China's automobile manufacturing M&A integration leads the automotive industry

The most compelling M&A integration experiment in China's auto manufacturing industry has been in the middle game. Who will become the dominant force of war this time? Local government, or business?

Even in the 7 years after the completion of the "Tianyi Reorganization", which was called the largest one-time restructuring in the history of the Chinese automobile industry, the Chinese auto industry, which has always been considered as "repetitively building", seems to be still not quite clear - this People are slightly disappointed.

On June 14, 2002, Zhang Shitang, chairman of CNAF, signed a hug with FAW Group Manager Yan Yanfeng at the Great Hall of the People, and announced that he transferred 50.98% of the share capital of his Xia Xia company and all of Huali company’s shares to FAW. Let the industry sensation - as China's first acquisition of the auto industry after the WTO accession, people lamented its strategic vision, but also curious mergers and acquisitions between companies will bring the Chinese auto industry.

Five years later, on December 26, 2007, the location was still the Great Hall of the People. It was the largest M & A case in the history of the Chinese automobile industry. Under the auspices of the National Development and Reform Commission, Hu Maoyuan and Wang Haoliang finally stood side by side. At this point, the "Great Shangqiu" was called to replace the name of "Shangqi Group" and "Nanqi Group" before. It is worth noting that on the day of signing the contract in the South, in addition to the two protagonists Hu Maoyuan and Wang Haoliang, Chairman of Beijing Automotive Group Xu Heyi, Guangzhou Automobile Group Chairman Zhang Fangyou, Dongfeng Motor General Manager Xu Ping, Changan Automobile Chairman and President Xu Liuping and CEO of Jianghuai Automobile Zuo Yanan and eleven automotive company executives all arrived at the scene, according to a person in charge of the Development and Reform Commission’s Industry Department: “The purpose is to let the bosses receive education.”

Sure enough, after the curtain call for the South Cooperation, they were really turned into “protagonists” by onlookers. On January 14, 2009, the government was compiled into the “Four Big Four” and “Four Small” FAW Group and Dongfeng Motor. SAIC, Chang'an Automobile, and Beijing Automotive, Guangzhou Automobile Group, Chery Automobile, and CNHTC, under the promotion of the "Industrialization Promotion Plan for Automobile Industry," must complete two domestic automobile enterprise groups with annual sales of more than 2 million units. 3, more than one million cars will reach 4 to 5. The number of auto group companies that account for more than 90% of national car sales will be reduced from the current 14 to less than 10.

A vigorous merger and reorganization drama kicked off again. The impetuous capital market has been unable to wait to take action. Dongan Power's share price has been arrogant since February 19, with the highest increase in the five days reaching 45.6%. The propelling force behind Dong An's soaring momentum is exactly the rumor concerning the reorganization of AVIC's Dongan Power, Hafei Motors and Changhe Automotive Assets by the AVIC Group. The preparatory group for AVIC Automotive Industries has been established for a long time, and the listing of the company is a “fuse”. ". Zhongtong Bus, Jianghuai Bus, Changfeng Automobile, and all the stocks that affiliated with the Refining Group have become the targets of stir-fried products. Industrial restructuring is expected to become a new investment theme for the automotive sector.

Since June 8th, the share price of Golden Dragon Motors has gone arrogantly. The maximum increase in the eight days has reached 33.6%. The propelling force behind its soaring growth is the rumor that Beijing Automobile Holdings, one of the “four small” companies, may acquire Jinlong Auto’s owner Fujian Auto Industry Group Co., Ltd. "I've been wondering why King Long's stock has soared so quickly. If you didn't tell me, I still don't know why it was ours!" Fan Wentao, general manager of Beiqi Fotonau V, suddenly realized. At this time he was busy taking over the assets of the newly integrated Beijing-China bus and Jingtong bus. Behind his smiling face, a new round of restructuring story is happening.

Beiqi Bus Raiders

A year ago, the "Car Watch" magazine's assumption about the integration of BAIC passenger cars and the judgment that "Bus will become a new opportunity for Beijing autos" had attracted discussions in the industry. After a full year, the idea seems to be turning into prophecy. A Beijing-based bus section dominated by Euro V is on the integrated route.

