Seoul, South Korea, Hyundai Group Headquarters, President's Office

"President, we just received the latest situation, Daewoo Group is preparing to package and sell its three Daewoo Motors factories as a whole, and now the world's major competitive buyers are sending additional personnel to the headquarters of Daewoo Group in Incheon, we can't sit idly by and watch this merger and acquisition opportunity......" rushed into the office to report to Hyundai Vice President Jung Bei-seok, 48-year-old Jung Bei-seok is the cousin of President and President Jung Meng-jiu, and the main assistant to Jung Meng-jiu, who is the actual helmsman of Hyundai Group. After the founder of Hyundai Group failed to run for Congress and the presidency last year, Hyundai Group passively completed a handover.

"Don't get bored...... You are also a person who is about to run 5 sheets, why are you still so unbreathable, Daewoo Group plans to sell Daewoo Motors as a whole I have long expected, but who told you that we must participate in this merger and acquisition? Now Daewoo Group's North American factory has been losing money for two and a half consecutive years, which is a bottomless pit of burning money, and the Incheon and Hanoi factories seem to be barely profitable, but the plant equipment is all old goods from 10 years ago, and this time is nothing more than taking the opportunity to cash out of the North American Daewoo factory! ”

Zheng Mengjiu is the second son of the founder of Hyundai Group, Hyundai Group claims to occupy 20% of South Korea's total economy, is the largest consortium in South Korea, but last year the 78-year-old founder of the party ran for president and lost the Congress, which also made the old man-Zheng zhì the first real sense of the handover to the next generation of young children, 55-year-old Zheng Mengjiu was originally the president and CEO of Hyundai Group, and now he has taken over the position of chairman and president, and the father Zheng Zhouyong has retired as president, In South Korea and Japan, the chairman is basically a second-tier honorary position.

"Don't you participate in mergers and acquisitions? Although Daewoo Motors is not very dripping, it is also the second largest car manufacturer in South Korea, with an annual production and sales of more than 300,000 car trucks, if Daewoo Motors is won, our production and sales may be able to exceed 1 million this year, and this is not the goal that you have led us to work hard all these years?! Zheng Beishi studied at Harvard University in the United States, and after graduating from business school, he also got a doctorate diploma in international economics, and worked in Hyundai Group for 20 years.

"Our factories in Quebec, Canada are now under-operated, and the total production capacity of 100,000 vehicles in the past three years is only 250,000 units. Don't look at Toyota and Nissan are rushing to grab offers to acquire Daewoo Motors, in the final analysis, it is still a market monopoly behavior, rather than a solid decision to increase production capacity and sales! Zheng Mengjiu's words were unhurried, just after 8 o'clock in the morning, the secretary came in and brought coffee, and the fragrant office fell silent.

"President, let me say that the acquisition of Daewoo Motors will greatly consolidate our position as the No. 1 automobile manufacturer in Korea, although the equipment of the Incheon plant is a little old, but the production capacity is 170,000 units, if it is renovated, it will reach 200,000 units by next year, and now the production capacity of the Super Pony produced by our Canadian factory is 100,000 units, and the combined production capacity of the two factories in Ulsan and Seoul is 500,000 units, and the production capacity of one million units will exceed one million units. In particular, if we can increase export sales to 200,000 units or more in North America, mergers and acquisitions are imperative......

Hyundai Group started from the auto repair factory in the 40s under the leadership of Zheng Zhouyong, and in the fifties and sixties it took modern architecture as the core asset, and began to produce cars in a joint venture with Ford Motor in 67 years, using the technology of Mitsubishi in the United Kingdom and Japan, after parting ways with Ford Motor in 73 years, Zheng Zhouyong was inspired to produce 100% domestic technology cars, and the super pony car became an instant hit, and the annual sales of exports to Canada reached 85,000 units. The 85-year-old Excel model achieved an astonishing sales of 170,000 units in the United States, and the sales of the Star brand car in North America have remained above 150,000 units.

Zheng Mengjiu as the second son to succeed, the start is not just Hyundai Motor, Hyundai Motor's annual sales revenue only accounts for about a quarter of Hyundai Group, Hyundai Steel, Hyundai Construction, Hyundai Shipbuilding is in addition to the automobile industry Hyundai Group's economic pillars, and Hyundai Chemical and Hyundai Electronics also have a strong posture of catching up, but the founder has a soft spot for cars, although Hyundai is not the most profitable industry in the group, but it is the most influential industry, because Hyundai is the first brand in South Korea, and, There is a good chance to become the world's leading car brand.

"Daewoo Motors Incheon plant and Hanoi plant are still in a profitable state, in this case, Daewoo Group's asking price will definitely not be cheap, mergers and acquisitions must be copied at the bottom, otherwise it is to carry a sedan chair for others, the automobile industry has been sluggish in the past three years, although we maintain profitability, but the profit margin is far worse than the golden age of the 80s, Toyota, Nissan and Honda's situation is not much stronger than ours, South Korea after all, the market is small, Hyundai Motor must be based on selling products to the world, otherwise the current production capacity can not be digested!"

