JAC's Chery merger is the government's intention to hold each other's stocks only as a transition


With the stimulation of the automotive industry's revitalization plan, some of the ranking auto groups have been spotted in the top eight of the domestic industry, and mergers and reorganizations are the only prescriptions for rapid expansion. Anhui Province is home to Jianghuai Automobile Group and Chery Automobile, both of which are independent brands. This raises the banner of industrial integration for Daan Auto.

Contrary to previous rumors, Anhui Province has basically determined the main idea of ​​joint or merger of automobile plates in the province: based on Chery Automobiles and Jianghuai Automobile Group, it will build Daan Automobile Industry Group, and the two companies will hold shares. It is not the pattern of “who eats who” that has spread in the past. Jianghuai Chery Reorganization will be implemented by the end of the year (Shanghai Securities News, 23rd)

Cheng Yuan commented: I do not advocate media hype because productivity is not produced in speculation.

The restructuring is very complicated. JAC and Chery have reorganized. I think the government's will reflects more. Anhui used to be dominated by agriculture and its industrial foundation was relatively weak. Chery's success not only promoted the strength of China's auto brands, but also promoted the economic development of Anhui Province, making Anhui Province see the development of automobiles and the feasibility of strengthening local economic strength. . Chery’s sales of more than 300,000 vehicles a year have greatly stimulated the economy of Anhui Province and created a very high GDP, which also played a significant role in changing the economic structure of Anhui. This further stimulated Anhui's determination to accelerate the development of the auto industry. Of course, the government does not want the free development of enterprises, and it certainly likes to play a game in the province.

Zhan Xia came to the province as the secretary of the provincial party committee. First of all, Zhan Xialai’s personal achievements are relatively good, and she has the ability to undertake more important tasks. However, we do not rule out that Anhui Province will raise Zhan Xia to the province and will have further plans to develop the Anhui automobile industry. Since the newly established Automobile Office was established and the disease was led by Zhan and Ren, the intention in the province can be clearly seen. Chery Automobile's establishment and development, Zhan Xia has contributed, can be called "the father of Chery." There is no Chery if you don't come from Zhan Xia. Chery developed to today, Anhui Province also placed greater hope on Zhan Xialai, hopes that Zhan Xialai will not only lead Chery to develop well, but also to develop the automotive industry in Anhui province.

For JAC, I understand that they are not willing to reorganize. Its commercial vehicles have developed very well in the light truck market. Both the economic efficiency and product structure are very good. However, it does not have a sedan. Companies without a car can only grow and grow. It does not plan to join forces with others. Whether it is small or complete or large-scale, it must exist independently. Fill up the missing items in the car.

JAC is not a private enterprise. His decision makers are appointed by the government. The ultimate direction of the company is not determined by the person in charge of the company. It was Zuo Yan'an who said that he would follow the government's arrangements. Zuo Yanan, regardless of what he thinks, is willing or unwilling, he must obey the will of the government of Anhui Province, otherwise he will replace him. Zuo Yanan considers the maximization of personal interests and affirms that he will still obey the administrative will of Anhui Province. If the government is eager to promote the union of the two of them, no one can stop it.

On the surface, the two companies seem to be complementary. Chery mainly develops passenger cars and minicars have just started. JAC is mainly a commercial vehicle and does not have a mini-vehicle. It has made a large investment in passenger vehicles, but progress has been slow. JAC's input and output on passenger vehicles are seriously mismatched. It can be said that Jianghuai’s operating conditions have deteriorated in recent years, mainly because of the investment in cars, which can be said to be untimely. How to develop the next step is a great challenge for JAC. Therefore, the Anhui Automobile Office was set up to allow Zhan Xia to lead the operation. The purpose of the integration was very clear and the goal was very clear. It was the government that wanted to intervene in the development of automobile companies. If there is no intention to integrate JAC, there is no need to set up an automobile office. The company's respective development will be sufficient.

Holding each other's shares is the two transitional ways of restructuring. Chery is a flag of China's own-brand cars. Jianghuai also has a good performance in the commercial vehicle sector. Zuo Yan'an’s qualifications are older than Yin Tongyue, and it is also a representative of the National People’s Congress. This factor determines that it is difficult for individuals and companies to implement vehicles like GAC and Changfeng. In this combination, one party swallows the other. The method of holding shares with each other is a kind of transition. Everyone is decent in face. However, mutual holding of shares is definitely not a way for the development of enterprises. It is by no means the end of the reorganization, and it is not the goal of the Anhui provincial government. Holding each other's shares is only a transition, especially with regard to Zuo Yan'an. Once the situation in Zuo Yan'an has changed, mutual holdings will also change. It is certain that they must be integrated together. If they are not integrated into a unified body, integration will make no sense.



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