From the beginning of the year, SAIC Group's performance in mergers and acquisitions and restructuring has been unusually active. A series of overseas capital operations at home and abroad have been dazzling and dizzying. After National Day, it was just heard that SAIC and Rover plans to join hands to acquire Daewoo Motor’s factory in Poland. Immediately afterwards, the news that SAIC Motor will deploy in the Beijing Economic Development Zone was unexpectedly reflected in people’s sights.... In 2004, SAIC entered the “Fortune†500 and became China’s first car to enter the Fortune 500. Manufacturer company. But these achievements do not stop SAIC. It has greater ambition. In order to grow into a world-class company, SAIC has accelerated the pace of mergers and acquisitions and restructuring. In the history of SAIC Group's industrial integration, 2004 may be called the merger year. SAIC's low-profile expansion of this year's lukewarm auto market, SAIC's mergers and acquisitions has never stopped. Although the rumors of the acquisition of the British MG Rover have not yet subsided, the news that SAIC will expand in Poland will be unexpectedly seen in people's minds. According to reports, following the signing of an equity cooperation agreement with Rover Motors in the UK, SAIC and Rover Motors are in negotiations to jointly acquire South Korea’s Daewoo Motor’s automotive business in Poland. It seems that only the largest customer of the plant, Ukraine's AvtoZAZ, will participate in the bid. Sources stated that SAIC and Rover’s contacts are still at the stage of “expressing interestâ€. The British "Financial Times" commented on this possible acquisition: "This connection is the first attempt by a Chinese automaker to acquire a European automaker. This will further confirm the concern of European and American automakers that they may be in their own right. The local market is facing fierce competition from Chinese rivals.†For this acquisition, SAIC remains as low-profile and mysterious as ever, and even denies it. However, since the signing of the cooperation agreement between SAIC and Rover on June 16th, SAIC Motor dispatched relevant individuals to Poland for several inspections, and the research and analysis on the Polish automobile market has been ongoing. The Polish media and the British media had previously reported about the possible acquisition of Poland Daewoo by SAIC and MG Rover and began to convince people that a possible acquisition seems to have been unveiled. SAIC's acquisition of Daewoo in Poland is likely to be backed by GM. If this successful acquisition of Poland Daewoo, SAIC can use Rover's technology and production capacity of the Daewoo factory in Poland to open up their own front in the automotive market in Eastern Europe. A few days ago, the news that SAIC's huge amount of funds were secretly invested in Beijing's Yizhuang was reported, which attracted the attention of the industry. It is understood that SAIC Group recently signed a land reservation agreement with Beijing (Yizhuang) Economic and Technological Development Zone. The investment amount has not been disclosed and it is estimated that it will not be less than 50 million US dollars. SAIC made land reservations in the Beijing Economic and Technological Development Zone in order to increase the weight of its parts and components companies to become Mercedes-Benz's supporting manufacturers. After SAIC Motors changed its mind and tried to expand its industrial policy in the country, SAIC began its own strategic shift. In the original policy, the state clearly stated that it was necessary to provide priority support to the three major groups: FAW, Second Automobile, and SAIC. However, in the current policy, this point is gone. The goal of SAIC is to grow into a world-class company. When domestic development may encounter some difficulties, going overseas may not be normal for SAIC. Going overseas, in fact, the overall planning of SAIC is still in the balance. According to the overall development plan for long-term layout, this is an important meaning of strategic mergers and acquisitions, especially for large enterprise groups in capital-intensive industries. This is particularly important for SAIC. From the previous operation of SAIC, all of its themes are directly rushed to achieve the intended development goals. SAIC Motor’s development goal is to produce 1 million cars in 2007, of which 200,000 will be commercial vehicles; in 2010, the car production capacity will reach 2 million, and it will enter the top 10 in the world’s auto industry; It has reached 4 million cars and entered the top 6 in the world's automotive industry. According to rough statistics, SAIC Motor produced 600,000 cars in 2003. South Korea’s Ssangyong’s auto production capacity in 2003 was 210,000. Rover’s sales in 2003 were 145,000, if the acquisition of Ssangyong and Rover ended before 2005, The target of production capacity that SAIC Motor plans to achieve in 2007 will be achieved two years in advance. This should also be taken into consideration. After SAIC’s 10% stake in Shanghai Volkswagen was placed under SAIC, SAIC Motor’s shareholding in Shanghai Volkswagen rose to 50%, reaching the standard of the group’s holdings, according to the top 500 in the world. According to statistical standards, Shanghai Volkswagen’s total sales revenue can be included in SAIC. In fact, as early as in previous years, SAIC has taken steps to merge and restructure. In the face of the wave of mergers and acquisitions that have emerged after the global auto industry entered the new century, the domestic auto industry is constantly optimizing and integrating in the competition. SAIC Group complies with this trend, gives full play to the leading role of competition among large groups, actively participates in cross-regional mergers and reorganizations, and quickly expands the size of the group. The Group put forward the strategy of “crossing the sea and crossing the oceans†and required the entire development to base itself on Shanghai and the country. Actively exert the support, traction and radiation effects of the auto industry, break down the division of industries and sectors, and eliminate the concept of small-scale production. Take precautions and advance to low-cost areas From the perspective of the development of the world's auto industry, the automotive industry production base usually does not choose the most developed regions (such as the United States, Detroit, Germany Wolfsburg, etc.). Once the time is ripe, shifting production bases to lower-cost regions will undoubtedly help to take advantage of the increasingly thinly-off market competition in the future. In recent years, SAIC Group has merged and restructured six auto companies in Jiangsu, Guangxi, Shandong, Liaoning and Beijing. Among the reorganizations in various regions, the establishment of Guangxi Liuzhou SAIC-GM-Wuling Automotive Co., Ltd. and Shandong Yantai Dongyue Automobile Co., Ltd. has had a significant effect. These two projects are examples of cooperation between China and foreign countries. SAIC-GM-Wuling has been established for 3 years. Some time, the market share of micro-cars in the national market has risen from the third in the past to the current second; Dongyue Auto has also succeeded in realizing the production of Sail cars. On August 3, Shanghai General Motors reorganized the gold cup GM successfully, and the former Jinbei GM will be renamed Shanghai GM Beisheng Automobile Co., Ltd. This marked the completion of the construction of the fourth vehicle production base of Shanghai General Motors in China. Produced products are currently the long-term advantage of the domestic MPV market GL8. Shanghai GM is gradually realizing its own strategic concept: Shanghai will be used as a development base, and Excelle, including the newly introduced Cadillac, including mid- to high-end models, will be put on production in Shanghai, while other economical cars and MPVs will be transferred outside the base areas and labor costs. Lower Shenyang, Shandong, Guangxi and other places can further reduce costs and increase market share. After the above series of acquisitions and reorganizations, SAIC’s strategy has taken shape. In the process of merger and reorganization, SAIC Group also shifted its development focus to the development of self-owned brands: the acquisition of Rover and Ssangyong was mainly to increase the staying power of independent research and development; and a series of acquisitions and restructurings in China further improved the layout of auto production. The Group's industrial chain has extended from the single area of ​​passenger cars to the commercial vehicle and heavy-duty vehicles. In particular, it is worth noting that the SAIC Group’s public bid for South Korea’s Ssangyong case has long exceeded the capital significance and created a precedent for Chinese auto companies to integrate brands and technical resources on an international scale. Of course, “Shangqi M&A Year†is reserved for the Chinese auto industry. Thinking is far more than this. (Wenyan)
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