Chapter 189: Holding Hands with Rover
BMW entered China without looking for three major and three small joint ventures, just to no longer involve state-owned enterprises, and at the same time, it does not want its future joint venture partners to be involved with other international auto giants. Pen × fun × Pavilion www. biquge。 info
Now that the Zhonghua Group and the Second Automobile Group are reorganized, if BMW is added, it should be a joint venture between BMW and the Second Automobile in name, which is not a situation that the BMW management wants to see.
"We signed an agreement with FAW before the reorganization, and once the Chunghwa Group has its own car license, the partnership between the two parties will be automatically terminated, and the Chunghwa Group will be able to regain its free body. China will soon join the WTO, and our government has promised to revise its car policy in line with international standards, so the future car catalogue is not too much of an obstacle. A semi-closed country will need more patience and time to seamlessly integrate with international trade rules. ”
In July 2000, the prime minister of the country will leave for a visit to Europe, and if nothing else, China and the EU should reach a bilateral cooperation agreement, and the official entry into the WTO will be successful before the end of the year.
Han Hao understood BMW's worries, so he did not hesitate to reveal the agreement reached between himself and the second automobile. Not to mention BMW, even Han Hao himself is unwilling to really have anything to do with the Second Automobile, because this huge central enterprise has faltered, and even its self-supply ability is about to be interrupted.
For the second automobile, in addition to the good news of the state-approved debt-to-equity swap, it should be that the Fengshen Blue Bird is about to be listed.
In the face of the hot mid-level car market, it is expected that the Fengshen Bluebird, priced at 220,000 yuan, will be a very competitive latecomer.
"There are simple things that become complicated once you come to China, and we can only believe that this is the result of different national conditions, so we need to find strong local partners to deal with them together. After returning to China from this visit, we at BMW will officially decide who to cooperate with and jointly create the dream of a global BMW in China. In any case, Mr. Han Hao, we appreciate your honesty and insight, and even if this cooperation is not successful, you have gained sincere friendship from BMW. ”
After listening to Han Hao's introduction, Chairman Pang Ke replied very frankly.
"Even if the cooperation with BMW is not followed, we have another business to introduce. As you may know, now that Rover MG Group has just been spun off from BMW, they are looking for new partners around the world to grow together. If you are interested in the Chung Hwa Group, we can match you up, after all, they were part of the BMW Group. Perhaps the Chinese market could give the century-old British car brand a new lease of life. ”
At this time, BMW President Milberg came in and was looking for a partner for the New Rover Group. BMW has provided a £427 million interest-free loan to the new Rover Group, and if Rover goes bankrupt in the future, BMW's huge sum of money could be wasted. Therefore, BMW, as the largest creditor, is one of the aspects that most hopes that the new Rover will stand up.
Cooperation with the new Rover Group, this is really an idea that Han Hao never thought of, and now the other party only has two brands left, Rover and MG, with Rover 25, 45, 75 three major platforms and corresponding models, as well as 1.1-2.5L full range of engines, and finally more than 7,000 workers and Longbridge Automobile Production Plant.
The Rover 75 is a completely new platform built with the help of BMW, and it has a high level of technology. The Rover 45 is a platform port of the Honda Civic, while the 25 is Rover's own old platform.
Compared with the Zhonghua Group, despite being a skinny camel, Xinrover is still bigger than the weak horse of Zhonghua.
It would be a very good choice if it could swallow Rover, and it would solve the dilemma of the platform, engine and R&D personnel at once, but it would definitely not be possible to do so with the strength of the China Group now. The purchase price alone is estimated to be more than 1.5 billion pounds (nearly 13 billion yuan), and Han Hao's bankrupt family cannot make up this huge amount of money. What's more, as soon as he thought that BMW had lost $6 billion from it, Han Hao extinguished the idea of acquisition. The British government and local trade unions are not easy to mess with, even BMW almost can't get out, and the Chinese must be gnawed to the slag when they go in.
Of course, Milberg did not mean to let Han Hao buy Rover, he proposed that Zhonghua Group could enter a joint venture with Rover to produce ordinary cars for sale in the Chinese market. The Chinese market can afford high-premium sedans, and models like the Rover 75 may find a good place to play.
For Millberg, who is a well-known fan of the Rover 75 platform, the car actually performed very well, but it was marginalized because it didn't show much value in the UK. If it is slightly improved, it may become a hot-selling product in the market when it enters the Chinese market.
Han Hao wanted Rover's technology, not Rover's products, and Rover-branded cars only have a certain degree of popularity in the United Kingdom, and are not mainstream models in the world. When asked about many Chinese, even if they are old drivers for many years, they may not have heard the name Rover, or even less famous than Lada.
"Is there a direct connection between cooperation with New Rover and cooperation with your BMW? If we can't talk to New Rover together, will BMW also use this as a decisive factor for cooperation?"
The joint venture with Rover has a relatively certain market opportunity, after all, China's automobile market is now lagging behind the international mainstream level as a whole. That is, since last year, GM, Honda and Audi began to launch products in line with international standards, and China has kept up with the pace of the times. Otherwise, it will continue to be the old three products of the 80s and will be used in the new century, and Chinese consumers can only satisfy their hunger through newspapers, magazines and television channels to see the latest international sedan models.
Han Hao must confirm this whether BMW and Rover are still tied together, so that he can make the next decision.
