FAW spring revival of merger rumors Wedding of decline it will be free?

FAW and Dongfeng two giants of the automotive sector, is now facing the same problem – years has been focused on the development of its own brand did not pick up the printing of speculation, rely on the merger to strengthen independent business or as an option。  Recently, FAW Group (hereinafter referred to as "FAW") and once the "steam" – Dongfeng Group to merge the news spread far and wide in the automotive circle。  It is brought as evidence that the February 17, FAW and Dongfeng signed an agreement to build a "forward-looking common technology innovation center", the future will cooperate in the field of on-board intelligent network linking, fuel cells, etc.。  Lenovo to December last year, the two major domestic steel giant – Wuhan Iron and Steel and Baosteel formally merged, changed its name to "Wu Bao Steel Group"; then linked to mid-2015, FAW and Dongfeng have interchangeable chairman, printing both for the upcoming merger it is expected to heat up。  More than that, in car prices on the independent business more and more attention today, FAW and Dongfeng Motor Group Although both five, but it is among the more dependent joint venture brands, own brand name of the first resounding least two。It also relies on the two merge to strengthen independent business, provides more reasons。  FAW and Dongfeng are really going to merge yet?Given the two companies had been chairman of the exchange, whether the future will be further high-level exchange, sharing mechanism established talent, filled with their own short board。In the case of the repairer of the new forces are emerging, the company plans on how to strengthen the competitiveness of self-service, reduced reliance on joint venture brands?On the above issues, the reporters asked the FAW and Dongfeng, unfortunately, the two companies did not pop star。  FAW and Dongfeng merger rumors renewed merger rumors, stems from cooperation both just recently reached。February 17, at the home base in Changchun FAW, FAW and Dongfeng signed a strategic cooperation framework agreement, the two sides will build a "forward-looking common technology innovation center"。Under the agreement, FAW and Dongfeng will be on the platform innovation center, jointly explore new system and new mechanism of scientific and technological innovation management, sharing technology and investment risk, lower development costs, in order to quickly raise the level of research forward-looking common technology。  Reporters asked a staff FAW and Dongfeng rumors fit, the employee responded, the message is not determined, but within the group there is also such a rumor。  Since mid-2015 onwards, FAW and Dongfeng combined message will be heard。To achieve this latest collaboration, a ripple, the central enterprises to merge the two cars again rampant speculation。This rumor is fermented, not only a result of this collaboration, we can say, "the central enterprises merger" has become a network of hot search word in these two years, is so, but also because in recent years there have been instances of large central enterprises merge。  June 2015, China South Locomotive and officially merged, the new company changed their name to ""。Almost in the same period, the State Nuclear Power and China Power Investment are combined into one。Late last year, a large state-owned enterprises fit Adds an example, the Wuhan Iron and Steel and Baosteel official marriage, changed its name to "Wu Bao Steel Group"。  National policies are carried out to pave the way for the integration between the central enterprises。July 26, 2016, the State Council promulgated the "Guiding Opinions on Promoting the central corporate restructuring and reorganization," which refers to "support the reorganization of assets of central enterprises, equity cooperation。Encourage communications, electric power, automobile, and other areas related to air cargo center jointly funded enterprises, joint-stock form of specialized platforms, developing new technologies, new products, new markets and joint development efforts to reduce the disorderly competition, improve the efficiency of resource allocation。"As early as 2015, the top leaders of the two companies swap the occasion, the first time he heard folk FAW and Dongfeng merger news。  May 2015, FAW Group, the former chairman Xu Jian on suspicion of irregularities being investigated, Dongfeng Group, the former chairman Xu Ping took over his duties。Followed by FAW Group Chairman Zhu Yanfeng entered the east, the two sides reached a relief of high-level, top leaders intermodulation this case there has never been in a car in central enterprises。It is worth mentioning that in February this year, FAW Group, newly promoted Wang Guoqiang, deputy general manager Tiecheng, Group General Manager post still vacant, which is a merger of the FAW and Dongfeng, providing space for reverie。  As two of the oldest state-owned automobile group, with a giant FAW and Dongfeng to describe is not too much。2016, FAW Group sold a total of 3.1 million vehicles, the Dongfeng Motor Group sold 4.27 million。  Thus, if the two giants merge, it will be more than 7 million total sales, will exceed become the largest auto group SAIC。Such sales scale, even on a global scale will be second only to Volkswagen, Toyota, General Motors, Nissan and Hyundai, Ford more than half the world's sixth carts。  Besides increasing sales volume, if the two groups merged, while cooperation in solving the internal problems, but also to avoid in the car market, "infighting" to achieve the central government's "fitness and health quality and efficiency" target。  Both planted in its own brand this rumor merger of the two main characters, FAW and Dongfeng, although not the nation's largest auto group, but it is state-owned car prices oldest two。FAW was founded in mid-1956, after the founding of the oldest automotive group, which is the first production car Jiefang, Dongfeng cars, car-based Red Flag。After mid-1992, gradually entered into a collaboration with FAW Volkswagen, Toyota, Mazda, GM and other foreign car companies, joint ventures accounted for the larger share of the business gradually。  After the establishment of the FAW name has not been altered, but not the Dongfeng Dongfeng original call, but the second car factory (hereinafter referred to as "steam")。"