Coquettish Rebirth

On the other hand, this Ssangyong is also a very strange existence among Korean car companies.Why do you say that?First of all, because of the intertwined relationship, Ssangyong's labor union was given room to make troubles. Because of the intertwined relationship, the management would basically compromise.For example, Jia Hongjian learned that the labor cost of Ssangyong accounts for 20% of the car manufacturing cost, while the world average is 10%, but the average in Korea is 8%!In fact, if you think about it, you will know that the United States is still the world's largest auto market, and the cars sold in the U.S. market are either produced in Europe, the United States, or Japan. Now the world's factory is in China. The car has never been sold to the United States!Not even talking about China's own brands, even if it is a company like GM or Ford, the cars manufactured in the joint venture factories in China are sold to the Chinese or some surrounding countries. Ford cars were shipped to America to be sold!

So under such circumstances, most of the cars sold in the United States are produced in the United States, and a small part is produced in Japan and Europe. Which of these places does not have higher labor costs than South Korea?At the same time, the sales volume of cars in the US market is high, and the situation in the European Union is almost the same. In the end, these large markets add up, and the average cost of human resources has reached 10% because of the high labor costs of the EU, the United States, and Japanese companies. % is such a number.The labor cost in South Korea is definitely not as good as these countries, so on average, the labor cost in South Korea only accounts for 8% of the car cost!The labor cost of Korean industry peers is only 8%, while Ssangyong accounts for 20%, which is a big difference in cost!This means that for cars with the same price, other Korean car companies can make more money, while Ssangyong's can't make money or make less money!

At the same time, because the struggle of the Ssangyong workers' union was "effective", the result was that the union's power was too large, and it even became a terrible parasite in the company. The full-time cadres of the trade union do not participate in production labor, and they are also equipped with special cars!Management decision-making must be approved by the trade union!And it's not a labor negotiation every few years, but a labor negotiation accompanied by strikes every year!This labor negotiation is every year!

Needless to say, it is definitely not a labor negotiation. After the labor negotiations, the employees will continue to be given the same contracts and treatment as last year.Salary will definitely go up!Otherwise, what about labor negotiations?At the same time, it should be noted that this kind of negotiation is not only a negotiation at the negotiating table, but also often accompanied by strikes!This caused a lot of harm to the factory, because it stopped production every now and then.A lot of the money that could have been earned would not be earned!Think about the suspension of the NBA's labor negotiations. As a result, the seasons that have been done will be shortened. How much loss will this cause to the NBA's broadcasting and market revenue?However, the NBA's labor negotiations are still held every 6 years. As a result, from 98 to 2012, a total of three negotiations have resulted in two season suspensions and shrinking seasons!that's all.The NBA only negotiates once every few years. What if it was replaced by SsangYong once a year?Hasn't the company been affected too much?It is a miracle that such a company can not say that there are no problems and not go bankrupt!

In addition, according to industry gossip told Jia Hongjian by Kia’s executives, before SAIC took over Ssangyong, the problems exposed by Ssangyong were mainly internal management and market positioning, not just a lack of money, so SAIC’s strong intervention was needed. .After SAIC buys it, it needs to immediately start to take action on the places that had problems before.This kind of action does not necessarily need to be vigorous and resolute, it can be crawling forward.But do it!Even if it takes two or three years, at least the severity of the previous problem must be alleviated!But SAIC did not do this, and did not touch the most fundamental cause of the Ssangyong crisis.Ssangyong’s previous technology mainly benefited from the cooperation with Mercedes-Benz arranged with the help of Hyundai Group in the 90s. This is the same as Kia. Some technology has been introduced there.But their sales are mainly sold in the Korean domestic market, after SAIC completed the merger.It has been not strong in recreating the positioning of high-end SUVs, and it seems to be ineffective.

At the same time, Ssangyong is not well-known in China, and it is too difficult to market, so Ssangyong has never gotten rid of the demand for blood transfusions from SAIC.At the same time, the Korean bought a car. 80% still depends on loans.The deeper impact of the financial crisis on the economy is that people's consumption expectations have changed, and people's consumption habits or original consumption plans may change as a result. People who are not optimistic about the future economic situation will make people postpone or cancel car purchases. This also affects the sales of many auto companies from the perspective of market demand.A large enterprise such as Hyundai is the same as Huaxia Automobile.They have their own banks and various financial institutions, so their own banks can lend money to consumers who want to buy their cars.

