Chapter Seventy-Two: The Wind and the Dust
Zhonghua Group quickly reached a merger and acquisition agreement with DSI, so quickly let domestic counterparts see Han Hao's courage.
Even Latan, who was far away in India, was just about to welcome the Chinese guests when he immediately received the news that DSI had changed hands. Unexpectedly, Han Hao traveled around the world, so he easily put a big weapon under his command.
"Han, you're moving too fast for people to react. If I had known, maybe DSI would have changed his surname to Tata!"
Looking at Han Hao, who had just gotten off the plane, Ratan gave him a big hug and joked with a smile.
The sympathy between heroes is a reflection of seeing themselves in each other. Wu Chao is Latan or Han Hao, both of whom are the country's leading national entrepreneurs, leading their own enterprises to compete in the global market. As peace and development become the mainstream of the international trend, apart from the Olympic Games, competition in the economic field has become a battlefield for countries around the world.
Although there was competition with Zhonghua Group in the bid for Jaguar Land Rover, due to the existence of joint ventures in India, Latan and Han Hao maintained a good friendly relationship.
If he really competes with the Zhonghua Group, Latan knows that he will not be able to grab Han Hao, because the other party has a large amount of cash reserves and a market share of 2 million cars. Under the current trend, it is wise for Tata Motors to maintain a good cooperative relationship with Chunghwa Group.
In just two or three years, the Indian auto market has undergone earth-shaking changes due to the entry of Zhonghua Group. Suzuki does have a unique presence in the mini car market, but China's joint ventures are already on par with Suzuki's presence in India. Suzuki's models are more customized for the Japanese local market, and the starting point is based on consumers in developed countries. However, the Huaxia brand of Zhonghua Group is aimed at China's vast urban and rural areas, and considers low-end consumers at the beginning of research and development, and understands the needs of Indian consumers better than Suzuki.
As a result, Suzuki Motors is no longer the preferred brand among Indian consumers, and Tata Panda is coming from behind and is being favored by more and more customers.
This time Han Hao's visit to India is to discuss with Latan to officially introduce the Chinese brand to India, and in the future, the main models such as "Qin" and "Tang" will also land on the South Asian continent, becoming a new challenger after the Huaxia brand.
The entry of "Qin" and "Tang" made Suzuki unable to come up with corresponding models, which can be said to cut into the blank spot of the market.
The production line of 300,000 vehicles in India can no longer meet the demand, and after tapping the potential of transformation, it will reach the scale of 420,000 vehicles, and it is expected to be fully loaded by next year. Therefore, with the help of the Chinese brand's entry into India, the construction of the second plant of the joint venture is also on the agenda, and the scale is still 100,000 units to 300,000 units. India's auto market has been on the rise and is now heading towards the 3 million target, which will be an important part of the global automotive incremental market in the future.
It can be said that while the international auto giants did not react or stopped due to political reasons, Zhonghua Group has gained a firm foothold in Russia, India and the Middle East, and has become a hegemon in the local market. In addition, in Africa and Southeast Asia, the African Union, ASEAN and China have also established export sales bases. It can be said that Zhonghua Group has initially realized the road of "encircling cities from rural areas" on a global scale, avoiding head-on competition with international giants and establishing its own base.
And under the premise of being based on the third world base, it has entered the European market with a high enough threshold, and although the sales volume has not yet squeezed into the mainstream, it has achieved a certain popularity in Central and Eastern Europe. If, with the help of Jaguar Land Rover, the Chunghwa Group can make a difference in the US market in the future, then it is justified to become a new international giant.
It can be said that under the control of Han Hao, Zhonghua Group has a very stable strategy step by step, and after occupying China, the world's most potential market (and most likely the world's largest automobile market in the future), it has begun to expand and develop everywhere, striving to become one of the new giants in the automotive industry.
In a closed-door meeting with Latan, Han Hao put forward a plan related to the Jaguar brand.
On the basis of already owning the two major brands of Huaxia and China, the subsequent acquisition of Land Rover to focus on the high-end brand of SUVs, and then joining Volvo, the positioning of the Jaguar brand is more embarrassing.
Because an automobile company controls a multi-brand strategy, the real failure experience of GM and Ford has paid the tuition for everyone, which seems to be difficult and the success rate is not high. The Japanese brands represented by Toyota are basically two major brand strategies, one low and one high. South Korea's Hyundai Kia Motors, a rising star, also focuses on the dual-brand strategy and does not dare to easily get involved in multi-brand development. Except for Volkswagen's family portrait, the rest of the companies have basically failed in their multi-brand strategy, which has given a lot of inspiration to the latecomers.
The newcomer of Zhonghua Group, in the context of just stepping into the top ten global car sales, is likely to choke himself if he swallows Land Rover, Volvo and Jaguar in one bite. Cross-border mergers and acquisitions, the probability of success is rare, Mercedes-Benz has just split up with Chrysler, for the Chinese group that has never gone abroad, it is a rational choice to carefully choose the merger and acquisition target.
If you can only ask for one, then Han Hao categorically only chooses Volvo, an independent luxury brand, which can meet the desire of Zhonghua Group for upward development. As for the Land Rover brand, a focus on the SUV market can be a useful complement to the group's strategy and is acceptable when conditions are ripe. As for the Jaguar brand, which has lost money all the way, Han Hao intends to give it up strategically because its future is very uncertain. In the case of limited resources, it is impossible for Zhonghua Group to invest heavily in all brands, and can only develop selectively.