In November last year, Beijing's Master Liu rented a door-to-door house in the west area of ​​Zhangjiawan Development Zone in Tongzhou District, preparing to operate a small shop and putting shelves full of daily necessities.

What prompted him to make this decision was that the opposite side of this door-to-door house was the gate of the Beijing Jinghua Bus Factory. Although it was only a new plant of Jinghua Bus covering an area of ​​300 acres, although it is only one of their office locations, the people who come to work still have Not much, but Master Liu has already made it clear that when Jinghua moves to the Fifth Factory in Daxing District next year, there will be more than 1,000 employees and his business will be very good.

At this time, the Beijing-China bus is also busy. The newly appointed chairman of the company will launch a production line with an annual output of 6,000 passenger cars and sales revenue that is expected to exceed RMB 1 billion in October, and bid farewell to the annual production capacity of 3,000 vehicles in the past. Jinghua will unveil a new chapter in its development.

However, Master Liu recently discovered that an oxygen station that was under construction near the factory gate suddenly stopped working and was removed, leaving only a pile of soil. Then he heard that the above “one document” resulted in such a result. . Also let Master Liu's wishful thinking fall.

Master Liu’s document is an official notice issued by Beijing Bus Group to its holding company, Jinghua Bus, at the end of May this year: “From now on, the Beijing-China bus has officially transformed from a production and sales company that was previously responsible for its own losses. It is a bus maintenance service company. The bus group will integrate the debts, employees, and land of the Beijing-China bus, and other assets including trademarks, patents, announcements, and equipment will be integrated with BAIC.”

In the past few years, rumours about the acquisition and reorganization of Jinghua have continued, and the reorganization with BAIC has often been mentioned, but no one would have thought that Jinghua will eventually change its own destiny in such a way.

In 2008, the sales increase of Jinghua Bus ranked No. 3 in the country, and the total sales increased by 658 vehicles. Just in early May of this year, Jinghua even announced that it had transformed into a tourist bus. According to the plan of Jinghua, by October 2009, it plans to produce 6,000 vehicles per year. The Jinghua brand tourist bus, which is expected to exceed 1 billion yuan in sales revenue, will be put into production. By then, Jinghua will complete an industrial upgrade and product transformation.

However, all this will become a cloud of paper as the Beijing-China bus becomes a bus repair service company.

European V Dream

“Car Watch” once reported on the cover story of last July’s issue “The Last Opportunity of Beijing Buses” to report on Beijing Automobile's integration of the Beijing passenger car segment. It was pointed out that the integration of Beiqi passenger cars can be the first to stand out and become the first step for Xu Heyi to make Beiqi the largest. strategy. At the same time, because of the respective backgrounds of Jinghua and Jingtong, BAIC has also faced many obstacles in integrating Beijing buses. However, many years of dysentery seem to have been solved. To be successful, one cannot help but wonder: If you know this early, why did you need it?

Another news is equally sensitive and important: Beijing Auto and Fuqi Negotiations around reorganization, Jinlong Auto has become a key point in the success or failure of negotiations. For a time, “The real purpose of Beiqi's integration of Fuqi was to collect the Jinlong passenger car into its pocket” and it was widely reported in the industry. Accompanied by this rumor, in addition to the sharp rise of the Jinlong Auto's stock, there was once again a strong demonstration of Xu Heyi's determination to build a bus segment.

“The hope that the city places on us is great?”

"Yes, I hope that the Euro V bus will become the leader of the bus and strive to enter the top three after five years." On June 17, Fan Wentang, general manager of Beiqi Foton Euro V Bus Company, told reporters.

Although the former had close contact with Jinghua and Jingtong, several corporate CEOs often imagined the situation of Beijing bus integration. However, for Fan Wentang, everything was never as easy as it is today. In the direction of “The city set the direction”, the main content is to transfer the effective assets of Jinghua to Beiqi Holdings without compensation. Under such a “direction”, Jinghua also positively stated: “What does Beijing Auto want from Jinghua? ."

