Chapter 766 - Acquisition of Jaguar Land Rover (Part II)
Americans' lunch, like breakfast, is nothing good.
Fortunately, everyone didn't go for other people's meals, and after eating something casually, everyone discussed it again in a conference room specially arranged by Ford Motor for the Korn Glory Group.
Then, at two o'clock in the afternoon, a new round of negotiations officially began.
"Jiang, we have discussed internally, if Guanghui Automobile can bid 2.8 billion US dollars, then we can directly enter the signing process", Murali did not drag the mud and water this time, but directly stated his own conditions.
"Allen, the price of the Ford car I cried about is not sincere at all, how much Jaguar Land Rover is worth in the market now, you should know in your heart, and several other competitors have also given quotations. I know that maybe Ford will feel that the Jaguar Land Rover that he bought back for more than half a billion dollars, after so many years of tossing, not only did he not earn a penny, but also lost money, and he may be a little unwilling in his heart. But business is business, and you can't make money forever," Jiang Hui said.
Jiang Hui's words can be regarded as the psychology of Ford Motor.
It is difficult for everyone to accept the situation of buying things at a high price and expecting to make money and appreciate, but not only did they not earn the money, but they also lost all their investments.
However, no matter how unacceptable it is, you have to accept it, and it is the right thing to do to stop the loss in time, and Murali is also aware of this, but he is still making the last struggle!
In fact, this is also worth learning from Jiang Hui in the future, stop losses in time, and business is business.
Regarding the importance of stop loss, professionals often use the crocodile rule to illustrate.
The original idea of the crocodile law is that if a crocodile bites your foot, if you try to break free of your foot with your hand, the crocodile will bite your foot and hand at the same time.
The more you struggle, the more you get bitten. So, in case a crocodile bites your foot, your only chance is to sacrifice one foot.
In the stock market, the crocodile's rule is that when you find that your trade is going in the wrong direction of the market, you must immediately stop your loss, without any delay, and without any luck. Crocodile cannibalism sounds too cruel, but the stock market is actually a cruel place, and people are swallowed up or disappear by it every day.
The same is true for other investments, just like Ford, if you don't sell companies such as Aston Martin and Jaguar Land Rover in time to stop losses, then they may end up with the same fate as GM Chrysler, going bankrupt.
Then the Ford family lost control of the company.
"Jiang, $2.3 billion is too low, we can't accept it, so let's take a step, $2.7 billion, as long as you agree, I'll sell Jaguar Land Rover to you," Murali said.
Sometimes, negotiations in the mall are similar to buying groceries in the wet market, but most of the time the two sides will not bargain with each other so directly.
But when it comes to the crunch time, bargaining with each other is basically inevitable.
"$2.4 billion, this is already a very sincere price", Jiang Hui also took the initiative to give in.
In fact, for Guanghui Group, there is not much difference between a few hundred million more and a few hundred million less, and it can be taken out anyway, and it can make a lot of money in the future.
But judging from the current situation, if the Guanghui Group bids too high, it will be regarded as a big wrong.
Therefore, in line with the principle of saving what can be saved, Jiang Hui is still grinding with Murali.
"2.6 billion, with the addition of Jaguar Land Rover's current engine technology licensed to you for free", Murali also made a big decision, and the contract must be signed today.
"Let me confirm, do you mean Jaguar Land Rover or Korn Ferry Group," Jiang Hui asked.
For Jaguar Land Rover, it was originally a Ford engine, and even if it obtained the authorization to use the technology, it was impossible to build an outdated engine production line by itself, and it was better to continue to buy finished engines.
However, if Korn Ferry could use these technologies for free, it would be different.
Guanghui Group itself has introduced several engine technologies and production lines from Ford, but the displacement is generally relatively small.
If you can take all the engine technologies used by Jaguar Land Rover, then the engine displacement layout of Guanghui Automobile is basically complete.
For Ford Motor, a part of the engine technology has been sold to Guanghui Automobile, and some of the content is the same between the engine technologies of different displacements, one is for sale, and several are also for sale.
If the price of Jaguar Land Rover can be increased by combining some engine technology, Murali thinks it is still very worthwhile.
"Jiang, as you wish, it is the Guanghui Group or the Guanghui Automobile, you can use our existing engine technology to develop a new generation of engines belonging to the Guanghui Automobile, which is very meaningful for the Guanghui Automobile, isn't it?", Murali said with a smile.
Selling Jaguar Land Rover, along with some engine technology that is about to become obsolete, makes the Murali a completely stress-free sale.
Ford's next-generation engine technology is already in trial production and will be ready for mass production in less than two years.
At this time, the previous generation of engine technology was disposed of, and if it was disposed of to Toyota Honda, not to mention whether people wanted it or not, Murali would not dare to sell it to them.
But it is different for Shining Motors, in Murali's eyes, Shining Cars are like a car novice, and they will not pose any threat to Ford at all.
Selling a technology that is not very advanced to a manufacturer that does not pose any threat to them is definitely what most companies are willing to do.
However, many years later, when Guanghui Automobile defeated the joint venture brand in the Celestial Empire market, I don't know if Murali would think so.
"Well, $2.5 billion, as you said, to sell engine technology in a package, that's the highest offer I can accept. This is also the highest offer Ford has received, right? I don't think it's possible for either the Tata Group or any other potential rival to offer a better price," Jiang said.
After hearing Jiang Hui's words, Murali thought for a while, "Jiang, the price of 2.5 billion is a bit different from my expectations, but it is not completely impossible to consider. However, when we negotiated with the Jaguar Land Rover union, we promised that the new owner would increase R&D investment after the sale, and that was the union's approval," said Murali.
"Allen, you just say what you want me to do," Jiang Hui said.
"Okay then, I'll just get straight to it. After the acquisition of Jaguar Land Rover, Korn Ferri had to commit to no layoffs and invest more than $500 million in R&D over three years," said Muralee.
"No problem, I agree," Jiang Hui said cheerfully.
"Ah, do you agree?", said Murali, a little surprised.
(End of chapter)