Into the field of commercial vehicles Changan Automobile intends to acquire gold passenger car

After the signing of the joint venture with Peugeot-Snowtray Group (hereinafter referred to as PSA), the expansion of Changan Automobile has not stopped, and Changan Automobile is fully cutting into the commercial vehicle sector.

Recently, sources revealed that Changan Automobile is preparing to acquire the equity of Xiamen Kinglong Wagon Co., Ltd. (hereinafter referred to as Golden Passenger Car) to enhance the company's strength in the field of passenger car manufacturing and to form a north-south echo with its existing Hebei Changan victory bus. Passenger car manufacturing pattern.

Zhang Baolin, general manager of Changan Automobile, did not comment on the above news when he was interviewed by “Daily Economic News” on May 27th. He only said that he was not clear about this matter, and he refused to disclose Chang’an’s strategic arrangement on mergers and acquisitions.

Changan Motors signed a joint venture agreement with Peugeot-Sydron Group (PSA) after it successfully brought Hafei and Changhe into the bag last year, followed by a joint venture with Volkswagen Commercial Vehicles. Frequent shots from the industry's integration show that Changan Automobile is trying to get out of the position of its first camp and strive to surpass FAW and Dongfeng to enter the top two positions in the auto industry.

Jia Xinguang, a well-known automotive analyst, said that this time Chang'an's integration targets are directed at commercial vehicles. This is a sign of Changan's national large-scale grouping, such as FAW's production model, which includes passenger cars, commercial vehicles and other models In order to achieve the goal of surpassing SAIC, it is imperative to fully develop the business of mini vehicles, passenger vehicles, commercial vehicles, and special vehicles.

Chang'an wants to buy a gold passenger car?

The Golden Passenger Car is an important passenger car production enterprise in China and is an important member of the Golden Dragon Car Series. Currently, Golden Dragon Cars holds 60% of its shares, and the other 40% is held by Hong Kong Jialong Group.

Golden Dragon Motors owns three Jinlong Bus Company, which are Xiamen Jinlong United Automotive Industry Company (Dajinlong), Jinlong United Automotive Industry (Suzhou) Co., Ltd. (namely Suzhou Golden Dragon) and Golden Passenger Cars. The three Golden Dragons were once involved in equity disputes. Divided into lanes, the final three Golden Dragon rejoined the Golden Dragon Auto Group, Golden Dragon Motors held 51% and 60% of the shares of Daikin Dragon and Suzhou Golden Dragon.

According to a source from the bus industry, from 2008 onwards, there were several overseas bad debts not recovered from the gold passenger car, causing tens of millions of yuan in losses, which had an impact on the development of the company. Since Golden Dragon Motor is a consolidated statement of three Golden Dragons, the loss of Golden Passenger Car has been offset by the profits of two other Golden Dragons. However, there is no doubt that the contribution of Golden Passenger Cars to Golden Dragon Motors is decreasing.

The lack of success in the growth of the gold passenger car has created Changan Automobile's chances of becoming an owner.

Sources from the shareholders of Golden Dragon Motor disclosed the news that Changan had planned to enter the gold passenger car, saying that the two parties are currently in contact. As Changan Automobile is among the “Four Big Four” and “Big Four” major automobile groups established in the “Regulations for the Adjustment and Revitalization of the Automotive Industry”, it belongs to the “Big Four” ranks and is encouraged to conduct nationwide mergers and acquisitions, so this acquisition may be subject to competent authorities. support.

Huang Chunxiao, manager of Golden Passenger Car Planning Department, said that he was not very clear about the above news but was interested in the source of the news. Changan Automobile insiders said they have not received an authorization to answer the matter. Even if they know it, they cannot speak outside.

The source did not disclose which shareholder the shares of Changan Automobile acquired the gold passenger car. However, it is understood that Chang’an Automobile is more likely to enter into the gold passenger car and acquire 60% of the shares held by Golden Dragon Motor, because with the Golden Dragon Auto Group, the homogeneity competition of the three Golden Dragon buses is serious, and the gold passenger car’s The development is more backward, and the profit contribution of Dajinlong and Suzhou Golden Dragon surpass the gold passenger car.

In addition, the Hong Kong Jialong Group, a shareholder of the Gold Passenger Cars, set up a Shenlong bus in Shanghai in 2004. It relied on the production platform and technology of Golden Bridney to form a passenger car redesign outside of Golden Dragon Bus. If the shareholders fail to form a joint force, it is possible to consider the transfer of shares or the introduction of investors.

Make up for commercial vehicle short board

The acquisition of gold passenger cars may be the signal for Changan Automobile to enter the commercial vehicle sector. Commercial vehicles have always been the short-board of Changan Automobile. Changan Automobile is currently the fourth-largest automobile company in China. Its products mainly consist of mini vehicles and sedans, and its operating profit mainly depends on these two businesses.

In 2009, Changan hoped to rely on the state’s favorable policy on mini vehicles to defeat FAW and Dongfeng in one fell swoop. At the same time, he hoped that with Hafei and Changhe, SAIC GM Wuling would be dismissed from the position of the microcar boss, but these two desires were eventually lost. .

Judging from the operating data, the gap between Chang'an is even more remote. According to statistics, the sales of Dongfeng Motor in 2009 were 268.524 billion yuan and net profit was 26.258 billion yuan. In the same period, the sales of FAW Group were 314.381 billion yuan and the net profit was 25.862 billion yuan. Changan Automobile's sales in 2009 was only 105.42 billion yuan, net profit of 2.383 billion yuan, and net profit was less than one-tenth of Dongfeng and FAW.

Chang'an's desire to enter the top three of sales this year is very strong. It is hoped that large-scale mergers and acquisitions will be carried out quickly, and it will attempt to improve the product line of Changan by entering the field of commercial vehicles, and change the pattern of products based on mini vehicles.

Previously, there were rumors of a joint venture between Changan Automobile and a Volkswagen commercial vehicle, but this rumor has not been formally confirmed by both parties. In addition, Chang'an has already decided to take the heavy truck out of the joint venture. It is currently negotiating with a number of foreign heavy truck brands, and the Changan Chang'an heavy-duty truck company under Changan will be an important part of the future joint venture.

Some analysts pointed out that there have been rumors of joint ventures between Changan Automobile and Volkswagen Commercial Vehicles. However, due to the current state's strict controls on newly-approved automobile projects, new projects cannot generally be approved, but companies are encouraged to perform on existing companies. Mergers and reorganizations, so entering the main passenger car may have the significance of the approval level.

At present, the product structure of “wealth-based and sedan-based” cannot meet the strategic goal of “stabilizing the top 3 and striving for the top 2” formulated by Chang’an, whether it is intended to enter the main passenger car or contact with a commercial vehicle of the masses. It is a strategic arrangement for long-term safety surfaces to enter the commercial vehicle sector.

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