The Changan Automobile Group, which was originally a military-industrial company, recently fought with the new AVIC.
First of all, Chang'an Group insiders are letting off the wind. The automotive businesses of Hafei, Changhe and Dongan Power under the new AVIC will be free to be assigned to Changan Automobile, and the date will be given before the end of this year. The reason is the merger and reorganization, the above authorities have been interested in promoting the Changan Group to restructure the new CATIC automobile business.
The new AVIC team immediately conducted rumors, saying that the new CNAC had never discussed the auto business division of Chang'an and stated that the new CNAC’s determination to grow bigger and stronger its automotive business has not changed.
The two parties each insisted on their own words. This merger and reorganization, which seemed to be merely a catch-all, has become more confusing despite the recognition of one party.
Chang'an intends
Since this year, Changan entered the four major groups delineated in the “Industrial Revitalization Planâ€, the allegations about the reorganization of the new AVIC automobile business by Changan began to circulate in the industry.
The reason is that the Chang'an Group, which is listed as one of the four major groups and is supported by the state, will surely take advantage of the policy to expand significantly. The new CNAC and the Chang'an Group are military industrial companies and have similar backgrounds. More importantly, the new AVIC's automotive business is not as attractive to the other three major companies that are eligible for national mergers and acquisitions, but it is very attractive to Chang'an Group.
The two micro-vehicle companies Hafei and Changhe under the new China Aviation Group have been declining in recent years. The gap between the first echelon of SAIC-GM-Wuling and Changan has continued to widen. The only good asset is the Dongan Power, which is mainly composed of small engines, and is supported by a number of self-owned car companies in China.
Chang'an is the only group in the Big Four to rely on micro-vehicles. Micro-vehicles also play an important role in its future development blueprint. The goal of the Chang’an Group’s Eleventh Five-Year Plan is to target sales of more than 2 million vehicles in 2010. However, sales of Chang’an in 2008 were 862,000 units, which is a long distance from the target of 2 million vehicles.
If you can take the new AVIC's automotive business, Changan's mini-vehicle business will be greatly expanded to obtain the strength to compete with micro-vehicle boss SAIC-GM-Wuling; Dongan Power will also provide engine support for Changan's micro-vehicle and its own-brand cars.
Only the news of Changan's restructuring of the new China Airlines initially appeared to be more speculative by the media. Chang'an Group insiders did not express their position. However, the attitude of the Chang'an Group has recently changed.
However, it was previously reported that Chang’an has taken an active attitude toward the acquisition of new CATIC’s automotive businesses such as Hafei, Changhe, and Dongan Power. Some even claimed that it was an ironclad fact that AVIC's automobile business was free to be assigned to Changan Automobile, and that it was signed at the end of this year at the latest.
The reason for such rapid advancement is that the relevant state departments have made it clear that the main business of the new China National Aviation Corporation is to do a good job of large aircraft, and the Ministry of Industrialization Information has been promoting the integration of the AVIC automobile business into the CNPC Group (Changan Automobile Group is a subsidiary of the CSFB Group).
The reporter then confirmed with Changan that an insider of Chongqing Changan Automobile Co., Ltd. had defaulted on the news that Changan wanted to restructure the new AVIC automobile business: “The stock company did not participate in this matter and all of them are running in Beijingâ€.
The Beijing side of this person means that it has just been renamed "China Chang'an Auto Group Co., Ltd." (hereinafter referred to as "Changan Automobile") from Southern Auto. After the change of name, Changan Automobile Group replaced all functions of the former Nanfang Automobile and became the parent company of Chongqing Changan Automobile Co., Ltd.
The reporter called Changan Automobile Group and senior manager Zhao Xiongwu said in an interview that there is currently no relevant news to disclose, nor any substantive action. However, Zhao Xiongwu said he did not know whether the two parties had initial contact and Chang'an consideration in this regard.
After the establishment of the company, he wanted to develop the automotive business, and the new China Aviation Administration, which was not involved in mergers and acquisitions, came out.
A senior leader of China Aviation Administration who had participated in the meeting with PSA (Peugeot Citroen), the new president of Philip Valan, told the media that he had never heard of the transfer of the new AVIC automotive business to Chang'an without compensation. Li Yao, general manager of the Asset Management Division of the new AVIC Group and member of the Board of Directors of AVIC Motor, said in an interview that "The determination of AVIC to develop the automotive industry has not changed." He also said that if there is an idea of ​​reorganization and merger, the new AVIC board of directors will certainly discuss or draft the draft. However, the group has never discussed this aspect internally.
Another new AVIC person who was contacted by the reporter also stated that he had never heard of the cooperation or business allocation of the new CNAC and Changan Automobile. "If we consider car business to Chang'an or cooperate with Changan, why are we still worried about working with PSA? If the automotive business plans to go out in the future or cooperate with Changan, we will not be able to fully control the automotive business. It will no longer be necessary. Talk to foreign companies about cooperation."
According to the source, the new CNAC is closely liaising with the PSA. Both parties are more concerned about this cooperation and it is estimated that there will be results in the near future.
Although the competent authorities such as the SASAC and the Ministry of Industry and Information Technology have all tended to divest the auto business of the new CNAC and concentrate on doing the main business, the new CATIC has been insisting that the auto business will not relax. The new AVIC executives stated on different occasions that the automotive business segment is an indispensable business segment for the new AVIC.
The reason why this is so determined is that since the establishment of the new CNAC announced the grand goal of achieving revenue of RMB 1 trillion in 2017, it will be even more difficult to achieve this goal by setting aside the auto business.
The automotive industry is not optimistic about the new CNAC's expansion of the automotive business. It is only because of the dismal operation of the micro-car companies that they can't have any climate. Since the launch of the new CNAC for several months, the new CNAC has not integrated the two micro-car companies. Substantial progress has also not been made in specific automotive business development initiatives.
In the view of industry analysts, PSA is also a reason why Changan Automobile will not easily give up its merger with the new AVIC automotive business.
But in this way, the cooperation negotiation between PSA and Hafei will add another variable, and PSA's search for a second partner in China will inevitably lead to twists and turns.
View related topics: Military Equipment Group and AVIC Restructuring - Changan M&A Changhe Hafei
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