Chapter 782 Integration
Sanjiang Renault was closed down and all employees were fired, leaving only 29 gatekeepers.
On the French side, there is only one general manager and financial manager left, and the rest of the staff were evacuated to France.
I really answered that sentence.
Its prosperity is booming, and its demise is sudden.
Soon, Delong, who had a dream of building a car, fell in love with Aerospace Brilliance.
It is planned to build it into the company's strategic development platform for passenger cars and commercial vehicles.
After two consecutive failures, both China Aerospace Science and Industry Corporation and Renault were extremely disappointed with this project.
So, Delong’s acquisition went smoothly and the price was not high.
But Deron's subsequent connection with Renault was not smooth.
The reason is twofold.
First, Renault is now in contact with Dongfeng and is not optimistic about the aerospace torch project that has failed twice in a row.
Second, after entering 2003, Delong's financial crisis was already serious, and it was difficult to come up with enough money to operate this huge project.
So it was delayed until May 2004 for the Aerospace Torch to resume work. However, without Brilliance's mature local supply chain for commercial vehicles, the price of Tafiq would not be able to remain low.
Fortunately, Hunan Torch itself is also an auto parts giant. As long as there is enough time, it is not difficult to integrate its own industrial chain.
It's a pity that Deron doesn't have enough time to operate.
By the end of 2004, Hunan Torch had achieved a total revenue of 11.3 billion Huaxia coins, an inventory of 2.875 billion Huaxia coins, and accounts receivable of 1.758 billion.
But compared to the huge revenue, Xiang Torch’s net profit is only 290 million Chinese dollars, less than 3%.
Far lower than the same industry.
It can be seen that although Hunan Torch has huge assets and amazing revenue, it is a puffy giant with internal integration and management problems.
After reading it, Peng Shengyu put down the information in his hand.
"You are the president of Alloy Co., Ltd., so you should know very well what the problem with Xiang Torch is?" Xu Liang said.
Peng Shengyu nodded.
Both are industrial groups and both belong to Delong.
As for the specific issues, although there are differences, they are still similar in general.
"Tell me about it."
Peng Shengyu responded, "First, poor management, overstaffing, and lack of a reasonable incentive mechanism.
Second, the acquired company has not been thoroughly reviewed. Integration, low efficiency and heavy historical burden.
Third, there is a lack of effective supervision and serious internal corruption.
Fourth, there is a lack of R&D investment, low technical level and serious product homogeneity. , it is difficult to obtain high returns.
..."
There are more than a dozen of them, each of them can hit the point, and they have obviously been studied.
Xu Liang and Jiang Xiaoyang looked at each other, and they both saw the recognition in each other's eyes. .
“It seems that you have already studied the issue of Hunan Torch? "Xu Liang asked with a smile.
Peng Shengyu nodded and said: "In fact, at the end of this year, President Tang Wan Xintang planned to merge Xiang Torch and Alloy Co., Ltd. into one company.
Therefore, I read a lot of information about Hunan Torch in advance. ”
“It’s good not to fight an unprepared battle. "Xu Liang praised.
"You have given me a compliment. I am not a professional in management, so I had to be stupid to fly first. ”
“Successful entrepreneurs are not necessarily majoring in economics and management. I am an out-and-out art student. The key is responsibility, decisiveness and strategic vision. You are very good in these aspects. "Xu Liang praised.
"Thank you very much. I just rushed to become the president of Alloy Co., Ltd., and I have always been trembling for fear of not doing well. ”
"But the fact is that you did a good job." Xu Liang smiled.
Paused.
“Do you think Xiang Torch and Alloy Shares need to merge?”
“Mr. Xu, I will abide by the decision of the head office.” Peng Shengyu said.
Although he is not good at words, he is not stupid either.
Say you support the merger?
Will he be suspected of taking power?
Reject?
He indeed hopes that Hunan Torch can merge with Alloy Co., Ltd.
After all, he is a human being, not a saint.
He also hopes that he can have a brilliant career and gain higher social status and income.
Although Alloy Co., Ltd. is very good, it cannot be compared with the giant "Xiang Torch" in the automotive field.
Xu Liang is also a smart person. From Peng Shengyu’s answer, he guessed his thoughts.
So he changed the question.
“If two companies merged, how would you integrate them?
Of course, forget about management. Judging from the integration case of Alloy Shares, you have enough experience and ability.
Mainly talk about business aspects. "Xu Liangdao.
Peng Shengyu didn't know the headquarters' considerations. He was worried that if his ideas conflicted with the headquarters' ideas, would he lose this opportunity?
But he also knew that he had to answer.
After all, the most important quality in managing a troubled business is decisiveness
Little things to think about.
"If it were me, the new company would retain the heavy truck business, passenger car business, as well as power tools and garden machinery business."
