Foote's credit rating is constantly declining at this time. If they don't find a way to get cash to save it, then the company's business will inevitably get worse, and maybe like Tongyong, they will fall into the predicament of high-interest borrowing to survive.
It is rare for a company to express interest in their business and also come up with cash. This is very important for them to get out of trouble.
Although the other party's conditions are very harsh, they are not unacceptable. Rather than sink deeper into the quagmire, they would rather sell some businesses and preserve their core businesses, Ford and Linken.
As expected, Foote came to the door proactively and lowered some conditions.
But this way, Ralph was still not satisfied.
There are only three factories here in North America. Don’t use more than one, even if it’s cheap, unless you fire all the workers first.
China wants all the shares in the joint venture, but even if Foote gives in, it will only give shares to a small joint venture. As for the brands, including Jiebao, Land Rover, and Volvo, Ralph said they all want them. , and want all the shares and rights, leaving no trace to Foote.
This means that Ford's other factories can no longer continue to produce cars of these three brands.
Tata Motors also wanted Ford's high-end car brand Mercury, but Ford did not agree and gave up this brand. They would have a vacancy in the mid-range market. After all, Mazda is only a minority shareholder.
Among them, Jiebao is wanted by Feng Yu, Land Rover is favored by Tata Motors, and Woerwo is a state-owned enterprise that is ready to be acquired and merged into a certain car company to enhance the car company's technology and enhance its international competitiveness.
There are some non-performing assets here, and Ralph demands that they all be divested, which of course Foot cannot agree to. They promised not to transfer the non-performing assets of other brands into this, but the non-performing assets originally belonging to the three brands must be included together.
In other words, after acquiring all the businesses of these three brands, it will also have to bear some debts and obligations.
There were more debts and obligations in the previous life, which is why the three brands were sold at low prices, mainly due to non-performing assets.
At this time, these non-performing assets were not as high as in the previous life, so the price demanded by Foote also became higher.
The entire business of the three brands, plus the entire equity of a domestic joint venture, is priced at US$7.4 billion, including nearly US$3 billion in debt.
Of course, according to Ralph's requirements, all employees of these companies need to sign new contracts according to Fengyu Holdings' requirements. Those who were previously assessed can only be re-employed. Once they are laid off, the compensation will be paid by Ford and Fengyu Holdings. Side average payment.
There were so many small details, each one of which could keep them arguing for a long time. Because any small detail may represent tens of millions of dollars in benefits.
These negotiators naturally have their own tasks. Whoever can perform better and create more benefits for the company will be rewarded with a promotion, salary increase, or a large bonus.
…
"Ralph, how was the conversation?" Feng Yu lay on the lounge chair by the swimming pool, basking in the sun leisurely, warm and very comfortable.
"Boss, the framework has been negotiated, but the specific details have not been reached yet. Mercury failed to win, but the shares of a joint venture company in China are already included."
"Well, negotiate it as soon as possible. The longer it takes, the higher the debt of those companies. The sooner it enters restructuring mode, the sooner it can create profits."
It was possible to delay at first, but the longer it was delayed, the scarier Ford's funds would be, and the more he wanted to sell these assets, and the more suitable they would be to lower the price.
But now that the general amount of the contract has been determined, it is now time to discuss some asset details. The longer it takes, the more non-performing assets Feng Yu and the others will buy, and Feng Yu and the others will also suffer losses.
Foote is also anxious because they also want to get cash as soon as possible so that they can have cash earlier to save other businesses of the company, especially their credit company.
When both parties were anxious, both parties also made some concessions. I suffered a little loss in this clause, and you suffered a bit in the next clause, in the hope that the contract would be signed as soon as possible.
Tongyong was still waiting for Fengyu Holdings to continue talking to them about other businesses, but suddenly received news that Fengyu Holdings had acquired many important businesses of Foote.
This is another sale by the three major American automobile companies after Tongyong sold its shares in a Chinese joint venture a few days ago.
And this time it is much more important than Tongyong's sale of equity in a joint venture. Ford directly sold all the businesses of the three brands, including some factories and all equity in a joint venture in China.
Foote only has seven brands in total, of which Mazda is only a shareholder.
This time, the entire business of the three brands was directly sold, which is quite half of Fute's territory.
Many people think Foote's board of directors is crazy. Foote's expansion over the years will be ruined by this sale. Foote's global strategic plan will once again be stranded. Their markets in Europe and Asia will If it shrinks further, Ford's production and sales this year may drop several places.
However, companies such as Tongyong understand Ford's difficult situation. Previously, Ford, like them, continued to mortgage assets for loans to maintain the company's normal operations.
Although the entire business of three important brands was sold this time, it also reduced the company's burden and returned a large sum of cash. This cash may allow Ford to tide over the difficulties.
The media exclaimed that Fengyu Holdings Group is indeed very wealthy. It has just spent more than 6 billion US dollars to acquire all the shares of Tongyong Automobile in Shanghai, and then acquired half of Ford Motor Company. Is Feng Yu really planning to enter the automobile industry
However, it seems that the businesses acquired by Fengyu Holdings Group are only passenger cars, excluding commercial vehicles. So Feng Yu plans to let the company take the BMW route? It specializes in the research and development of passenger cars and its technology, and can become the world's top automaker without making commercial vehicles.
This kind of acquisition is actually very difficult. It requires more than just agreement between the companies, and it also has to go through multiple procedures. For example, the acquisition of Jaguar, Land Rover and Volvo requires the consent of the European Union and, of course, the consent of the US government.
Feng Yu is not worried about this. Foote will do everything possible to get these institutions to agree.
Without acquiring these businesses, Fengyu Holdings Group would have lost a good opportunity for expansion, but it would have been a serious disaster for Ford Company.
In order to get through this difficult time, Foote never defended themselves even if they were ridiculed by many colleagues and said that they were half eaten by Fengyu Holdings Group.
Between being half eaten or completely bankrupt, they chose the former. As long as the company can continue to operate normally, Ford, a century-old car company, can get back on its feet!
When all the contracts were signed, Feng Yu told Mr. Xu to notify the domestic payment, and then everyone... divided these assets! (To be continued.)