Updated: 2012-09-17

"Of course, before you make an opinion, you should take a look at this planning plan first." Cai Siqiang then took out a small U disk. Duke opened the file in Cai Siqiang's U disk and switched the screen to the magic mirror curtain wall.

"15 billion US dollars?!" This plan is obviously a concise document. It is clear on the first page that it is a detailed summary of the total budget expenditure of an acquisition case. First, Duke's eyes were met with a set of numbers with larger font sizes. The number 15 billion made Duke, who was used to huge transactions, brows jumped. This was really a big deal.

It seems that Geely spent more than $1 billion to buy Volvo back then. Is this Opel much more valuable and ten times more expensive than Volvo?

Duke turned to the next page with questions. This is an introduction to YiBo. Opel is actually a century-old store. It was a subsidiary of General Motors as early as the 1930s. Since its establishment, it has manufactured up to 50 million Opel cars and other means of transportation, which is a brilliant past.

In the past year, 1.1 million cars were sold, with sales of nearly US$20 billion, and losses of US$1.25 billion. There are currently 40,000 employees, including 25,000 production line workers. The company has as many as 23 production plants and assembly plants in Western and Central Europe, with the capacity to produce nearly 2 million cars each year. Most of the production capacity and workers are concentrated in Germany. It is precisely because these huge factories in Europe have severe excess production capacity that Opel's fixed costs remain high, which has caused Opel's huge losses.

Next, an analysis of the total acquisition budget was made. This cost includes Opel's debt restructuring, stock transfer and payment of Opel's pension, as well as future operating capital preparations. Duke soon finished reading this brief report, allowing Duke to see that it was a super problem company that had lost money in General Motors for many years. It is now in turmoil and may fall down at any time.

If GM still holds Opel in her hands, there is no doubt that in order to support this company, GM had to continue to transfusion blood for it to make up for the huge losses of more than one billion US dollars a year. However, this subsidy action has been going on for nearly 20 years for GM, and GM has not seen any profit prospects.

For General Motors, the best way to make profits for Opel now is to reorganize, reduce the scale of excess capacity, and fire a large number of redundant workers to reduce huge expenses to turn losses into profits.

But for the extremely powerful Opel European Union, these are hardly acceptable to them. They demanded that General Motors find ways to solve the problem by enhancing Opel's competitiveness, rather than just cutting off employees, to transfer the production department to emerging countries in order to seek lower production costs.

At the same time, the German government also put forward requirements for General Motors. Prime Minister Stein's spokesperson said that he hopes that General Motors' restructuring plan for Opel should pay special attention to employment safety and not bring additional burdens to Opel factories and workers. The implication is that large-scale layoffs and salary reductions are not allowed.

These requirements greatly limit the room for General Motors to take measures, allowing General Motors to end several reorganizations and transfers.

Of course, this century-old store has many unique features in the automotive industry and has world-class standards in technology and production. It can be said that after obtaining Opel, Duke and their Oriental Qiyang Group immediately had a world-class brand and production platform.

If operated properly, it is not impossible to soar in the automotive industry.

After reading this brief planning plan, Duke has an intuitive understanding of the cause and effect and the future price that Dongfang Qiyang needs to pay.

"What do you think after reading this thing?" After seeing Duke, Cai Siqiang asked again. This was a big deal. US$15 billion is just the conservative investment estimate in previous years. Although Cai Siqiang himself is confident and full of confidence in the future prospects of Opel's smart car, if the market conditions of smart cars do not meet expectations and Opel's domestic sales will not improve significantly. Then the huge investment this time not only requires tuition fees, but also not easy to break the arm and get out of it.

Although with the current strength of Duke and Lao Li's family, it is not impossible to bear such a burden for ten or eight years, but everyone comes to make money in business. Who would be foolish to carry a burden? If you can't make money, Duke's company and Lao Li's company can withstand it, and Qiyang Group's body is not as solid as the two of them.

This kind of big move of international mergers and acquisitions has great risks in itself. Judging from the historical cases of international acquisitions in the past, large-scale mergers and acquisitions often fail far more than success. Although Sal's past few acquisitions have been successful, it all depends on Duke's unique technical support, allowing the acquisition company to transform its products and gain huge product competitiveness to achieve such success.

This time I switched to the automotive industry. Faced with smart cars that are still in its infancy, can this product really save a super-large problematic company like Opel with sales of nearly $20 billion a year?

No matter how confident Cai Siqiang is in Duke, he still dares not promise.

"If you are optimistic, let go and do it. I support you 100%. Duke did not have so much consideration. Although this large-scale acquisition plan used more than any time in the company's history, if you think about it carefully, there are three companies that will share this acquisition. Specifically for SAL, it is even worse than the acquisition of the new Nokia Mobile.

Moreover, these funds are not paid in one lump sum, most of them are invested in segments in the continued production and operation. What really needs to be paid instantly are the stock transfer fees and employee pension funds. The subsequent large amount of European workers' wages and benefits and other expenses are paid separately on a monthly basis.

If the restructuring of Opel is smooth and the reconstruction of low-end products and high-end products can be achieved and new markets are successfully opened up, then the rolling cash flow will make these burdens less important.

Based on this reason, Duke intuitively felt that it supported this large-scale acquisition. After all, in this way, it was possible to build an automobile group as quickly as possible. For Duke, who is used to fast-paced development, he was not afraid of the potential risks despite the huge potential risks.

"Then we will go down and enter substantial operations. Fortunately, the huge amount of money we raised from the Hong Kong stock market now has no suitable purpose. This time, it has all hit the automotive industry. The main investment is of course Opel. Another investment direction is that I am planning to acquire an automobile engine design company and an automobile electronics design company to accelerate our progress in automobile research and development."

Although he knew that Duke would probably agree with his opinion, Cai Siqiang was still very happy after receiving Duke's support. After briefly reporting his next arrangement to Duke, he ended the internal consultation involving a investment of tens of billions of dollars.

(Thanks to book friend "Yin Zhongwen" for supporting him!)
Chapter completed!