"Tell me your reasons." Peng Shengyu nodded. , “The reason why we retain power tools and garden machinery is mainly because after acquiring Maori Company, we obtained the other party’s technology and channels, coupled with the dominant domestic production of Alloy Shares, we are not lacking in competitiveness in the world.
In contrast, whether it is Ermao Tool or Black Cat Group, the added value of product technology is too low and it is difficult to maintain profitability in the increasingly fierce competition.
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Therefore, alloy stocks should eliminate the bad and retain the good, eliminate the weak and retain the strong.
The heavy truck industry is the core business of Hunan Torch, and it is also the advantageous business and should be retained the most.
The passenger car business must continue to develop and strengthen. With the development of China's economy, the passenger car industry has maintained an annual growth rate of more than 50% from two thousand years to the present.
In this growing giant market, we have laid the foundation and we should not give up anymore.
As for Xiang Torch’s auto parts business, I think it should be sold. ”
Subconsciously, he glanced at the expressions of Xu Liang and Jiang Xiaoyang.
After seeing nothing strange, he continued.
“There are three main reasons.
First, although the scale of Hunan Torch Auto Parts business is large, the added value of technology is too low.
Second, the automobile industry itself is High-tech industry, and we lag behind our foreign counterparts. In order to make up for this gap, we must increase investment in research and development
Limited funds should be used wisely.
So we can only choose one of them in vehicle research and development and auto parts. The entire vehicle is undoubtedly more valuable.
Thirdly, there are certain contradictions between the auto parts business and the passenger car business.
To make a good car, the most basic requirement is to use accessories with better quality and more reasonable prices.
But obviously, Hunan Torch’s auto parts business cannot fully meet the technical requirements of Xiang Torch’s passenger car business.
This will create a contradiction. ”
This relationship is the same as in the film and television industry.
Our own artists charge high prices, and if they are used, it will increase the cost of their own entertainment projects; if they are not used, it will become a waste of money for outsiders. It also makes my own artists dissatisfied.
So no matter what choice you make, the best way is to give up one of them.
"The world's mainstream automobile groups, General Motors, Toyota, and Mercedes-Benz all had parts businesses, but in the end they all sold or abandoned them. It's not that they didn't realize the value, but that they really couldn't coexist."
There was a pause.
"Mr. Xu, Mr. Jiang, I'm done."
Xu Liang clapped softly, "That's a good analysis.
Let me ask you a question.
Auto parts business and passenger car business, in which aspect do you think we have a better foundation? "
Peng Shengyu said directly: "Auto parts business. ”
Xiang Torch’s auto parts business industry chain is complete, and at least it is profitable.
Aerospace Torch’s passenger car and commercial vehicle business is still losing money.
"So, if we focus on the auto parts business, we only need to improve management, increase profitability, and then invest in research and development, and we can slowly increase the company's net profit in the auto parts business and industry influence.
In contrast, if we are in the passenger car business, the first thing we have to do is to solve the problem of profitability, and then we can talk about R&D investment and industry influence.
If represented by numbers.
The auto parts business is 3 to 4, while the aerospace torch is 1 to 2. Although the scale is there, it is still far from profitability.
Consider it from the perspective of business operations.
Obviously the auto parts business is more in line with the company's future development.
More importantly, the rapid development of Huaxia's passenger car business is also a major benefit to the auto parts business itself. Therefore, even if we do not produce complete vehicles, we can still share the benefits of the entire market, and even gain more.
After all, there are many giants in the field of passenger cars, but in terms of auto parts, only a few, including Wanxiang, can compete with us. "
"Mr. Xu, I understand. The new company will focus on four major businesses: heavy trucks, auto parts, power tools and garden machinery. "
Xu Liang smiled and said: "I called you here this time because I want you to serve as the CEO of Torch Group and be fully responsible for the integration of the two companies and subsequent management work. ”
Peng Shengyu became excited instantly when his speculations and desires became reality.
"Thank you for your attention. I will do my best to complete the integration of Xiang Torch and Alloy."
Xu Liang smiled and nodded, "Don't be happy too early.
Xiang Torch and Alloy I will divest all the debt of the shares, and I will give you another 3 billion in development funds. You decide which direction to invest in.
I will see the results after one year.
If you can make the torch. If the group's net profit margin increases to 7% before the end of the year, I will give you a 0.2% equity reward in the company
If you reach a net profit margin of 10% in the second year, the company will reward you with another 0.5% equity. ”
If you spend money on acquisitions, the total revenue will increase rapidly, but the profit rate will not.
The company’s management, production, and after-sales must be improved to generate more profits.
"Of course, the net profit ratio is only the core assessment indicator. Indicators such as the company's total revenue, net assets, R&D investment and output ratio will also be included in the assessment. The specific standards will be sent to you in a few days. "
"Understood. ”
Peng Shengyu nodded with a serious expression.
But his eyes were very hot.
For many years in Alloy Co., Ltd., as a non-Xinjiang province and non-Dayuan Huiyi background, he has never received shares in the company.
(End of this chapter)