God of Corporate Hunting - Chapter 225



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◈ Episode 225 Porsche (3)

“At that time, as Porsche gradually bought up Volkswagen stocks and the stock price rose, hedge funds made a large number of short sales. When the hedge funds realized that they had shorted too much, they quickly started a short squeeze, causing the stock price to soar five-fold in one day. At that time, it surpassed ExxonMobil, which was the world’s number one market capitalization company, and rose to number one…….”

The battle between Porsche and Volkswagen was a major event that shook European stock markets.

It was an unprecedented event, where a company worth over $100 billion, not even a small company, broke through the ceiling in a single day.

Porsche succeeded in swallowing up Volkswagen, but in the process it took on too much debt and was hit hard by the financial crisis.

Finally, the management structure was reorganized as Volkswagen acquired Porsche’s stock and paid off its debt.

This series of events was a struggle for control among relatives, but the result was that the Porsche family’s control was strengthened, drawing criticism from institutional investors.

Currently, the management structure of Porsche and Volkswagen is structured as a series of affiliates, starting with Porsche SE, the Porsche holding company, to Volkswagen AG, the Volkswagen holding company, to Porsche AG, the Porsche business unit, and to Porsche subsidiaries.

“Porsche AG, listed on the stock exchange, is invested in by leading funds including the Norwegian sovereign wealth fund and the Qatar sovereign wealth fund.”

Yun Se-bin’s explanation is something that Nam Un-myeong is also familiar with.

“How about we invest in Porsche AG stock?”

“Those stocks are non-voting preferred stocks, right?”

“The reason is because the operating profit margin is enormous. Porsche sells only one-fifteenth of Volkswagen’s, but its operating profit is twice as high and its profit margin is five times as high. Because it sells luxury cars. People expect that the era of electric vehicles will end the life of sports cars, but that is not the case.”

Yun Se-bin also became more thoughtful as Nam Woon-myung became more confident.

“Why now of all times?”

They are currently in the limelight with their acquisition of CSK. Their investment in Porsche is bound to be a topic of much gossip.

“Now is the time to do it, and it’s even more effective. We can advertise that the first investment made by Co-CEO Yoon Se-bin after he took office was Porsche. Porsche will not miss this opportunity either.”

Yoon Se-bin readily agreed.

“Let’s do that.”

“Tomorrow we will visit Porsche headquarters and meet with the CEO. What we will check is whether Porsche will maintain its existing philosophy while shifting its focus to electric vehicles. If we make cars like we do now, we will be successful in the future.”

Nam Woon-myung plans to meet the CEO of Porsche and look into his fate. If the CEO’s fate continues to be smooth, Porsche will continue to grow as it is now. Together with Emforce.

Of course, in the process, their profits come from both Emforce and Porsche. That’s why he invested in Emforce.

* * *

I parked my car in the Porsche headquarters parking lot.

Thanks to Shin Cheol-ho looking around with the aforementioned face, Nam Woon-myung felt a sense of satisfaction separate from the investment.

Perhaps today is the day that Shin Cheol-ho accomplishes one of his life’s bucket list items.

A few men who appeared to be executives greeted them at the front door.

Maybe it’s because they came in a Porsche. They feel warmly welcomed.

With only the titles of Korea Asset Management and Mega Asset Management, I would never have received such treatment.

Yoon Se-bin is currently the co-CEO of CSK and has the power to manage huge amounts of money. Naturally, Porsche has no choice but to treat him accordingly.

We had a formal introduction in the conference room.

The head of the other party is Felix Bremen, who is in charge of the Porsche business division. He is currently the CEO of both Volkswagen and Porsche. Although he is not from the Porsche family, he is called a pawn president, and has shown outstanding management skills and has risen steadily.

Felix introduced the person next to him.

“This is Ferdi Porsche.”

He is the second son of Wolfgang Porsche, who fought a bloody battle between Porsche and Volkswagen. In short, he is a true power holder.

Nam Yunming’s mind became complicated due to the unexpected appearance.

After shaking hands, Felix started the meeting.

“First, let me show you the history of Porsche.”

A short documentary film appeared on the screen, during which time Nam Woon-myung searched for Ferdi Porsche’s date of birth.

After the video ended, Felix asked why he invested along with a brief business explanation.

While Yun Se-bin was giving a theoretical answer, Nam Un-myeong diligently read the fates of the two people.

Felix is ​​currently known for Volkswagen and Ferdi for Porsche, so we could more accurately see the future of both companies.

There can be no twists and turns in the lives of two people. Nam Woon-myeong closely watched the possibility that a battle for management rights between Volkswagen and Porsche would break out again in the future. It is a key condition for whether to invest today.

If Volkswagen, a mass-market commercial vehicle manufacturer, increasingly interferes with Porsche’s business strategy as a sports car manufacturer, it will be difficult for Porsche to continue its current growth.

As the saying goes, if your cousin buys a field, you get a stomachache, Porsche and Volkswagen are cousins ​​who check and cooperate with each other, so they cannot leave each other alone.

Since they have already fought a blood feud between relatives, will there be another fight? It is currently quiet due to the aftereffects of the civil war, but there is no way to know the future. The history of love and hate between the two families will repeat itself in the future.

The worst case scenario for Porsche would be if Volkswagen, which has grown its fortunes thanks to its success in China, interferes with Porsche’s policies.

Volkswagen’s future is not bright. Operating profit is low and patriotic consumption is becoming increasingly intense in China. Volkswagen, a foreign company, is no different.

Of course, Volkswagen now enjoys a status similar to that of a Chinese company in China.

The side that Nam Woon-myung is rooting for is not the family of cousins ​​that controls Volkswagen, but the Porsche family.

