Ford's representative sat with Ralph again. Although he wants to complete the cooperation with Wind and Rain Holdings as soon as possible, he pretended to be calm on the surface.
"Ralph, we have been talking for a long time. Have you made a decision?"
With a smile on his face, Ralph slowly said, "Matt, my Boss still thinks that Ford's shares in China are good, and he really wants it."
"No, no, no, Ralph. I've made myself very clear. Other than the Ford and Lin Ken brands, only Mazda's shares can be sold out of our overseas joint-venture factory shares."
These are strategic investments for Ford. The shares in those joint ventures will allow Ford to sell its vehicles to most of the world and enjoy local preferential policies, such as avoiding high import taxes, etc.
For example, Hua Xia's CIF price is three times higher than the retail price. This is mainly because of the high taxes, and it is also a form of protection for Hua Xia's domestic automobile manufacturers.
But if it is a joint venture, the prices will be lower, and the sales will be higher.
The joint ventures will also use their brands, and it will be beneficial for their brand promotion. Many joint ventures are their nails in certain markets. Once they sell those joint ventures, it will be much harder to enter those markets.
"Matt, if Foote doesn't sell it, Tongyong has been waiting for our reply. They had agreed to sell us all Shanghai Tongyong's shares and brand rights. "Ralph replied calmly.
"Our Wind and Rain is interested in the automobile industry, but we will not only choose Ford. Actually, we had contacted Tongyong earlier, and you should know this."
"We had investigated the current automobile industry. It looks prosperous on the surface, but there are many hidden dangers. Only our Wind and Rain can save Ford. I think you must have contacted the other financial groups, but who can offer more cash than us? "
Matt shook his head. "We need cash, but we cannot give up on our future development. We will not give up on this."
"Fine. Seems like we cannot reach an agreement again. I hope we can reach an agreement next time. You better go back and discuss with your board members. Doing business with Wind and Rain is the best choice."
Matt also does not think Tongyong can agree to this condition before he left. If Feng Yu sold off the shares of the joint venture company in Shanghai, Tongyong's influence in China will be reduced. But Tongyong has 3 joint ventures in China, and it's not impossible to sell off one of them. But it's impossible to sell off the biggest one!
That afternoon, Tongyong's representative sat down with Ralph again. Ford is anxious to sell its shares to save the company, but Tongyong is even more anxious.
"Ralph, we have discussed this more than once. Your Wind and Rain keeps saying that you are interested, but you keep raising harsh conditions to force us to give in. This way, it will be hard for us to continue our cooperation."
"Malfoy, I called you here today because I have good news for you. Hua Xia has approved the acquisition of Tongyong in Shanghai. We can complete this first."
"With this cooperation as the foundation, I believe we will soon reach a consensus on other business acquisitions. This is something our boss agrees with. "
Malfoy's eyes brighten up. Wind and Rain had given in to Tongyong's conditions? This is great! I did not let down the board of directors. With this, I might be able to enter the board of directors.
Tongyong is in urgent need of money now, and the company's debt is getting higher. Relying on high-interest loans to support the company's debt will snowball until Tongyong collapses.
Ralph had raised many conditions to Tongyong. Other than the company in North America, he also wants the most well-known brands under Tongyong, such as Cadillac, Buick, Chevrolet, GMC, etc. Tongyong will never sell these brands.
Ralph changed his conditions. For example, Australia's Horton, which is Australia's biggest automobile brand. At the same time, Tongyong is also the design and engineering center. This is also a core asset of Tongyong, and Tongyong will never sell it.
Also, Wind and Rain is not interested in the brands Tongyong is offering. Finally, some of the companies reached an agreement to let Tongyong earn a large sum of money first to ease the company's difficulties.
Malfoy immediately reported to the board of directors, and the board of directors immediately agreed.
Although they had sold Shanghai Tongyong's shares, they still have two joint ventures in Hua Xia. They did not withdraw from the Hua Xia market, but Shanghai Tongyong is Tongyong's biggest joint venture in Hua Xia.
The other two joint ventures, Wind and Rain Holdings, also expressed interest. But their scale is too small, and they are not willing to pay much. That's why Tongyong does not want to sell their shares. They must ensure they still have joint ventures in Hua Xia and allow them to expand into Hua Xia's market.
Ralph signed the agreement with Malfoy on behalf of Tongyong and held a press conference to announce this to the world.
This acquisition is worth more than 6 billion USD, and it is the biggest acquisition in the automobile industry this year. After this news was announced, it attracted the attention of the global automobile manufacturers.
Everyone investigated and knew Wind and Rain Holdings will not own Shanghai Tongyong's shares. They should be selling it to Taihua Holdings and merging it into Bing City Machinery Manufacturing Group to increase this company's scale and increase their market share in Hua Xia.
Ralph had set many conditions for this acquisition. For example, Shanghai Tongyong can continue to use the joint venture's technologies and use Tongyong's brand.
Tongyong thought they are getting a bargain. Although their brand is given to others for free, it will increase their brand awareness, and it will be beneficial to their other two joint ventures in Hua Xia.
But Feng Yu is more concerned about the technologies. He only needs to modify the exterior and continue using the same technologies, and they can produce their own Shanghai brand.
Marketing Tongyong's brand? Dream on!
Ford panicked when he heard this news. Shanghai Tongyong is sold to Wind and Rain Holdings at a high price.
Does this mean Wind and Rain Holdings had chosen to cooperate with Tongyong and give up on Ford?
No. Ford must start negotiations with Wind and Rain Holdings immediately. If necessary, he can give in to some conditions! Foote's finances were in dire need of cash.
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