Based on this consideration, Jaguar, a luxury car brand, was abandoned by Han Hao. If the sale of Jaguar can return the funds, Han Hao is very willing to do so.
"The Land Rover brand is one of the missing pieces of the puzzle for our group's future strategy, but Jaguar is not in that position. If Volvo Cars is to be sold in the future, then I will continue to fight for the Nordic brand with all my might. As for Jaguar, I will most likely find a suitable in-law for it, I wonder if you Tata Motors are interested?"
Han Hao proposed a gentleman's agreement to Ratan that if Volvo was to be sold, then the Zhonghua Group would give up the Jaguar brand to compete with all its might, and Tata Motors would be the best successor for Jaguar.
Knowing that the Zhonghua Group had left a hand in the negotiations with Ford, and the contract stipulated that the Jaguar brand could really change hands after the agreement of the parties to the transaction, Ratan made a calculation in his heart after listening to it.
If you can get the Jaguar brand at a low price, it will be a great thing for Tata Motors, with a luxury brand that climbs up. The only concern is that Jaguar will have to rely on Ford and Zhonghua Group for the technology it needs and the supply of key components.
If Volvo is really going to sell, will Tata Motors be able to compete with the Chung Hwa Group?
With the subprime mortgage crisis spreading, Ratan understands that the Tata Group is no longer able to compete with its rivals from China, and it is not easy to digest Tata Steel's record.
"Okay, then we'll make a gentleman's agreement, if Volvo sells it, it will be the next home for Jaguar cars. ”
For Rattan, Han Hao's visit to India brought him an unexpected surprise.
If Land Rover and Volvo are swallowed in a row, then the China Group is indeed unable to invest heavily in Jaguar, and strategic abandonment is the best choice. The sale of Jaguar to Tata Motors would further strengthen the partnership between the two companies and share the cost of joint research and development. Tata Motors has also secured a luxury brand that deserves a major investment, which will help to move forward in its future strategy and further expand its global reach. As for Ford, as long as the Land Rover and Jaguar brands can have a good ownership, they can also win moral praise in addition to cashing out. For Jaguar as the party concerned, it is better to be the head of a chicken than a phoenix, and it is better to be the head of Tata Motors than to be an accessory of the Chunghwa Group.
It can be said that it is a win-win deal.
Of course, if Volvo doesn't sell, then all transactions cease to exist.
Han Hao's diplomatic mediation eliminated a major competitor for the acquisition of Volvo, and also found a home for his marginal assets, which can be described as a wise move.
During his visit to India, Han Hao found that India's economic outlook has changed greatly, and the city's appearance has greatly improved compared to before, as evidenced by the new highway from the airport to the city. As a country with a high GDP growth rate of nearly 10% after China, India's GDP growth rate is close to 10%, which is an important market that cannot be ignored in a large country with a population of 1 billion.
After China, it's India!
In a billion-level market, as long as 10% of the population has spending power, it is a terrifying number combined.
Although population carries a heavy burden on society, it is still the most valuable non-renewable resource. It takes 18 years for a mature workforce to grow, and missing the demographic dividend will bring irreparable losses.
The main goal of Chunghwa Group's seizure of the Indian market is not now, but ten or even twenty years from now.
After India, where is the next billion-dollar economic growth point?
Perhaps even in the vast African continent, home to human civilization, there is an untapped market for more than a billion people.
Han Hao was thinking about this question on the plane back to China, as an entrepreneur with a global pattern, he had to think about the direction of the next ten years while he was based on the present.
After running around for more than half a month, and finally returning to the long-awaited motherland, Han Hao decided to take a two-day vacation for himself, and he took his wife and son to the Chu Cheng base in the mountains.
When he and Chen Lingxi planted the fruit trees, Han Hao entrusted Chu Lao to help take care of them, and this year began to hang fruits, a few days ago the old man specially called to say that the first batch of fruits were ripe, and invited him to go up the mountain to pick fruits to eat.
"Mom and Dad planted fruit trees for you in this mountain in the first place, specifically to meet the needs of you, a little glutton—"
Han Hao walked on the mountain road with his son "September" on his back, explaining to his son as he walked.
At this time, he is no longer a tycoon who dominates the shopping malls, but an ordinary father character.
Although "September" was small, he sat on the shoulders of his father Han Hao, listening carefully and responding with a half-understanding.
"He didn't follow your example, your mother said that he behaved exactly like you did when you were a child, and he couldn't move his legs when he saw delicious food. ”
Chen Lingxi responded on the side, it is rare for a family to have such leisure time to travel collectively, Han Hao's working hours are really too tightly arranged, and his personal time is almost blank. This time I went abroad for too long, and even Han Hao, a workaholic, couldn't stand it and had to recharge and rest for a few days.
Due to the expansion of Chu Cheng's base, the road has been repaired to the halfway slope, so it only took Han Hao and his party more than 10 minutes to come to the big courtyard where Chu Lao lived.
It is surrounded by golden fruit trees, cooking smoke, dog barking, and farmhouse courtyards, forming a scene of paradise.
On the way, "September" kept pointing to the oranges on the branches of the fruit trees on the side of the road, babbling and shouting "eat the fruit", but Chen Lingxi did not pick it for him, but planned to let him taste the fruit he planted for the first time, although it was only in name.
Walking into the door, in addition to Chu Lao, Han Hao also saw another familiar figure.