Overseas buy-out companies should be self-aware

Wen/Our trainee reporter Li Shaoyi whether an enterprise can operate a brand well, not depending on a factor, more often, the embodiment of an enterprise's comprehensive ability the news of the acquisition of General Hummer by Sichuan Private company Tengzhong has not been settled yet, and the news that Geely, Chery and the military outfit Group are interested in acquiring Volvo There are even rumors that a company is already raising money for acquisitions. The latest news is that Baic is also joining the bustling Cross-border takeover party.　　Beijing Automotive Industry Holdings Limited has said it intends to buy Ford's Volvo, the Wall Street Journal reported on June 10. Since the reform and opening-up, China's automotive industry in the "Introduction to" aspect, has achieved fruitful results, many of China's independent brand of cars exported to foreign countries, Chery, the Great Wall, Geely, Changan and other independent brands of automotive enterprises, but also set up a General Assembly plant and Research and development center abroad.　　But the road to overseas mergers and acquisitions by Chinese auto companies, starting with SAIC's takeover of the British rover and the South Korean Ssangyong, is a bumpy road. In fact, car companies in developing countries are at great risk of acquiring the loss-making car brands of developed countries. Although experts have long pointed out that the urgent task is to do a good job of mergers and acquisitions among domestic enterprises, after all, China is still one of the most attractive markets for the global auto industry.　　However, this does not stop the Chinese car companies to "go out" the strong desire, Sichuan private enterprises in hand Hummer, but also the enthusiasm of the acquisition to the climax. GM announced earlier that it would retain only the Buick, Chevrolet, Cadillac and GMC four brands, while Hummer, Saab, Opel, Pontiac and other brands were on sale.　　This seems to be a jump to the Chinese car companies, sent a big party to the transnational takeover Feast. However, the enthusiasm of Chinese car companies to buy overseas is still soaring, whether they are already in operation or are in action.　　What does it mean for China's auto industry and carmakers to acquire the troubled car brands overseas? The new finance reporter interviewed the senior automotive commentator, China Automotive Industry Consulting Development company chief analyst Jia Xin. Volvo is not worth the purchase of "new finance" by Chinese companies: Recent rumours abound of Chinese car companies buying Volvo.　　In your opinion, what is the most worthy of Chinese car companies to "take" the Chinese auto enterprises to buy overseas? Jianue: Volvo is one of the small European brands, the company stressed that security is a marketing strategy, in the brand, design style, quality, etc., Volvo is also excellent. But the brand's production scale has been relatively small, in Europe outside the main reliance on the sale of Ford, so the lack of independent ability to operate.　　Volvo's value is mainly brand and research and development. So far, it has not been confirmed which company is buying Volvo.　　If a Chinese company buys a Volvo, it just maiduhuanzhu its production line to the mainland. "New finance": Volvo recently in the Chinese market has been a series of big moves, the introduction of s80l extended version of luxury cars, in an attempt with Audi a6L BMW 5 Series, such as Snatch the market. Volvo is a few years ahead of the rest of Europe's top luxury brands and has been at a disadvantage in the high-end market competition.　　In your opinion, is it possible for Chinese car companies to acquire a certain market share in the high-end market after acquiring Volvo? Jianue: Volvo is an excellent brand, but the operating capacity is weaker.　　If Chinese companies want to buy Volvo, as their high-end brand to develop, must have a better than Volvo's business ability. Management ability is an embodiment of enterprise comprehensive ability. In other words, whether an enterprise can operate a brand well, not depend on a factor, more time, reflects the comprehensive ability of an enterprise. As an automobile enterprise, the first is the product is good, this need development ability, this aspect Volvo is relatively strong, next is the cost control ability, this needs the scale, the management, the procurement system, the product platform, the fund operation and so on. Volvo as a smaller company, under the Ford Group system, the product platform is planned by the Ford Group, and the Ford group to purchase together.　　If our businesses buy alone and cannot provide them with a new platform system, Volvo itself is too small. The other survival capability of the enterprise is financing.　　Because of our institutional reasons, the financing of enterprises is very difficult, Volvo now has financing difficulties. What are the risks of acquiring Volvo? "new Finance": Many people think that even if the Chinese car companies can successfully acquire Volvo, it can not be very good to operate, because there is a lot of difficulty in cultural integration.　　What is your opinion on the operation and management of Chinese enterprises after overseas acquisitions, especially the integration of high-level? Jianue: The fusion of different cultures is a big problem. There is also an institutional divide for Chinese companies. In other words, China's state-owned enterprises and western private enterprises in the management, philosophy and operation of how to achieve docking. To buy a business is not very difficult, as long as there is money can do.　　