
"And the other party only said it was interested in acquiring, and did not say any conditions. We can provide some conditions. For example, if you want to buy certain brand businesses, you must acquire certain brands, factories, etc. together."
"This is a matter related to the interests of all our shareholders. We have convened this board meeting to discuss this matter. Everyone should think carefully about how we should negotiate with the other party."
All the directors remained silent. None of them wanted to be the first. If it was known in the future that it was a certain director who suggested that the XX brand was sold, wouldn't the dissatisfied employees of those companies come to him directly
Seeing that no one said anything, Saul ordered: "Everyone should go back and make a sales plan. The meeting will continue tomorrow. The longer it takes, the worse it will be for us!"
… (To be continued.)