"Malfoy, I'm sorry, but we don't have any plans to acquire automotive related businesses for the time being. We still have money on the company's books, but we still have other businesses to acquire. Maybe we can work together again in two years. "
Malfoy wanted to say something, but he heard the busy tone on the phone. He was stunned.
Two years? Can the same car last for two years?
We had a good discussion, and we even sold Hua Xia's biggest joint venture to you. Now you're saying that we don't want to talk about anything else?
What if we share the same company?
They had gotten a lot of cash from selling all of Hua Xia's Shanghai Tongyong shares, which was a great help in alleviating their financial pressure.
Their pension and medical insurance funds were enough this year, and they might not need to take out mortgages anymore. However, they had planned to sell some of their businesses in exchange for a large sum of cash.
Now, their plans had been disrupted, and the company was still short of money. If they wanted to borrow money again, they might have to pay higher interest rates and take out more assets as collateral.
Wind and rain Holdings Group's move had made Tongyong's situation even worse.
The subprime mortgage crisis had become more and more serious under the media's influence. More and more people could not afford their mortgages, and many people had even moved out of their houses.
They would rather rent a house than pay their mortgages. The housing prices were falling every day, and they were losing a lot of money to repay their loans.
Although some real estate developers had claimed that the real estate market had not reached a low ebb and that it was a good time to buy at a low price, the real estate developers who had bought at a low price had all suffered huge losses. When they entered the market, the housing prices had not hit rock bottom yet.
As a result, the default rate of real estate loans had increased, and the housing prices had continued to fall. During this period, a few real estate companies and real estate finance and credit companies had gone bankrupt.
In Tongyong's financial company, not only had the default rate of mortgages increased rapidly, but the default rate of some car loans had also increased rapidly. More and more bad debts had appeared in their hands.
Originally, this financial company had been able to generate billions of US dollars of profits for them every year, and that was when some loans could not be collected.
But now, not only could this company not generate profits for Tongyong, but it had also become the company with the most losses.
The other subsidiaries and branch companies couldn't get any funds, and this original leading company was also losing money. This made the hole in the funds used at the same time bigger and bigger.
In the first quarter of this year, they had lost more than 1 billion USD. But in the second quarter, their losses had increased to a few billion USD. Based on the current situation, the third quarter's loss will surely exceed 10 billion USD. What about the fourth quarter? What about next year?
When they lost money in the first quarter, they discovered the crisis and wanted to sell some of their assets in time to bear the risk. At the same time, they were also thinking of ways to get loans to help the company tide over the crisis.
However, they didn't expect that the Wind and Rain Holdings Group would suddenly give up on the plan to acquire their business. Originally, they thought that everything would go smoothly, but the Wind and Rain Holdings Group suddenly gave up the plan to acquire their business.
Malfoy had made it clear that he would make the most concessions on certain terms, but Ralph would not talk to them at all.
Of course, Malfoy knew why. It was because Wind and Rain Holdings had already acquired enough car business from Ford.
Continuing to acquire and expand seemed like a good idea, but using it at the same time was a counterexample. Sometimes, if there were too many brands and too many expansions, it would be a burden.
This would lower the company's ability to withstand risks, and the company's cash flow could collapse anytime.
In this crisis, Ford was ahead of Tong Yong. Tong Yong didn't expect that Ford would sell off three outstanding brands so cheaply and even give away three North American factories.
But Feng Yu had to admit that if it was Feng Yu, he would also make the same choice. Feng Yu had suffered some losses, but the company's foundation could be preserved.
Now, even if Feng Yu wanted to sell his business, no one was interested. There was only one reason. Feng Yu's labor costs were too high, and no other company could afford it.
Ford's business had shrunk by less than half, and 80% of Chrysler's shares had been bought back by a consortium. Feng Yu had returned to the embrace of the US, but Feng Yu and Feng Yu had suffered the most.
Although they had sold their shares in Shanghai Tongyong, it didn't help the situation. This amount of money was not enough to fill the gap for Tong Yong.
Ever since Feng Yu had raised the standards for car loans, their car sales had fallen sharply, and they had accumulated a backlog of their products.
But if Feng Yu does not raise the standards, they will not be able to repay their car loans.
This made Tongyong fall into a dilemma. Even if they had stopped the real estate credit business, they couldn't stop the car credit business.
What business does this company have left? Where will their income come from?
But Feng Yu cannot stop their factories and dare not close them down. If not, their employees will go on strike. If their employees go on strike, Feng Yu's losses will be greater.
… …
"Boss, I have already told Tong Yong that we will not consider acquiring any of their businesses in the near future. I think Tong Yong will definitely regret not agreeing to our conditions!" Ralph said with a smile.
If Feng Yu had agreed to our conditions, Wind and Rain Holdings would have bought some of their businesses.
But Feng Yu had thought they were the world's number one automobile manufacturer and refused to give in to their conditions. Now, Feng Yu had tasted the consequences.
Feng Yu's fingers kept tapping on the table. He was recalling Feng Yu's fate in his previous life. But now, it seems that Feng Yu will be in a worse state.
"Ok. Do not agree to any of Feng Yu's conditions, even if they are giving it to us for free!"
Ralph does not understand. Even if the other party offers good conditions, Feng Yu will not accept them? It will be helpful for Feng Yu to expand his global automobile business.
Didn't Feng Yu say he wants Bing City Machinery Manufacturing Group to be the world's largest automobile manufacturer?
Although he didn't know what the boss was thinking, the boss's words were his highest standard. He would definitely follow it.
Feng Yu likes some of Feng Yu's businesses, and acquiring them will help him expand his automobile empire.
But it is not worth it to acquire Feng Yu's businesses now, and it is equivalent to bankruptcy. Even if Feng Yu cannot acquire Feng Yu's businesses in the future, it will be the best time for them to expand.
Maybe they can acquire some of Toyota and Dezhong's businesses at that time!
… …
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