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Dongfeng Motor Company made breakthroughs in reorganization of its blessings. According to Dongfeng Motor Company, on May 16, Dongfeng Motor Group will sign a signing ceremony with Fujian Automobile Group in Fuzhou, and will publish the agreement on the 16th at noon. At that time, the reorganization framework of both parties will be unveiled.
At present, the two parties are silent about the contents of cooperation. However, currently the market speculates that the reorganization may have the following two possibilities: First, Dongfeng first acquires more than 40% shares of Fuqi, according to the requirements of the Fujian provincial government, when Fuqi annual sales reached 300,000 units. At that time, Dongfeng acquired the remaining shares of Fugas and became a controlling shareholder; the second was Dongfeng Income Southeast Automotive and Xinlongma, which was used by the Dongfeng Passenger Vehicle “Grand Autonomy†strategy.
Fuqi Group was established in 1992 and is a wholly state-owned company in Fujian Province. Its subsidiaries are Southeast Automotive, Fujian Daimler, Xiamen Golden Dragon, New Longma Automobile, and Fuqi Group Automotive Engineering Research Institute. As early as in 2009, the rumors of large-scale auto groups intending to reorganize the FuChang appeared. After that, Beijing Automotive Group and Fuzhou Automobile Group had signed a framework agreement with Fuzhou Group to acquire part of the equity of Fujian Benz. However, it was finally over. Dongfeng Automobile Group Co., Ltd. was established in July 2012. Dongfeng Motor Chairman Xu Ping and General Manager Zhu Fushou held talks with senior officials of the Fujian Provincial Government in Wuhan and reached preliminary intentions. They sent a delegation to the company’s overall business. Development and financial status are reviewed to form a memorandum of cooperation.
However, according to industry insiders, the auto company of the group only South East Automotive, Xiamen Jinlong profitable, Daimler Fujian, New Longma set up a long time are at a loss. As the core asset of Fuqi, Southeast Automotive had a weak sales growth due to slow product launches. However, from January to April 2013, the total sales volume, operating income, and total profit of Southeast Automotive increased by 18.96%, 7.63%, and 65.34% over the same period of last year.
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