Since the promulgation of the National Automobile Industry Policy and Adjustment Plan, GAC has taken the vanguard of mergers and reorganizations with the most positive attitude. Whether it was the high-profile development of the new Hunan "base area" or the low-key negotiations with Zhejiang Gio Motors, it all showed its high enthusiasm for restructuring and mergers. Regardless of success or not, Guangzhou Automobile has transmitted a signal that restructuring and expansion will not concern state-owned enterprises and private enterprises. The “Daguang Auto” map surfaced and became increasingly clear. Its ambition to dominate the South was clear at a glance.

Internal and external trade-offs must be reorganized

With the official launch of GAC's "Twelfth Five-Year Plan," Guangzhou Automobile's determination to become the first camp of the domestic automobile, which is on an equal footing with the "Big Three" auto group, is increasingly evident. However, according to the data and data collected by the "China United Daily" reporter, the current ranked No. 6 GAC is not only far from FAW, Dongfeng, and SAIC in terms of strength, but even with Chang'an (567,000 vehicles). Compared with production and sales of 506,000 vehicles, there are also 200,000 sales gaps.

The quickest way to pull a small distance is to “purchase”—the acquisition of a mature industrial base and rapid adoption. GAC Group has such merger conditions. In 2007, the Group’s total output value and sales revenue exceeded RMB 100 billion and its profit exceeded RMB 10 billion. In the first half of 2008, the Group achieved a profit of RMB 6.368 billion.

The "Auto Industry Adjustment and Revitalization Plan" clearly points out that through mergers and reorganizations, it has formed 2 to 3 large-scale automobile enterprise groups with production and sales scale of over 2 million vehicles, and 4 to 5 automobile enterprise groups with production and sales scale of over 1 million vehicles. This has further become a "combustion aid" for GAC to promote the merger of domestic and foreign auto companies.

Strictly and steadily "for win"

Turning on the strategic map of “Da Guang Qi”, it is found that Changfeng and Gio are the two shining stars in their layout. The unfavorable competition before GAC was largely due to its lack of product lines and lack of light trucks, heavy trucks, or micro-cars as a strong support for sales. Can not "impulse", it can not expand the market share in a shorter period of time, and then rank among the domestic first-tier car fleet. Changfeng and Gio's smooth reorganization is undoubtedly even more powerful.

The cooperation between Guangzhou Automobile and Changfeng as the highest degree of market-oriented operation is undoubtedly a win-win result.

Among the advantages of GAC Group's corporate product resources, the sedan is the best part of Guangzhou Automobile Group, and the off-road vehicle is a shortcoming of GAC Group. Changfeng Motor ( 8.50 , -0.76 , -8.21% ), which was built in the 1950s and was born out of a military factory, has been known for its professional production of SUVs for more than 20 years.

Secondly, Changfeng Automobile is located in Yongzhou, Hunan, and is close to Guangzhou Automobile in terms of geographical location. By setting Hunan into its “strength” scope, Guangzhou Automobile can obtain ready-made production capacity, talents, and related supporting resources, and use Changfeng’s existing facilities to develop its own brand and find a production base for Fiat. Changfeng, on the other hand, obtained a strong financial support from Guangzhou Automobile and experience in market operation. The curve obtained the "certificate of approval" for the sedan. At the same time, the predicament of overcapacity was also solved.

For GAC, which started with sedan products, the commercial vehicle business has also been its shortcoming. The development of its own brand of commercial vehicles, GAC Bus and GAC Hino, which focuses on the Hino brand, is not satisfactory. The Gio Motors, which focuses on pickups, microfabrics and SUVs, can meet GAC's deficiencies in product structure. Moreover, as a private enterprise, Gio Auto, thanks to its flexible mechanism and strong support from the government's competent authorities, has allowed GAC and Gio to look forward to a reunion with the best of both worlds.

For SAIC Motor’s strategic approach to entering the first camp, SAIC’s success has given it a broad road to micro-cars. In the “Fourth”, SAIC is expected to impact 2 million micro-vehicles of SAIC-GM-Wuling’s production and sales support; Chang’an will be able to qualify for the “Fourth”, and it is also inseparable from its mini vehicle production and sales scale. Inspired by SAIC and Chang'an, GAC has to scale up the scale of production and sales of enterprises, and in addition to expanding the production and sales of cars as soon as possible, it must also launch a mini-car project that can quickly “impulse” cars.

A person from the Zhejiang Development and Reform Committee revealed to reporters, “If the negotiations are successful, each joint venture company will hold 50% of its shares, and GAC will assign the chairman of the joint venture company to focus on the microfabricated products.”

According to relevant sources, Gio built a 250,000-million-year-old Hangzhou Xiaoshan manufacturing base that was officially built in 3 years and started in May as a fixed asset investment, GAC invested in equivalent funds, and the two sides set up a joint venture company, each holding 50% of the shares. The goal of both parties is to expand the existing production scale and level and build a domestic leading mini vehicle base.

Yu Zhaohong even said that "regardless of cooperation with state-owned assets and foreign capital, the key to Gio is to create a micro-vehicle boss." In 2008, GAC Automobile produced and sold 530,000 vehicles. If GAO was incorporated, GAC could not only increase the production capacity of 250,000 vehicles, but also fill the vacancy of the mini-vehicle project, laying the foundation for sales for subsequent development.

In the future, the “3+3” pattern of Chinese cars will be refreshed

The concept of "Chinese car" was originally proposed by Li Chunrong, deputy general manager of Dongfeng Passenger Car Company. He believes that in order to become a member of a Chinese car, there must be three conditions: First, the history of the brand must be at least 10 years; Second, there must be a strong team, including R & D team; Third, there must be records, such as successful sales. How many cars.

After 10 years of rapid development, local auto companies are no longer the supporting role in the international financial crisis and the Chinese auto market has become the world's largest auto market. Concerning the high concentration of American cars, Japanese cars, German cars, French cars, and Korean cars, FAW, SAIC, and Dongfeng, which have won the top spot of domestic auto companies in 10 years, have implicitly supported the “3+3” pattern of the Chinese cars.

However, although the strength was slightly lower than the east wind at the beginning, the development momentum of Guangzhou Automobile was better than the former. Industry analysts analyzed that a series of reorganization actions by GAC penetrated the determination to become bigger and stronger. When the “four big and four small” pattern in the automotive industry tends to change the “3+3” pattern, such reserve forces as Guangzhou Automobile, whether from the brand history, R&D strength, or the actual performance of market sales, are both The new round of the domestic auto industry will be lifted to refresh the rankings of the industry.

Dongfeng’s location will be replaced by GAC in the future.


View related topics: China's auto industry recommence mergers and acquisitions wave


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