Due to the failure of a series of previous bids, Beiqi was overcast, and Volvo's battle was the most crucial one. On the other hand, FAW has already quietly traveled to Sweden to purchase Volvo Group's engine plant in preparation to save the truck business.
Beichao Caofeidian Reflects
For Beiqi, the battle for Volvo has been "can only be successful without failure." In order to vigorously develop the automobile industry, the Beijing Municipal Government “has given high expectations and fully supported this project.†However, informed sources recently revealed to reporters that although the bid has not yet been opened, Beijing Automobile is not optimistic because it is weaker.
However, before this, a series of failed bids have caused Beiqi's morale to tumble. Prior to this, BAIC once tried to acquire Chrysler, Saab, and Opel, as well as domestic Changhe, Changfeng, Fuqi, etc., but all failed.
The scattered soldiers can't be ignored. Beijing leaders ordered last week that Beiqi Middle and High-level officials went to Caofeidian in Tangshan, Hebei Province, to sum up their introspections. "They had just returned last Friday." People familiar with the matter said.
It is widely believed that Beibei's successive defeats are due to problems in its own management level and operating strength, as well as capital shortages. The allocation of 10 billion yuan by the government a few months ago was also very low.
As one of the fourth, in order to achieve the goal of achieving annual production and sales of 2 million vehicles in 2010, Beiqi has chosen to conduct extensive restructuring and mergers at home and abroad, as well as to recruit talents from all sides. The leaders such as SAIC Wang Dachang, Changhe Cai Suping, Nanqi Zhang Xin and Chery Li Feng have all joined Beiqi as senior executives.
However, the arrival of seniors did not bring about a new atmosphere for BAIC as expected, and Beiqi veterans murmured. A former Beijing Beiqi high-rise official who has left office has even said that "Beiqi's employment thinking is worth discussing."
This reporter learned that, in addition to the well-known acquisitions mentioned above, BAIC also attempted to acquire a European seat factory, a German R&D center, etc., and all ended in failure.
FAW to see the engine
The result of BAIC's bid for Volvo has not yet been settled. Another new party is eager to try. FAW and BAIC are both sending Volvo to the company and the idea is quite different.
On Monday, sources disclosed to reporters that FAW had organized a group to contact Volvo Penta of the Volvo Group. Once the acquisition of this scale of billions of dollars was completed, FAW will have world-class advanced commercial vehicles. The engine equipment of large diesel vehicles greatly enhances the truck's business capabilities.
Unlike the Volvo sedan business that was spun off to Ford in 1998, the Volvo Group is even larger. It specializes in Volvo, Renault and Nissan commercial vehicles, various types of engines and construction machinery. The "Volvo Engine" is one of them. Bulk business.
"FAW is looking at the Volvo truck engine business," said an insider. The reporter then called the director of the Information Department of FAW Group Co., Ltd. and the vice president of Volvo China Investment Co. Jiang Ye, both of whom said they did not know this matter.
In fact, the relevant cooperation between FAW and Volvo has a long history, including the cooperation in truck diesel engine technology, namely China FAW Wuxi Diesel Engine Factory. In addition, five years ago, FAW, CNHTC and Volvo also signed an agreement to jointly produce Volvo diesel engines. Volvo Group President and CEO Leif Johansson said at the time, “The truck and passenger car business is the heart of Volvo's global business. The Volvo engine is the heart of Volvo's heart." But less than two years later, the project was announced.
It is reported that FAW had also tried to establish a full-scale joint venture with Daimler in the truck sector several years ago, but it has not been discussed for three years. This time, going to Europe to purchase part of the Volvo engine business will become a major turning point for FAW to enhance its truck business.
In fact, FAW's truck business has shown a decline. In the first half of the truck sales list, FAW followed Beiqi Futian and Dongfeng after ranking third, but the gap was larger.
Another unforgivable reality is that since Volvo Group's 100% acquisition of Nissan Diesel in 2007, Dongfeng Motor has already started a substantial cooperation with Volvo through the Dongfeng Nissan Diesel Joint Venture project. Dongfeng has reached a partnership with Volvo. However, the competitive landscape with rival Dongfeng may be transformed by this FAW acquisition.
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