Just entering 2009, the Chinese made big news in the automotive industry.

Chunghwa Group officially reached an agreement with Ford Motor to acquire Volvo Cars for $1.8 billion, becoming the new owner of Nordic Raytheon.

At the beginning, Ford spent nearly $6.5 billion to acquire Volvo, but now it is only sold for less than one-third of the price, which can be described as a big fire sale at a loss.

The reason is that Volvo lost a total of $1.7 billion in 2008 and is expected to continue to lose $1 billion in 2009, with a possible loss of nearly $2.7 billion in just two years. In addition, it is necessary to invest no less than 1 billion in research and development funds, and it is such a bad business situation that makes the Chinese pick up the cheap.

"This amount was agreed upon after many rounds of discussions, and although we finally made a concession on the numbers, it was all about making Volvo travel lightly and have a better future in the future.

The Chunghwa Group is a very good next home, and Land Rover's performance last year fully illustrates this. ”

In an interview with reporters, a spokesman for Ford Motor made a special explanation for the transaction amount of 1.8 billion.

At the same time, after painstaking negotiations between Chunghwa Group and Tata Motors, and with Ford's approval, the Jaguar brand will be sold to Indians for $800 million.

In the future, Jaguar will be operated by Tata Motors as an independent brand, regaining its Commonwealth lineage.

The deal was approved by the British government and trade unions, and both Chinese and Indians are good people as long as they can inject money into their business seriously.

The $800 million he received from selling Jaguar allowed Han Hao to actually raise $1 billion to buy Volvo back, which is really a super cost-effective business.

Volvo alone is worth more than 1 billion in the world, not to mention a series of heavy assets.

Volvo has a complete database of more than 80 years of vehicle and parts development, more than 4,000 senior experienced scientific research talents, 15,000 automotive patents, 10 series of sustainable evolution of the main models, 600,000 production capacity of 4 vehicle factories, and 2,300 sales and service outlets in more than 100 countries and regions around the world.

"Ford fell, China is full!"

Some media have used such a headline to describe this transaction, and it is very certain that the strength of Zhonghua Group will be greatly expanded.

It is news that many people know that Zhonghua Group and Ford are negotiating to acquire Volvo, but Han Hao's resale of the Jaguar brand to Indians is a blockbuster that everyone did not expect.

With Volvo, of course, there is no need for Jaguar, because the two tend to be the same in terms of positioning. Han Hao's resale of Jaguar is actually a win-win strategy for all parties, and no party is dissatisfied with the damage to their interests. Chunghwa Group reduced its burden and recouped funds, Tata Motors obtained internationally renowned car brands as a façade, Jaguar ushered in a new owner who took care of its own development wholeheartedly, and Ford Motor reduced its burden and found a good in-law for selling its brand.

However, while several major parties to the transaction are optimistic about the future, many industry insiders are not optimistic.

There are few successful cases of cross-border mergers and acquisitions in the automotive industry, and Mercedes-Benz has just broken up with Chrysler, not to mention Ford's big sale.

Even if the Renault-Nissan alliance is successful, it has only achieved certain results after several twists and turns.

To this end, a reporter interviewed Ghosn, president of Renault-Nissan, what his views are on the acquisition of Volvo by Chinese enterprises.

The outspoken Frenchman replied directly: "If it were my opponent, I would encourage him to buy it." But if it's my friend, I'll let him touch it. ”

Even the recognized M&A stars in the automotive industry did not agree with this M&A deal, which shows why Ford sold Bentley, Jaguar, Land Rover and Volvo, and no familiar international auto giants responded to the offer, because they were not optimistic about such a merger and acquisition model.

"Whether Chinese or Indian, before taking out a check and signing their names, they should think carefully: why has it not been successful in the past under the operation of the world's second largest car company like Ford, and what magic weapon do they believe they can make them successful?

In particular, Zhonghua Group has successively taken over Land Rover and Volvo, two major loss-making companies. If they fail to make their operations profitable in the next two years, it will drag the entire Zhonghua Group into the water, and it will not be alarmist to sell them again.

Perhaps then will be the best chance to take over Land Rover and Volvo. ”

An international automotive industry critic unceremoniously gave a negative assessment in the media.

"I know there's a lot of noise out there, but they don't even really get into the company and come to conclusions. When it comes to knowing Land Rover and Volvo, I should be at the top of them.

I started my way from scratch and certainly knew what kind of check to put my name on. Buying Land Rover and Volvo was one of the best businesses I've ever done in my life.

Relying on the Chinese market, I have every confidence that Land Rover and Volvo will be profitable in 3 years, because they have been excellent in their own right, but they lack sufficient capital investment. Land Rover is already on the right path, and it will be interesting to see what will happen soon. Volvo will soon be on the same path and ushering in a new future. ”

Han Hao responded to many questions from the outside world in public, and he must cheer for Land Rover and Volvo to not let the noise affect the normal operation of the company.