If buyers want to buy Volvo to enter the European market, it is not only to maintain the current normal operation of Volvo, but also to expand the market, it is difficult to do.　　Overseas acquisitions are not just about money, but what is China's image in the West? Product quality problems, integrity issues, and other issues, to let the West accept the Chinese to take over its business, need to do too much work.　　"New finance": In recent years, Europe's car brands are constantly being acquired by other countries, what do you think of this? These sold brands, the later operating conditions are not ideal, the rebirth of the impossible, causing this dilemma is what? Jianue: Europe is the world automobile industry birthplace, Europe has dozens of countries, the automobile industry is in a very small scope development, the market is very finely fragmented, the brand size is very small. Therefore, once the encounter fierce competition, it is difficult to survive, as China's old and famous. For now, the fate of most European car brands is worrying, some have been reselling many times, because of small scale, low degree of international. Europe's more successful brands, such as Volkswagen, Mercedes-Benz, BMW and Fiat, haveis a higher degree of international companies.　　After the small brand is merged by the big brand, is in the passive position, lacks the independent operation ability, once independent, also the destiny is difficult to test. Overseas acquisitions to understand each other, but also to understand their own "new finance": Chinese car companies have acquired two foreign car brands, SAIC still stuck in the Ssangyong brand is difficult to extricate themselves.　　What do you think about this? In the face of enterprises more and more "go out" impulse, you have any good suggestions? Jianue: At present, the global financial crisis is still developing, and it is not over. The impact of the crisis on the international auto industry will change dramatically, and the consequences are now unpredictable. So it's not the best time to do mergers and acquisitions right now. Now, many foreign car companies are in trouble, but in addition to asking the government for help, the investment community is unwilling to show that the auto industry is not a good investment project, and there are very high risks.　　The Chinese people never seriously consider the risk of investment, because it is not to spend their own money, especially to spend the country's money to achieve their own business, is the most fun thing.　　As for what Chinese companies can learn in Cross-border acquisitions, I think the most important thing is to draw lessons. Recently, the management academia has a saying: the past competition by cost, who is low cost who is competitive; now the competition relies on technology, innovation becomes the core competitiveness, the future of enterprise competition, relying on risk management, "the risk of winning."　　Domestic automobile enterprises to carry out cross-border acquisitions, there must be a lot of risks objectively, these risks from the political, cultural, legal, environmental, operational, capital and other aspects, but the biggest risk is strategic risk.　　A few years ago, Sho, vice president of SAIC, said very clearly: China's enterprises to go out, first, to clear the strategy of enterprises, cross-border mergers and acquisitions to be based on the development strategy of enterprises; second, we must pay attention to cultural issues; third, to understand themselves; SAIC is the first to eat crabs in the course of internationalization of China's auto industry, which is the biggest risk in itself.　　The key is that there is no experience, it is impossible to foresee, more unlikely to have disposed of the plan. SAIC began discussing the possibility of technical cooperation with Ssangyong in March 2003, with the main purpose of "using Ssangyong's research and development capabilities to help SAIC develop its products." "Later, SAIC and Ssangyong changed from equal co-operation to acquisitions and acquisitions." However, both the acquisition and cooperation, SAIC's intention is to use its research and development technology and team, for SAIC to create their own brand services. "SAIC wants to borrow Ssangyong's chicken, under SAIC's eggs."　　"It is a jingxiang good idea to borrow chicken to lay eggs, but it is difficult to ensure the development of self-development," fast. As for cultural issues, not only the cultural differences between two nationalities and two enterprises, but also the social nature, political and legal environment, trade union organization, religion, ethnicity, etc., are all issues that cannot be bypassed during the acquisition process. Some people say that South Korean unions are too powerful to go.　　But the trade union problem in other countries also exists, our enterprise must take the internationalization road, cannot avoid to open the Union question. 30 years of reform and opening-up, so far the domestic public opinion is still talking about steamThe failure of the vehicle industry to "market for technology" is still talking about the safety of the automobile industry brought about by foreign capital. Now, what SAIC is thinking, the foreign capital in China has also been how to think.　　For foreign investment into China, we want to share their technology, management and other resources, so we go to Korea, people can share our resources? We have no technology, two did not manage the experience of foreign enterprises, three lack of international talent, it is no wonder that people have doubts. It is a general trend for Chinese enterprises to move abroad. In the overseas acquisition, our company is the first to learn more about the acquisition of objects, the second is to clearly understand themselves.