When Murali took over Ford, he proved a practical problem: a layman in the auto industry would not transform an auto company in a disciplined way of digging deeper into the century-old steel field, but would change the way the company's business was run from a new perspective.

Although Ford is a car company, not a technology company, Alan Murali realized that it should be a good thing for Ford to have a good relationship with the Internet technology star Korn Ferry Group.

Therefore, selling some of Ford's soon-to-be-phased engine technology to Guanghui Automobile is a matter of "killing two birds with one stone".

"What's their offer now?", Bill Ford asked.

"The price of the 2.0-liter engine technology and a production line is 70 million US dollars, the price of the 3.0-liter is 60 million US dollars, and the price of the 4.0-liter is 50 million US dollars."

"Isn't it that the larger the displacement, the more difficult the technology, and why is the price cheaper?" Bill Ford did not directly comment on whether the offer was high or low, but raised his own questions.

"Technically speaking, this is true, but commercially speaking, the demand for large-displacement engines in the Celestial Empire is much lower than that of small and medium-displacement. The tax policy of the Celestial Empire government encourages small-displacement engines, and the sales of large-displacement models are far less than those of small-displacement models, so it is inevitable that the quotation will be low."

In the Celestial Empire, not to mention others, the consumption tax alone, the models of different displacements are very different.

The automobile consumption tax of the Celestial Empire is a new tax set up in the national tax reform in 1994, which is based on the general levy of value-added tax on goods, and then levies a consumption tax on a small number of consumer goods, which is generally reflected in the production side, with the purpose of adjusting the product structure and guiding the direction of consumption.

It can be said that it is a relatively young tax.

For cars, there are three tax rates according to the size of the exhaust volume of different vehicle types. The tax rate is 3% for cars with a cylinder capacity of less than 1.0L, 5% for cars with a cylinder capacity greater than or equal to 1.0L but less than 2.2L, 8% for cars with a cylinder capacity of 2.2L or more, and 5% for light off-road vehicles with a cylinder capacity of less than 2.4L.

As you can see, the larger the displacement, the higher the tax rate, and that's just the case now.

Jiang Hui knows that this tax rate will be adjusted again next year, and this adjustment is mainly to increase the consumption tax rate of large-displacement passenger cars and reduce the consumption tax rate of small-displacement passenger cars.

After the adjustment, the tax rate will be increased from 15% to 25% for passenger cars with an engine displacement of 3.0 liters or more to 4.0 liters (including 4.0 liters), and from 20% to 40% for passenger cars with an engine displacement of 4.0 liters or more.

At the same time, the consumption tax rate for small displacement passenger cars will be reduced from 3% to 1% for passenger cars with an exhaust volume of 1.0 liters or less.

It can be seen that the attitude of the Celestial Empire government to suppress the production and consumption of large-displacement automobiles and encourage the production and consumption of small-displacement automobiles is very clear.

This is one of the reasons why various turbocharged engines have prevailed since then.

Turbo engines can reduce displacement while maintaining power performance without deterioration, which can effectively reduce fuel consumption and consumption tax rates.

In this case, Jiang Hui will naturally not let Guanghui Automobile develop in the direction of large displacement.

However, although it will not focus on marching in this direction, the corresponding technology is still needed, and models like large SUVs do not have large displacement engines, and the power is simply not enough.

Therefore, when we made an offer to Ford, we also added 4.0-liter engine technology.

"In that case, if you think it's appropriate, then sell these engine technologies to Guanghui Auto."

In line with the waste utilization, and then not worried about the threat that a brand-new automobile company will pose to Ford Motors, and considering that the good relationship with the Korn Ferry Group is conducive to Ford's Internet publicity in the Celestial Empire and even the world, Bill Ford still agreed to reach an agreement with Korn Ferry as soon as possible.

"Well, I'll see that the agreement with Korn Radiance has been finalized recently. However, regarding the sale of Jaguar Land Rover, in addition to Tejour Motors, India's Tata Motors are also expressing their willingness to buy, and it is estimated that the two of them will have to compete before selling."

Founded in 1945, Tata Motors, a subsidiary of India's Tata Group, is one of the top 10 commercial vehicle manufacturers in the world with an annual turnover of US$2 billion. It has a 59% share of the Indian market.

In 1999, Tata entered the passenger car segment with a market share of around 16%, best known for its in-house developed and designed Indica and Indigo products.

Tata is arguably a household name in India.

Its position in India is very similar to Samsung's position in South Korea.

The Tata Group is India's largest business group, founded in 1868 and headquartered in Mumbai, India.

The Tata Group has a total of 31 listed companies, which is a staggering number just to look at.

Steel, automobiles, electric power, chemicals, communications, finance, etc., there are many fields related to the national economy and people's livelihood.

However, the presence of such a company in the Celestial Empire is very weak.

More than 99% of the people of the Celestial Empire have never heard of this company now.

It really entered the vision of the people of the Celestial Empire in March 2008, when it successfully acquired Jaguar Land Rover at a price of 2.3 billion US dollars.

At the time Ford announced that it would sell Jaguar Land Rover, Aston Martin and Volvo, Tata Motors was beginning to assess the need to acquire these businesses.

In the first two months, a team led by Tata Motors Vice President Guwahati visited Ford Motor and proposed to acquire Jaguar Land Rover.

At this time, Guanghui Automobile was already in contact with Ford. Alan Murali is certainly happy to see new competitors join the rush to buy.

In 2007, Jaguar Land Rover, like Ford brand cars, has been losing money for many years and has become a chicken rib for Ford.

However, no matter how you say that Jaguar Land Rover was also bought back by Ford for a large price, it definitely does not want to sell it at a loss.

Ford bought Jaguar in November 1989 for a whopping $2.5 billion, hoping to enter the luxury car and sports car market, where it had always struggled to gain a foothold.

This was followed by Ford's acquisition of Land Rover, another British luxury car brand, in 2000 for $2.75 billion.

In 2002, Jaguar Land Rover began operating as a whole under the Ford umbrella.

In other words, Ford spent a total of $5.25 billion on Jaguar Land Rover, which was still the dollar many years ago.

If we take into account the depreciation of the dollar, the purchasing power of $5.25 billion at that time could not be worth $10 billion in 2007.

There will only be more, not less.

Therefore, although Ford is sincere in selling Jaguar Land Rover, Korn Ferry and Tata Motors are not stupid and are unwilling to accept Ford's initial offer of nearly $7 billion.

The feathered phoenix is not as good as a chicken!

(End of chapter)