This seems to be useless when the economy is booming, but when it encounters a financial tsunami, it will show problems!Because the Bank of Korea and various financial companies were less afraid of the financial turmoil in 98, after hearing about the US subprime mortgage crisis, these banks and financial groups immediately began to control risks and control bad debts!So don't say that it is difficult to get a corporate loan, even if it is a personal car loan, many banks and financial institutions will not issue it!At this time, whether the group that the car company is backed by itself has a financial institution or bank that can help lend money will play a key role!For example, even if Kia does not have such a financial institution, Kia has been supported by Huaxia Motors to open up overseas markets, and it is living a decent life. It does not need to pay too much attention to the faces of Korean banks and financial institutions.

But Ssangyong is different. They don’t have financial institutions, and they don’t have overseas markets. The sudden increase in the lending threshold in Korea has caused a huge impact on Ssangyong?It can be said about Ssangyong, it is really life-threatening sometimes!At the same time, for Chinese companies, if they want to expand through foreign investment, they should realize that the acquisition of brands requires the strong strength of the original company. This strength not only refers to financial strength, but also refers to the ability to control technology and management. .In cross-border mergers and acquisitions, management capabilities are another major challenge for the acquirer. , although SAIC is a first-class auto company in China, it is also at the forefront in terms of marketization.However, in the past few decades, SAIC Motor has mainly relied on foreign investors in joint ventures in the management of vehicle companies, and has limited experience in truly independent operation and management.

SAIC originally hoped to gain its brand recognition and manufacturing technology by controlling Ssangyong Motor, so as to find a shortcut to the global market.The market also expects that the combination of SAIC's low-cost advantage in China and Ssangyong's brand and technology will exert a good synergy effect and improve the efficiency of Ssangyong Motors.But the problem is that Ssangyong's production management level, technical equipment, and R&D capabilities are not much better than SAIC's - this is a good way to say it, but a bad way to say it is that the management level is really much worse than SAIC!Technical equipment and research and development capabilities... can only be described as hehe.

Without the technical support of previous Mercedes-Benz, especially in terms of diesel power technology and accessories, Ssangyong would not have the ability to survive.After SAIC acquired South Korea's Ssangyong, Ssangyong's development in the past few years has not been favored by Korean industry peers.With more than 7100 people, SsangYong Motors' annual output has been hovering at 9 to 15 units, far lower than other Korean automakers. Such an output is about the same level as Saab, and what is the result of Saab under GM?Year after year of losses!At the same time, Ssangyong still has the problem of a single product structure. After the soaring crude oil price in 2007 caused the sales of high-end vehicles with large displacement to decline, there was no substitute for low-end and mid-range products.Therefore, in fact, from the first day when SAIC acquired Ssangyong, there were many problems such as hidden contradictions of the Ssangyong Automobile Labor Union, slowing market demand for Ssangyong's large-displacement SUV, and a single product structure. With the deepening of the financial crisis, Ssangyong's internal Some fundamental problems that have always existed gradually emerged, coupled with the combined influence of other factors, finally brought Ssangyong to the brink of bankruptcy, and SAIC, as the major shareholder of Ssangyong, also suffered heavy losses.

In fact, after learning about this, Jia Hongjian felt that watching such a drama was no longer like the domestic companies that he saw before going overseas to acquire and suffer losses. Instead, in his eyes, it seemed like two unsuitable people. People come together because of chance and coincidence, and start a relationship or marriage.Originally, these two people were not suitable, but the moment they decided to get together, it can be said that it was decided that it would end in tragedy.Both of them have their own faults, maybe one has more faults and the other has less faults, but neither of them is ready, and at the same time, there is no running-in. When tempers clash, it is sparks hitting the earth. Neither backed down, and both fought against each other.One takes a kitchen knife and the other takes an ax... So to be honest, overseas M&A is really the same as picking a husband. You need to keep your eyes open and choose the right person before making a decision!

For example, Jia Hongjian is very different. Our overseas mergers and acquisitions are very successful!On the one hand, this is because Jia Hongjian is a reborn person, and on the other hand, it also shows that when Jia Hongjian does something, he knows how to do it successfully!He has a clear understanding of the risks and dangers of overseas mergers and acquisitions!Only by knowing what danger is, can we avoid danger! (~^~)