November 19, 2024

AVIC General Motors Manager Denies Consolidation of Military Equipment Group to Build 1 Billion R&D Center


"The Board of Directors of AVIC Motors held on the 19th did not discuss the cooperation with PSA and Chang'an Group. It mainly focused on how to realize a substantial reduction of losses in the auto business this year to catch up with the average level of the industry." AVIC Motor Corporation (below Zhao Guibin, general manager of the abbreviation of China National Aviation Corporation, spoke highly of the rumors on the development of the passenger car market and the China Gold Displacement Automobile Forum held on the 24th.

The AVIC Motor and PSA form a joint venture company to stop

Earlier media reports that PSA and Hafei have reached an agreement on the establishment of a joint venture company, the joint venture company is headquartered in Shenzhen, and it is further rumored that "AviChina Automobile's automotive business will be free to be assigned to the Military Equipment Group."

"On August 19th, Changhe Automobile and Hafei Automobile's parent company, AVIC Automotive, held a second-term board meeting. The board of directors, as the company's operating decision-making organization, did not submit the Board of Directors' discussion on the above matters to the Board of Directors. It is certain that the rumor is not credible." A member of the AVIC Motor Board stated to Sina Motors.

As early as a month ago, Philippe Varan, the new president of the PSA Peugeot Citroën Group (PSA), revealed that PSA will set up a second joint venture in China to increase sales in overseas markets. Afterwards, public opinion was rampant, and domestic media speculated that the “second joint venture” was a non-joint venture with Hafei.

PSA and Hafei's “Amour of Love” can be traced back to 2004. Former PSA president FWD has initiated a joint venture with Hafei. In order to stabilize PSA’s joint venture partner Dongfeng Motor Co. in China, FWD even proposed by PSA, Dongfeng Motor and Hafei three parties jointly established a new joint venture company, but it was grounded because of the east wind boycott.

In February 2007, Stref succeeded Frize as the new president of PSA. On June 29th of the same year, PSA signed a memorandum of understanding with AVIC II Group and Hafei Motors to study the feasibility of jointly establishing a joint venture company. It plans to jointly establish a joint venture company with a 50% shareholding percentage and produce and sell less than 10 seats. The high-end light commercial vehicles and joint venture companies will rely on Hafei's existing base in Shenzhen.

"Five years ago, we talked about the use of Shenzhen Base with PSA. Five years later, Hafei and PSA have not yet reached an agreement on cooperation." Zhao Guibin truthfully stated that since he took over the automotive business of AVIC, he and PSA have Negotiations between the head of China did not reach a consensus on the establishment of a joint venture company.

Automobile Industry Becomes China's Aviation Industry to Achieve "Tillion" Target

Zhao Guibin told the author that although our cooperation with PSA has not yet been negotiated, AVIC and AVIC will never give up any chance of cooperation with the outside world. “AVIC has no competitors in the world and only partners, AVIC sets up AVIC Automotive. The company is in order to better develop the automotive business of the Group. We need to cooperate, but we do not want to eliminate AVIC vehicles through cooperation ."

On November 6, 2008, the former China Aviation Industry Corporation No. 1 and No. 2 merged and consolidated to form the AVIC Group. The group proposed the development strategy of "Two Capitals, Three New, Five Chemicals, and One Terabytes," which will be realized in 2017. The goal of sales revenue of 1 trillion yuan.

According to data from the financial work conference held by AVIC Group on April 16, AVIC achieved operating revenue of 166.8 billion yuan in 2008, net profit of 7.1 billion yuan, 166.8 billion to 1,000 billion, and a huge gap between the starting point and the target. It is doomed that AVIC must expand its automotive business and achieve a substantial increase in overall assets.

“ After the establishment of AVIC Group, ten major business segments were divided. The automotive industry and the helicopter industry are among the key developments. These two businesses will become the 'credaughters' of the Group’s goal of achieving 1 trillion yuan. ” AVIC insiders told the author Indicated.

It is reported that since the establishment of AVIC in October 2008, ten months have passed since its establishment, eight of its listed companies have opened doors for integration and reorganization, including projects involving the automotive business.

