Industry returns to rational "merger and reorganization" to "strategic alliance"


The views expressed by the International Forum on Automobile Industry Development starting on September 4th may be in conflict with many of our previous public opinion information, but it is basically consistent with the information we have shown from the changes in the entire industry this year.

From the beginning of the year, the automobile industry revitalization plan clearly stated that it is necessary to promote industrial restructuring and proposed a major policy of upgrading the domestic industry from the top four to the bottom. By the time GAC restructured Changfeng, and even subsequent mergers and reorganizations, it seemed like someone who was single. It's going to be the same. However, as of today, only the GAC and Changfeng marriages have been completed, and other rumored love stories such as BAIC and Opel, Changan and Volvo, FAW and Brilliance have all come to an end. Even the industry recognizes Chery who will march towards the marriage hall. And Jianghuai is not what we imagined.

Single is not shameful

Well, we now come back and look at the news of mergers and reorganizations that have occurred since this year. During the reorganization of mergers and acquisitions in China, this is a typical example of the FAW merger and acquisition of Brilliance Huachen. We found that these two companies are actually not complementary and set aside a joint venture. According to the brand sequence, FAW's Liberation, Harbin, Kyrgyzstan, and even the Commercial Vehicle and Brilliance Gold Cup series launched this year with GM are clearly overlapping. In the field of passenger vehicles, Pentium has just taken a step. The sequence of products that goes into Brilliance now is obviously not appropriate. And now these two companies are overlapping from the point of view of the production base or the main sales market. Such restructuring does not effectively amplify the advantages of both parties, and may even be 1+1<2. Another issue that has arisen is Chang'an's acquisition of Changhe. The issue of Wuyang is obvious, and it is also the same from the product sequence to the sales market. At that time, the most absurd rumors that the most absurd rumors intentionally Zhongtai, it seems that they can complement each other, but Dongfeng will really like this just started private enterprises?

On the other hand, let's take a look at M&A in the international market. Whether it is the merger of Beiqi and Opel, it is also an interview with Tengzhong and Hummer. The not-too-poor M&A of BAIC and Opel eventually ended without success. The problems that emerged are not simply that GM does not want Opel to make it so simple. In fact, what is more revealing is how immature we are in international mergers and acquisitions. How can we be better? Digesting and absorbing such issues as brand equity, product assets, technical assets, channel assets, human assets, etc. will all be an urgent need for us to face and resolve. This is also an important reason why Volvo has successively reported bad news from companies such as Geely and Changan. In fact, Tengzhong’s acquisition of Hummer’s snake-shadow-like behavior should actually alert us that China is not bad money, but many things are not money-solvable. Currently, Chinese companies’ distance from product technology is in line with international standards. The distance between financial capital and even management should be treated with caution.

Also talking about is the joint venture model after the advent of the new joint venture is also a problem we have to face. After Chery had started a new joint venture in 2007, the new joint venture model had been expected for us. However, Chery and Chrysler, as well as new joint venture models such as Fiat, Guangzhou Automobile and Fiat, all seemed to worry us.

On the whole, mergers and reorganizations are certainly an inevitable trend, but in the absence of a match or a resonance between the parties, it is not a bad thing to live alone. After all, the current overall improvement of the Chinese market allows all types of companies to find their own position and better use their own advantages. In the absence of suitable reorganization targets, single may be a better choice.

Flash marriage is really very bastard

From another point of view, in the case that the revitalization plan clearly puts forward major guidelines for industrial restructuring and upgrading, reorganization and mergers are inevitable. From the perspective of the history of the development of the international automobile industry, M&A and restructuring are inevitable. Do we need to flash marriage in order to respond to the general trend?

The answer is obviously negative. The result of flash marriage is likely to be a flash. In the international arena there are also some classic cases of Daewoo's acquisition of Shuang-Lian's Flash Wedding Flash. What is close at hand is the tragic marriage between SAIC and Ssangyong. These mergers and acquisitions clearly reveal the risk of flash marriage.

And we look at the status quo of domestic auto companies after the revitalization plan was announced. Apart from the integration of GAC and Changfeng that have already been completed, there are obviously many reasons why other integrations are not rushing to advance. The reorganization of GAC and Changfeng did not start after the introduction of the revitalization plan. The two sides can complement each other in product channels, production lines, and production capacity. Such restructuring is obviously beneficial to the further development of both parties. However, the integration of Chery and JAC, which is considered by the majority of other people in China, does not seem to be as simple as originally thought. In 2005 or so, Jianghuai was confined to the truck and commercial vehicle business while Chery was limited to basic passenger vehicle products. At that time, both parties failed to join hands. Now that Chery has started the layout of four brands, JAC is Based on the success of trucks and MPVs to enter the sedan market, Tongyue's products will allow Jianghuai to gain a foothold in the field of cars. It is obviously not easy to achieve restructuring at this time. This is also the fundamental reason why both parties are not rushing to avoid being over-emphasized despite their intention to reorganize under the influence of factors such as their own perspective and large policy support.

In short, entering the current competitive environment, flash marriage is not a good choice.

The future will be more strategic alliances

Then go to the current industry restructuring where to go? Chery and JAC may be the one who eats tofu. Although both sides are now avoiding the topic of reorganization, both parties are struggling to capitalize on their strength. Undoubtedly, they all want to gain more say in the future. However, the cooperation between the two parties does not necessarily have to be certain that B has the final say. And more is a coalition such as Nissan-Reynolds. The two sides share in many aspects such as technology platforms, procurement platforms, channel platforms, and even human capital platforms.

As Zeng Qinghong, CEO of GAC Group, said at the forum, future industrial restructuring is more of a complementary strategic alliance. And there will be no question of who controls the core discourse power. More changes will be made in the changes in capital stock rights, and in the enterprise itself, it will be the further integration of industry, technology, channels, procurement, and management. upgrade.

When more companies achieve this kind of upgrading of the industrial chain, the status of the Chinese automobile industry in the global automotive industry will be steadily improved, and the competitiveness in the international market can be further strengthened.

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


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