Now, Ford's credit rating is falling. If they do not think of ways to get cash to save the company, then the company's business will get worse. They might also end up like Tong Yong and end up with high interest loans.
It is rare for a company to express interest in their business and is willing to offer cash. This is very important for them to get out of this predicament.
Although the other party's conditions are harsh, it is not unacceptable. Rather than sinking deeper into the mire, they would rather sell some of their businesses and let their core businesses, Ford and Lin Ken, survive.
Just as they had expected, Foote had taken the initiative to look for them and lowered some of his conditions.
However, Ralph was still not satisfied.
They only want three factories in North America. They do not want more or cheaper factories unless they fire all their workers first.
Ralph wants all of China's joint venture companies' shares, but even if Ford gives in, he will only give a small joint venture company's shares. As for the brands, Ralph wants all the shares of Jiebao, Land Rover, and Volvo. He wants all the shares and interests in these three brands, leaving nothing for Ford.
This meant that Ford's other factories could no longer continue to produce these three brands of cars.
Tata Motors also wants Ford's high-end car brand, Mercury. But Ford does not agree. If they give up this brand, there will be a vacancy in the mid-range market. After all, Ford is only a small shareholder.
Jaguar is what Feng Yu wants, Land Rover is what Tata Motors wants, and Volvo is a state-owned enterprise that wants to merge with a certain automobile manufacturer to upgrade that automobile manufacturer's technologies and international competitiveness.
Ralph wants to divest all the non-performing assets from these three brands. Of course, Ford cannot agree. They promise not to transfer the non-performing assets of other brands to these three brands. But the non-performing assets of these three brands must be included.
That means after acquiring all the businesses of these three brands, they will have to bear some debts and obligations.
In Feng Yu's previous life, these debts and obligations are much higher, and that's why the prices of these three brands are not high. This is mainly because of the non-performing assets.
Now, these non-performing assets are not as high as in Feng Yu's previous life. That's why Ford asked for a higher price.
All the businesses of the three brands, plus all the equity of a domestic joint venture company, were valued at 7.4 billion US dollars, including nearly 3 billion US dollars of debt.
Of course, according to Ralph's request, all the employees of these companies had to sign the contract again. According to the requirements of Wind and Rain Holdings, those employees had to pass the assessment before they could start working again. Once they were laid off, the compensation would be paid equally by Ford and Wind and Rain Holdings.
There were a lot of small details, and every one of them could make them argue for a long time. This was because any small detail could mean tens of millions of dollars in benefits.
These negotiators naturally had their own tasks. Whoever performed better and created more benefits for the company would be given a promotion, a raise, or a large bonus.
…
"Ralph, how did it go?" Feng Yu was lying on a deck chair beside the swimming pool, basking in the sun leisurely. It was warm and comfortable.
"Boss, we've discussed the framework, but we haven't reached an agreement on the details. We didn't get Mercury, but Hua Xia's shares in a joint venture company were included. "
"Ok. Hurry up. The longer we drag on, the higher the debt of those companies will be. The earlier we enter the restructuring mode, the earlier we can generate profits. "
The longer they dragged on, the more funds Ford would need, and the more they would want to sell those assets. That way, they would be able to lower the price.
But now, the contract had been finalized, and now they need to discuss the details. The longer they drag on, the more non-performing assets Feng Yu and Feng Yu would suffer losses.
Ford was also anxious because they wanted to get the cash as soon as possible. This way, they could save their other businesses, especially their credit company.
Both sides were anxious, and they made some concessions. Ford would suffer some losses in this clause, and Ford would suffer some losses in the next clause. This way, the contract could be signed as soon as possible.
Tong Yong was still waiting for Wind and Rain Holdings to discuss other businesses with them. Suddenly, they received news that Wind and Rain Holdings had acquired many important businesses of Ford.
After Tong Yong sold Hua Xia's shares a few days ago, the three major American automobile companies sold their businesses again.
This time, it was more important than Tong Yong's shares. Ford sold all three brands, some factories, and a joint venture company owned by Hua Xia.
Ford only had seven brands in total. Among them, Mazda was only a shareholder.
This time, they had sold off all three brands, which was equivalent to half of Ford Mart's business.
Many people thought Ford's board of directors had gone crazy. Ford's expansion over the past few years would be ruined by this sale. Ford's global strategy would once again be delayed. Their European and Asian markets would shrink further. Perhaps Ford's sales this year would drop a few notches.
But Tong Yong and the other companies understood Ford's predicament. Ford had been using their assets to get loans to maintain the company's operations.
Although they had sold all three brands, it had lightened the company's burden, and they had gotten a large sum of cash. This cash might be enough to tide Ford over this crisis.
The media was shocked. Wind and Rain Holdings was indeed rich. They had just spent more than 6 billion USD to acquire all of Tong Yong's shares in Shanghai, and then acquired half of Ford's business. Could it be that Feng Yu plans to enter the automobile industry?
But it seems that Wind and Rain Holdings had only acquired passenger cars, and not commercial vehicles. Does this mean that Feng Yu plans to let the company follow BMW's route? Specializing in passenger cars and technology, they can still become the world's top automobile manufacturer even without commercial vehicles.
This kind of acquisition was difficult. Not only did the companies have to agree, but they also had to go through many procedures. For example, when they acquired Jaguar, Land Rover, and Volvo, they had to get approval from the European Union and the US government.
Feng Yu was not worried about these. Ford would do all it could to get these organizations to agree.
If they did not acquire these businesses, Wind and Rain Holdings would lose a chance to expand. But it would be a disaster for Ford.
To tide over this crisis, Ford had been mocked by many in the industry, saying that they had been swallowed by Wind and Rain Holdings.
Between being swallowed by half or going bankrupt, Ford chose the former. As long as the company could continue operating normally, Ford would be able to stand up again!
After all the contracts were signed, Feng Yu told Manager Xu to inform China to transfer the funds, and everyone … … split the assets!
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