The atmosphere in front of me is so harmonious, relaxed and radiant. In this round of government consolidation, there seems to be no intrigue, no preoccupation, and there is only a big Beijing car dream. Beijing Auto will include the intangible assets of the Beijing-China Bus owned by the Beijing Bus Group, including trademarks, patents, and announcements, as well as some of the effective assets of the Jingtong Bus, which was originally a key passenger car manufacturing plant of the Ministry of Transport and has been suspended for a long time. The way the government plans to transfer the entire receipt, and then in the form of capital injection to strengthen the strength of the European V passenger car. However, due to belonging to China Ordnance Industry Group, Beijing Neopolis, another bus company in Beijing, is not a Beijing company in terms of division, and is not included in this reorganization.

The problems such as the placement of the staff of the integrated unit and the legacy debts that were difficult to deal with in the previous integration did not become part of the Euro V. In addition to all the advantages, the Euro V shouldered only one heavy task: Beijing bus.

Next to the office of Fan Wentang, there is a production workshop for Fotonou V passenger cars. One bus assembled with “×× buses” is being driven out of the workshop.

"After receiving Jinghua's assets, our buses are mainly produced here. We haven't used much of the equipment. As to whether or not Jinghua will be used in the future, Beijing Automobile has not yet finalized this." Fan Wentang told the "Car Watch" reporter that before the European V and the chassis had a very good cooperation, and Jinghua's hinged car and other resources are also a good complement to the European V.

In fact, in terms of the outside world, in addition to the announcement, the European Union V’s superior resources can also be used to take over Beijing Hua and get a big gift package for bus purchases in the Beijing bus market. Although Fan Wentang stated that in Beijing where the degree of market protection is relatively low, Euro V will still act in accordance with market rules and participate in bidding for the Beijing bus market. However, when local governments begin to play a more important role in the reorganization of the automobile industry around the world, who is willing to devote more of their profits to outsider fields?

The future of "Jinghua"

As everyone was rejoicing for the future of Beijing Auto, the building of the Beijing-China bus had already had no previous buzzing and there were no 1400 workers working. The security guard in front of the door stopped the reporter who came to interview: “There is no one inside, and leaders are very sad and will not accept the interview.”

Looking across the gate, Beijing Jinghua Bus Co., Ltd., which once had production, research and development, and sales, will now become a bus maintenance service company. The term “Jinghua” will bid farewell to this land.

In addition to the existing dream of Jinghua, the annual capacity of 6,000 passenger cars is still looming. Others have nothing at all: The original 1400 employees were accepted by the higher-level unit, Beijing Bus Group, and were diverted to their subsidiaries; R&D patents accumulated over the years The production equipment will be handed over to Beiqi Holdings for integration, and the 300-mu land in the Zhangjiawan Development Zone in Tongzhou will be converted into a Beijing bus repair facility.

Even if we know that Jinghua, which has been plagued by the system for many years and does not have the qualification for construction of the construction site, is sooner or later to be integrated. However, Jinghua is still aggrieved: First, the increase in the sales of Jinghua Buses in 2008 ranks third in the country, and the total sales increase by 658 vehicles. Second, if it can wait for three months - October 2009, it will produce 6,000 vehicles a year, and sales. The Jinghua brand tourist bus, which is expected to exceed 1 billion in revenue, will be put into production. By then, Jinghua will complete an industrial upgrade and product transformation.

Even so, we found that Jinghua has been slow.

Just in June of the past, 121 and 74 roads have been replaced by 50 hybrid buses produced by Futian Europe V. This vehicle can save 7700 liters of fuel per year, reducing nitrogen oxides and particulate matter emissions by 27%. And 19%, close to the Euro IV level. This move is in response to the Beijing Municipal Government’s call for the largest domestic hybrid bus fleet.

Before the end of the year, the number of hybrid buses in Beijing will increase from the original 10 to 860, of which 450 new energy hybrid buses and 350 buses will have Futianou V - located in the suburbs of Beijing. The Futian Euro V bus factory in Changping was already Beijing's new energy automotive industry base as early as the beginning of the year.

In the face of the earliest industrialization and large-scale commercial use of Euro V hybrid buses, not only Jinghua, but also many passenger car and vehicle companies are all looking forward.