Zheng Mengjiu's explanation made his cousin Zheng Beishi fall into silence again, for a long time, the 48-year-old CEO of Hyundai Motor couldn't help but pouted and said, "President, I'm afraid that after other buyers take over Daewoo Motors' factory, it will have an impact and impact on our market share, whether it is Ford or General Motors, including Toyota, Nissan and Honda, these rivals, the volume and market size, and technical capabilities are much stronger than ours, and when the time comes, a sluggish Daewoo car will fall, What if a tougher opponent stands up on the ruins of Daewoo Motors? ”

"Hyundai is not afraid of the emergence of any competitors, Daewoo is not our opponent, Toyota, Nissan and Honda will not be our opponents, we are now going to break through the car engine and control system technology with independent intellectual property rights, and further improve our quality, now in the North American market we have the lowest failure rate of 100 cars, this honor must be maintained at any cost! As for production capacity, now high production capacity is a burden and burden, the market is sluggish, shrinkage is king, if we want to acquire, we want to acquire more advanced technology and factories than us, such as Alabama, North America's Daewoo factory that has only been put into operation for two and a half years! ”

Zheng Mengjiu's words made Zheng Beishi's eyes light up, and then dimmed, "President, last time we only made a first offer, we only paid 350 million US dollars, and Daewoo Group didn't bird us at all, and almost didn't kick me out of the conference room directly...... Jin Yuzhong's personality is very strong, saying that the offer is less than 500 million US dollars, it is not necessary to talk, whether it is us or a Japanese manufacturer or a Yankee, Daewoo Group is the same, 500 million US dollars is an entry threshold, higher than 500 million US dollars, the buyer with the highest bid conditions and the most favorable will win...... If it is less than 500 million US dollars, even if it is sold this time, it will not hesitate to miscarry! ”

"Daewoo Group's total investment in the construction of the new Alabama plant is more than 800 million US dollars, if it is not for the Jinnan Tanaka to fill his pockets, then now put into production for two and a half years of depreciation in any case will not be 300 million, the quotation of 500 million US dollars is not too much, you must know that Daewoo Motors' new factory automation machine qì personnel configuration level is the highest, which is also the biggest selling point of this factory, I believe that most other manufacturers are going to this point, as for the transaction price, even if it is less than 500 million US dollars, it will not be too far behind...... If you don't have this vision, how can you be the CEO of Hyundai Motor? ”

Zheng Mengjiu's expression became stern, in fact, Zheng Beishi worked as an engineer at Ford Motor Design and Research Institute for three years when he was studying in the United States, and this master of business school and international finance was based on the diploma and foundation of Harvard University's School of Mechanical Engineering, and became an undercover agent at Ford Motor Technology Research Institute. Because this guy's thinking is really too close to Ford and the North American car people......

But there is no way, Zheng Mengjiu's eldest son Zheng Yixuan is only 23 years old this year, and he is still a graduate student at Yale University Business School in the United States. President Jung Meng-kyu directly took charge of the house for the cousin of the vice president of Hyundai Motor.

"President, I don't know if you have paid attention to the newly listed Saturn Motors, I thought that the issue price of 3 US dollars and the net assets of only 1 US dollars is already very exaggerated, but I did not expect the stock price to rush to 6 US dollars per share after the listing, and now it remains above 4 US dollars, although it is said to be the youngest subsidiary and brand of General Motors, but the listing of Saturn Motors, it is a bit of a backward posture, I heard that yesterday Saturn Motors was the last to rush to the Incheon Daewoo Group headquarters to negotiate the acquisition of the Alabama factory......

Zheng Beishi did not pay much attention to Saturn cars before, Saturn cars focus on compact fashion sports cars, the main competitors are Toyota, Nissan and Honda, as for South Korea's Hyundai Motors, it has not yet reached the level of competing with the quasi-luxury sports car Saturn with an average price of 28,000 US dollars, South Korea's Hyundai launched a completely self-designed concept car HDC-I at the Detroit Auto Show last year, which scared the world, and the streamlined sports car with eagle-eye headlights was only priced at 14,000 US dollars!

Of course, the concept car is a completely different thing from the product that has entered the market with real production capacity, the HDC-I concept car has not been put into production in the market since it was launched for a year, 14,000 US dollars is not even enough for the actual production cost, no one will make a loss-making transaction, advertising and publicity are one thing, real money to build a car and sell it can still make money that is another thing, this is also the annual auto show there are always a lot of unique concept cars, but in the end most of the concept cars are still in the prototype car and can participate in the auto show stageSo much for.