How much is a Volvo worth?

Extrapolating from the transaction price of Jaguar Land Rover, it is about 2.5-3.5 billion US dollars, totaling between 18.5 billion and 25.5 billion yuan.

This may seem like a lot of money, but it is not an unaffordable figure for the three major auto groups with state backing.

You must know that in order to revive the Hongqi brand, FAW Group has spent a large budget of 10 billion yuan and organized a lot of manpower and material investment.

After Zhu Tianfeng left office, his successor Xu Yili inherited the line of his development plan for FAW and proposed the "Hongqi Revival" plan, intending to use 5 to 10 years to build Hongqi into "China's first and only luxury brand"!

Hongqi cars were originally the pride of all Chinese, but with the high and low of the Hongqi brand, they usually disappeared on the road, and could only be seen when the "News Network" received foreign guests, and the feelings of the people towards it inevitably faded over time.

On the contrary, now the new independent brand, Zhonghua Motor, has begun to be praised by most Chinese people, because everyone can see the products produced by Zhonghua Group everywhere on the streets and alleys.

One is high up, and the other is mingling with the grassroots, and it is self-evident who has more supporters.

"If he had done this ten years earlier, Lao Tzu would not have gone south! The red flag had a good deck of cards, but he was suffocated to death by himself.

Those losers, one by one, are lying on the merit book, accustomed to the days when the joint venture dividends, and now they know that they are in a hurry!"

Knowing that FAW had really spent a lot of money to revive the Hongqi brand, Ling Yunzhi really loved and hated it. If we could have listened to him and erected the red flag early to be independent, with the size and influence of FAW, how could we have the good situation of the current Zhonghua Group.

"Two days ago, the factory also made a special call, asking us old FAW people to go back and make suggestions to see how to do a good job in the Hongqi brand.

If it weren't for the fact that I couldn't get out, I really wanted to go back and scold these uncompetitive guys. ”

Han Hao had just returned from abroad, and Ling Yunzhi, vice president of the group, mentioned this matter in his work report. Although he scolded verbally, Han Hao still heard the other party's hatred of iron and steel.

"Lao Ling, I have approved your fake! If there is anyone in China who can have the most say in the red flag, you must be one of the candidates.

Since FAW took the initiative to invite, then you can go back and see if there is anything that can help. ”

Han Hao took the initiative to take over the conversation, and agreed with great interest that Ling Yunzhi would return to FAW as a staff officer. At that time, Ling Yunzhi was not used to seeing the FAW sealing the red flag, and he was angry to promote the joint venture and followed Han Hao to start a business in the south.

"Hongqi is a brand that we have envied since childhood, and if it can be revived, it will be a great thing for our Chinese auto industry.

I'm not pretending, the China Group is not afraid of new competitors now, and if the red flag is raised, it will be a spur to us. Dugu has no opponent to seek defeat, and it is also a kind of wordless loneliness. ”

Hongqi has been out of the market for too long, even the Pentium with Mazda technology and the new Hongqi with Toyota technology have not been able to achieve the expected sales in the market.

Therefore, even if Hongqi does make a move, it will have to wait for the next cycle to have feedback. What's more, now is not just a loud brand can eat all the four sides of the era, the core components, sales channels, after-sales service, cost control and other factors add up is the product competitiveness, it can be seen that the revival of Hongqi has a long road.

It was based on this consideration that Han Hao suggested that Ling Yunzhi go back. The Chinese pay attention to the fallen leaves and return to their roots, Ling Yunzhi is nearly seventy years old, and he has reached the retirement age as early as possible, and now he is over-age service.

"Okay, since you've spoken, I'll take the time to go back and have a look. Now it seems that I should be able to return home. ”

Ling Yunzhi knew that Han Hao's vision was no longer limited to China, and after the acquisition of Jaguar Land Rover, the Hongqi brand and even the FAW Group were no longer among his main targets. The opponents of the Chung Hwa Group are no longer at home, but those multinational car giants who are potentially underwater.

Since resigning in anger that year, Ling Yunzhi has never returned to FAW, and occasionally went back to visit relatives and friends, and no longer stepped into the gate of the FAW factory as an official automobile practitioner.

Now that FAW has taken the initiative to hand over an olive branch, it is impossible to say that an old FAW person like Ling Yunzhi is not moved. However, it was difficult to recover the water, and Ling Yunzhi knew that he could only come up with ideas from a bystander, and it was absolutely impossible to go back to work.

