Tong Yong and Ford had wanted to trade with Wind and Rain Holdings Group. But after they know Wind and Rain Holdings Group is cooperating with Tata Group, they changed their minds.
Feng Yu and the rest want to spend less, while GM and Ford want to earn more.
Actually, this is not a big problem. But Feng Yu's other request is too harsh. Feng Yu does not want any of his US employees, and the employees from other regions must go through a review.
Feng Yu wants Tong Yong and Ford to lay off their employees first, and Feng Yu has the upper hand. The laid-off employees would definitely need to find a new job, so they could use a more reasonable price to re-sign the employment contract with those employees. This contract could even lower the price a little.
Tong Yong and Ford want to lay off their employees, but this is different from Feng Yu's request. When Ralph talked to the other side, he said that they could pay more, but Tong Yong and Foot still didn't agree.
Old manufacturers like them have lots of retired employees, and they must pay compensation for laying off their employees. If they sell off these businesses, but the employees are still in their hands, can they lay off all of them? They can only lay off some of them.
This way, they will also need to lay off their other businesses to make arrangements for the extra employees.
Although they will be laying off a lot of their employees, they will not be able to reduce their burden. Even if they get more money temporarily, it will be like drinking poison to quench their thirst. When the time comes, these employees' pensions, medical insurance, etc., will be a huge burden.
Feng Yu insists on this and will not change. Feng Yu can pay more, but he does not want these employees or those rubbish factories.
In Feng Yu's previous life, Tata Motors had done well in the passenger car business. But after acquiring Jie Bao and Land Rover, they started to develop their own small cars and started to lose money.
Jie Bao and Land Rover might be selling well, but the burden on them is higher. If not for those burdens, why would Ford sell them to Tata Motors at such a low price?
What Feng Yu meant was that he does not want those debts, but GM and Ford will never agree to it.
Tong Yong and Foote wouldn't take on this debt. Luckily, they can use the restructuring of the shares to divest the non-performing assets.
Wouldn't the employees of those bankrupt companies come looking for them after stripping off non-performing assets?
Under normal circumstances, bankruptcy and restructuring only gave up some non-performing assets, and then let the high-quality assets bear these debts, delay the repayment, and reduce the burden.
Many foreign companies simply transferred their non-performing assets to another company and then went through bankruptcy liquidation.
The method was simple. He just had to break off their relationship legally. For a bankrupt company, just find someone to shoulder it. It had nothing to do with these high-quality assets.
The burden will be thrown to the government, and the legal representative of the bankrupt company will also have a lot to do with it.
The legal representative was also very simple. There were many people in prison in the United States who became legal representatives. Anyway, they would not be able to get out in this lifetime, so it was good to leave some money for their families.
He was in prison and couldn't get out, so he wasn't afraid of others finding trouble with him. Anyway, he couldn't pay his debts. If they had the ability, they could let him go out and work to pay his debts.
There were many similar methods, and there was also the method of letting a dying person become the legal representative. There were always loopholes.
Of course, Feng Yu would not adopt such a method. He only needed to restructure once. He did not even need to go bankrupt. A normal asset restructuring would suffice.
Even if there were some non-performing assets, it was still normal. He couldn't just say that it was a very high-quality asset and sell it just like that, right?
Ralph, Palangi, and the rest thought that Tongyong and Ford might have formed an alliance. This way, Wind and Rain Holdings would be at a disadvantage.
Ralph felt that the first thing to do now was not to acquire these two companies' target businesses. Instead, it was to separate these two companies.
This was the only way for Feng Yu to gain the upper hand.
Now, they needed to think of ways to separate these two US companies. After all, these two companies' main factories were in Detroit.
Although these two companies were old rivals, under such circumstances, they will still be united against outsiders. This was because it was in their interests.
Ralph and Palangi both thought that they should contact Ford first. After all, Ford came to them after knowing that Tong Yong had contacted them. Obviously, they were more anxious to sell their assets.
Feng Yu had a different opinion. He felt they should contact Tongyong first. This was because Tongyong's burden was higher, and they need more cash.
Manager Xu asked weakly. "Can I express my opinion?"
Manager Xu was chosen as the representative because his English was good, and this was considered an advantage among the rest of the team.
Now, they were all on the same side, and Feng Yu will not reject Manager Xu's opinion.
"We are all on the same side. Go ahead."
"I also feel we should contact Tongyong first. Based on what Mr. Ralph had said, Tongyong had contacted Wind and Rain Holdings first, right? That means they are in urgent need of money. "
"Secondly, Tongyong intends to sell their shares in Hua Xia's joint venture factory. This is something our Hua Xia XX Group is determined to get. Also, if we buy Tongyong's shares in Hua Xia's joint venture factory first, do you think Ford will be anxious? "
Feng Yu's eyes brighten up. He did not expect this Manager Xu to have some ideas.
His resume was not outstanding and looked ordinary. But for him to be clean after so many years, this proved that he was smart.
Ralph thought for a while and nodded. "This is a good idea. Even if Tongyong gets the money, it will not be enough. It can only help them temporarily. "
"We can ask Ford to buy their shares in Hua Xia's joint venture factory, and they had rejected us. If they see Tongyong selling, they might agree. "
"Even if Ford does not sell this part of their assets, it will be more advantageous for us when we negotiate for the other assets. Also, Ford's assets are much better than Tongyong's assets, and Tongyong will not agree to our request. "
Actually, it was too difficult for Tongyong to ask them not to hire anyone. But it was much easier for Foote.
They had fewer brands and fewer employees. Ralph had emphasized that they do not want anyone in North America. Those assets that Ford wanted to sell had very few employees in North America.
Also, after Feng Yu and the rest bought over Ford's assets, they will need employees. Feng Yu felt Ford wanted to hire their existing employees first.
Hiring experienced employees is better than hiring newbies.
Palangi also felt this was a good idea. They can even try to buy over Tongyong's Daeyu. If this deal goes through, Feng Yu will not compete with Tata Motors.
"Ralph, you should lead the team to discuss the details. If you do this well, you will be rewarded."
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