Legend of Xiangjiang Tycoon - Chapter 512

Although Volvo is developing strongly, there are other problems, because at this time SKF, the major shareholder of Volvo Cars, is in trouble.

SKF was established in 1905. Winquist, a young Swedish textile technician, was troubled by the frequent damage of bearings on textile machinery. He invented the self-aligning double-row ball bearing, which brought the bearing technology at that time into a new era.

SKF Group is the world’s leading supplier of rolling bearings and seals. Its business scope includes bearing manufacturing and seal production as well as the promotion of bearing-related tools, providing customers with various solutions and services.

SKF’s business is divided into five divisions: Industry, Automotive, Electrical and Electrical, Services, Aerospace and Steel. Each business unit serves global markets, focusing on customers and industries relevant to its own business.

SKF Group is the world’s largest bearing manufacturer; SKF bearing production accounts for 20% of the total output of similar products in the world.

SKF has eleven processing plants in Sweden. In addition to one production plant in Sweden, there are also thirty-five production plants around the world, located in different countries. SKF can produce the same high Quality level bearings such as Argentina, Austria, Brazil, France, Germany, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Netherlands, South Africa, Spain, Sweden, the United Kingdom or the United States and other places.

According to the allocation of resources, produce different types of SKF bearings, so as to achieve the optimization and specialization of resource allocation. The vast majority are still produced in the SKF bearing factory in Sweden. More than 80% of the steel used in SKF bearings is provided by the SKF steelmaking plant, ensuring the high quality of the raw materials. All important equipment is designed and assembled by SKF to ensure that the production equipment reaches the highest level!

But last year, due to the sharp drop in steel prices, SKF Group, which analyzed that steel prices would skyrocket at that time, did accumulate a large amount of steel within its scope.

The SKF Group, which originally wanted to make a lot of money in steel and steel futures at this time, is now heavily in debt, with direct losses of more than $500 million, including $200 million in loans from banks.

This made SKF Group’s vitality greatly damaged, and even took on a large number of loans.

The current SKF Group can no longer be compared with heavy losses, it can be described as appalling.

If SKF Group does not respond, then SKF Group can only end in bankruptcy.

At this time, there was a voice in the board of directors of SKF Group, which sold 40% of the shares of Volvo Group to save the crisis.

SKF Group does not have much investment, except for the group itself, only 40% of the shares of Volvo.

For SKF Group, the most important thing is its factories. As for Volvo cars, those are leftovers.

To say that it is also Volvo Cars’ own cocoon.

Volvo started by producing cars. Its founders, Gustav Larsen and Asa Gebrison, both originally served in SKF, a well-known Swedish ball bearing manufacturer. Brison is an economics-trained international marketing manager. Due to their forward-looking and enthusiasm for automobiles, they worked together to successfully persuade SKF’s board of directors in September 1925 to borrow the company’s factory in Tesla for the assembly of the prototype car, and in August 1926 On March 10, it was authorized to officially start mass production of the new car.

At that time, the two founders did not have much capital, so the SKF Group invested one million US dollars to hold 70% of the shares of Volvo Cars.

At that time, Volvo Cars had always lived as a subsidiary of SKF Group.

Later, the sales of Volvo cars became larger and larger. In 1935, Volvo Cars officially separated from the SKF Group and operated independently.

After the independence of Volvo Car Corporation, the two founders bought back 20% of the shares from SKF Group, so that the Volvo founder and SKF Group each hold 50% of the shares.

Then when Volvo Cars went public in 1960, the founder’s family held 30% of Volvo’s shares, SKF Group held 40% of Volvo’s shares, and the remaining 30% of the shares were in the hands of shareholders.

That is to say, if Li Zhiwen wins 40% of SKF Group’s shares, and then the stock market absorbs some more, he can easily control Volvo Cars.

“Holanke, who do you think is the most suitable acquisition target?” Li Zhiwen asked.