Steam" was established in mid-1969, initially to produce military vehicles mainly in mid-1992 was renamed Dongfeng。Since then, gradually and Dongfeng Nissan, Honda, Kia, Taiwan Yulon Motor, a joint venture companies such as Peugeot, the only production of its own brand cars in favor of gradually rely joint venture brands。  It can be said FAW and Dongfeng, one is the "Republic of the eldest son," is a "republic second son", but now they face the same problem – years focused on the development of independent brands, has not pick up。Specific performance is, on the one hand a joint venture brand high proportion, on the other hand, the delay in the introduction of star products。  2016, Dongfeng joint venture brand sales account for 68% of total sales, accounting for 82% of the FAW。In contrast, Changan and Beijing Automotive, a joint venture brands accounted for five cars belong to the Group of 54% and 53%, respectively。  FAW say no importance on independent business, does not conform to the facts。It has said publicly that the FAW was born in Independence, grew up in independent, autonomous business is the core business of FAW, FAW Ibis, will think, Bigan, will fight, we will fight, win career。Adhere to the human resources, unity of thinking dry autonomy; scientific configuration, the Uniform Resource dry self-development ideas。  However, from the FAW own brand of reality performance point of view, these words have not been verified。FAW own brand of main bearing companies – since 2014 net profit will continue to decline in 2016, although the red flag to get rid of this burden, still a loss of at least 9.400 million yuan。  FAW own brand last year in the end how to sell?FAW in the sale of brand loyalists are mainly independent Pentium, and red flag Oulang。2016, Pentium its five models were sold 7.360 000, of which the best-selling Pentium B30 has only sold 3.450 000。In contrast, belong to the compact car Chery Yi Ruize 5, sold close to 130,000 over the same period。Oulang for selling only 400, while the outside world is constantly rumored to have been discontinued。Large rise on the route of the red flag, only to sell out 4800。  Dongfeng where the situation is not good to go。Its most root seedlings of red own brand – Dongfeng Fengshen sales are not optimistic。Dongfeng Fengshen's 10 models were sold in 2016. 7.810 000。One of the most popular Fengshen AX3 sales of only 3.470 000。Aeolus Chang'an CS35 AX3 belong to the compact SUV sales volume over the same period reached 170 000。  The combined skills as good as the first Chinese brand of old-timers, FAW and Dongfeng why the past few years continue to be latecomers surpass?  On the east, its long-term R & D allegedly not paid enough attention, while R & D investment is one measure of car prices in developing the new car whether enough attention。2015, Dongfeng Group's revenue was 127 billion yuan, 2.9 billion yuan R & D expenses。In contrast, operating income was only 29.4 billion yuan, R & D expenses reached 1.9 billion yuan, the proportion of its R & D expenses to total revenues of well over east。  The FAW problem is not a lack of investment in research and development, but there is no clear assessment mechanism for marketing。Only red flag, for example, it was reported that since 2013, the red flag of research and development costs have more than ten billion yuan, but still less than 5,000 in 2016 sales volume, they have been dubbed the consumer "only for the repairer, not for selling cars."。  In this regard, automotive experts Ling Ran on the "Investor News" reporter analysis, FAW and Dongfeng need to pay more attention to self-consciousness on。But now the situation is that they have focused more on joint ventures with brands。Joint venture itself is holding a readily available technology, readily available management, neither big risk, there will not be a large effect, such a step by step approach。If the loss of autonomy, blindly rely on joint ventures, car prices only gets narrower own way。  In addition to not pay enough attention on the self-consciousness, FAW and Dongfeng causing no strong independent brands, two "old-timers" is also in the technology as people grasp the market direction。In recent years, the booming SUV and the automotive sector, FAW has been in the absence of the state, while the east is sluggish reaction until the SUV approaching the white-hot competition, to go into this market, and want the old SUV brand competition。  In this regard, however Ling believes that such an outcome, and state-owned enterprises with the ability to market changes than about Johnson。Companies need to understand what the market needs now, step by step if too will be very passive, it would be a misfit in this market。Companies must first see their own shortcomings, and then prescribe the right medicine, in order to keep up with the situation, we must keep up the situation a lot of investment boondoggle。  Except for one big reason the market can not keep pace, inflexible, slow decision-making, FAW and Dongfeng brand is not stronger。  However, Ling said, Changan, Geely and Chery car prices, the biggest advantage is flexible strategy and tactics。This makes them get a lot of opportunities in manufacturing, but in comparison FAW many things to chance, especially wary of independent manufacture, independent design above, giving a lot of investment, but effective little sense。Although there are more than more than ten billion yuan of R & D investment, but if you want to develop models to market, and how late the performance of a specific market, the various departments responsible are afraid to rely on the decision-making layer finalized。But like Geely and Changan, which helped develop the new models will soon be set, if you want to manufacture。This not only ensures a wide range of manufacturing, and also ensures the greatest degree of savings。  For these reasons, Ling Ran is not optimistic about the merger of the FAW and Dongfeng。He said that mergers between large and small enterprises, to implement more smoothly, but the collision of two large companies, the event is not reversible, can not imagine the consequences, then this will be difficult to dispose of a large stall。So, I hope that the two merging or really whether it is rumored to be operated, should think twice。