Chapter 192: Buying the Last Crown of England IV

Will it be so easy for Bugatti to buy Rollslas and Lamborghini? How can it be! Relatively speaking, Lamborghini is better, after all, Chrysler itself is about to be acquired, and it is not too difficult for Bugatti to acquire Lamborghini, as long as the price is affordable!

Rollslath is relatively troublesome! Why, BMW has been talking to Rollslath about the acquisition for a long time, but because of the price and the attitude of the British Parliament, the deal has not been successful. Pen @ fun @ pavilion wWw. biqUgE怂 infoNo way, the anti-German sentiment of the British is very high, and in 1994, after BMW bought the Rover Group, the British tabloids added a few barrels of oil to the already overheated national sentiment.

Guided by "public opinion", the parliament reserved BMW's acquisition of Rolls-Royce, the last crown of the British. Coupled with the Wickers Group's dissatisfaction with BMW's $495 million offer, the takeover war turned into a protracted battle that lasted for nine months. In the end, Volkswagen really couldn't see BMW's buckle rope, and did not carry forward the clean spirit of the Germans at all, and not long after the Vickers Group officially accepted BMW's $529 million acquisition offer, Volkswagen announced that it would buy Rolls-Royce at a higher price, and the offer was a staggering $795 million.

From this it can be seen that as long as the price is in place, the capitalist British, can sell their last crown. Liu Si initially asked Moynihan to offer $795 million, but it did not impress the Vickers Group. But at the same time, BMW's offer also became a joke for the Vickers Group, and in the end, Bugatti slowly increased the price to $1 billion, and the Vickers Group still did not let go, Liu Si was really sad at this time!

At present, Liu Si can only use the 1.943 billion US dollars drawn from Xinjiapo, but now it is not enough at all! What's more, the acquisition of Rolls-Royce is with the idea of picking up leaks, and if it is to spend billions of dollars to acquire Rolls-Royce, it will not be worth it at all.

So after Rolls-Royce did not agree to the $1 billion offer, Bugatti and Moi suspended negotiations with Rolls-Royce under Liu Si's instructions. Liu Si needs to think about it, the most important thing in estimating the value of Rolls-Royce is the senior management of the Vickers Group who have been in a mediocre position in front of interests for a few days.

Three days later, Liu Sirang Bugatti and Moi again started negotiations with Vickers Group on Bugatti's acquisition of Rolls-Royce. The negotiation team composed of Bugatti and Moi was instructed by Liu Si to make a quick decision, so the negotiation team composed of Bugatti and Moi, who had just met, suddenly showed their swords, and they were the biggest trump card in their hands.

"Bugatti's $1 billion wholly acquisition of Rolls-Royce and its sub-brand Bentley, with a promise not to take Rolls-Royce out of the UK and maintain its British management model." As soon as Moynihan took his seat in the negotiating team between the two sides, he stood up and announced a thunderbolt.

As if by coincidence, as soon as Moynihan finished speaking, the president of the British Guild pushed the door in and expressed his attitude, "More than 7,000 employees of Rolls-Royce support Bugatti's acquisition of Rolls-Royce." ā€

"It's absolutely impossible to get a Rolls-Royce, the British royal family, for $1 billion." A member of Vickers' negotiating team stood up and retorted in an impassioned tone.

Unfortunately, no one responded to him, and the venue fell silent, and Moynihan once again dominated the venue, "$10.75 billion!" This is Bugatti's final offer for Rolls-Royce, and we won't add another cent to this song. Gentlemen, The Sun, The Times, Bild...... The newspapers of all sizes in the UK are out there, and either we will immediately go out and announce the intention to acquire, or we will go out and announce the unilateral withdrawal of the bid for Rolls-Royce! ā€

"Alright! Mr. Moynihan, Bugatti and Moy have the last laugh! On behalf of the Vickers Group, I formally accepted Bugatti's US$1 billion and US$7.5 billion offer. The vice president of the Vickers Group, Eward, stood up and shook hands with Moynihan, "Happy cooperation!" ā€

"Happy working together!"

On the spot, the lawyers in the teams of both sides began to review the pre-prepared letter of intent brought by the negotiation team composed of Bugatti and Moy. In just half an hour, Bugatti, Moi, Vickers and lawyers from both sides signed and sealed the agreement of intent.

In the previous three days, Liu Si and Moynihan were not idle to eat, drink and have fun, but laid out the road to review by the British Parliament after the Vickers Group officially accepted Bugatti's $1.0 billion 7.5 billion acquisition offer.

