Fengyu Holding Group does not want any employees. This condition had never been thought of before Tongyong. Malfoy had prepared many matters for negotiation, but now they were all disrupted.
Back at the company, Malfoy reported the matter to the board of directors. Ralph had a tough attitude. If he didn't agree to this, he wouldn't discuss anything else.
The most troublesome thing now is the salary of these personnel. In 1998, fellow workers went on strike, with 70,000 to 80,000 people uniting, and the whole of Detroit was severely affected.
And this time the strike also caused the automaker to lose more than 2.2 billion U.S. dollars. In the end, the management of the company chose to compromise and signed a new labor agreement with employees, allowing their employees' average salary to increase again.
The average hourly wage for employees of Crazy Car and other car companies in the United States is around US$25, and the average hourly wage exceeds US$70. The automobile itself has relatively high labor, capital and technical requirements, which makes the production cost of the same vehicle much higher.
Moreover, there are less than 150,000 employees, but there are more than 300,000 retirees, and the number of people they have to pay for medical insurance and other expenses, including the employees' family members, exceeds one million!
Every year, the cost of medical insurance alone makes the funds for public use stretched thin, not to mention that other benefits cannot be reduced.
Tongyong has thought about reducing labor costs and moving the factory to Brazil, Mexico, and preferably Asia. But soon the workers went on strike, forcing them to give up the idea.
There is another thing about Tongtong Auto that made Feng Yu very funny when he read the information. That is, the children of Tongtong employees have priority to work in Tongtong Auto. This looks like China's original state-owned enterprise succession system.
China has abolished this system because it will greatly reduce the competitiveness of enterprises and increase their costs. There will be more and more retirees, which will greatly increase the burden on enterprises.
Basically, Tongyuan has to pay about $4,000 in medical, pension and union expenses for every car that comes off the assembly line. Feng Yu is absolutely unwilling to bear such a high cost.
Feng Yu can even assert that no car company is willing to bear such costs. The profit of a car is simply too high, more than double that of other car companies.
Think about the elves owned by Bingcheng Machinery Manufacturing Group. The cheap ones sell for less than three thousand US dollars. How much profit can be made based on the selling price
Is it possible that you don't make a dime from producing a car, but you still have to pay one to two thousand dollars, just to enter the American market? That is not expansion, but seeking death.
In fact, Tongyong's current predicament has something to do with Feng Yu. First of all, their joint venture car factory in Shanghai holds less shares than in the previous life, but they invest a lot.
Secondly, Tongyong Automobile has always been a car with large displacement and strong power. When the United States attacked China for environmental pollution, Feng Yu made people in the United States also fight back.
It is pointed out that the United States, which has 5% of the world's population, owns 30% of the world's cars, and accounts for 45% of the world's emissions of carbon dioxide and other exhaust gases, while General Motors Here, it occupies nearly one-third.
The U.S. government has also responded, advocating that everyone drive small-displacement cars. This has blinded General Motors, a car company that focuses on large-displacement cars.
In fact, after oil prices rose again last year, the world has entered an era of high oil prices. Ordinary families prefer small, energy-efficient cars. Traditional large-displacement American cars are gradually losing their market, not just for shared use cars. The same goes for Ford Motor Co., Ltd.
On the contrary, during this period, the sales of Fengtian and Bentian in the island country have been rising steadily, because they mainly promote energy-efficient small cars in North America. This is also the most outstanding thing about the island country's cars.
Feng Yu remembered that in his previous life, after Obama came to power, the United States passed some bills and determined an energy-saving and emission reduction standard. The standards were raised year by year to force the emission of cars to be reduced.
In fact, Obama has already announced his candidacy for this term's president, and Feng Yu also asked Ralph to do some support. Doing this now is a timely help.
The current situation that the industry is in is also inseparable from the political strategy of the United States. American workers have high wages and extremely high welfare benefits, which are all inescapable responsibility for the government. And it won’t be long before something that the Chinese people love to hear is coming: Detroit, the automobile city in the United States, is bankrupt!
City bankruptcy was a new term at the time. Later, when the U.S. government declared bankruptcy, the Chinese people were no longer so surprised.
Feng Yu has long predicted that Tongyong Automobile's multi-brand business strategy will make Tongyong's brands have no focus and be unable to effectively unite. In the end, the core brand will also be weakened.
What's more, Tongyong Auto also wants to make airplanes, and it has acquired some aircraft companies, aircraft companies, etc. This has caused the company's core business to deviate.
You said you don’t know how to combine multiple brands with the same product? Of course they knew and made an attempt, but this attempt seemed very ridiculous to Feng Yu.
Tongyong owns parts companies, engine companies, etc. In order to so-called unity and cost reduction, Tongyong Automobile allows multiple brands of products to use the same production platform and spare parts, and the same spare parts are used for high-end cars and mid-range and low-end cars.
This resulted in high-end cars becoming less high-end, which disappointed consumers, and also hurt the five major brands that originally shared the same strategy.
In Feng Yu's eyes, it was only a matter of time before Tongyong Auto went bankrupt. Even without the subprime mortgage crisis, Tongyong Auto would have been doomed.
They have less than 100 billion U.S. dollars in assets and have been saddled with more than 150 billion U.S. dollars in debt. The debt ratio is too high. The interest alone is an astronomical figure, not to mention the rising employee salaries, pensions, and medical insurance. Gold and more.
During this period, Ford Motor has taken some response measures, such as laying off employees, starting with senior executives, and stopping its car credit business because too many people have not been able to repay their car loans.
Ford, like Tongyong, also has a financial credit company, but they only deal with automobile loans and have not been involved in real estate loans. This greatly increased their ability to resist risks during the subprime mortgage crisis.
Moreover, Foote also owns the world's largest car rental company, which means that those whose cars are repossessed can continue to create profits for Foote in the leasing company, which indirectly reduces Foote's losses.
The three major automobile companies in the United States, Tongyong, Ford and Collision, are all in trouble at this time. Feng Yu actually has a certain interest in their brands.
When Malfoy also suspended negotiations with Fengyu Holdings as requested by the board of directors, he heard that Ford Motor Company had gone to Fengyu Holdings Group.
This news shocked the fellow directors!
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