In addition to the Chunghwa Group, Tata Motors has become another media star, and the car company, which has never made a global appearance, is known to many for its acquisition of Jaguar.

Of the US$800 million acquisition fund, Tata Motors only needs to pay US$400 million in three months, and the remaining US$400 million will be deducted from the proceeds of the Tata joint venture over a three-year period.

Ratan is very satisfied with the terms of the deal negotiated with Han Hao, because their group has not yet recovered from the cross-border mergers and acquisitions of steel, and there is a lot of pressure on funds. The Chinese allowed payment deferrals, allowing them to get the Jaguar car brand in installments.

"Jaguar is an international luxury brand with a long history, and its arrival will greatly enhance the overall image of Tata Motors. We will do our best to support the revival of Jaguar cars, so that it can compete with Mercedes-Benz and BMW, and become a new force to be reckoned with in the international luxury market.

For those who are not optimistic about this deal, I advise them not to look to the past, but to look to the future. Both China and India will be important engines of the global economy, enough to support the development of their own luxury car brands. ”

Once the merger made the Tata Motors brand famous, Ratan was pleased with the side effects of the deal, and he also gave public media interviews to refute negative opinions.

Stepping into the same signing venue again, facing many global media reporters, Han Hao's mood was much calmer at this time. I was really excited when I bought Jaguar Land Rover, but now it's Volvo's turn, but it's not as excited as it was at the beginning.

After many negotiations, it was decided to sign the contract for Volvo and Jaguar acquisitions, and Han Hao and Ratan attended the event at the same time.

Bill Ford, the host, looked at the Chinese and Indians with a spring breeze, and couldn't help but think of General Motors, which had just announced bankruptcy and restructuring mode because of huge debts, and maybe in the future its competitors would change from GM to the two developing country auto companies in front of him.

Fortunately, freed from the shackles of loss-making sub-brands and the recouped funds obtained through the sale, Ford can survive the cold winter independently, and the Ford family will still have a place in the global auto empire.

As the host, Bill Ford stood in the middle, with the Chinese Han Hao on the left and the Indian Ratan on the right, and the three crossed hands with each other, and countless magnesium lights flashed all the time just to record this historical moment, indicating that the boiling merger and acquisition case officially came to an end.

The vast kingdom of Ford is torn apart, the Chinese clique from the east has become stronger and stronger, and the rising Indian representative Tata Motors has relied on sneak attacks to show its fangs.

Compared with Land Rover, Volvo is more well-known in China, and this car brand, which once appeared as a "rich" on RTHK TV, was once on the same level as Mercedes-Benz BMW Lexus in people's hearts. Later, after joining the Ford giant, the brand investment fell behind, and the gap with other first-line luxury brands gradually widened.

However, compared with foreign counterparts who are not optimistic about the Chinese's acquisition of Volvo, domestic automakers are full of envy for Zhonghua Group.

1.8 billion US dollars, converted into only 12.2 billion yuan, can be a series of Volvo Cars assets, which makes domestic counterparts in the private calculation of their hearts are dripping blood: why did they not fight desperately in the first place.

At the beginning, it was estimated that the acquisition of Volvo would not be able to come to Taiwan without 5 billion US dollars, but I did not expect that the changing situation of China Group finally only cost 1.8 billion yuan.

You must know that except for Zhonghua Group, other independent brands do not have the ability to mass-produce automatic transmissions, and they are also very backward in the field of automobile engine research and development, not to mention the platform for positive research and development of new models. If Volvo can be won, the above three problems will be solved, and the sparrow will fly on the branches and become a phoenix.

Whether Volvo Cars can do well is a secondary matter, the important thing is to get the technology that many Chinese independent brands lack, and these technologies often need to spend money and time to obtain, and the acquisition of Volvo provides a shortcut to success.

Therefore, as long as 12.2 billion yuan, it is a super cost-effective business for China's independent car companies to sell iron.

Under this situation, the strength of Zhonghua Group, which has completed the acquisition of Volvo, will be stronger, and it will be more difficult for other peers to catch up. Even if the Land Rover and Volvo brands do not do well, the China Group that has digested the technology of the two major international luxury cars will not lose money, not to mention that it is a big deal to recoup a lot of costs by selling them again.

In the end, international mergers and acquisitions of auto brands can still get a lot of good things, and potential merger and acquisition targets such as Opel and Saab Automobile have ushered in many inquiries from Chinese buyers.

At this point, with Land Rover and Volvo in charge, Han Hao's mind of the car kingdom map is finally complete, to the international discussion has more confidence, the next thing he only needs to do is to digest and integrate its brand resources. and strive to make Land Rover and Volvo profitable within 3 years, and respond to the current mainstream skepticism with indisputable facts.