It may also be that in advance the Beijing Municipal Government has been strongly encouraged to support the development of the new energy automotive industry. In May, Jinghua publicly stated that it had withdrawn from the bus industry and transformed into a tourist bus market. However, what is disappointing is that, according to its official data, the sales profit of 6,000 tourist coaches is 55 million yuan, and the profit of each vehicle is only roughly 9,670 yuan. Futian Company expressly stated that Euro VI hybrid power is more common than ordinary vehicles. Buses have double the benefits.

"The efficiency is not good. I retired in 2002 and my pension has dropped from 806 yuan per month to 775 yuan now." The 60-year-old Jinghua old employee Wang told the "Car Watch." Although he was immediately faced with being accepted by the new company, he seemed very reassuring: "I heard that other companies can rise by a few tens of dollars a year, and my retirement will certainly not be less and less!"

According to the latest news from “Car Watch”, Master Wang’s reception is a double-decker passenger branch of Beijing Bus Group. Among the 2,132 buses that the company operates, there are many competitors from Beijing, including Jin Brigade, Jinling and Yaxing Benz.

Shandong Heavy Industry: Creating Heavy Industry Giants

And Beiqi's mood should be the same. When he took over the “Shandong Heavy Industry Group Co., Ltd.” handed over by the Shandong Provincial Party Committee Secretary and the governor himself, Tan Xuguang knew that a dream of 100 billion yuan in sales revenue was waiting for him to complete.

"In the morning limit limit!" The Zhongtong Bus in Liaocheng, Shandong Province, was actually burned in the stock market in March through the "scandal" of China National Heavy Duty Truck Group, one of the "four small" companies. With the implementation of the National Automobile Industry Revitalization Plan, CNHTC, as the only automotive company in Shandong selected for the “national team”, has been encouraged to implement regional mergers and reorganizations as well as BAIC, GAC, and Chery. The Shandong provincial government has long been willing to integrate the resources of the province's steel, petrochemical, commercial, and automotive industries, plus Sinotruk and Zhongtong buses are affiliated with the SASAC of the province. This inevitably leads to speculation that the two will No story will happen.

At the same time, there is news of WeChat Power and Shantui shares. In the draft of the “Shandong Provincial Automobile Industry Adjustment and Revitalization Plan” issued by Shandong Province on March 4th, it was clearly proposed to “focus on supporting Weichai Power, the joint restructuring of Shandong Provincial Automobile Group and Shandong Construction Machinery Group,” and cultivated 8- 10 large-scale enterprise groups with strong competitiveness, including two companies with operating revenue exceeding RMB 100 billion. On October 18 last year, Shantui announced that the deputy general manager of the company, Jiang Kui, resigned due to work transfer. It is intriguing that Jiang Kui’s current position is the deputy party secretary and deputy general manager of Weichai Holding Group.

Everything is so confusing, although the parties have tried to clarify the “truth” in different forms, but some things still happened later, but there is only one protagonist – Weichai Group. This last year was with Sinotruk. There are 500 billion yuan in sales of auto groups.

100 billion group surfaced

On May 22, the answer was finally revealed – Tan Xuguang was promoted from the chairman of Weichai Group to chairman of Shandong Heavy Industry Group. The group has a registered capital of 30 million yuan and total assets of 31.06 billion yuan. It spans two industries, namely automotive and mechanical engineering. It is the state-owned property of companies such as Weichai Holding Group Co., Ltd., Shandong Construction Machinery Group Co., Ltd. and Shandong Automotive Group Co., Ltd. The formation of a wholly state-owned company.

Regarding the establishment of Shandong Heavy Industry Group, the provincial government of Shandong Province paid unprecedented attention to it. On the day of the unveiling ceremony, in the Qianren Auditorium of the Shandong Building, Jiang Yikang, the Secretary of the Shandong Provincial Party Committee and the Standing Committee of the Provincial People’s Congress, was the Deputy Secretary and Governor of the Provincial Party Committee. Jiang Daming led several major team leaders and provincial departments, some provincial management companies, and financial unit principals attended the event. Jiang Yikang and Jiang Daming personally unveiled Shandong Heavy Industry.

