MTL - Reborn Capital Empire-v2 Chapter 639 Hunan Torch

Chapter 639 Xiang Torch

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"Wang Jue, continue!"

After answering, she turned to the information of 'Xiang Torch'.

"The predecessor of Hunan Torch was a state-owned enterprise founded in 1961—Zhuzhou-Zhuzhou Spark Plug Factory in Hunan Province. It was restructured into a joint stock limited company in 1993 and listed on the Shenzhen Stock Exchange in the same year. It was the first listed company in Hunan Province. In November 1997, Delong International Industrial Corporation acquired 25.71% of the state-owned shares of Hunan Torch held by Zhuzhouzhou State-owned Assets Administration Bureau and became its largest shareholder. While injecting 70 million funds into Hunan Torch and increasing its shareholding, Germany Long also injected the concept of developing "big auto parts" into it. And formulated a three-step strategic plan."

"The first step: In 1999, it acquired a 75% stake in MAT, the largest brake system importer in the United States and its 9 joint ventures in China, thereby gaining a 15% share of the U.S. auto parts import market. And with the United States DELPHL Company, DURA Company in the United States, DELPHI Company in Korea, Daewoo Company in Korea, EATON Company in the United States, ZF Company in Germany, MAN Company in Germany and other internationally renowned companies have formed strategic alliances.”

"The second step: In 2001, Shaanxi Fast Gear Co., Ltd. was established as a joint venture with Shaanxi Automobile Gear General Factory, and Hunan Torch held 51%, and thus became a leading enterprise in the domestic automobile gear industry, controlling the key to domestic vehicle manufacturing. Parts company."

"The third step: Starting from July 2002, Hunan Torch released announcements one after another, investing huge sums of money into the field of automobiles, extending the industry chain of Hunan Torch to the upstream and downstream. In July 2002, Hunan Torch announced that it would invest 36 million yuan and Dongfeng Motor established a joint venture Dongfeng Off-Road Vehicle Company, accounting for 60% of the registered capital. It introduced American Hummer technology to produce 'Tiejia' off-road vehicles. In September 2002, it established a joint venture with Shaanxi Automobile Group to establish Shaanxi Heavy Vehicle Co., Ltd. In the month of cash contribution of 250 million yuan, accounting for the registered capital, Shancheng Heavy Duty Truck Group and Delong International signed a contract to jointly establish Chongqing Hongyan Automobile Co., Ltd., and Hunan Torch invested 255 million yuan in cash, accounting for 51% of the registered capital of the joint venture company. %, Delong International invested 20 million yuan, accounting for 4%.”

"In addition, in January 2003, Delong International Holdings acquired two vehicle manufacturing plants under the former Sanjiang Aerospace Brilliance Automobile Co., Ltd. - Sanjiang Renault and Guizhou Aerospace Automobile Manufacturing Co., Ltd. for 379 million Chinese dollars. We have three production lines for welding and final assembly, with an annual output of 150,000 'Tafik' light commercial vehicles."

"By the end of 2003, Hunan Torch had become China's largest military off-road vehicle production base, China's largest R&D and production base in China's gear industry, China's largest spark plug production base, China's largest piston pin manufacturer, and China's second-ranked air-conditioning compressor. China's largest export manufacturer of automotive brake systems to the United States. The domestic market share of spark plugs, gears and other products has reached 40%; the annual output of EATON gearboxes is 100,000, accounting for 85% of domestic large-tonnage heavy-duty gearboxes The annual output of ZF gearbox is 50,000 units, accounting for 90% of the domestic market share of mid-to-high-end vehicle gearboxes. The annual production and sales of heavy-duty trucks exceeds 30,000 units, with a domestic market share of nearly 50% of heavy-duty trucks over 15 tons. "

"Up to now, Hunan Torch has 72 subsidiaries at home and abroad, the company's total assets are 17.9 billion Chinese dollars, the total liabilities are 3.27 billion Chinese dollars, the main business income is 3.76 billion Chinese dollars, and the company has achieved a net profit of 230 million Chinese dollars. The return on assets is 12.7%, which is the company with the best financial performance among the core companies of Delong."

"This Hunan fire cabinet is an authentic Tang monk meat. More than 20 domestic and foreign companies such as FAW, SAIC, China National Heavy Duty Truck, Yutong Bus, XAC International, Modu Electric, Sany Heavy Industry, JP Morgan, Wanxiang, Weichai, etc. Every company is constantly asking for our opinions on the handling of Xianghuo cabinets." Zhang Lei said with a smile.

"Needless to say about them, apart from valuing its financially rich photographic resources, another important reason for my acquisition of Delong is the automobile empire, which accounts for one-third of its industrial assets!" Guo Shouyun said with a smile.

No one knows how big China's auto market is. That was the No. 1 global sales volume for ten consecutive years. At its peak, it was close to 30 million annual sales, accounting for an astonishing one-third of the global auto market. Moreover, she also accounts for 26% of BMW's global sales, 27% of Mercedes-Benz's global sales, 37% of Audi's global sales, 39% of Volkswagen's global sales, 50% of Volkswagen's global sales, and GM's global sales. 40% of sales. How could Guo Shouyun not covet this supermarket with a scale of trillions of Chinese coins.

If it hadn't been for a better acquisition target, he wouldn't have waited until now.

