To 2011 Changhe Automobile sales 120,000 dollars, on the one hand, Changan Changhe Automobile Group will contribute to the loss of 120,000 sales, on the other hand, BAIC will Changhe sales into its own financial statements. The gap between Changan Group and BAIC Group will be minimal.
Although Changhe's annual production and sales volume is only about 100,000 units, for Beiqi, the significance of restructuring Changhe far exceeds the sales growth itself.
This year, Xu Heyi, the chairman of BAIC Group, who has always been cautious in public, has uncharacteristically. After completing the reorganization of Zhenjiang Automobile, Xu Heyi once again hinted that another company planning to reorganize is located in Jiangxi, a state-owned enterprise, and Jianfeng directly refers to Changhe Automobile. .
In July this year, at the Seventh (Expansion) Meeting of the 13th Session of the Jiangxi Provincial Party Committee, Jiangxi Provincial Governor Lu Xinshe said that “encourage Changhe Automobile and other enterprises to merge and reorganizeâ€. At present, the news that BAIC intends to reorganize Changhe has been approved by the insiders of BAIC. The person said that “the specific situation will be officially announced soonâ€, but declined to give more details.
For Beiqi, it is a slap in the face of the biggest rival, the Changan Group’s tiger mouth.
Merger of Changhe
Three years ago, Changan Group merged with Changhe, but the restructuring plan for Changhe has not been smooth enough. Changhe Automobile used the extreme means of stoppage to show dissatisfaction with Changan Group. The two sides are arrogant and the cooperation relationship is difficult to maintain. Subsequently, the Jiangxi Provincial Government came forward to communicate with Changan Group and reached an agreement on the independent development of Changhe Automobile. According to informed sources, Changsha’s independent approval process is currently being implemented. Changhe Automobile may transfer the production base in Hefei to Changan as a condition to achieve independence. In the future, Changhe Automobile, which is reorganized by BAIC, will have two bases, located in Jingdezhen and Jiujiang.
In 2009, Changhe Automobile and Hafei Automobile were transferred to Changan Automobile by the parent company AVIC , becoming the two subsidiaries of Changan Group, but the Changan Group did not inject vitality into Changhe Automobile.
In 2011, Changhe Automobile sales fell sharply to 120,000 units, a drop of 33.3%. In 2012, the sales of Changhe Automobile fell again. The main reason for the continuous decline in production and sales of Changhe is that the product line is too short. In addition to the micro-car, Changhe only has Changhe Suzuki 's two- passenger models, including Pai and Liana , all selling at less than 100,000 yuan. Changan Group has been continuously new cars in recent years, and the main price range is still below 100,000 yuan. The market segment where the products of both parties are located is too overlapping, causing Changan Group to give up the car and is unwilling to provide model support for Changhe Automobile.
"The fuse that caused the cooperation between the two parties to break down is production qualification. Changan intends to transfer Changhe's passenger vehicle production qualification to Changan Mazda , which is unacceptable to Changhe." Zhang Zhiyong, a well-known car commentator, directed the "First Financial Daily" "Reporter said.
According to the above-mentioned person introduction, Changhe Automobile employees then stopped work to show their protest against Changan Group. After the resumption of work, Changhe Automobile refused to accept the instructions of Changan Group and adopted a non-cooperative attitude. Changan Group could not do anything about it.
The involvement of BAIC Group broke the deadlock. Beiqi is currently the fifth largest auto company in China. Xu Heyi has opened a big deal in recent years. He has built five bases in Zhenjiang in the east, Chongqing in the south, Guangzhou in the south, Hebei in the north and Zhuzhou in the central region. He has improved the product line of BAIC. The brand is basically in a blank state. During the years when Xu Heyi took over the BAIC Group, BAIC has completed the strategic layout in the field of commercial vehicles, passenger cars and micro-cars, showing a new look from the wind and water. BAIC's rise and interest in Changhe Automobile has brought new opportunities for Changhe automotive born again.
"This year, Beiqi reorganized Changhe will settle the dust," Beiqi insiders revealed, "This will be a win-win cooperation."
Double arrow
The strategic intention of BAIC to reorganize Changhe is not difficult to interpret.
During the “Twelfth Five-Year Plan†period, BAIC’s strategic goal is to “guarantee five competitions for four†and to surpass the current fourth-ranked Chang’an Group to become China’s fourth largest automobile group. In 2012, the production and sales volume of Changan Group was 1.956 million units, and the production and sales volume of BAIC Group was 1.703 million units. The gap between the two sides is still more than 250,000.
After the acquisition of Changhe, the competition situation between the two sides will undergo a huge change. On the one hand, Changan Group will lose 120,000 units of sales contributed by Changhe Automobile. On the other hand, BAIC will include Changhe's sales in its financial statements. The gap between Changan Group and BAIC Group will be minimal, and Beiqi is only one line away from the goal of “Publication for Fiveâ€.
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