Such a high-profile inauguration ceremony is full of deep meanings. On the one hand, Shandong Heavy Industry Group shoulders the historic mission of building a new brand of Shandong equipment manufacturing industry and strengthening and expanding. On the other hand, it also shows that the government’s clear attitude of advocating reorganization has invited the day. Observed by other provincial management companies to understand it.

Indeed, similar to the reorganization of Shandong Iron and Steel Group that has already been established, the strength of the government has played a leading role in this reorganization. The program discussed by the Governor's Office on May 7th was submitted by the SASAC of Shandong Province and participated in the reorganization. The three enterprise groups are also state-owned enterprises. On May 22, Weichai Power and Shantui Stock received the first major shareholders of the company, Weichai Holding and Shangong Group, respectively. According to the governor’s office meeting minutes, they agreed in principle to Weichai Holdings, Shangong Group Co., Ltd. and Shandong Province. Automobile Industry Group Co., Ltd. implemented a restructuring and formed Shandong Heavy Industry Group Co., Ltd.

The reorganization of the three major groups will not only integrate and improve the upstream and downstream industrial chain of auto parts in Shandong Province, but also provide more space for capacity expansion and industrial upgrading. The target is to directly target 100 billion yuan in sales revenue. The reorganization did not adopt the method of regrouping another group with a certain group. Instead, Shandong Heavy Industry Group transferred the property rights of Weichai Holdings, Shangong Group and Shanqi Group to its name and formed a holding company. The pattern of the three major groups. Obviously, it seems that the three companies are in parallel integration, but Weichai Holdings is the most prominent in the three companies and will enjoy greater power in the decision-making of Shandong Heavy Industry in the future.

After the reorganization, a standardized parent-subsidiary company management system was established between Shandong Heavy Industries Group and its affiliated companies, and a standardized corporate governance structure was established in accordance with the requirements of the “Company Law” and the modern enterprise system. The reorganized Shandong Heavy Industry Group, whose corporate ownership status remains unchanged, will not change after the reorganization is implemented, and the actual controllers of Weichai Power and Shantui Shares will not change. Currently, Weichai Holdings holds 14.92% of the shares in Weichai Power and Shangong Group holds 21.10% of shares in Shantui.

Three paths to achieve the goal

When the Shandong provincial party committee secretary and the governor personally opened the plaque of Shandong Heavy Industry Group Co., Ltd., Tan Xuguang knew that a dream of 100 billion yuan in sales revenue was waiting for him to complete.

Prior to the integration, Weichai Group had already set a goal of “strive for sales revenue exceeding RMB 100 billion in 2012 and enter the world’s top 500” as its development goal. Tan Xuguang believes that this large-scale merger and reorganization will shorten this The process, "the newly formed Shandong Heavy Machinery has the strength to achieve 100 billion yuan in revenue."

Although Shandong Heavy Industries has complex internal operations, decentralized operations, and large differences in corporate culture, the difficulties encountered in integration are likely to be a great test for Shandong Heavy Industry. In response, Tan Xuguang said: "Weichai Holding Group had revenue of 50 billion yuan last year, Shangong Group about 7 billion yuan, and Shanqi Group 2 billion yuan, and the three major groups accumulated about 60 billion yuan in revenue. Last year the three groups again At the same time, facing the background of the financial crisis, from the perspective of development, the products of these three companies will have 100 billion yuan in sales revenue in the future."

In addition, Weichai Holdings has previously successfully acquired and absorbed the merger of Hunan Torch Automotive Group Co., Ltd. and has extensive experience in mergers, acquisitions, restructurings and capital operations. These experiences are valuable assets for the new Shandong Heavy Industry. Tan Xuguang said that the newly formed group will focus on strategic planning, financial management, and the establishment of product development platforms. In particular, the newly formed group has 620 postdoctoral and postgraduate students in management, engineering, and finance, 4 state-level R&D centers, and 6 provincial R&D centers.

"This reorganization is the result of the synergy of the three companies' common industry and the formation of a unified value. The new group does not compete with its peers and is conducive to coordinated development." Tan Xuguang pointed out that first, Weichai Holding Group is famous for producing engines, so It will further strengthen the independent supporting position of its power system and build the world's largest power system manufacturing base. After the merger of Hunan Torch Automotive Co., Ltd. in August 2005, it already has a complete heavy-duty automotive industry chain. Its strategic positioning is to integrate power technology and general-purpose power companies.

