Armed Forces China Airlines Alliance to urge the reorganization of the car industry tide
A case involving a reorganization of a state-owned automobile enterprise has set off a wave of waves.
On November 10th, part of the automotive assets of the AVIC Group was sold at a price of RMB 17 billion and a 23% stake in Changan Automobile Group, a subsidiary of the China Bingzuo Group. As the first case of mergers and acquisitions by central enterprises, China Armed Forces and China National Aviation Group quickly moved the Chinese auto industry to the center of the restructuring stage.
More restructuring is underway. Shanghai Securities News reporter learned that Beijing Auto Holding will purchase 40% of Fujian Daimler at the end of the year; FAW Group and Guangzhou Automobile Group are robbing “Brilliance Autoâ€; SAIC Group also intends to acquire a small car company in Jiangsu at a close distance...
Restructuring big waves can not be separated from policy promoters. Miao Wei, vice minister of the Ministry of Industry and Information Technology, pointed out that the implementation rules for the encouragement of mergers and reorganizations in the automotive industry are in the process of improvement and are expected to be formally introduced by the end of December this year. If eligible car companies conduct mergers and reorganizations, they will enjoy preferential policies such as taxation.
A number of high-level domestic automobile groups have stated that their own forces have also driven companies to join the tide of mergers and reorganizations. How will the layout of the Chinese auto industry be re-arranged after this large-scale restructuring of the automotive industry?
On the morning of November 10, a formal reorganization of the state-owned enterprises was officially filed. China Armed Forces Group and China National Aviation Corporation announced in the Great Hall of the People that part of the automotive business of CNAC Group will be incorporated into Changan Automobile Group Co., Ltd. (hereinafter referred to as “Changan Automobile Groupâ€) under China Corps Corps. Although the Changan Automobile Group stated that the related assets will not be injected into the listed company Changan Automobile within three months, the securities market is still responding quickly. On the 11th, Changan Automobile resumed trading at the daily limit price, and was firmly sealed at the daily limit of 15.42 yuan during most trading hours throughout the day.
As the first case of reorganization of automobile assets between two central enterprises, the marriage between China Corps of Warriors and China National Aviation Group has become the focus. What makes these two central SOEs together so quickly? How many automobile companies or central enterprises will follow?
North and South car companies reorganize
The joint venture between China Corps Group and AVIC Group set two records: the first case of a reorganization of the assets of a central SOE, and the largest restructuring of the auto industry in China. Previously, the biggest reorganization case was Shangnan Cooperation. In December 2007, SAIC reorganized the Nanjing Automobile Group, and the combined assets amounted to more than 2 billion yuan. On November 9 this year, senior executives of the Changan Automobile Group stated that the relevant automobile assets of the AVIC Group are valued at about RMB 17 billion, which is a 23% share of the Changan Automobile Group.
In just two years, the mergers and acquisitions in the automotive industry have grown from more than 2 billion yuan to 17 billion yuan. There is no doubt that the domestic automobile restructuring has seen a big leap forward. More auto companies are preparing to join this merger wave. Sun Muzi, an automotive analyst at Essence Securities, pointed out that it is expected that there will be more mergers and acquisitions in the Chinese auto industry in 2010, at least four or five.
The reporter was informed that by the end of the year, BAIC Automobile will officially join the Fuqi Group. Beiqi Holding will sign a merger and acquisition agreement with Fuqi Group to obtain a 40% stake in Fujian Daimler Automotive, a joint venture company of Fuqi Group. Fuqi Group will only hold 10% of the shares, and Daimler Light Vehicles (Hong Kong) Co., Ltd. still holds shares. 50%. After completion of the acquisition, BAIC will achieve a key step toward the south.
The Brilliance Automotive Group, which claims to be the younger brother of the auto industry, became the singer, and the South China Tiger Guangzhou Automobile Group and the veteran FAW Group are competing fiercely. Although the Brilliance Automotive Group repeatedly stated that “the company has never negotiated positively with the FAW Group,†the reporter was informed that FAW Group has already issued relevant intentions to form an alliance with the competent department of the Brilliance Automotive Group through other channels; and the Brilliance Automotive Group is more interested in it. GAC Group did contact the Brilliance Automotive Group positively, but the two parties failed to reach an agreement. The Brilliance Automotive Group needs more development funds, but is not willing to lose control over its own brands. The Guangzhou Automobile Group, though willing to invest, does not intend to give Brilliance free. It is still unknown whether Brilliance will eventually end up.
SAIC Group, which took the lead across regional restructuring two years ago, has not been idle. Although SAIC Group did not recognize it, the reporter learned from reliable sources that SAIC Group intends to continue to integrate automobile resources in the Yangtze River Delta. If all goes well, SAIC Motor will further expand its commercial vehicle market in the future. In the future, it is possible to enter a commercial vehicle automobile company in Jiangsu and set up a production base there.
While these top-ranking auto groups have revitalized their enthusiasm, some small-scale or market-leading automakers have also pushed into the reorganization force. On October 22nd, Xingma Automobile (600375) was officially suspended, saying that “the controlling shareholder Maanshan Huashen Building Material Industry Co., Ltd. is planning a major asset reorganization for the listed company Xingma Automobile.†There are two versions of the industry rumor, or will China The relevant assets of the heavy trucks are put into the Xingma car, or the chassis assets are injected.
Reorganize the two promoters
Merger and reorganization boomers, promoters who? Information from government authorities and high-level automotive companies confirms that policy support and the company’s own development needs are two major drivers.
