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Chery, who had been silent for a long time on the subject of mergers and reorganizations, finally began to take action in late August. Chery’s target of cooperation is no longer Jianghuai Automobile, which has been rumored for a long time. It is most likely that Henan Shaolin Automobile Co., Ltd. (hereinafter referred to as “Shaolin Motorâ€) is 15 kilometers away from Henan Zhengzhou.
"Chery's target of this cooperation is Shaolin Motors." A local media reporter in Henan told Sina Automotive with a certain tone. On August 25th, Yin Tongyue, Chairman and General Manager of Chery Automobile Co., Ltd., arrived in Zhengzhou secretly and met with the leaders of Henan Provincial Party Committee and Provincial People’s Congress Standing Committee Xu Guangchun. At the time, the reporter was on the scene.
It is understood that Chery will join hands with Shaolin Motor to invest in mini vehicle factories at the junctions of Zhengzhou and Kaifeng in Henan Province. It plans to initially invest 1.773 billion yuan in fixed assets, and build a production base with an annual output of 200,000 mini-vehicles and 80,000 light trucks and agricultural machinery.
Why does Chery “discard†JAC and come to Henan to find a partner?
The reporter told Sina Motors that Yin Tongyue did not elaborate on the reasons at the time, but there was a word that impressed him: "Chery wants to produce cars where it is needed."
Why Henan?
Since 2002, the merger and reorganization between Chery and JAC has never been interrupted. The cooperation between the two companies is regarded as an important link for Anhui Province to build Daan Automobile. This year, since the "Auto Industry Adjustment and Revitalization Plan" was promulgated, the topic of reorganization between the two has been "bombarded" by the media, but it has always been thunderous and rainy, and finally it is over. What is Chery’s intention to “sweep†the Central Plains accident this time?
Chery's sales performance in the Henan market can explain the problem. Since 2004, Chery Automobile has not only ranked first in Henan for five consecutive years, but also in the overall sales of Chery, Henan's share is second only to Shandong, ranking second in the country.
From January to April of this year, the cumulative sales of Chery's main brands in the Henan market have reached 11,682 units, a year-on-year increase of 27.9%. Both Henan and Shandong were listed as separate regions by Chery. The number of dealers in Henan, Chery accurate to the county level, and its service network will be spread to the township.
“In addition to meeting with the leadership of the Henan provincial government, Yin Tongyue also communicated with the local distributors in addition to the leadership of the Henan provincial government. Since the country’s implementation of the “automobile to the countryside†policy, the mini-vehicle market in Henan has been very popular. Chery is naturally Clearly on the chest.†An industry source told Sina Motor.
Henan is located in the Central Plains, with convenient transportation and advanced logistics. One of every 10 vehicles in the country is sold in Zhengzhou. With nearly 100 million people in Henan Province, the Central Plains has gradually increased its demand for high-end consumer goods such as automobiles. The market has great potential. In addition, Henan is an important energy raw material base and equipment manufacturing base in the country, and its energy and raw material production and processing capabilities are relatively strong.
The three major advantages of Henan's development of the automotive industry were not only mentioned by Xu Guangchun, Henan Provincial Party Committee Secretary, but also Chery Automobile.
“Chery and Henan have deep roots. Many middle and senior managers of Chery have come from Henan,†the industry person said with a smile.
Why choose Shaolin Motor?
Not Jianghuai, but Shaolin. Chery's choice "flashed" the media's "waist."
Shaolin Motor has a certain reputation in the field of domestic passenger cars. The annual sales of passenger cars are generally ranked at 5 or 6 places, and the production of buses and buses is the mainstay. At present, Shaolin has formed a series of products for large, medium and light road passenger cars, city buses, tourist special vehicles, rural special vehicles, group special vehicles and special vehicles. The annual output of Shaolin-brand medium-sized passenger vehicles has reached over 10,000.
Regarding the question of why it chose to cooperate with Shaolin Auto, people familiar with the local media in Henan told Sina Auto that "Chery Automobile is in order to obtain production qualifications." So, what kind of production qualification does Chery want from Shaolin Auto?
Chery has already had its own mini-car brand, Kairui, and it has also entered the commercial vehicle field earlier by acquiring the Yangzi bus. So what does Chery take to see the Shaolin Motor?
On this issue, Wang Jian, a professor at the School of Transportation of Chongqing Jiaotong University, is not well aware of this. He said to Sina Motors: "Shaolin mainly produces CMB, and micro-vehicles have an extension in production technology, and Chery can also use Shaolin's CMB sales network to sell mini-vehicles, but I'm not sure of the more specific reasons. It's up."
For the media analysis that Chery was expanding to Henan due to tight production capacity, Wang Jian did not agree. “At present, domestic automobile production is at a stage of overcapacity. From the perspective of industrial development, this argument is not reasonable.â€
According to informed sources, at present, Chery is actively coordinating with Shaolin Motors on the production of land and other details, and there is no timetable to announce the specific cooperation between the two parties.
View related topics: China's auto industry recommence mergers and acquisitions wave
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