Moynihan himself is a member of parliament, and he is somewhat sure of the PR MP, not to mention that after the British Guild joined, the British Parliament had already reached a unanimous agreement on Bugatti's acquisition of Rolls-Royce under Moynihan's tandem.

As a result, the next day, the British Parliament officially approved the purchase agreement of Bugatti's $10.75 billion wholly-owned acquisition of Rolls-Royce. Bugatti's acquisition of Lamborghini was also due to Bugatti's commitment not to relocate the Lamborghini plant and maintain its management model in the United States at a high price of $460 million.

$10.75 billion plus $4.6 billion is $1.555 billion, which is not inexpensive. But what really distressed Liu Si was the promise not to take Rolls-Royce out of the UK, to maintain its British management model and to promise not to relocate the Lamborghini factory and maintain its American management model.

Don't underestimate the price contained in this short 1 word. Germany's BMW then gave up competing with Bugatti for Rollslas because Bugatti promised not to take Rolls-Royce out of the UK and maintain its British management model.

The British automobile industry has a long history, and in 1873 it was founded by the Englishman Robert ? Davidson invented the electric car powered by a primary battery, and the first car was produced in Britain in 1904. By 1911, there were 24 automobile manufacturers in Britain, some of which still shine today: Rolls-Royce, Rover, Austin...... But 24 companies were busy for a year, producing less than 30,000 cars in total, while the United States has produced more than 200,000 cars this year, entering the era of large-scale assembly production. In 1930, Britain overtook France to become the second largest car producer in the world, a position it held until the end of the 50s.

I don't know whether to say lucky or unlucky? In the late 90s, the British car factory, with its long history and authentic racing tradition, collapsed like a plague, and the British car industry, which once supported half of the 20th century, seemed particularly embarrassing at the time.

In this regard, the British melon-eating masses have something to say. They unanimously crusaded against the government, and over the decades, the British government has made countless stupid decisions that have pushed these companies to a corner. While BMW struggled to bail out Rover, Land Rover and the mini brand, the government was shooting itself in the foot. Officials in the British Parliament and Whitehall stooped to help Ford rebuild Jaguar and Japanese manufacturers set up dealerships in Britain, but paid no attention to Rolls-Royce.

But in fact, entrepreneurs and economists have more to say. Industrial relations are a problem for all car companies in the West, but probably no other country's car industry is plagued by labor disputes as much as in the UK. Someone once said something darkly humorous: from the post-war period to the 70s of the 20th century, the area where the British auto industry really grew was the number of days workers went on strike. Some experts have pointed out that managers of British car companies spend half of their time dealing with labor disputes, and they have not been able to deal with them properly. Managers of German car companies have a much easier time: they can solve all problems related to industrial relations in just 5-10% of the time. Some people pointed out that the production efficiency of the British automobile industry is nearly 40% lower than that of Japan, Germany and other countries, which is a terrible figure, which makes the competitiveness of the British automobile industry lose completely.

There are many reasons for the decline of British car companies, for example: British cars have been sticking to the traditional handmade, styling design and picky selection of materials, etc., in today's increasingly commercialized, assembly line and electronic automobile manufacturing, whether in terms of production costs, output, or planned innovation, British cars are finally difficult to keep up with the pace of the mainstream market, towards an inevitable decline.

In addition, in addition to the extreme 'handmade + luxury' conservative line, there is also a reason for the British government's 'nanny' car industry policy. Since the late 40s of the last century, the British government has implemented high tariff protection on the domestic automobile industry, which is far independent of the European Community. In the 1980s, the policy of tax cuts and consumption promotion allowed foreign Japanese and American car dealers to make enough profits, but their own brands fell into the quagmire of losses.

There was also an extremely important reason for the decline of the British automobile industry, which did not meet the requirements for economies of scale.

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In any case, for companies, especially for British car companies, labor and management are one of the most serious reasons. In 1997, Japanese workers in German factories cost about $30 an hour for German cars, while Britons employed by German manufacturers in the same land in the UK cost only $25 an hour. British workers have won a lot of benefits through demonstrations and strikes, and these benefits have become a burden on Rolls-Royce and have become huge costs: the cost of Rolls-Royce workers is about 80~100 US dollars per hour.

It can be seen how much the cost of British workers in the Rolls-Royce factory is, which is 3~4 times more than that of its peers. The reason why Chrysler Motor Company in the United States was sold to Mercedes-Benz was not because it could not operate, but one of the main reasons why Chrysler Motor Company could not operate was that the huge welfare of Chrysler Automobile Company's employees was dragged down.