Secondly, with SAAM as the main body, it will fully integrate the auto parts resources distributed in each group of companies, and quickly form a passenger car parts platform with a rational product layout, high system integration, and low logistics costs within the group. Samwa owns many parts and components companies mainly in Qingdao, Weihai, and Yantai, and the Hunan Torch was originally an auto parts company. After three years of integration, the Weichai Holding Group also owns a passenger car segment with air-conditioning products. Spark plugs, car gearboxes, etc. new

After the establishment of the group, the two passenger car parts plates will be integrated once and strive to build China's largest passenger vehicle parts and components group.

Third, ShanGong Group will continue to maintain its leading position in the domestic bulldozer industry and strive to enter the ranks of the world’s most powerful enterprises with strong production capacity. It will actively develop bulldozers in accordance with the requirements of shareholders of listed companies and the strategic positioning of the board of directors. The new group will support the development of Shantui. Its development will also expand the scope of supporting the Weichai Power System and give play to the synergy between the two groups.

“There has never been an idea of ​​reorganizing Zhongtong Bus,” said Tan Xuguang, and in his opinion, the current priority is how to promote the successful implementation of the three strategies and complete the dream of 100 billion sales revenue as soon as possible, rather than the other.

On the second day of June 19, when Shandong Heavy Industry was unveiled in Jinan, he rushed to Shantui, a 200-kilometer-long Jinan-based company, and officially inspected the new plant and research institute of Shantui International Park.

Chery and JAC: The Dangers

Large integration, weak integration, and weak integration are a matter that should be appropriate for Beijing and Shandong, but it can cause problems for Anhui, which also has a big car dream. Chery and JAC's reorganization of the Marriage Marriage is complicated and confusing, and the quotes from the audience are overwhelming. JAC's stocks are even more difficult choices to buy or not to buy. This is a problem.

On June 1st, Jianghuai Automobile announced the suspension of the announcement because some media predicted that Chery and JAC will remarry together. A clarification announcement was issued on June 2 that there was no restructuring plan with Chery Automobile and the company and its controlling shareholders are state-owned. Holding companies, it is not yet possible to predict whether relevant reorganization will occur in the next three months.

Stock market pioneers

In fact, from May 12 to May 27, when the majority of auto companies' stocks have entered adjustments, Jianghuai Auto's share price has soared, rising from 4.6 yuan to 6.3 yuan, or nearly 40 percent. %! The clarification of the resumption of trading on June 2 is a big rise. What are the reasons? Xu Minfeng, an analyst in the auto industry of Zhongyuan Securities, gave the reporter the answer: “The market has strong expectations for the restructuring of Jianghuai and Chery.” This expectation stems from the “Regulation of the Adjustment and Revitalization of the Anhui Automobile Industry”.

Guangqi and Changfeng reunited for two years. In the country’s background of encouraging the reorganization of automobiles, Changfeng’s stocks ran wild from April 29 until Changfeng issued a public announcement on May 18 to determine the restructuring. The previous May 15 ended. On the day when the media informed Changfeng about the progress of the matter, Li Hui, the brand promotion minister, still said "unclear". Afterwards, Chang Zheng, general manager of Changfeng, said that “reorganization is like falling in love, and it will only be public when it comes to marriage.”

Before the reorganization of Weichai Power, Shangong, and Shanqi, the media broke news. As a result, weeping ceased for a day to clarify rumors.

All of the reorganization events have become reality in the “rumors” of the media. “With the encouragement of state policies, the rumours now become more and more reliable.” Xu Minfeng said. So, Chery, JAC fly it?

Big Anhui Car Dream

On May 12, Anhui Province promulgated the "Automobile Industry Adjustment and Revitalization Plan of Anhui Province" (hereinafter referred to as "Planning"), and expressed support for Chery, Jianghuai, Hualing, Changhe, Yangzi, Quanchai and other auto companies according to market principles in the province. The joint restructuring, and strive to form a production capacity of more than one million automobile enterprise groups, enter the national key support sequence. “To cultivate a large-scale auto vehicle manufacturing enterprise group with 1 million production and sales scales, 2 to 4 auto parts production enterprise groups with advanced domestic level, and 5 to 7 auto industrial clusters through joint reorganization and adjustment.” Chery and JAC are currently the two largest vehicle companies in Anhui Province. They must build a 1 million-level Grand Anhui Automobile Group referred to in the "Planning". This heavy non-Chery and Jianghuai belong to each other.

