"If we don't count commercial vehicles and only count passenger cars, we should be in the top ten in the world. We should even be ranked eighth last year. But who thinks we are ranked eighth in the world? We are not in the top ten automobile manufacturers in the world! "
Li Mingde was not convinced. If Songjiang Motors had acquired those Chinese commercial vehicle companies, they might be able to enter the top five in the rankings.
Or they can acquire those joint-venture automobile manufacturers and increase their ranking by a few spots.
But the government does not allow them to do this. Although Songjiang Motors is a state-owned enterprise, the government will not allow them to acquire other companies.
If Songjiang Motors wants to merge with Songjiang Motors, they can use shares.
Buy the shares? You all can afford it? Sorry. No!
That means if Songjiang Motors wants to expand, then Taihua Holdings will lose control of this company. Bing City Government was also smart. They will never sell their shares, even if it was at a 30% premium.
What can they invest with the money? They can keep the shares, and the dividends are not small. The company's headquarters will not be moved out of Bing City, and they can get high taxes.
The other automobile manufacturers are the same. If they want to acquire us, fine. We don't mind if they use shares to acquire us. But if they use cash, there is no room for negotiation!
Last year, Hua Xia's annual automobile sales had exceeded 6 million units. Passenger cars accounted for more than 50% of the sales, and Songjiang Motors accounted for one-third of the sales.
Hua Xia's private passenger cars had exceeded 10 million last year, and market research showed that private cars, especially passenger cars, will continue to grow.
The higher-ups had also noticed this figure, and Feng Yu had suggested to the higher-ups to make the automobile industry their pillar industry. Since it is their pillar industry, how can they let private companies monopolize it?
Now, Songjiang Motors is in trouble. Songjiang Motors wants to expand in China, but it is impossible. Songjiang Motors is not willing to acquire those companies because those small manufacturers are too weak. Other than workers and land, Songjiang Motors is not interested in them.
What Songjiang Motors is interested in is not enough. This caused Songjiang Motors to be unable to expand quickly. Songjiang Motors still only has a few brands and two logos (Oriental Deer is its own logo).
The world's automobile production and sales will increase rapidly in the next few years. These two years, the global economy is doing well, and it is a good opportunity for Songjiang Motors.
However, there was another piece of good news at this time. Since last year, the same car manufacturers had started to go bankrupt. When the global economic situation was very good, and automobile production and sales were soaring, Tongtong, with the world's number one automobile production and sales volume, had started to suffer losses!
Among the top 10 automobile manufacturers in the world, only IBM is making losses. But another major automobile manufacturer in North America, Ford, is also not doing well. Their profits have decreased. Toyota and Volkswagen's sales and profits are increasing rapidly.
If things continued like this, Tongyong would inevitably go down the same path as in his previous life, which was to apply for bankruptcy protection, rely on the US government to rescue them, close their factories, close their sales centers, lay off their employees, sell their brands, and so on.
Although Tongyong had risen again in Feng Yu's previous life, the world's number one position had been given to Toyota. Since then, they had never taken it back. Even the number two position was held by Volkswagen. Tongyong didn't stand a chance at all.
They had more than 20 brands, but they were all fighting for themselves and could not form an effective alliance. Just the production and R&D resources alone had been wasted. Not to mention that some of the brands they had acquired had not made any money at all.
Originally, they wanted to make it universal. They had all kinds of car models. But they had neglected the fact that there were too many different models, and they could not make it!
GM's biggest problem was in the North American market. GM had their own Tongyong Auto Finance Company, which provides auto loans.
GM made use of GM's credit rating to sell their cars, but it takes a long time for them to collect their payments. Although GM's sales volume was the highest, many of them did not get any payments.
If nothing unexpected happened, GM's business model would be fine. Eventually, they would get their money back, and they could use this company to invest. Even if it was just simple loans, they could still get high profits.
But Feng Yu knew that Tongyong had made the same mistake as his previous life. Their auto finance company had entered the real estate market.
This was because the real estate market's profits were very high now. GM had become one of the top five mortgage lenders in the US, and their profits were much higher than car loans.
The duration of car loans was very short. In two years' time, when the Fannie and Freddie financial crisis broke out, many people's credit rating would go bankrupt.
If it was only car loans, the losses would not be high. But if the mortgage was included, the losses would be huge. A house's selling price is much higher than a car, and the repayment period is longer. If the credit rating went bankrupt, there will be more bad debts.
Feng Yu had wanted Songjiang Motors to develop step by step, and by the time Tongyong filed for bankruptcy in three years, Songjiang Motors would be one of the world's top automobile manufacturers.
But Feng Yu had forgotten that Songjiang Motors was only manufacturing passenger cars, and they were not even in the top ten of the global automobile rankings. Songjiang Motors had occupied half of Hua Xia's passenger car market, including the low-cost and low-profit Elfin. But they were not even in the top ten. This was too slow.
If Songjiang Motors continued to develop slowly, Songjiang Motors would not have a big impact when Tongyong's crisis comes.
"Old Li, don't worry. Let me settle this." Feng Yu thought for a while and said.
Isn't it because the brand awareness is not high enough? All they want is to win big awards. That's easy.
Create awards themselves!
It wasn't like he had never done something like this before.
Those world-renowned awards were all created by him.
If they can do it, why can't we?
Songjiang Motors' awards are also based on a set of standards. The winner will be the best in the set of standards.
If they can do it, why can't we? We are relying on the Hua Xia market, and why can't we create our own awards?
Not only Songjiang Motors want to create an award, but he also wants to create a world-class award!
However, there is a difficulty in organizing this award. It requires other automobile manufacturers to participate, and they have to present models that are worthy of the award.
This is troublesome as Songjiang Motors does not have a lot of influence overseas.
Feng Yu might have to attend this event personally.
He is the World's Richest Man, and if he sends out an invitation personally, those automobile manufacturers will surely attend.
But how to create this award and how to highlight Songjiang Motors needs to be considered carefully.
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