“Boss, of course it’s Volvo. Whether it’s Peugeot and Citroen in France, or Volkswagen, BMW and Mercedes-Benz in Germany, we can’t buy them.”

“Citroen and Peugeot can be said to be both state capitalists, and unless France is privatized now, we may still have a chance.”

“But according to my observation, the policy of the French president at this time is not to privatize, but to add the power of state capitalism, so we don’t have any chance and possibility to own Peugeot and Citroen in the short term.”

“And Volkswagen also has the meaning of German state capitalism, the same reason as Citroen.”

“As for the huge size of Mercedes-Benz and BMW, the acquisition is definitely not a small amount, and it is very difficult.”

“Secondly, Mercedes-Benz and BMW can be said to belong to luxury models, and we have Rolls-Royce, Bentley and Rover for luxury models. What are we doing to buy Mercedes-Benz and BMW at a big price?”

“With Skoda in the Czech Republic, we don’t have the slightest chance, and the boss understands the reason.”

“So only Volvo is the most suitable acquisition target. It can not only supplement our weak position in the mid-to-low-end model level, but is also a high-quality company. It is absolutely worthwhile to acquire it!” said Holland Kramer.

“You’re right, Horrank, then we need to go to Gothenburg, Sweden.” Li Zhiwen said.

“Boss, I have already sent someone to Gothenburg to contact the SKF Group. I think there will be news soon,” said Holland Kramer.

“Holank, you old slick, you’ve decided to buy Volvo, and you asked me to read such a long report.” Li Zhiwen pointed at Horankremer and joked.

“It’s the boss who said you should look at French and German cars first,” said Holland Kramer.

“Well, it’s my fault, then I’ll wait for the news from Gothenburg!” Li Zhiwen said.

“Yes, boss, there will be news soon after coming over there. I’ll go back to my residence and wait for news from there, and I’ll report it directly as soon as there is news!” said Holland Kramer.

“Okay, then I’ll wait for your news!” Li Zhiwen said.

Now that the matter was over, Holland Kramer didn’t stay much longer and left Isabel Adjani’s villa.

“Dear, is the matter over?” Elizabeth Adjani asked as she walked to Li Zhiwen.

“Yes, we have finished talking, but I may go to Sweden in a few days and come back to accompany you later!” Li Zhiwen said, pulling Elizabeth Ajani into his arms.

“Okay, I see!” Elizabeth Adjani said.

“But when you arrive in Paris, you are working and doing business, and you don’t care about our mother and daughter.”

Elizabeth Adjani was a little unhappy after speaking.

Li Zhiwen thought that was indeed the case, so he laughed wickedly: “Are you ignoring Daniel or Ajani?”

“Naturally, there are all of them!” said Elizabeth Adjani.

“Then I’m here now to check whether my son’s cafeteria has enough food, and by the way, I’ll see if you’re getting milk!” Li Zhiwen bowed his head down with a smirk.

……

Valley Headquarters of SKF Group in Gothenburg, Sweden.

Everyone in the conference room was arguing, and the reason was naturally the acquisition of Mars Capital.

“I don’t agree. Volvo Cars, which has been with us for decades, is now selling it to a British company!” said one director.

“You also know that we are in the same vein as Volvo Cars, but you think so, but the other party doesn’t think so. When we have a crisis, what does the Larson family do? They don’t say they don’t support us, but they want to buy back at a low price. What’s the point of the Volvo Car Corporation shares in our hands,” said a director.

“Yes, since the crisis can only be resolved by selling Volvo Cars, it’s better to sell it directly to someone who is willing to pay the price. Anyway, the more funds, the greater the chance for our SKF Group to turn around,” said a director.

“What you are talking about is bullshit. Even if the Larson family does something wrong, if we do that, what is the difference with the Larson family.”

“There’s no difference, but what we can do is to tell the Larson family before the sale that we can compete if we want to, and we won’t force it if we don’t want to!”

