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Changan Automobile Group, which has not operated Changhe for many years, had to make a cessation. Under the condition of abandoning the Hefei base, Changhe Automobile obtained independence and quickly switched to the Beijing Automobile Group.
On November 25, the signing ceremony for the Beijing Automobile Group’s reorganization of the Changhe Auto in Nanchang was held in Nanchang. Beijing Auto Group will obtain 70% equity of Changhe Automobile for 80 million yuan, and Jiangxi Guohua will hold the remaining 30% of the shares.
Taking advantage of this restructuring plan, BAIC is expected to become China's fourth-largest auto group this year.
Public information shows that Beijing Automotive Group will spend more than 13 billion yuan to reconstruct Changhe Automobile.
According to the plans of Beijing Automotive Group Corporation and Jiangxi State Control, from 2014 to 2017, Beijing Automotive Group will jointly invest RMB 13 billion with Jiangxi State Control, which will build Xinchanghe Automobile into a vehicle with 500,000 vehicles and 300,000 powertrains. Production base. It will upgrade the production bases of Jingdezhen and Jiujiang, and will build a new phase of its own brand and joint venture brand vehicle base; and build a new part logistics base. Changhe Automobile's goal is sales revenue of 50 billion yuan.
From 2018 to 2020, the above-mentioned two major shareholders will increase the scale of investment and build Changhe into one million vehicles and 600,000 powertrain production capacity. The construction of new auto brands and joint-venture brand vehicle bases and the construction of new auto brands and joint venture brand auto bases will be expanded to Phase II. According to the plans of Beiqi and Jiangxi State Control, Changhe will achieve a total industry chain sales revenue of 100 billion yuan.
BAIC Group will provide blood transfusion for the inability of Changhe Automobile. Beiqi plans to import B-class, A-class, A0-class, SUV and MPV products in Changhe Automobile Co., Ltd. The platform will cover C70, C60, C50, C30 and its platform derivatives. Changhe's existing products have been fully upgraded to help Changhe Automotive develop MPV and CDV high-end mini-vehicle platforms.
In addition, BAIC will also deepen its joint venture with Suzuki. On the one hand, it will strive to import platform resources that have not yet been put into production or have not been put into production in China. On the other hand, BAIC will expand its platform for the development of outstanding domestically produced models.
Prior to the reorganization, Changhe Automotive had two complete vehicle factories in Jingdezhen and Jiujiang, and a Jiujiang engine plant, which had an annual production capacity of 300,000 complete vehicles and 150,000 automotive engines. In 2009, Changhe Automotive and Hafei Motor were assigned to Changan Automobile by the parent company AVIC and became the two subsidiaries of Changan Group. However, the Changan Group did not inject vitality into Changhe Automobile.
In 2011, sales of Changhe Automobile dropped sharply to 120,000 vehicles, a drop of 33.3%. In 2012, Changhe Auto's sales fell again. The main reason for the continuous decline in Changhe's production and sales is that the product line is too short. In addition to mini vehicles, only Changhe Suzuki owns two models of Paixi and Liana, both priced at less than 100,000 yuan. In recent years, the Changan Group has kept new cars and the main price range is still below 100,000 yuan. The overlapping of the market areas where the two products are located causes the Changan Group to give up their cars and is unwilling to provide vehicle support for Changhe Automobile.
According to the above-mentioned sources, Changhe Auto's employees stopped work to show their protest against Changan Group. After the resumption of work, Changhe Automobile refused to accept the instructions of the Chang'an Group and adopted a non-cooperative attitude. The Chang'an Group could not do anything about this.
Subsequently, the Jiangxi Provincial Government came forward to communicate with Chang'an Group and reached an agreement on the independent development of Changhe Automobile. Informed sources disclosed that Changhe Automobile will sell its production base in Hefei to Changan as an independent condition, and BAIC Automobile has two bases in Jingdezhen and Jiujiang.
The intervention of BAIC Group broke the deadlock. Beiqi is currently the fifth-largest automobile company in China. Xu Heyi has recently opened up a large number of joint ventures and built five bases in the east of Zhenjiang, western Chongqing, southern Guangzhou, northern Hebei, and central Zhuzhou and improved the product line of Beiqi. Prior to this, Beiqi was independent. The brand is basically in a blank state. In the several years after Xu Heyi took over the BAIC Group, BAIC has completed its strategic layout in the fields of commercial vehicles, passenger vehicles and mini vehicles, presenting a new perspective on wind and water. The reorganization of Changhe by BAIC will bring new opportunities for the rejuvenation of Changhe Automobile.
The most significant change brought about by the reorganization plan for China’s autos is that in the first half of the year, the gap between the production and sales of the Chang’an Group, which ranked fifth in sales and sales last year, was about 10,000, and after the reorganization of Changhe, BAIC Group’s current The production and sales volume has surpassed Changan Automobile. This year, BAIC Group is expected to enter the ranks of the top four automotive groups in China, and the pattern of large enterprises in China's auto industry will change.
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Changhe Turns to Beijing Automobile Holding Changan Group to Secure Hefei Base