Add Bookmark | Recommend this book | Back to the book page | My bookshelf | Mobile Reading

Free Web Novel,Novel online - All in oicq.net -> Romance -> The Legend of Coquettish Rebirth

Text Chapter 4029 Sabo¡¯s Problem

Previous page        Return to Catalog        Next page

    GM was really losing money. In 2007, they lost $38.7 billion for the whole year!  But doesn¡¯t it mean that GM¡¯s misfortune is caused by the financial crisis?  Indeed, it is impossible for a group as big as General Motors to just stick to its own business.  Even China Hi-tech has to make various investments, even investing in the stock market, foreign exchange market and futures market. GM and they will definitely do more.  Yes, in fact, GM lost more than 30 billion U.S. dollars in 2007, mainly because they invested in American financial products. As a result, these investments lost 38 billion U.S. dollars!  Without these losses, GM would have only lost US$700 million for the whole year. How much is that?

    But because of its investment in finance, it lost more than 30 billion U.S. dollars, which made GM have to act anxiously!  After 2008, when the first quarter sales data came out, GM saw that the economic situation had not improved at all. Their sales in the most important US market were still sluggish. They immediately knew that something was bad!  If the U.S. economic situation has not improved in 2008, this will inevitably mean that the economic crisis will spread to Europe. There is no doubt about it!  Even if there were not such close economic ties between Europe and the United States, American leaders would deflect the crisis!  Because for the US dollar and the United States, when they are in bad condition and others are good, this is the biggest bad news, because all kinds of hot money will escape from the United States, which will make the United States bleed even more!

    So no matter how you look at it, the choice of the US government will definitely spread the crisis, so that it is ready to gather the world's hot money into the United States, so that the United States can be the first to get out of the crisis.  Under such a situation, the European market will definitely slump, and GM's sales in Europe will definitely drop a lot!  Sales in the United States and North America have dropped, and sales in Europe have dropped again. How much will GM's global sales drop in 2008?  Even if the Chinese market still has a slight increase, it will not be able to compete with the decline of the US and European markets!  For example, GM's first quarter financial report explains everything, because the North American market and the European market are declining.  As a result, GM's overall vehicle sales dropped by 13% in the first quarter compared with the same period in 2007!

    ?Compared to 2007, it has dropped by 13%. Is this okay?  If we look back at the end of the year, the overall sales volume may drop to about 15%. In this way, GE Financial will not make any money in investment and continue to lose money.  Then the traditional automotive field also began to decline, which could easily cause GM to bleed out!  So from these perspectives, GM really had to find a way quickly, and at this moment, Huaxia Automobile came to the door.  After the people from China Automobile contacted General Motors.  I asked whether the Saab sub-brand was for sale, but who knew that GM said at the time that they would wait a moment and they would report it to their superiors to study it.  Then half a day later, GM immediately called and offered to sell!  He also asked directly how much Huaxia Automobile was prepared to pay!

    Scratch!  This immediately stunned the team led by Dazhang and Ding Haitao, and they immediately came to find Jia Hongjian!  "Mr. Jia, why do I think Saab's problems may be serious? Logically speaking, if Saab is a good asset, GM should not react like this!" Lao Zhang said with a cautious face.  Jia Hongjian understood Lao Zhang's thoughts very well when it came to buying the Saab brand.  If once connected, some GM companies are indifferent and some are unwilling to sell, it means that the Saab brand is a high-quality asset and GM companies are reluctant to part with it.  But if GM immediately expressed its intention to sell upon hearing this, as it does now, and even asked hurriedly how much Huaxia Automobile was willing to pay, this means that at least Saab is not in GM's future plans, and it may even be that Saab's current situation is very bad.  GM may be eager to get rid of this burden!

    However, Jia Hongjian didn't care too much about this, "It doesn't matter. We can understand the specific situation in detail before considering the quotation. Now we will reach an acquisition intention with them first, and then we will find an accounting firm to do the bidding for Saab."  After clearing up the calculations and figuring out the other party's liabilities and what can and cannot be sold, let's make an offer." That's right, Jia Hongjian came with the mentality of knowing that there are tigers in the mountains and preferring to go to the mountains with tigers.  After all, for him, we don¡¯t know what we are buying until we pay for it first, so what are we afraid of?  In fact, Saab is seeing a loss. Then when the price negotiations officially begin, let¡¯s lower the price again!  Even if the other party asks for a high price.  So even if we can't buy this Saab, it's not a big problem. Isn't there a Volvo that we can buy?  And besides, isn¡¯t GM going to go bankrupt?  Then GM, which is on the verge of bankruptcy in a few months, will definitely offer a more sincere price!