According to Liang Huaping, president of the Anhui Automobile Industry Association, as early as 1999, the Anhui Provincial Government passed a reorganization plan for the automobile industry in the province and intended to integrate Chery, JAC, and Ankai. As a result, the nationwide institutional reform has been delayed. In 2006, JAC and Chery planned to reorganize again. Chery had to rely on JAC for its IPO. Jianghuai wanted to use Chery's production catalog for sedan cars. The wishful thinking was originally a good thing, but it could be smoothly approved after the JAC sedan catalogue was approved. Frustrated.

After a decade of grinding, now is the global auto industry reshuffled in the context of the financial crisis. China needs to occupy a commanding height in the new pattern, realize its dream of becoming a powerful automobile country, domestic auto production capacity excess, lack of technical strength, and full of pond shrimp. The status quo without big fish must be changed. Therefore, the central government has vigorously promoted the integration of the automobile industry from the top down. Chery was named as one of the four minorities and Anhui Province has no choice but to use this opportunity to expand the Anhui automobile industry.

Chairman Liang said: "The "planning" indicates the development direction of the automobile industry in Anhui Province. In theory, the results brought by the reorganization of Chery and JAC surely outweigh the disadvantages. The construction of the automobile repeat in Anhui Province is very serious. Chery is on a commercial vehicle. Jianghuai passenger cars cause great waste of resources, and integration and reorganization are the major trends of the industry, and their integration will not be integrated by others. How will the 2 million capacity enterprises encouraged by the state come from? The four big companies are staring at them. Changhe and Yangzi are typical examples. The original company was in Anhui, Anhui did not look at live, Hefei Changhe became Changhe in Jiangxi, and Yangtze was ranked second and third in the pickup industry. The result was Changfeng Holdings. This is a lesson. ”

At the same time, GAC greeted Changfeng and gave a wake-up call to the major automotive provinces. They must open their wings to protect their sites. As a result, Shandong Province began the process of reorganization of Weichai Holdings, Shangong Group, and Shanqi Group. The newly born Shandong Heavy Industry Group will shoulder the heavy responsibility of Shandong to build a 100 billion auto parts group.

Under the tide of change driven by the forces of this local government, how can Anhui make the dream of becoming a strong province of automobiles break again? Restructuring across the country is a general trend. How can Anhui let other people's hands into their pockets?

"Small businesses" strive for independence

From the beginning of the reorganization of Chery and JAC, the leaders of the two companies were tired of rumoring. Chery Automobile has its own passenger cars and commercial vehicles. It has a prominent record in the domestic automobile market and is also a hope for self-owned brand cars. Jianghuai Auto has developed sufficient capital to develop cars, light passenger cars, light trucks, and buses. In more comprehensive auto companies, neither of them is weak enough to depend on the other, and their independent development and growth are the company’s ultimate dreams. "The strength of the two is quite equal. This is the biggest obstacle to reorganization."

From the perspective of business leaders, Yin Tongyue led several people to create Chery with 300,000 yuan in a barren land 12 years ago. It goes without saying that their own children should give it to others. Can not! Jianghuai left Yan'an military background, strong personality, leading JAC shopping mall, committed to others? no way!

So, if there is no one who eats it, it is a strong combination. Chery's passenger vehicles and JAC commercial vehicles have complementary advantages. They share resources in management, technology, production, sales channels, and procurement. Is this acceptable?

Marriage possibility

Looking at Yin Tongyue's and Zuo Yan'an's speeches, both men stress that there is no possibility of whom to integrate, but both agree that both parties should have a deeper cooperation. Yin Tongyue once responded to the media that he had a very good relationship with Zuo Yanan, the chairman of Jianghuai Automobile. Jianghuai was very good in terms of utility vehicles, light trucks, and car chassis. Jianghuai and Chery’s complementarity was very strong, and they had many opportunities in terms of technology and combination. All can cooperate.

