(Source: Panoramic Vision)
Since last year, there have been continuous rumours of mergers between the three major SOE groups of FAW, Dongfeng, and Chang'an. Will this year's merger between the three major state-owned enterprises be changed from rumors to reality? From the position of Changan and Dongfeng Group executives during the 2018 sessions, it can be seen that it is unlikely in the short term.
For the news that Changan, FAW and Dongfeng have been speculating about the outside world, Zhu Huarong, deputy to the National People's Congress and president of Chang'an Automobile Co., Ltd., said in an interview with the media a few days ago, “About reorganization, this is a matter at the level of the SASAC and I cannot be the master. As far as we are concerned, we have not received any restructuring message. I personally believe that there will be no change in the short term because it is already very large."
According to another report from Bloomberg, the chairman of Dongfeng Group stated that it is still working out a cooperation plan with FAW and Changan Automobile.
Whether it is the candid and clear response of Zhu Huarong, president of Changan Automobile, or the simple vague response of Dongfeng Group Chairman Yan Yanfeng, it can be seen that the merger of the three major groups is still not on the agenda of the company. Although Xu Liuping, chairman of FAW Group, did not comment on the three major merger rumors, he talked about the red flag during the two sessions and once again stated: “FAW should train Hongqi to become China's number one, world famous brandâ€. The FAW reform is still the core work of FAW this year.
Although the merger has not happened yet, the cooperation between the three major groups has actually dropped. On March 9, China FAW Group Corporation, Dongfeng Motor Group Co., Ltd. and Chongqing Chang'an Automobile Co., Ltd. cooperated in the field of manufacturing project promotion and sponsored project signing ceremony was held at the headquarters of Dongfeng Company and officially started the first phase of manufacturing. 6 A cooperation project marked the beginning of substantial progress in cooperation between the “national team†of the three major car companies.
The six cooperation projects launched this time are: Research on the manufacturing technology and technology of steel-aluminum hybrid vehicle body, research on engine thermal spraying technology for cars, innovation and application of industrial big data services for the whole process of automobile manufacturing, and planning and design of new energy passenger vehicle factories. And construction specifications, application research of high-strength steel thermoforming technology, construction of FDC independent brand excellent production methods.
On December 1, 2017, the three major groups signed a strategic cooperation framework agreement in Wuhan. According to the agreement, the three parties will carry out all-round cooperation in forward-looking and common technological innovation, full-value-chain operation of the auto industry, joint overseas “going outâ€, and new business models.
Afterwards, the three-party strategic cooperation was divided into 13 major groups to carry out their respective work. Among them, cooperation in the manufacturing field took the lead in launching and taking the lead. On December 19, 2017, the three parties held a workshop on cooperation in the field of manufacturing; on January 15, 2018, China FAW Development Manufacturing Department, Dongfeng Technology Engineering Department, Changan Automotive Manufacturing Logistics Department, and Process Technology Department signed the “Manufacture†Domain Cooperation Framework Agreement. According to the "Guidelines for Cooperation in Manufacturing Fields," the three parties established a cooperation promotion organization in the manufacturing field. After a joint discussion, they proposed six project topics for the first phase and set up a project team.
Judging from the cooperation process disclosed by the official website of the three major corporations, the cooperation between the three parties in the field of manufacturing has progressed very smoothly. Six concrete projects have been finalized in more than three months after the signing of the framework agreement for strategic cooperation. In the case of cooperation involving three parties and all state-owned enterprises, the trilateral cooperation can smoothly start in the short term. It is indeed good. In fairness, however, the industry is more interested in seeing the progress of cooperation among the three parties in new energy, intelligent network, artificial intelligence, big data and other new technologies.
In February of last year, FAW and Dongfeng Motor announced the creation of a “forward-looking and common technology innovation center†and initiated strategic cooperation at the technical level; 10 months later, the three major groups signed a framework agreement for comprehensive strategic cooperation and expanded the scope of cooperation to four major The field, which also includes cooperation in forward-looking common technology innovation. If the three major signing cooperation agreements in the near future are specific cooperation projects related to forward-looking and common technological innovation, we believe that the attention will be higher than it is now.
In the eyes of the outside world, technologies such as New Energy and Intelligent Network Alliance are not only forward-looking technologies, but also the hot technologies that the market and consumers are concerned about. They have been hyped up to the stage of practical application. The performance of the three major groups in this area has lagged behind SAIC, Guangzhou Automobile, and Beijing Automotive, as well as the new players in the construction industry.
To a certain extent, the main criterion for the outside world to judge whether the cooperation between FAW, Dongfeng and Chang'an is successful is not how much cost will be saved in joint procurement, but how much the manufacturing process will be improved. It will be the key technology for the future. How big a breakthrough.
If the three major groups are still in the name of "foresighted technology centers," or even imaginary, the cooperation between the three parties will hardly bear fruit.
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