    Soon after China Automobile and General Motors reached an intention to purchase the Saab brand, China Automobile hired a well-known accounting firm in Germany to inventory the Saab assets in Gothenburg, Sweden.  I don¡¯t know if the results are unclear. Once the inventory is taken, Saab¡¯s assets are really not optimistic. Although Saab¡¯s overall tangible assets are over 1 billion euros.The scale has been reduced, but if it is divested from GM, the debt will be as high as 500 million euros!  In other words, the brand¡¯s tangible assets are currently around 500 million euros!

    At the same time, this brand really has all kinds of problems. In terms of production, their highest sales volume in history was 130,000 vehicles in 2006, and their highest production volume in history was 150,000 vehicles a year. To be honest, this production volume  Yes, it¡¯s about the same as Porsche¡¯s annual output.  But the question is, how much does a Porsche cost?  Their output is small, but the price is high, so they make a lot of money!  But Saab is different. Their production volume is similar to that of Porsche, but due to various reasons, the price is set at Audi's price!  Before it was completely sold to GM, Saab actually had a relatively strong market in Nordic countries such as Sweden, Finland, Norway, and Denmark. Its sales were not good in Germany, not to mention France and the United Kingdom.

    After being sold to General Motors, although production and sales have reached a new high, this new high has only just opened up the Western European and North American markets!  Although it has set a record, in fact, it has only just taken the correct route to turn losses into profits. It has not yet reached the point of turning losses into profits. Yes, even with GM's great help, Saab has not actually made money yet.  !  This is also the reason why Saab was sold to General Motors by Sweden. Because the brand promotion was not good, the brand pricing could not go up. If the pricing cannot go up, the only way is to set a relatively mid-to-high price.  And after setting mid-to-high pricing, the overall sales volume still cannot increase. If such a company does not lose money, why should such a company lose money?

    In the final analysis, Saab¡¯s failure was a failure because the market was too narrow.  While Saab was immersed in the support of loyal users and proud of a series of outstanding and innovative products in its history, its operating model became increasingly rigid.  Faced with the increasing pressure of competitors, the market segment to which Saab belongs can no longer give Saab enough room for growth.  The annual output never exceeds 150,000 vehicles, and the pricing cannot be too outrageous. The part of the market occupied by Saab is too narrow to support Saab's operations.  For example, Audi, which is priced similarly, can produce more than ten times that of Saab in a year!  That's where you really make money!  If a company wants to make money by making products, it must either make small profits but increase sales, or it can be high-end market with good price, high quality and good reputation. If it sells less but earns more from a single product, that's fine too.  The biggest fear is that if the price is not high and the sales volume is not high, it can really drag the company to death!

    Even judging from Saab¡¯s internal reports, after GM bought a stake in Saab in 1990, Saab was profitable in 1994, 1995 and 2001, and it was in losses for the other ten years!  If we learn more about it in detail, GM has actually been trying to make Saab follow the path of Audi since it bought Saab in 2000!  I want Saab to lower configurations and then lower costs to start large-scale mass production. Through the quality and reputation, which is slightly better than Audi, but the price and sales channels are similar to Audi, it will help GM and Volkswagen's Audi.  But the problem is that the seemingly stubborn Swedes have been resisting this idea of ??large-scale mass production. The group of people in their Saab company collectively resisted sharing platforms and territories with GM's Opel brand, and then Saab still has to pursue its usual goals.  The kind that is aimed at individual users, has complex technology and is positioned as a relatively high-end car Isn't this really hard to do well?

    After learning about this, both Jia Hongjian and Ding Haitao understood that Saab was a hot potato type of enterprise.  Such a company has been around for too long, and its self-awareness is too strong. At the same time, in terms of global influence and prowess, Huaxia Automobile is not as good as General Motors.  So when GM can't defeat Saab, can Huaxia Automobile defeat it?  Will Saab become a "special administrative region" for China Automobile?  Will it become the case that Saab's life has become better after it belongs to us? Saab feels that it is the result of their own good quality and good technology. We just helped them introduce their products to Chinese consumers. If they had the ability back then,  If it enters the Chinese market, it will be very popular already If sales are not good after entering the Chinese market, then will Saab people feel that it is the various backward and substandard management of Jia Hongjian and Huaxia Automobile?  Got them Saab?  Do they think that if they continue on their previous path, they will already be half famous?

    This is really something you should not consider!  (~^~)
Didn't finish reading? Add this book to your favoritesI'm a member and bookmarked this chapterCopy the address of this book and recommend it to your friends for pointsChapter error? Click here to report