“Daan Steam” reconstructs: Chery eats JAC?


In the rumors of the reorganization of many domestic car companies, the restructuring of Chery and JAC is the most suspenseful. As two enterprises under the ownership of the Anhui Provincial SASAC, the cooperation between Chery and JAC can be said to be a nail. However, whoever integrates and how to reorganize it is still full of suspense.
On May 12 of this year, Anhui Province announced the "Automobile Industry Adjustment and Revitalization Plan of Anhui Province". According to the plan, the automobile companies in Chery, Jianghuai, Hualing, Changhe, and Yangzi will be promoted to carry out joint reorganization on the basis of market principles, and strive to form a car enterprise group with a capacity of more than one million cars, creating 2 to 4 of them. The domestic advanced auto parts production enterprise group and 5-7 automotive industry clusters. At this point, the "Daan Steam" plan once again surfaced and became the focus of attention.

After the plan was announced, in a short period of half a month, the stock price of Jianghuai Auto A shares soared, rising from 4.89 yuan to 5.85 yuan, up 20% in two weeks. However, Jianghuai did not buy it. On June 2nd, Jianghuai Automobile issued a clarification announcement on the rumors of renewed rumors. According to the announcement, "after verification, the company has no plans for reorganization with Chery Automobile as stated in the report." and "Given that the company and its controlling shareholders are all state-owned holding companies, it is not yet possible to predict whether there will be related restructuring in the next three months." .

This has been dubbed as "clear and unclear" by the industry, but it has increased everyone's conjecture on reorganization. Jianghuai Automobile, which has consistently expressed its opposition to reorganization, has suddenly announced such a "rough and grumpy" announcement at this time. The answer quickly came to a head: On the second day of the announcement, Chery Automobile sold 20% of its shares to five companies including Huarong Asset Management Co., Ltd., and introduced 2.9 billion yuan in funds. The industry generally believes that Chery does not “bad money”. The purpose of this financing is to increase its net assets and take the initiative in the integration of “Daan Steam”.

JAC does not show weakness. Media reports soon followed, and JAC also frequently contacted several brokers and organized several joint surveys. Obviously, this is similar to Chery’s recent sales of shares. Under the background of the “big reunification” of the automobile reorganization strategy of the Anhui provincial government, this move by both sides will undoubtedly accelerate the speed of integration, but at the same time, the smell of gunpowder from both sides will also gradually increase.

It is a difficult point for the reorganization of Chery and JAC. From the data, in 2008, the sales revenue of Chery Automobile was 18.7 billion yuan, while the sales revenue of Jianghuai Automobile was 18.3 billion yuan. But in fact, everyone knows in their hearts that Chery is more likely to integrate JAC, whether it is from the perspective of importance, popularity, or influence. Moreover, in the revitalization plan, the government announced the “Four Big Four” list, and Chery, one of the “four small”, was encouraged to implement regional mergers and reorganizations. In this case, the will of Jianghuai Automobile becomes the basis for deciding whether the two parties can finally cooperate.

As early as during the two sessions this year, Jiang Yan, Zuo Yanan, chairman of Jianghuai, made clear his position when answering a reporter’s question: “Jianghuai supports both national mergers and reorganization policies. However, how to restructure and how to maximize resource allocation and efficiency is worth studying in depth. "The problem is that." He believes that cooperation and reorganization should be diversified. It is necessary to follow the laws of the market. "Don't limit who is going to integrate whom, but who should do it well and support them. Do not imply that this can be achieved better." effect."

Zuo Yanan put forward a very idealized plan: Both parties can choose to collaborate on products. At the same time, a production line can produce two brands at the same time, sharing resources and avoiding duplicate investments. For example, the cooperation between Peugeot and Citroen is this model; followed by business integration. , The acquisition of strong business or the integration of weaker businesses, for example, Chery's integration of JAC's car business, JAC integrates Chery's commercial vehicle business. “The reorganization of assets of one company to another is the worst model. There are many cases of failure at home and abroad, such as the reorganization of Daimler and Chrysler, and the acquisition of Ssangyong by SAIC. All of them are in a loss.”

The meaning of Zuo Yan'an has been very clear. After putting forward his own plan, Jianghuai was equivalent to kicking the ball to Chery and the Anhui provincial government. On this issue, the Anhui provincial government has also been cautious. Although the general direction of reorganization was basically established as early as in 2002, it has not been implemented. In 2006, because Jianghuai Automobile urgently needed a catalogue of cars, Anhui Province had issued a plan that Jianghuai transferred certain share price discounts to Chery, and the JAC sedan project was allowed to use Chery's car catalogue. At the same time, JAC obtained a share in Chery Automobile and became one of the founders of Chery Automobile's listing. However, with the successful approval of the JAC Car Catalog, this plan has been crushed.

“At that time, the concept of 'Daan Steam' was formed.” Recently, officials of the Anhui Provincial Development and Reform Commission stated that “the reorganization mainly depends on the willingness of both parties and the government will not push forward with force.” Analysis of the industry, from the current situation, “Daan Automobile The most likely scenario is that the company's companies will hold each other's shares and they will even serve as senior executives. However, this "nameless" integration does not make sense, and even Anhui provincial government officials have questioned: "Who can guarantee that the two companies with sales revenue of nearly 20 billion yuan will still be able to reach nearly 40 billion yuan in revenue after restructuring? ”

Obviously, the "Southern Cooperation" model is the only feasible way for Chery to reconstruct JAC. It is worth noting that as the "Godfather" level figure of Jianghuai Automobile, Zuo Yan'an, who was born in 1949, is nearing his retirement age. Although he is an outspoken strength figure, who does Jiang also know in addition to Zuo Yan'an? If Zuo Yanan cannot make progress in the reorganization between the two parties during his tenure of office, in the “post-Zuoyan era”, who can represent Jianghuai’s wishes? By then, if it is to be reorganized, Jianghuai will be infinitely more likely to be eaten by Chery.
View related topics: China's auto industry recommence mergers and acquisitions wave


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