What the hell is a private enterprise?

Chapter 539 Acquiring Luofu (3200 monthly votes in June)

Will the Hanma S9 incorporate mobile internet connectivity in the future?

This is the latest hot topic on King's BBS (both internal and external servers), and it was initiated by the official Gaijin team.

In fact, many people, let alone foreigners, are unaware of the relationship between Feiyue Motors, Hanma sub-brand, and Gaijin.

The biggest news regarding the Hanma S9 these days is that Gaijin and BMW have officially reached a settlement, and Mu Nihei has withdrawn its lawsuit against Hanma S9 for plagiarism.

Tang Wen originally planned to finalize the joint venture agreement with Joshaim in the United States, but due to delays caused by the internet and passenger planes, negotiations have only just begun.

The main requirements brought by Joachim were:
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In the joint venture, each party holds a 50% stake;
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BMW acquired a stake by licensing several models and transferring some production technology, and also provided an additional loan of 2 million marks to Geiger, approximately 10 billion yuan, for the construction of new factories and the purchase of some patented technologies;
The models introduced are entirely determined by BMW, with Geiger responsible for production or assembly.

After receiving the agreement, Tang Wen glanced at it, then quickly wrote a long scribbling and threw it back.

Joshua looked at the above content again and found that the numbers had been altered:
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In terms of shareholding, BMW holds 30%, Gaijin holds 50%, and the remaining 20% ​​goes to Goose City and is distributed to the supply chain.
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Hans BMW must license its models free of charge, and the loan amount is 30 billion RMB, approximately 6 million marks;
Tang Wen was appointed President of the East China Region of Hans BMW and decided to introduce the model. If it cannot be introduced, the reasons must be explained or a penalty for breach of contract must be paid.

Hashim could accept the first treaty, but Tang Wen's division was actually more reasonable, and he could make the decision himself.

The second point required approval from headquarters, especially since he noticed that Tang Wen wanted a loan in RMB, not Marks, and that 6 million Marks was by no means a small sum.

As for the third point... Joshaim couldn't hold back any longer. Tang Wenlai would be the president, and he would be the vice president?
He was a vice president before the joint venture, and he remained a vice president after the joint venture. So what was the point of the joint venture?
Furthermore, the models to be introduced are decided by Tang Wen, which is simply turning the tables. Which side is the headquarters?

He couldn't hold back any longer. Compared to the timid investment promotion offices and clueless entrepreneurs in China today, Tang Wen was practically a robber.

"Tang, are you coming to work at BMW?"

Joachim, enraged, laughed and stood up directly in the doorway:

"If you become president, you will be an important member of the board of directors, and you might even be elected chairman and CEO."

Tang Wen countered, "Is that not allowed?"

"Of course not! These conditions are ridiculous; no one will agree to them!"

"Actually, I would prefer to buy a genuine European car company. I love Hans Motors."

"Sir, are you planning to borrow money from BMW to buy a BMW?!"

"why not?"

Tang Wen's attitude made Joshua think he was mocking him, while the translator, Zhao Hande, Gao Yuliang and other accompanying personnel dared not utter a word.

They were repeatedly instructed beforehand to only listen and not speak, but no one expected Tang Wen to play such an exciting game.

However, the former finally waved his hand and said with a smile:

"Don't be angry, my friend. Actually, the joint venture is a small matter. Everything else, except for the shares, is up to you. However, I do want to buy you out—or rather, one of your subsidiaries."

I want Rover.

You might not have heard of Rover, but if you add "Land" in front of it, does Land Rover sound familiar?
Louvre has four brands:
Rover, Land Rover, MINI, and MG.

In 94, BMW spent £8 million (approximately RMB 108 billion) to acquire Rover in order to expand its business. However, it suffered huge losses in the following years, accumulating losses of nearly $30 billion (approximately RMB 250 billion). Now, they are completely broke and are planning to sell it back to either Britain or General Motors.

However, Tang Wen wanted to take over. He didn't want to acquire the entire Rover brand; buying just one of its sub-brands would give him access to a wealth of modern automotive industry experience, established markets, engines, designers, and even the market.

While the reputation of the sub-brands under Luofu did not improve significantly later on, it represents a groundbreaking advancement for the current domestic market, and buying them is definitely a worthwhile investment.

Upon hearing this, Joshua immediately forgot about Tang Wen's previous "teasing." It was no small matter that a large Eastern company wanted to buy a European car brand.

Zhao Hande and Gao Yuliang watched as Joshaim's expression changed from anger to calm. Finally, he snorted and sat down steadily, showing no intention of leaving.

The expressions in their eyes also underwent a strange change, once again showing their awe at the power of capital.

Josahim, now much calmer, asked:

"Does Gaijin have the funds to acquire Luofu?"

Tang Wen didn't answer him, but turned to look at Zhao Hande:
"How about lending me 10 billion?"

He emphasized the word "borrow," and the latter understood immediately.

Although it was called a loan, it didn't actually require the bank to intervene at all; it could be drawn from the navy's debts, so he immediately nodded in agreement.

"No problem, Gaijin can borrow as much as he wants."

His affirmative answer startled not only Gao Yuliang, but also Joshua, whose eyes darted back and forth between the two men before he suddenly shouted:
“Hey, you guys aren’t planning to take out a loan, go bankrupt, and then take the opportunity to confiscate Gaijin’s assets as state-owned assets, are you? That can’t be allowed.”

Despite being a domestic company, Gaijin's status is vastly different from that of the official company. If the official company wanted to buy Rover, it would be absolutely impossible for them to do so.

Zhao Hande thought for a moment and then simply said:

"No, we won't. This 10 billion only requires an annual interest rate of 5%, and it can be repaid in installments over three or five years. Gaijin is a private company."

However, Joshaim's eyes widened even more. He knew the country well; it was a time when prices were "returning to normal" and the currency was depreciating wildly, so both deposit and loan interest rates were very high.

Currently, an interest rate of 9% is barely enough to keep up with the rate of devaluation; 5% is no longer an interest-free loan, but rather a way to get money out of your pocket!
And the installment payments only start after 5 years? Doesn't that have even a shred of basic financial common sense?

This is even more friendly than a state-owned enterprise!

Luofu is actually in a very bad situation now. It's not a problem of not being able to sell at a good price anymore, but rather that no one is willing to take over a loss-making business.

Land Rover is a relatively valuable asset, but its off-road capabilities don't quite align with BMW's, and the other three are simply not competitive at all.

The company that takes over must invest a lot of money and effort to restructure and support it; the price for the Phoenix Group is £10.

Even if it's not a hundred million, it's still 10 pounds, which at least prevents BMW from continuing to lose money.

Currently, due to the deep pit at Luofu, three directors have been forced to resign.

However, this is limited to automotive giants. The Rover Group is not an ordinary commodity. If Gaijin wants to buy it, he will have to spend a huge sum of money, and he may even make a small profit.

Regardless of whether the University of Tokyo is officially involved, the price of 100 billion RMB is quite tempting, and he might just make another great contribution!
(End of this chapter)