Categories: Auto News

Chinese Dongfeng and Changan can unite

Dongfeng announced the upcoming restructuring, which can lead to a change in the structure of the owners of the control package of shares. At the same time, Changan, which, like Dongfeng, partially belongs to the PRC government, also announced an imminent reorganization, which gave rise to rumors about the merger of these two companies. Dongfeng shares at the auction jumped by 85.8 percent, and Changan – 4.8 percent.

In statements of restructuring Dongfeng and Changan, they do not mention each other, so information about their merger is still unofficial. At the same time, the Chinese government previously called car manufacturers to cooperate to increase competitiveness, and probably Dongfeng and Changan were the first to take this step. Local media call the main goal of uniting the desire of companies to unify the supply chains and technologies, as well as the desire for resource consolidation.

Nissan refused to merge with Honda and is looking for a new Dongfeng-Nissan partner showed a large Z9 pickup with a hybrid Russian Avtotor will begin to release Changan instead of BMW

According to Cnevpost, if Dongfeng and Changan unite in an alliance, it will become the largest in China – the annual sales volume will be approximately 4.58 million cars, and this is more than BYD sells. In the global market, Dongfeng-changan claims to be fifth in size among other automobile groups.

It is expected that in the case of organizing a single company, someone from Dongfeng will become the chairman of the board of directors and the general director.

Meanwhile, the recently broken the merger of Honda and Nissan. This happened after Honda offered the Nissan position of the subsidiary, but Nissan did not arrange such conditions. Now Nissan is looking for a new partner who will help him get out of a difficult situation: in the fall, the company predicted collapse after 12-14 months. The candidate considers Taiwanese Foxconn, known for the assembly of Apple smartphones and other gadgets.

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