At present, Zhonghua Group has completed the goal of surpassing the "three major and three small" automobile giants and becoming the first domestic and the world's top ten car companies.

The replacement of the old and the new is inevitable, and Ling Yunzhi, who already feels that his work is a little inadequate, plans to officially take a back seat after the Olympics and hand over the scepter to the next generation.

The candidate to replace him is naturally his proud apprentice, Wei Changhui, a cadre who jumped from the second automobile.

Wei Changhui has effectively integrated the resources of Yaxing Bus and created a new energy bus, so that China Bus can serve the Olympic Games as scheduled and enter the bus market in first-tier cities such as the capital.

Therefore, half a year ago, Wei Changhui was transferred back to the group by Han Hao to serve as the vice president of Zhonghua Group, and now he is responsible for all the service work related to the Olympic Games, and the intention of succeeding Ling Yunzhi is very obvious.

Treating heroes well can be said to be one of Han Hao's personality charms.

Miao Zhenhua, an early hero who has retired and retired to retirement, is also a veteran who started a business together, and whenever there is a major celebration of Zhonghua Group, he is a special guest and has a special car to attend. The income from the shares of Zhonghua Group in his hands is equivalent to a lifetime of salary income, which is enough for Miao Zhenhua to live a comfortable retirement life.

With the continuous development and growth of Zhonghua Group, many partners who used to start businesses together have left their side one after another for various reasons, which makes Han Hao feel a little sad when he thinks about it.

Ling Yunzhi is in charge of the production work of Zhonghua Group and is one of Han Hao's most powerful assistants. Therefore, there is an opportunity for Lao Ling to reconcile with FAW to let go of the knot, Han Hao does not want to miss such an opportunity. For people like Ling Yunzhi, money and material treatment are no longer his pursuit, and spiritual satisfaction is the key.

This time, Lao Lingfeng returned to his hometown in a beautiful and beautiful manner, and it was also the greatest thank you to him for following him to the south to start a business.

Having said that, FAW is ready to spend tens of billions of dollars to revive Hongqi, an independent luxury brand, so it intentionally or unintentionally stated that it will not participate in international mergers and acquisitions.

It is a special case that FAW has the trump card of Hongqi and does not participate, and other domestic car companies have made great efforts to go to sea. First, mergers and acquisitions can quickly improve political performance, and second, the acquisition funds come from loans from state-owned banks, and if they fail, they do not have to be personally responsible, and the state will bear them.

Risk is not proportional to the benefit, as long as you take a very small risk to get a huge benefit, the only key is to nod from above.

As long as the National Development and Reform Commission agrees, then car giants like SAIC and Changan can easily raise huge sums of money for acquisitions.

In this regard, Han Hao was already aware of such problems when he set up the preliminary working group for the acquisition of Volvo.

Fortunately, time has become an advantage in the hands of Chung Wah Group.

In the case that Jaguar Land Rover has not completed the delivery, Zhonghua Group took the lead in submitting its intention to acquire Volvo to the National Development and Reform Commission, intending to apply for the National Road Strip.

"Volvo, why haven't I heard that Volvo is going to be sold? Is the Zhonghua Group having too much money to burn and play? I just spent billions of dollars to buy Jaguar Land Rover, and I plan to use billions of dollars to buy Volvo, what a mess!"

The official in charge of examination and approval by the National Development and Reform Commission couldn't help but reprimand after receiving the application.

"Is Han Shoufu so much money used to buy? If he does this again, it will not only mess up the domestic automobile industry, but also lead to the loss of foreign exchange!

Jaguar Land Rover didn't do a good job, so I thought about Volvo again, thinking that it was a child's play, one plus one equals two, do you want to do whatever you want?"

Before it was difficult to pass the road of Zhonghua Group's acquisition of Jaguar Land Rover, the official was not optimistic about this acquisition, and he didn't expect Han Hao to give himself another problem.

Although the external and domestic media sang praises for Zhonghua Group's acquisition of Jaguar Land Rover, he knew that SAIC had decided to get out of Ssangyong, and the estimated loss was at least 3 billion yuan. The real future of the Jaguar Land Rover project is not as bright as it seems, and if you are not careful, you may have to fail overseas.

As the first real cross-border M&A case of a domestic car company, SAIC Ssangyong confirmed the failure, making the National Development and Reform Commission more cautious about cross-border M&A. The most important thing in cross-border mergers and acquisitions is to solve the problem of cultural conflict, and it is obvious that the Chinese have no experience in this.