“We also had to invest a lot of money as we were changing direction to electric vehicles. We raised 9.4 billion euros when we listed Porsche AG, but that wasn’t enough. So we were considering additional investment.”

Porsche also received the investment positively.

“During the recent financial crisis, the bank changed its name from CS to CSK. CSK decided to make Porsche its first investment company. I think the symbolism of its first investment will also help Porsche.”

“I know.”

Felix and Ferdi were friendly.

It was like meeting an angel when someone suddenly showed up to invest right when I needed money.

“The total investment amount is set at 2 billion euros.”

At €2 billion, it’s roughly equivalent to the stake invested by Qatar’s sovereign wealth fund.

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“We welcome you.”

“Of course, we will invest more once the bank stabilizes.”

“thank you.”

A conversation that was like a Q&A followed, and in an instant, an agreement was reached on the investment.

Of course, up to this point, this was the expected result.

Then Nam Yun-myeong asked a question.

“Is there a problem with the development of electric vehicles? Recently, the Lucid Air was heavily advertised as having the best performance among electric vehicles.”

Felix burst into laughter.

“Haha, the Lucid Air’s performance is truly amazing. It has an incredible 0-100 km/h acceleration time of less than 2 seconds, maximum horsepower, and top speed. It’s all opening up a new chapter in electric vehicles. But honestly, wouldn’t such performance be possible if we just made the electric motor more powerful with engineering knowledge?”

The difference between a traditional internal combustion engine and an electric motor. Even if you’re not an automobile company, breaking records is possible.

Nam Yunming read confidence in Felix’s face. He could trust his words because he was a responsible manager who was not entangled with either family.

“The Lucid Air’s performance is limited to straight-line driving. Do cars only drive on straight roads? Are roads always flat? When you encounter winding roads and various turning curves, conventional electric vehicles lose their appeal. Porsche is the best car for both everyday use and sports driving.”

The higher the output, the more difficult it becomes to design a vehicle on real roads with many three-dimensional curves. It is difficult for a new electric vehicle company to catch up with Porsche’s 100 years of know-how.

Felix read Nam Yunming’s concerns accurately, and Nam Yunming agreed with Felix’s answer.

This gives Porsche confidence that it will be able to maintain its current policy for a long time to come.

Porsche will be able to continue to solidify its image as a leader in sports cars, even in the electric vehicle sector.

When the conversation was over, Nam Woon-myung took out the materials he had received from Empos.

“We just happened to find a company that excels at designing and developing electric vehicle powertrains. We thought that this part would be more suitable for a sports car-type electric vehicle than a general-purpose electric vehicle. Let’s take a look.”

Felix flipped through the Emforce brochure he had handed him.

At first, his expression was indifferent, but as he turned the pages of the book, his complexion gradually changed.

Felix, who had been skimming through the content at a rapid pace, answered while hiding his aforementioned expression.

“Let’s review it.”

Nam Woon-myung was certain that Felix had been particularly impressed by Emforce’s materials. Perhaps this would hasten the meeting between Emforce and Porsche and make their cooperative relationship go smoothly.

The meeting ended with Yoon Se-bin instructing CSK to take follow-up measures for its investment.

Nam Woon-myung whispered softly to Ferdi Porsche, who had followed him to the front door.

“I’m having a headache because of my relationship with Volkswagen.”

“Haha, what is it?”

Ferdi mumbled with a puzzled expression.

In fact, mentioning the Porsche family’s civil war is a very rude remark. Everyone knows about the mudslinging between the maternal and paternal families, but they never bring it up. It is only natural that Nam Woon-myung would be embarrassed when he brought it up without fear.

Nam Yun-myeong smiled and whispered again.

“Once this investment is completed, the Porsche family will gain a powerful ally in CSK. Unlike other sovereign wealth funds, CSK can intervene in civil wars. They will not lose out on funds like they did in the last civil war.”

Ferdi looked at him with a blank expression.

Nam Yun-myeong responded with a smile and continued speaking.

“Of course, it is best not to have a war. However, if the other party provokes you, you cannot back down. But isn’t your maternal family more legitimate than your maternal family?”

“Haha! That’s right.”

“Because Porsche is Porsche.”

Ferdi smiled brightly at Nam Woon-myung’s words that he fully supported his family.

For Ferdi, having CSK behind him is a huge help. This has given him a leg up on the civil war between Porsche and Volkswagen that will ensue in the future.

By then, CSK will have regained its former power, so its influence will be enormous.

Of course, Nam Woon-myung has no intention of taking over Porsche. It will depend on how the civil war between the two families unfolds in the future.

For now, we just hope that Porsche will stick to its original policy without being swayed by the fact that it has a strong ally behind it. We also hope that Porsche will be equipped with the powertrain developed by Emforce so that the two companies can grow together.

Shin Cheol-ho said in the car on the way back.

“I’m visiting Porsche headquarters! I have to buy a Porsche from now on.”

Didn’t you say last time that you bought a Tesla because of Judy? This guy changes car models several times a day.

“So what are you going to buy? Have you made a reservation?”

“no.”

“I gave you 100 million won, and it’s not back yet? I need to get my money back.”

Shin Cheol-ho glanced at me and then started making excuses.

“Why would I buy a car when I have a Bentley? I don’t have a supercar to display.”

“Is that Bentley yours? It’s Representative Yoon’s.”

“Anyway, I mostly write it.”

Yoon Se-bin, who rejected Ashur’s proposal, found it more difficult to use the car. Yoon Se-bin made the decision quietly.

“Mr. Cheol-ho, please continue using it for the time being.”

“Sebine is the best!”

“Sevin?”

“Ah! Representative Yoon is the best!”

This kid is probably intentional.

Shin Cheol-ho picked up the pace.

They are going back to Korea tomorrow, so they decided to stay in Frankfurt tonight.

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