What is the difficulty of merger and reorganization driven by the automobile industry policy?
Recently, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Finance and Other ministries jointly issued the "Guidance Opinions on Accelerating the Promotion of Mergers and Reorganizations in Key Industries," and strived to promote the merger and reorganization of eight key industries including automobiles, steel, and coal. According to the "Opinions", by 2015, the industry concentration of the top 10 vehicle manufacturers will reach 90%, forming 3-5 large-scale automobile enterprise groups with core competitiveness.
For the automotive industry, mergers and acquisitions are not a fresh topic. As early as in March of 2009, the "Auto Industry Adjustment and Revitalization Plan" has proposed mergers and reorganizations to form 2-3 large-scale enterprise groups with a production and sales scale of over 2 million vehicles, and cultivated 4-5 production and sales scales over 100. The number of automotive enterprise groups with a total of more than 90% of the market share in the auto group has reduced from the current 14 to less than 10.
FAW, Dongfeng, SAIC, Chang'an and other large auto companies are encouraged to implement mergers and reorganizations nationwide; Beiqi, Guangzhou Automobile, Chery, CNHTC and other auto companies are encouraged to implement regional mergers and acquisitions. This idea has been referred to by the industry as the "Four Small Four" model of merger and reorganization in the automotive industry.
However, the "Four Big Four" model has been implemented for four years, and the structural problems in the auto industry are still outstanding. According to the statistics of the Ministry of Industry and Information Technology, China’s auto industry still has the characteristics of being small, weak, and scattered. At present, there are more than 1,300 vehicle manufacturers of various types, of which 171 are automotive auto companies, 120 are motorcycles, and 900 are special-purpose vehicles. There are 135 tricycles and low-speed trucks. Among the more than 1,300 companies, some companies have been in production or semi-discontinued production for many years. They have very little or no output, and their survival is very difficult.
The more and more automobile production plants are reduced, fundamentally, it is the interests of local governments that are doing their best. Since auto companies are basically one of the main revenue sources for local finance, they are even more closely linked to local taxation. No one wants their own companies to be merged and reorganized by external companies. In the past few years, despite several mergers and acquisitions, the effect has so far been unsatisfactory. Taking Chang'an Auto as an example, after the acquisition of Hafei and Changhe, the specific integration work has been unsuccessful. The “Changhe incident†that caused a great uproar is the best footnote.
In addition, the long-established Dongfeng restructuring of Fushun, "Daan Automobile" and "Beiqi Automobile" plan, the speed is very slow. In addition to the resistance of local governments, the distribution of benefits among enterprises is also one of the difficulties. "Unless the company can't continue business, nobody wants to be merged." Industry insiders believe that although mergers and acquisitions between auto companies are intended to increase their core competitiveness, the actual situation is often that the core competitiveness has not improved, and both sides' internal consumption Instead, they dragged each other's hind legs.
On November 6, 2012, Guangzhou Automobile Group and Chery Automobile formally signed a strategic cooperation agreement. Both parties will develop vehicles, powertrains, key components, R&D resources, energy-saving and new energy vehicles, international business, manufacturing management, and other fields. Develop deep cooperation. The strategic alliance between GAC and Chery is expected to open a new chapter in China's auto industry cooperation model. Senior automotive analyst Jia Xinguang believes that mergers and reorganizations have been calling for so many years, but it is difficult to really advance effectively. In addition to the local government's obstruction, the traditional merger and reorganization has many drawbacks and it is difficult to receive the desired results.
"The experience of the international auto industry proves that not only the problem of balance of interests, but also the problem of cultural integration, the economic interests are difficult to balance, the culture is almost impossible to integrate, so it must be a long time." Jia Xinguang believes that at least There are 20 independent brand automotive companies, and each company needs to develop a series of platforms. However, each company is faced with insufficient funds and lack of technology and talents, which leads to low level of repeated development and can not achieve the strong goal of the auto industry. Therefore, domestic large-scale automobile enterprise groups should explore cooperative development platforms and joint procurement. This kind of substantial cooperation can achieve a win-win result.
In general, mergers and reorganizations take place among companies that are strong and weak, and those with strong capabilities dominate. They can be improved from many aspects such as human resources, material resources, financial resources, and technology. However, domestic auto companies are big but not strong. Under such circumstances, the phenomenon of powerlessness will easily appear in subsequent integration. Not only can they not give blood to each other, they even need support.
Of course, it is not without successful cases. For example, in 2007, SAIC acquired Nanjing Automobile. Prior to the merger and acquisition, the Nanjing Automobile Group was basically a "shell". After years of development, Roewe and MG have become the representative brands of domestic self-owned brand cars, achieving a double harvest in sales and profits. GAC mergers and acquisitions are also worth learning. On the basis of voluntariness of both parties, GAC Gonow is a beneficial attempt for cooperation between state-controlled enterprises and private enterprises. It is also another breakthrough for the reorganization model of the automobile industry. From the current perspective, it plays a promoting role in the development of both parties.
It is easy to see that for mergers and reorganizations to achieve good results, they must first be based on the endogenous needs of both parties, especially if they are merged. At the least, they must not oppose or resist. Second, the local governments of both parties must be open to mergers and reorganizations. , inclusive mentality, not a small account, no care. Under such circumstances, mergers and reorganizations under the policy push are particularly difficult. Even if mergers and reorganizations are completed, they are only disguised, big and not strong.
"Chery has firmly learned from GAC. It is not a small account. It doesn't hide its eyes and opens its hearts to cooperation." The voice of Chery Automobile Chairman Yin Tongyue confided in his cooperation with GAC that many people could not help but applaud. This candidness, speaking out the expectations of everyone's hearts, and also telling the real key words of merger and reorganization of Chinese auto companies.
Flange for Ball Valve,Welded Flange,Carbon Steel Flange
Doctech Auto-Control Valve Co., Ltd. , http://www.twtvalves.com