Now Zhonghua Group's acquisition of Jaguar Land Rover, the acquisition funds plus follow-up investment of at least 3.5 billion US dollars (a total of 25.5 billion yuan), once it fails, it will be a huge loss, more serious than the consequences caused by SAIC Ssangyong.

If you throw billions of dollars at Volvo and invest tens of billions of yuan, the risk of future operation is extremely high, and it is too difficult for the Chinese auto industry that has just learned to walk if you want to do a good job of the two luxury brands that have been abandoned by Ford at the same time, so that people cannot see the signs of success.

If the Chunghwa Group successfully integrates Jaguar Land Rover and makes certain achievements to achieve revival, then everyone has nothing to say and acknowledge Han Shoufu's ability to manage multinational companies.

But just swallowing a mouthful of hot porridge and rushing to scoop up a second mouthful of hot porridge will choke people to death, and it is really impossible to convince the central officials who believe they are responsible for the healthy development of China's auto industry.

As everyone knows, this is one of Han Hao's strategies, if Jaguar Land Rover integrates good results, everyone sees the benefits of cross-border mergers and acquisitions, and they will definitely rush to compete.

He is playing the time difference, when everyone sees a good prospect, but is worried that the huge investment will be risky and hesitant, the China Group can go all out to grab it.

The state's money is indeed used without much responsibility, but the National Development and Reform Commission still plays the role of supervision after all. If you can't pass the project evaluation, you still can't get the road if you want to go to sea.

Sure enough, shortly after Zhonghua Group submitted its application, SAIC Motor also sent a letter of intent, hoping that the state could support SAIC to acquire foreign countries again.

"I said that Zhonghua Group made a bad start, brought all the domestic car companies badly, and rushed to send money abroad one by one.

SAIC has just lost billions of yuan in Ssangyong, and wants to spend tens of billions of yuan on mergers and acquisitions overseas.

The document also reads, 'It is precisely with the experience of the acquisition of Ssangyong Automobile that our company can more calmly deal with the risks brought about by cross-border mergers and acquisitions'!

Look, they are not only interested in Volvo, but also interested in targeting Opel cars, which is really more than one appetite!"

It is still the official who does not agree with the blind cross-border mergers and acquisitions of Chinese car companies and said angrily that he still admires SAIC for daring to report again to apply for cross-border mergers and acquisitions after a huge loss of billions.

"What about the money, how did the money come from tens of billions of mergers and acquisitions!

SAIC said it was ready to raise funds in the stock market, and then the local government would support a large part of it through bank loans, plus its own funds could raise the required M&A expenses.

It's quite easy to think about!

They are not as good as Zhonghua Group, at least on the application documents submitted by Han Shoufu, it is clear that the funds for cross-border mergers and acquisitions have been prepared for cross-border mergers and acquisitions, and they are all using their own money!"

After a simple comparison, the official found that it was better to support the Zhonghua Group, at least once the loss was Han Hao's private property, there was no need to worry about the loss of state-owned assets.

The paper can't hold the fire, the two major competitors of China and SAIC have submitted merger and acquisition applications, and Changan Group has also hurriedly sent the application report to the National Development and Reform Commission.

"Most of the time ago, only Zhonghua Group was keen on cross-border mergers and acquisitions. Unexpectedly, a few months have passed, and domestic car companies are like taking ecstasy, swarming to climb up.

In the past, it was always said that Chinese car companies do not have a long-term plan, but today I have seen it.

Chang'an Group simply does not have the strength to participate in international mergers and acquisitions, and their internal integration has not been straightened out, so they are in a hurry to learn from Handan.

Aside from being involved in the OEM relationship for Volvo in China, I don't see the advantages of their acquisition of Volvo.

The M&A financing plan was not mentioned in the documents sent, and it seems that the name was first registered, and then I thought about how to go next.

You said that at such a level, running to international mergers and acquisitions is not to give money to people!"

Because it is under the North Industries Group, Changan Automobile has integrated many subsidiaries of the group, so it is considered by officials of the National Development and Reform Commission to be ambitious if it has not done its job well.

Excellent is always compared, and compared with all the domestic car companies that are rushing to go to sea, the National Development and Reform Commission found that Zhonghua Group at least has a lot of merits.

At the very least, if it fails, it will ensure that the state-owned assets will not be lost.