Start telling crosstalk from Tingyunxuan

Chapter 242 The Current Situation of Domestic Cars (First Update)
Beibei Automobile Park.

Lifan Group headquarters.

Mr. Yin, the founder of Lifan Group, sat back down.

His gaze did not fall on Yang Yunsheng, but instead fell on Xiong Zheng.

"Mr. Xiong, does his opinion represent yours?"

Xiong Zheng smiled and said, "His meaning represents my meaning!"

Mr. Yin breathed a sigh of relief and gave what he considered a reasonable quote.

"Fourteen billion US dollars!"

Finally, he added one more sentence.

"This is my most sincere price. If Lifan Group didn't urgently need this funding, I definitely wouldn't have sold Lifan Motors for 1.4 billion US dollars."

Yang Yunsheng remained seated as steady as an old dog, but the numbers he uttered were extremely cold.

"8.1 billion US dollars!"

Mr. Yin gritted his teeth: "13.8 billion US dollars!"

Yang Yunsheng stared at President Yin: "8.2 million US dollars!"

Xiong Zheng and Xiong Fu looked at each other in disbelief. Yang Yunsheng's price was just too outrageous.

Little did people know that Yang Yunsheng originally preferred to create his own brand, and if he were to acquire a car brand, he did not want to use too much of his own money.

So he was also testing Mr. Yin's bottom line step by step.

"13.5 billion US dollars!"

Yang Yunsheng stretched out his arms: "8.3 million!"

Mr. Yin had no idea what Yang Yunsheng meant, and the veins on his face were starting to bulge.

"13.2 billion!"

Yang Yunsheng also had time to glance at Xiong Zheng, and under Xiong Zheng's puzzled gaze, he quoted a price of 8.4 million US dollars.

Mr. Yin knew that Yang Yunsheng was testing his bottom line, so he quoted another price of 13 billion US dollars.

Yang Yunsheng remained calm and quoted a price of 8.5 million US dollars.

Mr. Yin sighed and said, "Forget it, $12.5 billion is my bottom line. I also hope that Kuai Rui can be realistic and state its intended acquisition price."

Yang Yunsheng ignored him and said softly, "8.4 million US dollars!"

Xiong Zheng, Xiong Fu, and Mr. Yin, the founder of Lifan Group, were all dumbfounded.

You didn't add it, fine, but you're trying to get it back?

President Yin slammed his hand on the table, stood up, and his face was full of indignation.

"Since Kuai Rui is so insincere, then this negotiation is completely unnecessary. Old Xiong, let's go!"

This time, Mr. Yin was really angry. I could accept 8.6 million, but after you asked for 8.5 million, you asked for 8.4 million. Do you think this is a bargaining exercise in a vegetable market?
Why don't you just cut it in half? When I said 1.5 billion US dollars, you offered 7.5 billion?
Yang Yunsheng knew the time was right, so he stood up and said with a smile, "President Yin, you must understand that Lifan Motors must be removed from the Lifan Group now, otherwise it has become a tumor in the entire group. If it is not removed immediately, it will become a time bomb for the Lifan Group. I won't play games with you, President Yin. 8.8 million US dollars. If President Yin is willing, we can sign a letter of intent today. If President Yin is not willing, then you don't need to leave, we'll leave now!"

In 2017, the founder of Lifan Group stepped down from his position at Lifan.

A major reason for this was his poor decision-making regarding automobiles, which made Lifan Motors the biggest drag on the company. However, his successor did not stay in the position for long either, and in 2020, Lifan Motors declared bankruptcy.

When this incident occurred, it caused Yang Yunsheng to sigh for quite a while.

The reason I remember it so clearly is because Lifan Motors was the first car company to dare to go head-to-head with a Sino-foreign joint venture.

Although Lifan Motors had never done it before, their courage was commendable.

The price Yang Yunsheng offered was to give Lifan Group a chance for a new beginning, not to say that he insisted on Lifan Motors.

It seems that Lifan Motors will eventually be acquired by Geely.

Yang Yunsheng didn't remember the exact amount.

While Mr. Yin hesitated, Yang Yunsheng spoke again.

"Mr. Yin, after Kuairui fully acquires Lifan Motors, Lifan will retain its motorcycle division resources. We will take over everything else, including the listed company shell, financial licenses, production lines, and distribution channels. So Mr. Yin, you can still enable Lifan to achieve its former glory in the motorcycle division."

Mr. Yin was clearly puzzled that Kuai Rui didn't want the resources in the motorcycle sector.

To be honest, Mr. Yin didn't quite understand.

In Mr. Yin's view, Lifan's motorcycle resources are worth 400 million US dollars.

In 2000, Lifan Motorcycles generated $2 million in foreign exchange earnings.

With domestic sales added, Lifan Motors' motorcycle division is now worth at least 400 million yuan.

If Kuairui can retain Lifan's motorcycle division, then 8.8 million yuan is not unacceptable.

But Mr. Yin still said strangely, "You should know that Lifan's only source of profit right now is the motorcycle segment. But you don't want anything outside of the motorcycle segment; you want to focus solely on cars? If that's the case, I can tell you with certainty that even if you change the name of Lifan Motors and change the advertising, the cars you produce still won't be able to sell."

Yang Yunsheng smiled slightly and said, "What President Yin is trying to say is that the survival space for domestic cars is inherently small. Moreover, under the deliberate pressure from foreign companies, Lifan is not very well-known and cannot stand out from the competition from German, Japanese, and American cars like other domestic car companies?"

President Yin nodded: "That's right, and Lifan's high fuel consumption is a problem we can't solve right now. This prevents Lifan's brand from gaining recognition among the public."

There's something Yang Yunsheng doesn't know whether he should say: among domestically produced cars, even Geely, Changan, and Chery are quite fuel-inefficient.

Fuel consumption was not the main reason for Lifan's failure. The main reasons for Lifan's failure were its pricing and its constant attempts to compare itself with joint venture car companies, which laid the foundation for its downfall.

Yang Yunsheng is a very pragmatic person, so he felt that this President Yin had taken the wrong path from the very beginning.

President Yin looked at Yang Yunsheng, unsure of Yang's intentions, and said, "If you, Kuairui, are certain you don't want the motorcycle division, then I can accept the sale of Lifan Motors to you for $8.8 million. However, we need to discuss the specifics tomorrow. I will convene the board of directors this afternoon to discuss the sale of Lifan Motors. But today, we can sign a letter of intent first."

Yang Yunsheng looked at Xiong Zheng: "What does Mr. Xiong think?"

Xiong Zheng replied, "I think it's okay!"

Looking at the relationship between Yang Yunsheng and Xiong Zheng, President Yin was somewhat suspicious. Who was really in control between the two of them?

After signing the letter of intent, Yang Yunsheng finally breathed a sigh of relief.

And naturally, he also invited Xiong Fu, Xiong Zheng's uncle, to have a good meal together.

This time, I really have to thank him for enabling me to connect with the chairman of Lifan so quickly.

Furthermore, Yang Yunsheng wanted to bring Xiong Zheng to the newly acquired car company.

With Xiong Da and Xiong Er already in the company, and if Bald Qiang joins in, then the newly acquired car company will be unmatched.

(End of this chapter)