Chapter 1696 Swallowed Half of Foote

Foote's credit rating continued to decline at this time. If they didn't want to exchange cash for rescue, the company's business would inevitably get worse, and maybe, like Tongyong, they would fall into the predicament of high-interest borrowing to survive.

It is rare for such a company to express interest in their business and to come up with cash, which is too important for them to get out of the woods.

Although the other party's conditions are very harsh, it is not unacceptable. Rather than sinking deeper and deeper into the quagmire, they would rather sell some businesses and keep their core Ford and Lincoln.

Sure enough, Foote came to the door as they expected, and lowered some conditions.

But this, Ralph is still not satisfied.

There are only three factories in North America, no more, no cheaper, unless you fire all the workers first.

China's joint venture company shares are all wanted, but even if Foote concedes, he is only willing to give shares to a small joint venture company. Yes, and want all the shares and rights, leaving nothing to Foote.

It also means that Ford's other factories can no longer continue to produce these three brands of cars.

Tata Motors also wanted Mercury, a high-end car brand owned by Foote, but Foote also did not agree, giving up this brand, they will have a vacancy in the mid-range market, after all, Mazida is only a minority shareholder.

Among them, Jiebao is what Feng Yu wants, Land Rover is what Tata Motors likes, and Woerwo is a state-owned asset that is going to be included in its subsidiary and merged into a certain car company to improve the technology of the car company and enhance its international competitiveness.

There are some non-performing assets in it, and Ralph asked to divest them all, which of course Foote could not agree to. They promised not to transfer the non-performing assets of other brands to this, but the non-performing assets originally belonging to the three brands must be included together.

In other words, the entire business of these three brands has been acquired, and at the same time, some debts and obligations have to be carried.

These debts and obligations in the previous life were more, so the selling price of the three brands was not high, which was mainly dragged down by non-performing assets.

At this time, these non-performing assets are not as high as in the previous life, so the price demanded by Foote has also become higher.

The entire business of the three brands, together with the entire equity of a domestic joint venture company, is valued at US$7.4 billion, including nearly US$3 billion in debt.

certainly,

According to Ralph's request, all employees of these companies need to re-sign the contract, and sign the contract according to the requirements of Fengyu Holdings. Those who have passed the assessment before can resume their posts. Once they are laid off, the compensation will be shared between Foote and Fengyu Holdings. pay.

There are so many small details, each of which can make them argue for a long time. Because any small detail clause may represent tens of millions of dollars in benefits.

Naturally, these negotiators all have tasks. Whoever can perform better and create more benefits for the company will bring them a promotion and salary increase, or a large bonus.

...

"Ralph, how's the talk going?" Feng Yu lay on the deck chair by the swimming pool, basking in the sun leisurely, warm and very comfortable.

"Boss, the framework has been negotiated, but the specific details have not been reached. Mercury failed to win, but the shares of a joint venture company in Huaxia have been included."

"Well, negotiate as soon as possible. The longer the delay, the higher the debt of those companies. The sooner they enter the restructuring mode, the sooner they can create profits."

At the beginning, it could be delayed, but the longer it was delayed, the more funds Foote lacked, and the more he wanted to sell these assets, the more suitable they were to lower the price.

But now that the approximate amount of the contract has been determined, it is now time to discuss the details of some assets. The longer it takes, the more non-performing assets Feng Yu and the others will buy in these assets, and Feng Yu and the others will also suffer losses.

Foote is also more anxious, because they also want to get cash sooner, so that they can have cash earlier to save other businesses of the company, especially their credit company.

When both parties were in a hurry, both parties also made some concessions. I suffered a bit for this clause, and you suffered a bit for the next clause, hoping that the contract would be signed as soon as possible.

Tongyong was still waiting for Fengfeng Holdings to continue to discuss other business matters with them, but suddenly received a news that Fengfeng Holdings had acquired many important businesses of Foote.

This is another sale by the three major U.S. automakers after Tongyong sold shares in the China joint venture a few days ago.

And this time is much more important than Tongyong's sale of equity in a joint venture company. Foote directly sold all the businesses of the three brands, including some factories and all equity in a joint venture company in Huaxia.

Foote has only seven brands in total, of which Mazida is only a shareholder.

This time, all the businesses of the three brands were directly sold, which is quite half of the fortune.

Many people think that Foote's board of directors is crazy. Foote's expansion over the years will be ruined by this sale. Foote's global strategic plan will once again be stranded. Their markets in Europe and Asia will be destroyed. If it is further narrowed, perhaps Ford's production and sales volume this year will drop several places.

But companies such as Tongyong understand the difficult situation of Foote. Before that, Foote was like them, constantly mortgaged assets and loans to maintain the normal operation of the company.

Although the entire business of the three important brands was sold this time, it also reduced the company's burden and returned a large amount of cash. This cash may be able to help Foote tide over the difficulties.

The media exclaimed, Fengyu Holding Group really has a lot of money. It just spent more than 6 billion US dollars to acquire the entire equity of Tongyong Automobile in Modu Tongyong, and then bought half of Ford Automobile. Is Feng Yu really planning to vigorously enter the automobile industry?

However, it seems that these businesses acquired by Fengfeng Holding Group are only passenger cars, not commercial vehicles. So Feng Yu plans to let the company take the route of BMW? Specialize in passenger vehicles and their technology research and development, not commercial vehicles, and become the world's top automaker.

This kind of acquisition is actually very difficult, not only through the agreement between the companies, but also through many procedures. For example, the acquisition of Jie Bao, Land Rover and Woerwo requires the consent of the European Union, and of course the approval of the US government.

Feng Yu is not worried about these things. Foote will do everything possible to publicize and get these agencies to agree.

If these businesses were not acquired, Fengfeng Holding Group would lose a good opportunity for expansion, but for Foote Company, it would be a serious disaster.

In order to overcome this difficulty, Foote never defended himself even if he was ridiculed by many colleagues, saying that they were swallowed up by Fengyu Holdings Group.

Between being eaten in half and going bankrupt, they chose the former. As long as the company can continue to operate normally, Ford, a century-old car company, can stand up again!

After all the contracts were signed, Feng Yu told Mr. Xu to notify the domestic payment, and then everyone... divided these assets! (To be continued.)