"Malfoy, I'm sorry, we have no plans to continue to acquire automobile-related industries for the time being. Tianlai Novel WWW.『⒉３ＴＸＴＣＯＭ naturally has money on the books, but we have other businesses to acquire, maybe in two years It would be better if we cooperate again in the next year.”
Malfoy was about to say something else, when he heard the busy signal on the phone, and he froze.
Two years later? Can the same car last another two years
We had a good discussion originally, we even sold you the equity of China's largest joint venture company, but now you say you won't talk about anything else
In this case, what should we do together
They originally sold all the shares of Magic City Tongyong in China, and they got a lot of cash, which was very helpful in easing their financial pressure.
Their pension, medical insurance and other things are enough this year, and they may not need crazy mortgage loans to survive, but they originally planned to sell some businesses in exchange for a large sum of cash.
Now all plans have been disrupted, and the company is still short of money for operations. If they want to borrow again, they may have to pay higher interest rates and require more mortgage assets.
Fengyu Holding Group's move made Tongyong's situation worse.
At this time, the subprime mortgage crisis was becoming more and more serious, exaggerated by the media. More and more people can't repay their mortgages, and many people even move out of their houses and don't want their houses anymore.
They would rather rent a house than pay off such a mortgage. House prices are falling every day, and they are losing a lot on loan repayments.
Although some real estate developers claim that real estate has not entered a low period and that now is a good time to buy the bottom, the first few real estate developers who started to buy the bottom have suffered heavy losses. When they entered, it was clear that housing prices had not yet hit the bottom.
As a result, the default rate of real estate loans is getting higher and higher, and housing prices continue to fall. During this period, several real estate companies and real estate finance and credit companies went bankrupt.
Among Tongyong Financial Company, a subsidiary of Tongyong, not only the default rate of home loans has risen sharply, but also the default rate of some car loans. In their hands, more and more bad debts have appeared.
Originally, this financial company could generate profits of at least several billion dollars for them every year, and this was even when some loans could not be recovered.
But now, not only is this company unable to create profits for common use, it has become the company with the most losses.
Other subsidiaries and branches were unable to receive funds for blood transfusions, and the original leading company also suffered losses, which made the capital loopholes of the same company wider and wider.
In the first quarter of this year, they lost more than a billion dollars, but in the second quarter, it rose to several billion dollars. Judging from the current situation, the loss in the third quarter will definitely exceed 10 billion US dollars. What about the fourth quarter and next year
When they lost money in the first quarter, they discovered the crisis and wanted to sell some assets in time to survive the risk. At the same time, they were also looking for ways to mortgage loans to help the company tide over the difficulties.
But I didn't expect to have a good negotiation with Fengyu Holding Group. I thought everything would go smoothly, but Fengyu Holding Group suddenly gave up its plan to acquire their business.
Malfoy had made it clear that he could give in on some conditions, making the biggest concession, but Ralph wouldn't talk to them at all.
Of course Malfoy knew the reason for this, because Fengyu Holdings Group had acquired enough automobile business from Ford.
Continuing to acquire and expand seems to be a good thing, but Tongyong is a counterexample. Sometimes there are too many brands and the scale is too large, which becomes a burden.
This will greatly reduce the company's ability to resist risks, and the capital chain may be broken at any time.
During this crisis, Foote was in the forefront of Tongyong. Tongyong did not expect that Foote would sell off the entire business of three excellent brands so cheaply, and even give away three North American factories as a gift.
But I have to admit that if it were the same person now, I would choose this way. Suffering a small loss can preserve the foundation of the company.
Now Tongyong wants to sell the business, but no one is interested. The reason is that the labor costs are too expensive and no other company can afford it.
Seeing that Ford's business, one of the three largest automobile companies in the United States, has shrunk by less than half, Collision was repurchased by a consortium for more than 80% of its shares and returned to the embrace of the United States. awful.
Although they also sold the shares of China's Magic City, it didn't help at all. This amount of money cannot fill the loopholes for current users.
Ever since they raised their auto loan approval standards, their car sales have plummeted, which has left them with a backlog of products.
But if we don’t improve the standards, we worry that more car loans will not be paid at all and will become bad debts.
This puts Tongyong in a dilemma. Even if they have stopped the real estate credit business, they cannot also stop the car credit business.
So what business is left of this financial credit company, and where does its revenue come from
But Tongyong can't stop the factory now, let alone shut down the factory, otherwise the employees will definitely go on strike. If those employees go on strike, the company's losses will be even greater.
…
"Boss, I have told Tongyong that we will not consider acquiring any assets of Tongyong in the short term. I think Tongyong will definitely regret not agreeing to our conditions in the first place!" Ralph said with a smile.
If Tongyong had agreed, Fengyu Holdings would have acquired some of Tongyong's businesses.
It's a pity that Tongyong thought they were the world's number one car company at the time. They held their heads high and refused to relax some conditions. Now, have you tasted the consequences
Feng Yu's fingers kept beating on the table, and he was recalling the consequences of using it together in his previous life. But now it seems that the same situation will become even worse.
"Well, no matter what conditions the partner offers, don't agree to it, even if they give it away for free!"
Ralph didn't understand. If the other party really made a good offer, wouldn't he accept it? That will be of great help to the boss in expanding his global automobile business.
Didn’t the boss say that he wanted Bingcheng Machinery Manufacturing Group to be the largest in the world
Although he didn't know what the boss was thinking, what the boss said was his highest rule, and he would definitely follow it.
Feng Yu actually likes some of Tongyong's businesses, and acquiring them will indeed greatly promote his automobile kingdom.
But the acquisition is not cost-effective now and is equivalent to bankruptcy. Wouldn't it be better to negotiate at that time? Even if they can't receive it by then, when Tongyong goes bankrupt, it will be the time when they are about to expand.
Maybe we can also acquire some of the businesses of Crazy Field and Dezhong at that time, which would be even more perfect!
… (To be continued.)