The competent government department regards auto companies as bigger and stronger as the future development direction. In March 2009, the Standing Committee of the State Council reviewed and passed the "Auto Industry Adjustment and Revitalization Plan" jointly formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the State-owned Assets Supervision and Administration Commission. This is also the first time the country has merged and restructured domestic auto companies. A clear target was put forward: through mergers and reorganizations, two to three large-scale automobile enterprise groups with production and sales scale of more than 2 million vehicles were formed, and 4 to 5 automobile enterprise groups with production and sales scale of more than 1 million vehicles; the production and sales scale accounted for more than 90% of the market share. The number of automotive enterprise groups has been reduced from the current 14 to less than 10.
As Liu Tie-nan, deputy director of the National Development and Reform Commission, puts it, one of the tasks and policy orientations of the "Auto Industry Adjustment and Revitalization Plan" is to maximize the use of the market forcing mechanism formed by the international financial crisis to promote the structural adjustment of China's auto industry. Joint reorganization is One of the ways to achieve the goal.
In order to promote mergers and reorganization, various competent authorities are vigorously advocating support for the restructured enterprises. Miao Wei, vice minister of the Ministry of Industry and Information Technology, pointed out that the Ministry of Industry and Information Technology took the lead in drafting the "Opinions on Accelerating the Advancement of Mergers and Acquisitions of Enterprises," and it is expected that it will be formally introduced at the end of December. In the future, qualified auto companies will enjoy preferential taxation and other aspects of mergers and acquisitions.
As a party to the restructuring of the central enterprises, Xu Liuping, Chairman of Changan Automobile, placed high expectations on the restructuring. “At present, the Chinese auto industry is now big and not strong, and the new Chang’an Automobile Group is ready to advance into a world-class automotive company. The automotive industry has enabled the new Chang'an Automobile Group to exert influence worldwide. Specifically, in 2012, the total vehicle sales exceeded 2.6 million units, and in 2020, the total vehicle sales exceeded 5 million.â€
The industry generally believes that Changan Automobile Group will form two major advantages after it merges with Harbin Automobile Group and Changhe Automobile. First, we will consolidate the position of the Changan Automobile Group in the mini-vehicle market and narrow the gap with the leading enterprise SAIC-GM-Wuling. In the first 10 months of this year, the sales of mini-vehicles under the Changan Automobile Group were 575,000, and 850,000 for SAIC-GM-Wuling. However, after this acquisition, the sales volume of micro-cars of the Changan Automobile Group will reach 810,000. Second, the total sales of the Changan Automobile Group will be upgraded. Changan Automobile, which is currently ranked fourth in annual sales, will launch an attack on the third-ranking Dongfeng Motor Group.
For the Chinese auto industry, this merger is indeed close to the idea of ​​the government authorities. The industry concentration of the two mini-vehicle companies has increased from the previous 78% to more than 90%. China is becoming the world's most concentrated market for the micro-vehicle industry. By then, China will not rule out China’s use of this advantage and vigorously develop the micro-vehicle’s overseas market, moving from a big automobile producer to production, R&D, and global sales. Car power.
Dongfeng does not intend to merge
A successful leader will attract more imitators. SAIC Group is undoubtedly the forerunner of cross-regional automobile reorganization. He is also one of the domestic auto giants who first tasted restructuring.
In December 2007, Shangnan officially cooperated. At that time, the biggest concern to the outside world was the issue of returns on self-owned brand investment. Is it possible that the SAIC Group's Roewe Group and the former Nanjing Automobile Group's name can achieve synergy? About two years later, the SAIC-owned company’s Shanghai Automotive data dispelled outside concerns. According to the data, Shanghai Automotive's main revenue in the first three quarters was 99.6 billion yuan, a year-on-year increase of 21.53%; net profit was 3.97 billion yuan, an increase of 78.52% year-on-year. Among them, the revenue of self-owned brands has increased significantly. In fact, Shanghai Automotive Vice Chairman and President Chen Hong had already blown the wind at the 2008 annual general meeting of shareholders. In the first quarter of this year, SAIC Passenger Car Subsidiary (the company responsible for its own brand) has realized a profit of 15 million yuan.
In an interview with reporters, SAIC and Volkswagen executives stated that the beneficiaries of Shangnan Cooperation are Shanghai Volkswagen in addition to their own brands. After the cooperation with Shanghai, Shanghai Volkswagen bought the assets of the original Nanjing Fiat and quickly obtained a factory, which saved the construction time - the time for the establishment of the factory is usually 18 months. In addition, it is reported that Shanghai Volkswagen purchased the original Nanjing Fiat plant costs about 1.5 billion yuan, lower than the original Nanjing Fiat land, ground buildings and equipment and other assets, but also lower than the cost of building a new plant.
South Africa cooperation has become an example in the industry. When it comes to reorganization, through the integration of factors can enhance the ability to innovate and enhance market competitiveness.
However, not all auto groups are keen on mergers and acquisitions. China's third-largest auto group Dongfeng Motor Group executives said that Dongfeng Motor Group has no merger and reorganization plan, and the company does not consider sales as its goal. The goal is to be stronger first. Therefore, it pays more attention to sales revenue and operating efficiency. This high-level even used American General Motors and Ford Motor as negative teaching materials, saying that "GM and Ford's sales once led the world, but now it is facing the same crisis."
View related topics: China's auto industry recommence mergers and acquisitions wave