On April 16, 2009, AviChina and AVIC Motors entered into an equity transfer agreement to conditionally sell 100% of the shares held by Harbin Group and 10% of Changhe Suzuki. AVIC is one of the two strengthening groups under the New AVIC Group ( The other is the AVIC helicopter company - Changhe predecessor of the military part into the company), Zhao Guibin, general manager of AVIC is also chairman of Changhe Automobile, showing AVIC hopes to pass this appointment to completely integrate its Changhe, The determination of Hafei's two major automakers is so great that at this time AVIC does not need to sell or give away "AVIC" at any price.

Faced with Changan Group's "winks," Zhao Guibin was reluctant to take it. "If Changan Group executives say, we don't care, but we have to agree to get married ."

“Our newly opened board did not involve the joint venture with PSA and the cooperation with Changan Group. No cooperation at home and abroad was involved. We talked about how we would develop this year.” Zhao Guibin said that AVIC executives and himself have had several occasions. Denies the possibility that AVIC will be acquired by other companies.

Integrate the automotive industry into three steps: China Aviation Automotive Investment 1 billion to build R&D center

Zhao Guibin introduced the board of directors of AVIC Motors on the 19th. The company has determined that this year will still focus on reducing losses substantially to catch up with the average level of the industry. Under the premise of benefit-centered adjustment, it will adjust the structure of auto products and focus on selling the main products. , unified procurement and cost reduction, "In the first half of the year, we took Changhe and Hafei as two main companies, Changhe as the owner focused on the sales of the Big Dipper, and Hafei was the mastermind of minivan sales of public opinion, and they all achieved good results."

"In the first half of this year, Changhe Automobile produced a total of 73,000 models of various models, of which more than 74,000 units were sold, an increase of more than 33%, creating a record high for the same period of time." Changhe Automobile General Manager Zhou Shining said that during the first half of the year, the Big Dipper The sales growth rate was as high as 46%. Changhe Automobile has already stopped operating cash flow losses and expects to turn losses into profits next year.

In addition, Hafei Automobile sold more than 150,000 vehicles in the first half of this year, an increase of nearly 15% year-on-year, and completed 55.5% of the target mission for the whole year; sales of automobile engines increased by 34.6% year-on-year, achieving the goal of “half of the time and half of the tasks”. .

“In the past, we had a lot of products, but there were very few sales of single products. Now we have concentrated on sales of main products, and we have achieved the expected results.” Zhao Guibin also said that in the first half of the two AVIC Automobile Engine Plant and two vehicle manufacturers, Through unified procurement, the purchase cost of 300 million yuan has been saved.

According to AVIC’s early planning, the company will strengthen cooperation between its two engine plants and two automakers. In the future, it will be divided into three steps. The first step will be to achieve unified procurement among enterprises, and the second step will be to unify the R&D platform. Steps to unify sales channels.

"The first step has already been achieved. We are moving toward the second step. According to the actual situation, we must adjust our production capacity." Zhao Guibin made it clear that Changhe and Hafei will not be integrated together in the future, but may try "In terms of sales planning and network layout, see if they can borrow from each other."

According to him, currently AVIC Motors is planning to invest RMB 1 billion to establish its own R&D center, which is mainly used to develop small-scale energy-saving vehicles and new energy vehicles. The “R&D center” is a small new company, and it will unify R&D platforms and set up research and development in various companies. Sub-centers".

At the same time, AVIC Automotive will use pure electric vehicles as its entry point to build its own new energy vehicles. At present, the research and development of Hafei Saibao's pure electric vehicle series has been included in the National 863 Plan, and it is planned to complete the technical transformation of the production line by the end of 2009. New products hit the market.

"Saibao Pure Electric Series is a project that cooperates with the United States, and we hope to export products to the United States in volume next year." Zhao Guibin said that AVIC, as a large group of aircraft manufacturers, has developed a very competitive one at the Luoyang base. With new batteries, this group-level advantage in the future will help AVIC Automotive develop its automotive business.


View related topics: Military Equipment Group and AVIC Restructuring - Changan M&A Changhe Hafei


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