MTL - Reborn Capital Empire-v2 Chapter 702 Rover's problem
Chapter 702 Rover's Problem
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"Have you been looking at Rover's information?"
"Tell me briefly."
Brito nodded and organized the language, "In 1994, after BMW acquired Rover, it invested more than 3 billion US dollars to transform its production line and R&D system, although it failed to reverse Rover's predicament in the end. , but its stamping, welding, painting, final assembly, as well as engine and chassis production lines are the world's top, research and development capabilities and technical reserves are also very good, K series engines are durable, fuel-efficient and noise. One of Ward's top ten engines."
“In terms of assets, 580 acres of industrial land in two Rover factories, 6 production lines and 2 engine production lines, and an office area in Birmingham, worth about $2.5 billion. Technology, Rover 25, 45, 75, 75 Tourer models As well as MGZR, ZS, ZT, ZT-T and the best-selling MGTF sports car in the UK, the full technology of the XPOVER road car is worth around $400 million. Also the Austin brand, but after losing the mini we want to get into the minicar space , can only be developed from scratch. To sum up, the assets of Rover Motors are now about 3.2 billion US dollars.”
"In terms of debt, Rover owes $3.94 billion in bank loans and institutional financing, $780 million in loan payments to suppliers, $130 million in wages for workers, and a total of $4.85 billion in accumulated liabilities. The largest of which was provided by BMW in 2000. A 10-year interest-free loan of £427m."
Guo Shouyun nodded and said, "Instead of debt, I'm more concerned about why Rover has fallen to where it is now? Even BMW Group didn't save them."
"I'm afraid we have to start from the root. ... The birthplace of the modern industrial revolution is the United Kingdom, but the British are conservative, and have a lot of doubts about this new thing from the moment the car was named. Not long after the invention of the car, the European continent was very concerned about it. Cars were produced and used with an enlightened policy, and the UK, on the other hand, started to implement 'red flag laws'."
"The law, which was enacted under great lobbying by Britain's powerful railway group, prohibits cars from going faster than walking speed and requires a signalman with a red flag in front of cars when driving in town. A serious obstacle. In 1896, this unpopular law was abolished, and the British automobile industry, which relied on strong economic strength and excellent talents, ushered in a golden age, and famous car brands such as Rolls-Royce and Bentley emerged."
"But after the end of World War II, the British government began to implement tariff protection for the domestic auto industry. Due to this reason, Britain's efforts to join the European Community suffered many setbacks. In the end, the British government made a compromise and canceled the tariff. Barriers. The UK auto industry, while not facing a fundamental shake-up, is starting to face competition from foreign products.”
"In addition, since 1952, the United Kingdom began to implement a policy of installment and credit sales, but the United Kingdom is an importing country. In order to improve the balance of payments, the British government often adopted a policy of reducing the domestic economic growth rate and restricting domestic demand to encourage exports. 1952-1973 In 2008, the Installment Payment Act was amended 18 times, resulting in fluctuations in domestic demand. British car manufacturers did not dare to increase production rashly because they could not grasp the pulse of domestic demand. For example, in 1961, the production capacity of British car factories was 3 million vehicles. Only 1 million were actually produced. At a time when British cars turned to export, the British government introduced a policy of protecting the pound in the late 1960s, which made British car exports unprofitable.”
"With both domestic and external demand weak, the production and sales of the UK auto industry can only be maintained at a low level, which affects the innovation capacity of the UK auto industry and further aggravates the backwardness of the UK auto industry."
"The ups and downs of British policy over the past century have resulted in British cars never entering real mass production. So, whether it's Rolls-Royce, Bentley, Rover, Land Rover, Jaguar, or Aston Martin, Austin , they are all high-end luxury cars that strive for perfection, led by stubborn and conservative British people, like a conservative old aristocrat, never designing cars from the user's point of view. What they want is to design cars that they think are excellent, so that The market has come to accept them. So the British car has always been a royal car, a noble car, an art that has been tempered, not a means of transportation for people to travel."
"Under this ideological guidance, the performance and comfort of British cars are certainly satisfactory. However, compared with their counterparts such as BMW, Mercedes-Benz, Ford, Toyota, etc., there is a slow update and iteration, which is not suitable for the real market demand. , advertising and marketing strategies are low, and even the level of coping, will naturally be eliminated by the market."
"As for why BMW lost nearly 3 billion US dollars after acquiring Rover. In fact, many investigation agencies have different conclusions, but in summary, it is BMW's positioning problem at the beginning. BMW's acquisition of Rover is to use Rover's century-old accumulation. He improved the popularity, technology, and products of luxury cars, and perfected his car series. So he updated Rover's production plant and developed the Rover 75 sedan, which was popular in the market, but did not fundamentally change Rover's organization. structure, management method, reward and punishment system, corporate culture and marketing model.”
"Rover is still the same Rover, although it has become a subsidiary of BMW, it has not changed its core. Naturally, losses will not change easily. Therefore, if we acquire Rover, in addition to using its technology to improve our new car Research and development, use his brand and channels to develop the international market, especially the European market. But the first thing to do is to carry out an all-round and thorough transformation of its management, marketing, especially the corporate culture from the top down. If Otherwise, our acquisition of Rover would not be very different from BMW's."
"In addition, the transformation of corporate culture cannot be achieved overnight. It may take us several years, or even more than ten years. Coupled with the current atmosphere of the British auto industry, our transformation may not be successful."
Guo Shouyun nodded and pondered for a moment, "Bruituo, I believe in your ability. So how to transform Rover and how to develop Red Star Automobile Group, you can follow your ideas with confidence and boldness on the basis of my suggestions. You can find the best managers, R&D and sales people in the world, and I'll give you plenty of money. If BMW can bring Rolls-Royce back to life, and VW can bring Bentley back to life, there's no reason we can't. I always believe that things are done by people, and people will conquer the sky!"
Guo Shouyun's words were full of self-confidence and had a strong appeal, which made Brito, who was sitting next to him, also momentarily frustrated.
"To have a talented designer like the boss, who is full of imagination and prolific in terms of car shape, interior, aerodynamics, etc., I believe that it is not a dream to revitalize Rover and make Red Star Auto Group become the world's top car manufacturer!"
Now I think of the exquisite and beautiful car design drawings Guo Shouyun showed him, and my heart is still full of excitement. This is his greatest confidence to reverse the decline of Rover.
"I also believe that the Red Star Auto Group will have such a future!" Guo Shouyun took out a bunch of keys from his pocket and handed it over.
"This is?"
"You may have to run between China and the UK in the future, so I ordered a Boeing business jet for your use, take it!"
Looking at the medicine spoon handed in front of him, Brito had a surprised look on his face~www.novelbuddy.com~ The Bracco Investment Company where he worked before had never been treated like this.
"Is this... appropriate?"
"Although I agree with the frugal and efficient company management methods and culture advocated by Lehman, I don't think it is the right thing for senior executives to waste their precious time on waiting and transferring. Companies with more business will have a business jet for senior management to travel on business. So you are not an exception, and you don’t need to excuse yourself!”
Hearing this, Brito sighed in relief and took the medicine spoon over. He has worked for many years in Breco Investments, the predecessor of 3G Capital, and has become accustomed to its thrift for senior officials. Now it has suddenly changed, which is really uncomfortable.
"Okay, you just flew to London from the capital, so take a good rest. We'll go to Birmingham Long Bridge tomorrow morning."
"Yes!"
"I go first!"
After Guo Shouyun waved his hand, he turned and left the hotel where Brito was staying.
