Beiqi "marriage" Changhe is expected to be a fruition


Since the “Changhe Strike” incident in early 2012, China’s Chang’an’s control over Changhe has been virtually existed. In 2008, Beijing Automotive Group, which had “wanted to greet” Changhe Automobile, had hoped to make this dream into reality.

Recently, the relevant person in charge of the Changan Automobile Group and relevant responsible persons of Changhe Automotive have confirmed to reporters that in June of this year senior executives from China’s Chang’an City have signed a written agreement to Changhe Auto’s departure from Chang’an in China. After the National Day, the relevant ministries and commissions have also completed the signing process. At present, the Beijing Automobile Group has basically settled its stake in Changhe Automobile, but it has not signed yet. The industry speculated that the local government of Jingdezhen will announce this at the Jingdezhen Porcelain Fair held from October 18th to 22nd.

In November 2009, under the aegis of relevant ministries and commissions, China Chang'an whipped up the shares of Changan Automobile, Hafei Motors, Dongan Power, Changhe Suzuki and Dongan Mitsubishi, which were owned by AVIC, and became China’s fourth-largest automotive group. However, from the subsequent operation, the parties did not seem satisfied.

As early as June of this year, China Changan had agreed to the departure of Changhe Automobile and signed relevant documents with Jiangxi Provincial State-owned Assets Supervision and Administration Commission. The responsible person of Changhe Automobile told the reporter that after the SASAC, the Ministry of Industry, and other ministries and commissions completed the signing process, Changhe Automobile has been managed by the Jiangxi Provincial SAC. China Chang'an stated that Changan and Changhe Automobile have already “split up”. According to the agreement, Changhe Automotive retained the Jingdezhen base and the Jiujiang base after independence, and the Hefei base was placed in China’s Chang’an and became the Chongqing Chang’an automobile mini vehicle production base.

After Changhe Automobile gained its independence, the secondary restructuring led by the Jiangxi Provincial Government kicked off. Since July of this year, many domestic auto group people have visited Changhe Auto, among which BAIC Group has been particularly active.

Although the Jiangxi provincial government had previously intended to allow Jiangling Motors to reorganize Changhe Automobile and introduce Jiangxi Copper Group as a strategic investor, Jiangling eventually gave up reorganizing Changhe due to various reasons.

After the National Day, the Beijing Automotive Group internal sources revealed to the media that Beijing Auto's reorganization of Changhe is proceeding smoothly and the results will be announced in October. Changhe Motors will be assigned to the newly established vehicle division of BAIC Group.

Changhe Automobile, which owns small car technology and a joint venture company, is a good asset. Why did you choose Beijing Automotive Group eventually? An industry analyst familiar with Changhe Automotive believes that Changhe has a relationship with BAIC. Cai Shengping, the deputy general manager of BAIC Group, was the general manager of Changhe Automotive before 2008. He has done a lot of work in the current management of Changhe Automotive. Second, the Jiangxi Provincial Government recognized that BAIC Group has the reorganization strength.

“Actually, BAIC is just the largest shareholder of Changhe Auto. Jiangxi Provincial SASAC is the second largest shareholder and Jingdezhen SASAC is the third largest shareholder.” The source also revealed that BAIC Group has promised to maintain the previous negotiation process. The current management of Changhe Automobile remains unchanged, but it will send a financial officer as deputy general manager.

How does this pattern affect the future development of Changhe Auto? Relevant experts believe that the composition of the three shareholders may not be a good thing for Changhe Automobile. In the future, the company’s management will face multiple challenges and problems. “The Jiangxi Provincial State-owned Assets Supervision and Administration Commission has become the second largest shareholder of Changhe. It also assumes the role of a coordinator; Beijing Auto Group's successors should learn lessons from Chang'an in China, and the ranks of personnel stationed at the airport should be higher. They have a strong say in BAIC and can coordinate resources to help the development of Changhe; the involvement of the SASAC of Jingdezhen seems to be significant. It's a bit redundant."

It is understood that after BAIC Group reorganizes Changhe Automobile, in addition to providing financial support, it will also provide some models.

Prior to this, Wu Tangsheng, secretary of the party committee of Changhe Automobile Sales Co., disclosed that it will formally implement the 9+9 strategic layout from 2014 to 2015. In the future, Changhe will launch 9 retrofit models and 9 new models, some of which will come from other vehicles. Corporate cooperation.

Statistics show that in the first nine months of this year, Changan Automobile sold 1.5323 million vehicles, together with sales of Hafei Automobile, China Changan sold more than 1.56 million vehicles. While BAIC Group sold only 1.542 million units in the first eight months, and September sales, after the Beijing Automobile Group reorganized Changhe Automotive, it will definitely exceed China's Changan in terms of production and sales, becoming the fourth-largest auto group in China.

What is more noteworthy is that through the merger and self-construction approach, BAIC has completed a balanced strategic layout in five positions: Zhongnan Zhuzhou, East China Zhenjiang, South China Guangzhou, Southwestern Chongqing, and North China Beijing. However, there is no distribution in the southeast region. The reorganization of Southeast Motor has been won by Dongfeng. Obviously, BAIC Group's reorganization of Changhe Automobile will help it fill the gap in the Southeast. From the perspective of geographical distribution, although Changhe Automobile is not offshore, it owns Jiujiang Yangtze River Port. It connects Guangdong to the south and Hunan to the west. It can run through Beiqi's two bases in South China and South China. In particular, Changhe Automotive's micro-vehicle matching technology on engines and transmissions is exactly what Beiqi Zhuzhou Microcar Base needs.

In addition, after BAIC reorganized Changhe, not only did Changhe Suzuki’s automobile production qualifications, but also indirectly cooperated with Suzuki Automobile, filling gaps in the production of small vehicles, and at the same time obtaining Changhe Automotive’s production technology in the mini vehicle industry. , further increase the BAIC vehicle sales.

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