“Okay, don’t say it. Gilgison is right. We don’t owe Volvo Cars. Anyway, 40% of Volvo Cars’ shares are going to be sold. Of course, it maximizes our interests!”

“Gilgison, you go and tell the Larson family what we mean and let them prepare for the bidding.”

“Edgar, you go and tell the people of Mars Capital, if you are interested, let their bosses come to Gothenburg to bid.” Carl Winquist, the president of SKF Group, who was sitting at the main seat, said the next time he finalized.

“Yes, President!” Gilgison and Edgar replied at the same time.

……

In a seventeenth-century castle in Gothenburg, a young man is furious.

“Shit, **** Carl Winquist, have you forgotten our past friendship?”

“Damn Mars Capital, if it weren’t for him, I would have won the 40% stake in Volvo Cars.”

“I know how much energy and money I have spent to suppress Volvo Cars’ stock on the stock market.”

“Now it’s all in vain, let me know who the boss of Mars Capital is, and I’ll make him look good!”

It was Andre Larson, the head of the Larson family, who was obviously losing his temper.

……

And Li Zhiwen, who was unable to extricate himself in the gentle village of Paris, also got a report call from Holland Kramer at this time.

“That means that Edgar said SKF is going to let us compete with Larson?” Liu Chenghao asked.

“Yes, Edgar said so!” said Holland Kramer.

“Interesting, very interesting!” Li Zhiwen said with a smile.

“Boss, what should we do?” Holland Kramer said.

“Of course I’m ready. I’m bound to win Volvo, and there’s no room for mistakes!” Li Zhiwen said.

“But in that case, won’t the price be too great!” said Holland Kramer.

“Of course, but since SKF is playing like this, why can’t we change the way, Horrank, we are going to Gothenburg, but let the people over there contact the patriarch of the Larson family, I want to talk to him Let’s talk!” Li Zhiwen said.

“Yes, boss, I’ll contact you right away!” said Holland Kramer.

……

The old castle of the Larsen family in Gothenburg

Li Zhiwen brought Holland Kramer here.

And despite Andre Larson’s reluctance, he still welcomed Li Zhiwen and the two into the castle.

As soon as they sat down, Andre Larson said, “You two, I will never give up the shares of SKF Volvo Cars, so don’t think about it.”

“Mr. Larson, I think so too, but I think how much money can you spend, $30 million, $50 million, or even $100 million?” Li Zhiwen said.

“This gentleman won’t have to worry about it. All in all, I won’t give up.” Andre Larson said.

“Mr. Larson, everyone is a businessman, so don’t say these words. Since I’m here, I’m here to find an opportunity to break the deadlock.” Li Zhiwen said.

“How do you want to break the deadlock?” Andre Larson said.

“I’m here to take the shares of Volvo Cars, and at the same time I promise that I won’t be involved in Volvo Cars’ operations for ten years~www.mtlnovel.com~ All things will be handed over to Mr. Andre Larson, so what? ”

“And I can inject a sum of money into Volvo Cars to make Volvo Cars bigger and stronger.” Li Zhiwen said.

“This gentleman is just joking. If I do nothing and let you take down Volvo Cars, what if you turn your face and don’t recognize anyone?” Andre Larson said.

“I can write it in the contract, and to be honest, I have a lot of industries. Volvo can only be a very small part of my industry. I really don’t have the mind to govern.”

“It just happens that I need a mid-to-low-end car company, so Volvo can enter my eyes. As for other times, I won’t even look at it.”

“In addition, although Volvo is developing very well now, with my help, Volvo can develop even better, even comparable to companies like Ford, doesn’t Mr. Larson want it?” Li Zhiwen tempted.

“Everyone will say big words, but how many can really do!” Andre Larson said.

“I don’t want to talk big. If I win Volvo, I can increase my capital by 50 million US dollars year-on-year, and I can open up a wider market for Volvo.” Li Zhiwen said.

“Broad market, what market?” Andre Larson said.