The "Shangnan Cooperation", which has attracted much attention in the automotive industry this year, finally settled yesterday. On December 26th, Shanghai Automotive Group and Nanjing Automobile Group's major shareholder, Yuejin Auto Group, formally signed a comprehensive cooperation agreement in the Great Hall of the People. The entire vehicle business of Nanjing Auto will be fully integrated into SAIC Motor. After the merger of SAIC and NAC, a super carrier in the domestic automotive industry with an annual output of more than 2 million vehicles will be formed in the Yangtze River Delta Region, and the industrial structure of the Chinese automobile industry will be rewritten.
According to the comprehensive cooperation agreement signed between SAIC and Yuejin, the entire vehicle business of Nanjing Automobile Group, including Nanjing Iveco, and Nanqi MG, which is part of Yuejin Group, will be fully integrated into SAIC. The entire vehicle and parts and components assets will enter Shanghai Automotive, a listed company controlled by SAIC, and other parts, components and service trade assets will enter Donghua, a joint venture between SAIC and Yuejin. Shanghai Automotive will invest 2.095 billion yuan to purchase Yuejin automobile and parts assets. Yuejin will hold 320 million shares of Shanghai Automotive and 25% of Donghua.
Because SAIC and Yuejin were signing contracts yesterday, Shanghai Auto was suspended for one day on the A-share market.
At the media meeting prior to the signing ceremony, Hu Maoyuan, chairman of SAIC, stated that SAIC and Nanjing Auto’s full cooperation is to meet the need for international competition in the domestic auto market. At present, the domestic market is dominated by foreign brands, and China’s independent brands must be innovatively developed. To take a place in the domestic market, it is necessary to take the joint road. He said that the principle of cooperation between SAIC and NAC is "comprehensive cooperation and integration into one," and the two parties should achieve "five unification" in their future cooperation, that is, unified planning,
Uniform R&D, unified procurement, unified production, and unified marketing can exert synergy effects of “1+1>2†on vehicles and parts, domestic and international businesses. However, according to the reporter's understanding, after the merger of the two parties, Nanjing Auto will still maintain its independent legal person status and keep its name and tax payment channel unchanged.
Although the merger between SAIC and SAIC is not a SAIC acquisition of SAIC, there is still some distance from full integration. However, the industry generally believes this merger is very beneficial to both parties. Through the merger, SAIC obtained the excellent assets of Nanjing Iveco and NAC's MG, at a cost of less than RMB 2.1 billion, and in particular, 200,000 vehicles, 250,000 engines, and 100,000 units formed after Nanjing Automobile acquired MG Rover. The production capacity of the gearbox can be described as a contribution to SAIC's own brand, Roewe. In the future, Roewe's engine may be provided by the MG powertrain. Last year, SAIC Motor’s total production reached 1.34 million units, and production and sales volume in the first 11 months of this year jumped to 1.5 million. The annual production capacity of Nanhua is 200,000 vehicles. In this way, as soon as 2009, SAIC's annual production and sales volume after the merger with SAIC Motor will exceed 2 million vehicles, making it the first Chinese giant auto company with an output of over 2 million units. Not only has it been separated from FAW and Dongfeng, but also Internationally, it can also be compared with Hyundai and Nissan-Renault. SAIC will become China's first world-class auto company.
Regarding the integration of the two brands of Roewe and MG, which are most concerned about by the industry, SAIC President Chen Hong stated that after SAIC and NAC have cooperated, the MG brand will remain, and Roewe and MG will adopt differentiated positioning and common development.
Financial tips
Nanjing Auto Fiat splits the original network to continue to serve owners
According to the agreement, 50% of Nanjing Fiat owned by Nanjing Auto will be transferred to Shanghai Automotive. At present, Shanghai Automotive is planning for the future development of Nanjing Fiat. Nanjing Steam and Fiat have reached a high degree of agreement on the related matters of equity transfer, that is, Fiat withdrew its equity in Nanjing Fiat. However, the shareholders of both parties are highly responsible for the original 160,000 Fiat customers. The original network will continue to provide corresponding technical support and after-sales service. Fiat and Nanjing Auto also have a good cooperation foundation in commercial vehicles and parts and they have maintained a good relationship of cooperation. It is reported that the Nanjing Fiat plant will serve as a vehicle production base after the South Cooperation.
Cheap Faucet,Kitchen Mixer,Single Lever Sink Faucet,Kitchen Faucet
Geagle Intelligent Sanitary Wares Co., Ltd. , http://www.zhanying-china.com