"Although Hunan Torch operates well, it still has a lot of non-performing assets. The biggest one is Sanjiang Renault. It has a manufacturing capacity of 150,000 5-door light commercial vehicles. As a result, from 1994 to 2001, only more than 4,000 towers were sold. Fick Motors is now close to bankruptcy."

"What's the reason? Has it been investigated?"

Zhang Lei nodded, "According to our investigation, there are five main reasons. First, the price is high. Now the best-selling Jinbei sea lion in China is priced at around 60,000, while the Tafik of the same model is sold for 150,000. Second, in the case of high prices, Tafiq, like most French cars, has constant minor problems. Once there is a problem, the required parts have to be shipped from France, which takes too long and the repair price is too high. Third, technical barriers. In order to avoid technology theft, 75% of Tafiq's components are imported from abroad, which not only increases the price of the whole vehicle, but also causes a shortage of suppliers."

"...Fourth, the first car manufacturers to enter the Chinese market were German cars and Japanese cars. Compared with them, many designs of French cars are not pleasing, such as: non-turning steering wheel decoration, gear position, headlights, etc. The problem is that Chinese people who are accustomed to German cars are not used to it. Fifth, publicity. Compared with the advertising investment of German cars and Japanese cars in the Chinese car market, I rarely see French car advertisements. I am afraid of the fragrance of wine here. In the age of deep alleys, such a marketing strategy is undoubtedly self-defeating."

"What's the solution?" Guo Shouyun nodded and continued.

"Buy another 45% of the shares from the French and get the right to operate independently. Give up the 'Tafik brand' and redesign a light commercial vehicle, using all domestic components. Moreover, Hunan Torch is the largest in the country. It can also increase our market and revenue in disguise.”

"If it wasn't for Hanhua, I would really like you to be the CEO of Hunan Torch."

Zhang Lei always sees the problem sharply, and he does not hide his appreciation for the handsome talent he relies most on in China.

Zhang Lei smiled and said nothing. Although Xiang Torch is good, it is nothing compared to Han Hua. Of course, Guo Shouyun is just talking about it, Zhang Lei's talent is still in finance.

"The rectification plan for Hunan Torch is as follows: First, reorganize Hunan Torch into Hongxing Automobile Group, with three directly-administered subsidiaries: Red Star Automobile Company, Hunan Torch and Hongyan Heavy Truck Company. Among them, Hongxing Automobile Company is mainly engaged in light commercial vehicles and sedans. and off-road vehicles; Hunan Torch is mainly engaged in auto parts; Hongyan Heavy Truck is mainly engaged in medium-duty trucks of 8-15 tons, and heavy-duty trucks of more than 20 tons. Second, end the cooperation with Dongfeng and sell the 'Tiejia' military off-road vehicles to them !"

Even if the behind-the-scenes holding company of Red Star Automobile Group is Yunfan Investment and registered in Huaxia. But as long as you involve yourself, it is not easy to contact Huaxia's sensitive industries, especially the military field.

All the smart people present, coupled with their familiarity with Chinese politics, no one objected to his decision.

"...Third, the acquisition of British Rover Motors!"

"With all due respect, Rover Motors is not worth buying!" Brito said, while everyone looked at it, "Although Rover used to be brilliant, it has lost 30% since it was acquired by BMW Group in 1994. It has become BMW's biggest burden. In 2000, Ford paid 3 billion euros to buy Land Rover off-road vehicles from BMW Group, including Range Rover, Discovery, Liberty, Defender and other brands. So far, Rover Motors The company only has two brands of 'Rover' and 'MG', which were brought back to the UK by the Phoenix Group, a British private investment institution, at a symbolic price of 10 euros at the end of 2000. However, as a British car company, Rover still has no It can change its decline, and it is now close to the brink of bankruptcy."

"Mr. Brito, I didn't expect you to be so familiar with Rover Motors!" Guo Shouyun laughed.

"After my MBA from Stanford University~www.novelbuddy.com~ I joined Lehman Investments and participated in the acquisition of Land Rover off-road vehicle series by Ford."

Guo Shouyun nodded, "I bought Rover Motors, not because of its sales in Europe. I only intend to make up for the lack of Red Star Motors in the design, manufacture and technology of sedans and off-road vehicles. The products are mainly aimed at the Chinese market. In addition, With the help of Huaxia’s low labor costs, if the Rover cars made by Huaxia are returned to Europe, and with the help of price concessions, maybe Rover can be brought back to life in Europe.”

"With Mr. Guo's strength and ability, why not buy American Chrysler?"

"Chrysler is too big, and I can't come up with that kind of capital. And as the third-largest auto company in the U.S., acquisitions take a long time. It doesn't match my strategic plan for Red Star Motor Group. Instead, Rover Motors is more suitable."

The first car Guo Shouyun bought was the MG GS. Although this car has problems such as loud noise at high speed, too hard shock absorption, and obvious frustration when accelerating, people always remember the first time, and the same is true of the car. The most important thing is that although the Huaxia auto market is developing rapidly now, he is not ready to spread the stall too much. Although Rover is 108,000 miles worse than Chrysler, it is suitable for the current Red Star Motor Company.

"If we buy Rover, where will we build the processing plant?" Zhang Lei asked.

"This is not in a hurry, let's do some investigation." Guo Shouyun said, "As for the candidate for CEO, I don't have a suitable candidate yet, and I will inform you after I inspect it."

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