Zuo Yan'an stated that there are many ways of cooperation. For example, in production, some foreign companies have cooperation, and one production line produces two brands of products at the same time. This is “the sharing of manufacturing resources and the sharing of resources for accessories”. "In research and development, there are some things you have developed and are willing to sell. When the price is right, I will buy it. Why should I invest a few hundred million yuan to develop it? Under the framework of market trade, two partners are under strong pressure from market competition. We must do this, and if we do not do so, the resulting benefits will be affected. We actually have already done this kind of cooperation. Cooperation at this level is very easy, there is not much cost in the cooperation process." "The key issue is What is the problem to be solved in the reorganization of enterprises? This is the most important thing in terms of resource allocation and efficiency maximization. Then, from the government's point of view, why do we emphasize restructuring? Jianghuai Automobile Co., Ltd. agrees to recombination, but only to follow the market. Law service."

Zuo Yanan once said with a smile: "Jianghuai is the Eighth Route Army, Chery is the New Fourth Army, and two revolutionary teams under the leadership of the Communist Party. They are all anti-Japanese armed forces." Chery is controlled by the state-owned investment company in Wuhu City, Anhui Province. Jianghuai is controlled by the Anhui State-owned Assets Supervision and Administration Commission. Although it involves the interests of the municipal government and the provincial government, it is not difficult to solve. At a crucial moment, Wuhu can only choose to fulfill the overall interests of Anhui.

"In fact, the biggest problem is the problem of people. As long as the leadership level of the two companies is properly settled, any other problems can be solved. As the leaders of state-owned enterprises should abandon the ego and fulfill the self-achievement, standing on the entire Anhui and even the national automobile industry. From the point of view of development, we should not be too concerned about the interests and gains and losses of enterprises and individuals. In this way, the Anhui automobile industry can achieve a qualitative leap, said Chairman Liang.

An industry insider of the auto industry told the reporter: “The restructuring of Chery and JAC will surely become a success. The corporate leaders are not necessarily the obstacles. Zuo Yan’an is already 60 years old this year. According to the usual practice, it should reach the retirement age. The old president of the Great Wall was Wang Xingyi because of the age of 61. At the end of the year, President Liang also agreed with this statement.

The rest is to find a reorganization method that can make the two companies develop better and realize the ideal of 1+1>2.

Reorganization method

The reporter collated the views of experts from each division and Chairman Liang, and concluded that there are three possible approaches. The first possibility is that JAC Passenger Vehicles and Chery are integrated, and Chery’s commercial vehicle companies are integrated into JAC so that they can Taking full advantage of their respective advantages, both companies can have greater capacity and a broader platform in their respective strong areas.

The second possibility is "airborne." The Anhui State-owned Assets Supervision and Administration Commission established the "Anqi Group". A newcomer was airborne as the chairman of the group, and Chery and JAC were included in the company. The two branches gradually began to fall in love. The expectation is that you will not worry about the provincial government, and the two companies themselves will take the initiative to move closer.

The third possibility is the "industrial coalition," with Jianghuai, Chery, and Hualing as the backbones, integrating other vehicle companies, parts and components companies and service companies in Anhui Province to form a synergy similar to that of the former Soviet Union. , to integrate the advantages of regional resources. This can achieve a qualitative leap in the automotive industry in Anhui Province and form an independent brand enterprise with the most complete domestic products. The grand blueprint of a big auto kingdom is just around the corner. It's exciting.

Chery and Jianghuai are the only talents for Langcai. The Anhui government wants to maintain the pure pedigree of Anhui Auto, and does not want fertilizer to flow outside the field. It is only that the two people are demanding independence and self-improvement. Their personality is tough and they have similar abilities. "Therefore, a person who does not care about the tenderness of the birds in the other party, a grand bank who doesn't think that the other side is high enough to hang up on the mountains, like the children who are going to be arranged by their parents' marriage, is squeaking and whispering, but the arms are twisted over the thighs?" What's more, there is the overwhelming approval of the Central Government? More importantly, marriage does not have to be a sacrifice to self.
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