Chapter 639: Hunan Torch

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"Wang Jue, continue!"

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

"The predecessor of Hunan Torch was a state-owned enterprise founded in 1961 - Hunan Zhu~Zhou Spark Plug Factory. In 1993, it was restructured into a joint stock limited company and listed on the Shenzhen Stock Exchange in the same year, making it one of the first listed companies in Hunan Province. In November 1997, Delong International Industrial Corporation acquired 25.71% of the state-owned shares of Hunan Torch held by Zhu~Zhou State-owned Assets Management Bureau and became its largest shareholder. While injecting 70 million funds into Hunan Torch and increasing its shareholdings, Delong also injected it with the concept of developing "large auto parts". And developed a three-step strategic plan. ”

Step 1: In 1999, it acquired a 75% stake in MAT, the largest importer of brake systems in the United States, and nine of its joint ventures in China, thus gaining a 15% share of the U.S. auto parts import market. It has formed strategic alliances with internationally renowned companies such as DELPHL in the United States, DURA in the United States, DELPHI in South Korea, Daewoo in South Korea, EATON in the United States, ZF in Germany, MAN in Germany, etc. ”

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 automotive gear industry, controlling the key parts of domestic vehicle manufacturing. ”

"Step 3: Since July 2002, Hunan Torch has issued announcements one after another, investing heavily in the field of automobiles, so that the industrial chain of Hunan Torch extends upstream and downstream. In July 2002, Hunan Torch announced that it would invest 36 million yuan to establish a joint venture with Dongfeng Motor to establish Dongfeng off-road vehicle company, accounting for 60% of the registered capital, and introduce American Hummer technology to produce 'ironclad' off-road vehicles. In September 2002, Shaanxi Heavy Duty Truck Co., Ltd. was established as a joint venture with Shaanxi Automobile Group, and Hunan Torch invested 250 million yuan in cash, accounting for 51% of the registered capital. In December 2002, Shancheng Heavy Duty Truck Group and Delong International signed a contract to establish Chongqing Hongyan Automobile Co., Ltd. as a joint venture, Hunan Torch invested 255 million yuan in cash, accounting for 51% of the registered capital of the joint venture, and 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 Company for 379 million Chinese dollars, Sanjiang Renault and Guisheng Aerospace Automobile Manufacturing Company. The two companies have a total of three production lines of painting, welding and final assembly, and have the capacity to produce 150,000 Tafik light commercial vehicles per year. ”

By the end of 2003, Hunan Torch has become China's largest production base of military off-road vehicles, the largest R&D and production base in China's gear industry, China's largest spark plug production base, China's largest piston pin manufacturer, China's second largest manufacturer of air conditioning compressors, and China's largest export manufacturer of automotive brake systems to the United States. The market share of spark plugs, gears and other products in China has reached 40%, the annual output of EATON gearboxes is 100,000 units, accounting for 85% of the domestic market share of large-tonnage heavy-duty gearboxes, and the annual output of ZF gearboxes is 50,000 units, accounting for 90% of the market share of domestic medium and high-end vehicle gearboxes. It produces and sells more than 30,000 heavy-duty trucks annually, and has nearly 50% of the domestic market share 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, total liabilities are 3.27 billion Chinese dollars, the main business income is 3.76 billion Chinese dollars, the company has a net profit of 230 million Chinese dollars, and the return on net assets is 12.7%, which is the best financial performance among Delong's many core companies. ”

"This Hunan fire cabinet is an out-and-out Tang monk meat, FAW, SAIC, China National Heavy Duty Truck, Yutong Bus, Xifei International, Modu Electric, Sany Heavy Industry, JP Morgan, Wanxiang, Weichai and other more than 20 enterprises at home and abroad, are constantly inquiring about our handling of Hunan fire cabinet. Zhang Lei said with a smile.

"Needless to say, I acquired Delong, in addition to valuing its relatively rich financial resources, another important reason is this automobile empire that accounts for one-third of its industrial assets!" Guo Shouyun said with a smile.

No one knows better than him how big the car market in China is. It was the world's No. 1 sales volume for ten consecutive years, and 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, Mercedes-Benz's global sales 27%, Audi's global sales 37%, Volkswagen Group's global sales 39%, Volkswagen's brand's global sales 50%, and GM's global sales 40%. This supermarket with a scale of trillions of Chinese coins, how can Guo Shouyun not covet it.

