On August 22, according to the “China Business†report, a high-level person of the AVIC Group, who declined to be named, said in an interview with the media on August 18: Hafei and Changhe merged into Chang’an. “It will be revolutionary. The restructuring is also the first case of cross-system restructuring of the central government."
On August 19th, China Minhang Science and Industry Department Investor Affairs Department affiliate Ming Ming told the media reporter: “At present, Changhe Automobile has been divested. Before the fourth quarter of this year, Hafei Motors will complete the divestment. The divestment of Dongan Power is under discussion.â€
According to the reorganization plan formulated by the two major groups, the new Changan Group, which is a combination of AVIC Automotive and Changan Automobile Group, will take the advantage of 0.4% market share and will replace FAW Group and take the second place in the Chinese automobile industry.
Is there any practical significance in the name list?
Recently, news about Changan’s acquisition of two vehicle companies, Hafei and Changhe, is dazzling. One side is eloquent, and the other is a denial. It is really confusing. However, this position of the high-level aviation company on mergers and acquisitions, as well as such a "clear and specific" timetable, people feel that the possibility of merger is still very large.
If Changan finally got what he wanted, he took Hafei, Changhe and Dongan Power together. What would be the situation for Changan?
Breathlessly surpassing Dongfeng and even FAW, rushing to the position of second place in China's auto industry, is indeed very beautiful. However, compared to the many issues that have to be faced after the merger, such as product line carding, channel integration, etc., this list of names is really not of great practical significance. After all, even if Chang'an achieved sales in terms of sales, it wouldn't be easy for it to sit second, and the gap is extremely weak; even if Changan settled second in sales, it was compared to FAW in terms of sales, profits, and influence. There is still a gap with Dongfeng. After all, the core business of Chang'an is still micro-car.
How to re-order the product line?
Not to mention deeper issues such as management integration, corporate culture integration, etc., but the work of product line grooming and channel integration is enough to justify Chang'an.
Changan, Hafei, Changhe, three companies are all starting to make micro-cars, micro-car is still their respective core business. The micro-car market is a small price space of 2-4 million yuan, but the difference between the three mini-vehicle products is not large, and the technical homogenization is very serious, especially Chang'an and Changhe, both from Japan Suzuki . The micro-vehicle technology, Chang'an insiders also repeatedly said that "China's mini-vehicle competition has become fierce, the models are similar." After the reorganization of the three, in the originally not spacious space, crowded with too many "my own people", almost It is unavoidable to "kill each other." Therefore, combing and optimizing product lines so that 1 1 1 is not less than 3 will be a big problem that must be solved.
Changan Automobile seems to have begun to prepare for this. On August 19, Changan Automobile signed a cooperation memorandum with world-renowned turbocharger Honeywell to produce turbocharged engines in Chongqing. Somewhat unexpectedly, the 1.0T engine produced will be used in Changan Star II, S460 and other microcar products, and new cars will be available in the second half of next year as soon as possible. Chang’an’s move is intended to improve the positioning of its high-end micro-vehicles and further subdivide the mini-vehicle market. Its motive is likely to include space for many “brothers†to join.
How to solve sales network overlap?
Thanks to the national mini-vehicle policy for going to the countryside, sales of Changan mini-vehicles have risen rapidly in the first half of this year, up 20% year-on-year in the first half of the year. However, some analysts pointed out that Changan Automobile's high growth this year, a considerable part of the market has eaten away Hafei and Changhe, and Wuling's share has not decreased.
Indeed, as the main rival of Chang’an, Wuling’s rate of increase in the first half of the year was a staggering 50%, while Hafei and Changhe’s performance was not satisfactory, with market share dropping to 9.3% and 3.3%.
With the expansion of Chang'an's sales network over the past two years, Chang'an outlets have covered almost all prefecture-level cities in China, and many important county-level cities can also see Chang'an's sales points. Therefore, Changfei, where almost Hafei has Changhe, will inevitably be squeezed out of the same market. Chang’an, with greater strength, will naturally gain the upper hand and erode the markets of Hafei and Changhe. Overlapping products and overlapping sales networks, if Hafei and Changhe were merged into Changan, it would be a headache for Changan Automobile .
For the integration of the sales network, Changan has already made some attempts through Changan Suzuki . Changan Suzuki and Changhe Suzuki ’s joint ventures are all Suzuki, and Suzuki’s strategic considerations in China also have the need to integrate sales networks. However, from the perspective of the integration of Chang'an Suzuki and Changhe Suzuki, it seems to be unsatisfactory and has received many rebounds. It is said that Suzuki's replacement of China's general manager is also related to this matter.
Kayak Motor, Kayak Trolling Motor, Pinpoint Trolling Motor, Mini Trolling Motor, Mercury Trolling Motors, Neptune Trolling Motor, Gas Trolling Motor, Shakespeare Trolling Motor
Ningbo Haibo Group Co.,Ltd. , http://www.hbtrollingmotors.com