"We, BMW, and Rover have broken up amicably, and now they are completely independent brands, and BMW's decision Rover cannot interfere, we just recommend it morally in passing. After all, we believe that compared with China's own car brands, Rover Motors still has a technological lead. I agree with what you said earlier about the guiding ideology of the joint venture company first, and BMW will take the interests of the joint venture company as its program of action. ”
BMW President Milberg quickly explained that Rover is no longer related to BMW, and now his priority is to ensure that BMW is the first.
Receiving such an answer, Han Hao breathed a sigh of relief, if Rover, a hot potato, is bound to BMW, then it will be a dilemma for him to pick up or not.
If BMW was willing to give the New Rover to himself for 10 pounds and put a dowry of 427 million pounds, then Han Hao would probably be happy to laugh at it. Of course, this is absolutely impossible to be accepted by the British, and no matter how broken the house is, it cannot be casually committed to marrying a poor boy from the East.
However, Rover still has a certain value, and Han Hao is willing to contact the new Rover side to see if he can get what he needs from it.
The inspection in Zhonghua Group is basically satisfactory, and now the production line of Zhonghua Car can produce BMW 3 Series and 5 Series luxury cars as long as it is renovated, and the annual output will reach 30,000 units, which is in line with BMW's expected target.
Leaving Zhehai and coming to Brilliance Group, the BMW delegation felt a different scene.
When Jin Yangyong learned that BMW went to Hushan first, he knew that the balance was not in his favor, and the Zhonghua Group had indeed developed very rapidly recently. He must use this opportunity to show Brilliance's strengths as much as possible and turn the situation around.
However, Brilliance also has its own advantages, that is, in addition to the flexible operation mechanism of private enterprises, it is also a local key support for state-owned enterprises. In China, even Toyota knows that it is necessary to find the strongest partner in the mainland to have a bright future, because many policy factors need to be handled by the Chinese side. Now, Brilliance Group not only has the private mechanism favored by BMW, but also has the support of the government background.
Another point is that Shenjing City, where Brilliance is located, has similar climatic conditions to those in Germany, and has advantages over Zhonghua Group on the basis of heavy industry support. Jinbei bus has been produced for many years, and has also cultivated a relatively complete supplier system in the local area.
Moreover, Jin Yangyong is still a good hand at making relationships, and the BMW car of the group's management is much closer than that of Zhonghua Group. On the production line, the same can be transformed after the colinear market BMW sedan.
"As long as BMW agrees to a joint venture with us, we can make appropriate concessions in terms of equity, even if you have a controlling stake!"
The Chinese government has set a minimum 50:50 shareholding ratio for both Chinese and foreign parties in a joint venture, but this is an old calendar, and Jin Yangyong believes that after joining the WTO, China will definitely revise its automobile industry policy and will no longer impose a mandatory shareholding ratio for joint ventures. Of course, this is also one of his negotiation strategies, deliberately showing weakness to lure BMW into the set, anyway, in the future, the Chinese government will not allow foreign parties to take control, so it has to continue the 50% joint venture. If BMW chooses to make a joint venture with Brilliance, will it regret it in the future because of this?
BMW wants to find a weaker joint venture partner in China to take control, and now Kim Yangyong has offered to allow BMW to take control, which is really a big plus.
"I am very interested in working with the olive branch of New Rover. To tell you the truth, although I hired an Italian designer to build the Zhengdao sedan, I have always had a heart disease that makes it difficult for me to sleep, and that is the problem of the engine. If Rover is willing to supply engines in the future, we will have a strong complementary base. At that time, the low-end models of Rover can enter the Chinese market with the Zhengdao brand, and the mid-range 75 models can use the Rover brand, and we have a broad space for cooperation. BMW focuses on the luxury market, while Rover and Zhengdao occupy the ordinary entry-level sedan market, forming a force to be reckoned with in the Chinese auto market. I can guarantee that Rover Motors will sell at least 100,000 units in China every year, so that the Rover management can give an account to the British government and workers!"
It can be said that Kim Yangyong is very insightful when talking about strategy, and his ideas are also very bold. Others think that it is already good for foreign brands to enter China and sell 10,000 units, but he thinks that at least 100,000 units will start. BMW's arrival this time gave him a great opportunity to solve the problem of the engine of the Zhengdao car.
He plans to set up an engine joint venture with Rover in China, either to buy or to introduce, and take this opportunity to improve Brilliance's engine technology.
Now that the sedan market is so booming, Rover 75 will definitely be sold as long as it is brought to China, and Jin Yangyong has already moved his willingness to make a joint venture with Rover.
Both well-known entrepreneurs in China, Jin Yangyong and Han Hao perform completely differently, Jin Yangyong dares to think and dare to do, and Han Hao likes to hit the camp with one blow every step of the way. One high-profile likes to talk high-mindedly, and the other low-key likes to be silent is Jin, one north and one south, Jin Yangyong is often compared with Han Hao.
This time, the 1999 Forbes rich list did not include Kim Yangyong on the list, which made him very unhappy, because Hurun couldn't understand what the property rights of Brilliance Group were.
Seeing Han Hao's scenery ranking second on the rich list, Jin Yangyong was naturally unconvinced, and he had already made up his mind to take the initiative to contact Hurun this year, so that he could understand how much net worth he had. Even if he only owns 10% of the shares of Brilliance Group, he is also a super-rich man with a net worth of more than one billion yuan in China.
Jin Yangyong's two major statements have indeed changed BMW's attitude, and the balance between Brilliance and Zhonghua Group has once again been balanced, and BMW's management is once again facing a difficult choice of who to choose as a joint venture partner.