If he hadn't had a good acquisition target, he wouldn't have waited until now.

"Although Hunan Torch is operating well, it still has a lot of non-performing assets. The largest is Sanjiang Renault. The manufacturing capacity of 150,000 5-door light commercial vehicles turned out to be that from '94 to '01, only more than 4,000 Tafic cars were sold, and now it is close to going out of business. ”

"Why?

Zhang Lei nodded, "According to our investigation, there are five main reasons. First, the price is higher, and now the best-selling Jinbei Sea Lion in China is priced at about 60,000, while the Tafik of the same model is sold for 150,000. Second, in the case of higher prices, Tafik is also like most French cars, with small problems. If something goes wrong, 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 parts are imported from abroad, which not only increases the price of the whole vehicle, but also creates a shortage of suppliers. ”

“… Fourth, the first car manufacturers to enter the Chinese market were German cars and Japanese cars, compared to them, many designs of French cars are not pleasing, such as: non-rotating steering wheel decoration, gear position, lights and other problems, which makes the Chinese people who are used to decent German cars very unaccustomed. Fifth, publicity. Compared with the advertising investment of German cars and Japanese cars in the Chinese auto market, it is rare to see French car advertisements. In this era when the aroma of wine is afraid of deep alleys, such a marketing strategy is undoubtedly self-defeating. ”

"What about the solution?" Guo Shouyun nodded and continued.

"Bought the other 45 percent from the French and got the right to operate independently. The 'Tafikpin' brand was abandoned, and a light commercial vehicle was redesigned, using all domestic parts. Moreover, as the largest auto parts manufacturer in China, Hunan Torch can also increase our market and revenue in disguise. ”

"If it weren't for Hanhua not being able to do without you, I really want you to be the CEO of Hunan Torch. ”

Zhang Lei always hit the nail on the head when he saw the problem, and he did not hide his appreciation for the handsome talent he relied on the most in China.

Zhang Lei smiled and didn't say anything. Although the Hunan torch is good, it is nothing compared to Hanhua. Of course, Guo Shouyun is just saying, Zhang Lei's talent is still in finance.

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

Even if the back-the-scenes holding company of Red Star Automobile Group is Yunfan Investment and is registered in Huaxia. But as long as you get involved, it is not easy to get in touch with sensitive industries in China, especially in the military field.

The people present were all smart people, and coupled with their familiarity with Chinese politics, no one objected to his decision.

“… Thirdly, the acquisition of the British Rover Motors!"

"With all due respect, Rover Motors is not worth buying!" Bo said, while everyone looked over, "although Rover was once brilliant, it has lost $3 billion since it was acquired by the BMW Group in '94, which has become BMW's biggest burden." In 2000, Ford paid 3 billion euros to buy the Land Rover off-road vehicle series from the BMW Group, including the Range Rover, Discoverer, Liberty, Defender and other brands. At this point, only the two brands of 'Rover' and 'MG' were left of Rover Motors, and at the end of 2000 they were brought back to the UK by the Phoenix Group, a British private investment institution, for a symbolic price of 10 euros. However, Rover, a British car company, has not been able to change its decline, and is now on the verge of bankruptcy. ”

"Mr. Bo Ruituo, I didn't expect you to be so familiar with Rover Automobile Company!" Guo Shouyun said with a smile.

"After my MBA from Stanford University, I worked at Lehman Investments, where I was involved in the acquisition of the Land Rover off-road vehicle line by Ford. ”

Guo Shouyun nodded, "I didn't care about Rover Motors' sales in Europe when I bought Rover Motors. It is only intended to make up for the shortcomings of Red Star Automobile Company 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 in Huaxia are sold back to Europe, with the help of price concessions, maybe Rover can be resurrected in Europe. ”

"With Mr. Guo's strength and ability, why not acquire Chrysler in the United States?"

"Chrysler is too big, I can't afford that much money. And as the third-largest car company in the United States, the acquisition effort has been protracted. It doesn't match my strategic plan for Red Star Auto Group. On the contrary, Rover cars are more suitable. ”

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

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

"There's no rush for this, let's talk about it after an 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 have done my inspection." ”