Yesterday, the "First Financial Daily" learned from Hebei Baoding Zhongxing Automobile Co., Ltd. that the company is in contact with high-level FAW Group, and the government departments of the two sides have also been mediating from it. If the two parties negotiate smoothly, FAW Group may acquire one by acquiring ZTE. Independent brand SUV production base.
In this regard, Minister of Public Relations of Zhongxing Automobile Company Wang said yesterday: "Our contact with the Chang'an Group has ceased. At present, we have no contact with FAW. The formal position of the leadership is: No knowledge." The plateau spokesman of FAW Group also said: "Not yet I heard about this.†In fact, the news that ZTE has merged into FAW has long been circulating. At the previous Changchun Motor Show, ZTE Motors launched a new product, ZTE. At its listing ceremony, the deputy mayor of Changchun City publicly attended. This was interpreted as a prelude to the cooperation between the two parties.
An industry insider familiar with FAW Systems stated that FAW currently has medium- and heavy-duty trucks, cars, chassis, etc., but there are no independent branded SUVs or pickups. The merger and acquisition of ZTE can be an important part of expanding its industrial landscape.
At present, the continuous increase in the price of gasoline has a great impact on the sales of SUVs and pickup trucks. On the other hand, the integration of the automobile industry in Baoding has also been in full swing. In June, at the Great Wall Motors Shanghai Auto Parts Industry Supporting Investment Conference held in Shanghai, Baoding City, deputy mayor of industrial economy Gao Tianmin told reporters: "There are currently more than a dozen vehicle companies in Baoding, the main products are economic SUV , pickup trucks, minicars, etc., hope that by 2008, 2 to 3 superior enterprises will integrate Baoding auto industry.†A Baoding auto industry official told reporters: “Baoding City originally hoped Chang’an to integrate, but it may now hope to FAW. â€
ZTE insiders said that Changan successfully acquired Jiangling Motors last year. The complementary advantages with Zhongxing Automobile are no longer obvious. ZTE is also difficult to directly benefit from mergers and acquisitions in terms of technology, capital, and network.
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