Chapter 1718: Thomson's trouble

The economic crisis in the country has caused many companies to suffer serious losses, including Thomson.
Thomson, as one of the giants in the field of consumer electronics, set-top boxes, rear projection and other terminal equipment, are the world's first, film and television post-production, dvd disc sales channels, etc., are also the world's top, but they are On an important project, I went the wrong way.
This project is a flat-panel TV.
At the beginning, Feng Yu reminded Thomson, plasma TV, not worth the investment, flat-panel TV in the future, certainly LCD is more advantageous, because the enterprises invested in this camp is invested hundreds of times in plasma enterprises.
Unfortunately, when Thomson started, he did not pay attention to this. Their investment in plasma research and development was very high, and the sales situation was very poor.
Although the focus was later turned to liquid crystal, plasma TV did not give up. As a result, they are also two parallels, but they are completely different from the four-star group in South Korea.
Originally a high-profit TV business, it later lost hundreds of millions of euros a year.
At the beginning, these hundreds of millions of euros of losses, Tomson can afford to live. As a world-class consumer electronics giant, its assets are huge and hundreds of millions of euros are counted.
However, they also adopted a credit model for electrical sales in Europe and the United States. That is, the consumer can pay the down payment and then pay the mortgage for the money.
Before this, it didn't affect anything at all. The default rate is extremely low, but it can greatly increase their market share, making them the first in North America and second only to Westers in Europe.
Based on these market share data, their brand value is extremely high, and the company's stock price performance is also very good.
However, they made the same mistakes with companies such as Tongzhi, that is, they should not let their credit companies go into financial projects such as real estate.
In the past two years, when the subprime mortgage business in the country was popular, the credit company under the Thomson Company also participated in the real estate credit business.
Although they did not directly do real estate credit business, they bought a lot of subprime bonds and thought they could make money by appreciation. At that time, their credit company could make a lot of money every year.
But now, subprime bonds are turning into junk bonds, and the default rate has soared, leaving Tomson, the credit company, a lot of money.
And their electrical credit, the default rate is getting higher and higher. More and more bad debts have appeared, which has caused big problems in the operation of their company's funds.
Even some of their joint ventures around the world have begun to experience large losses due to the deterioration of the economic situation. For example, a joint venture company in China, a joint venture company in India, and so on.
With more and more losses, the profitability of the profitable business is also declining, which makes their funds become more and more tight. And the original Thomson's production costs are higher than other competing companies.
Isn't France a four-day work system, which is different from the four-day work system in other countries. Although other countries have a four-day work system, the time for one day's work is ten hours, that is, the same week is forty hours, but you can get one day less travel expenses.
Some companies have a four-day work system and work hours are eight hours. Such companies are paying a lower salary for their employees.
But Thomson is not only a four-day, eight-hour work system, but also does not pay a salary cut for employees, which makes their productivity decline and costs rise.
When the economic crisis occurs, it is usually accompanied by the bankruptcy of the factory and the unemployment of the workers. Why is this? Because this expenditure is actually the biggest part of the company's expenditure.
Thomson’s spending in this area is also among the best in the world.
When product sales decline, profits fall, and even some businesses have a lot of losses, they have to pay such high salaries and benefits, how can companies not have problems?
Feng Yu has long reminded Thomson that their company's operations have great hidden dangers. But he is only a cooperative relationship with Thomson, and he is not too close.
Too much to say, it will make people think that he wants to intervene in the business of Thomson.
At this time, Thomson’s crisis was completely due to their self-confidence, and Feng Yu had already fulfilled his obligations to allies.
In fact, Thomson's brand, Feng Yu is still like, sales channels are also very good, and many of the technology are also the world's top. But in terms of business management, Feng Yu is very invisible.
Although the production cost of China's side has been rising, people's wages have begun to rise.
But Feng Yu gave them a high salary and they also wanted to improve their efficiency. Moreover, Feng Yu let the company open factories in India, Brazil and other places, which is a way to reduce labor costs.
Of course, there are also some of the world's top foundries, and one of the ways to reduce costs.
Thomson, this is also a high cost.
Does Tomson know that his cost is high? Of course I know, but they didn’t care about it before.
They have big brands, strong technology, high added value of products, good sales, and the profits are naturally good.
But when sales fell and other brands began to compete with them for the market, their disadvantages were highlighted.
Thomson never thought that the country would have an economic crisis and it was so serious. And this economic crisis has had such a big impact on Thomson.
This crisis will cause the global economy to be hit hard. Many countries' economies may have some declines. The most intuitive performance is that many people's income has fallen.
Since incomes fall, the spending power naturally declines, and the number of people who buy their products decreases. Their factories will cut production and profits will fall.
These combined effects have caused a great blow to Tomsun. They are also considering whether to sell some business and ensure that the company can survive this difficult time.
At the very least, I have to sell some shares of the joint venture company. After discarding those burdens, they should be able to survive this winter. As long as the economic situation recovers, they can regain profits.
There is a little more debt. They don’t worry at all. Big companies have debts. Isn’t this a normal thing? As long as the debt ratio does not exceed the security line, then it is fine.
And the shares they intend to sell, such as Huaxia, need to find some powerful people to take over, but also can not grow competitors.
Therefore, they excluded companies from Europe, island countries, and South Korea, and aimed at their own allies. So Thomson took the initiative to contact Liu Chuanzhi and expressed his intention to sell the shares of the joint venture company.
Liu Chuanzhi asked Feng Yu whether to acquire the shares of the joint venture company. They have measured that these businesses are not bad, after the merger, they can increase their share in the Chinese and even Asian markets.
Feng Yu directly refused, and the promotion of the share sounds very good, but it is a burden. That joint venture company does not include the brand of Thomson, if it is included, then this offer is worth considering.
Thomson was told that he was rejected, very angry, and they threatened that if that was the case, they would have to invest in other camps!
... (to be continued.)