Merger and Reorganization of the Automotive Industry: Formed 3-5 Large Groups in 2015

According to the website of the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology, the Ministry of Finance, the National Development and Reform Commission and other departments have jointly issued the "Guidance Opinions on Accelerating the Promotion of Mergers and Acquisitions in Major Industries," and the "Opinions" have clearly defined the goals and tasks for the merger and reorganization of the automotive industry. By 2015, the industry concentration of the top 10 vehicle manufacturers will reach 90%, forming 3-5 large-scale automobile enterprise groups with core competitiveness.

The "Opinions" pointed out that through the promotion of mergers and acquisitions of enterprises, increase industrial concentration, promote large-scale, intensive operations, increase market competitiveness, cultivate a group of large-scale enterprise groups with international competitiveness, promote the optimization and upgrading of industrial structure, and further promote enterprises. Change operational mechanisms, strengthen and improve internal management, improve corporate governance structure, and establish a modern enterprise system; accelerate the strategic adjustment of the layout and structure of state-owned economy, promote the development of non-public economy and small and medium-sized enterprises, and improve public ownership as the mainstay and multiple ownership economies The basic economic system for common development.

The "Opinions" pointed out that to promote the merger and reorganization of enterprises in key industries, we must use industrial policies as the guide and key areas of industrial development as the starting point, encourage large-scale backbone enterprises to carry out cross-regional and cross-ownership mergers and reorganizations, and encourage enterprises to expand their industries through mergers and reorganizations. Chains form strategic alliances; encourage enterprises to “go global”, participate in global resource integration and operations, enhance their international operating capabilities and enhance their international competitiveness.

Automobile industry:

By 2015, the industry concentration of the top 10 vehicle manufacturers will reach 90%, forming 3-5 large-scale automobile enterprise groups with core competitiveness.

Promote horizontal mergers and reorganization of vehicle companies. Encourage auto companies to integrate element resources through mergers and acquisitions, optimize product lines, reduce operating costs, increase capacity utilization, vigorously promote the development of independent brands, foster core competitiveness of enterprises, and achieve scale and intensive development.

Promote the merger and reorganization of parts and components companies. Supports key components companies to expand their scale through mergers and acquisitions, establish long-term strategic partnerships with vehicle manufacturers, develop strategic alliances, and achieve specialized division of labor and coordinated production.

Support large-scale automobile companies to extend their services to the service sector through mergers and acquisitions. Improve the automotive industry service system, with brand marketing as the main body, vigorously develop R&D, procurement, modern logistics, auto finance, information services and business services, and realize the integration of service industry and manufacturing industry.

Support participation in global resource integration and operations. Encourage auto companies to “go global” and seize the opportunity to conduct cross-border mergers and acquisitions, optimize the allocation of resources on a global scale, develop and improve global production and service networks, improve the ability of international operations, and enhance international competitiveness.