Dongfeng and CHANGAN announced plans for a reorganization on the same day. Is China's largest automotive company about to be born?

LB Select
2025.02.10 01:36
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[TechWeb] On February 10th, Dongfeng Motor Group Co., Ltd. announced that it received a notice from its indirect controlling shareholder, Dongfeng Motor Corporation, stating that Dongfeng Motor Corporation is planning a restructuring with other state-owned central enterprises. This restructuring may lead to a change in the company's indirect controlling shareholder, but will not result in a change of the actual controller. At the same time, CHANGAN AUTOMOBILE also announced that it received a notice from its indirect controlling shareholder, China North Industries Group Corporation, indicating that the group is planning a restructuring with other state-owned central enterprises. This restructuring may lead to a change in the company's controlling shareholder. The announcement mentioned that this restructuring will not have a significant impact on the company's normal production and operational activities. According to public information, both Dongfeng Motor and China North Industries Group are state-owned enterprises under the State-owned Assets Supervision and Administration Commission. The simultaneous announcement of restructuring by the two car companies has sparked extensive discussion online, with news of "the two major automotive central enterprises planning to merge" creating a buzz in the automotive circle. If Dongfeng Motor and CHANGAN AUTOMOBILE can merge, it will create the largest automotive group in the country. Data shows that in 2024, CHANGAN AUTOMOBILE's total sales will reach 2.68 million vehicles, with new energy vehicle sales exceeding 734,000 units, a year-on-year increase of 52.8%. In 2024, Dongfeng Group is expected to achieve automobile sales of 2.48 million units, a year-on-year increase of 2.5%, with self-owned brand sales reaching 1.37 million units, a year-on-year increase of 34.3%, accounting for 55% of the group's sales

Source: TechWeb

On February 10, Dongfeng Motor Group Co., Ltd. announced that it received a notice from its indirect controlling shareholder, Dongfeng Motor Corporation, stating that Dongfeng Motor Corporation is planning a restructuring with other state-owned central enterprises. This restructuring may lead to a change in the company's indirect controlling shareholder, but will not result in a change of the actual controller.

At the same time, CHANGAN AUTOMOBILE also announced that it received a notice from its indirect controlling shareholder, China North Industries Group Corporation Limited, stating that the Group is planning a restructuring with other state-owned central enterprises. This restructuring may lead to a change in the company's controlling shareholder.

The announcement mentioned that this restructuring will not have a significant impact on the company's normal production and operational activities.

According to public information, both Dongfeng Motor and China North Industries Group are state-owned enterprises under the State-owned Assets Supervision and Administration Commission.

The simultaneous announcement of restructuring by the two car companies has sparked extensive discussion online, with news about "the two major automotive central enterprises planning to merge" creating a buzz in the automotive circle.

If Dongfeng Motor and CHANGAN AUTOMOBILE can merge, it will create the largest automotive group in the country.

Data shows that in 2024, CHANGAN AUTOMOBILE's total sales reached 2.68 million units, with new energy vehicle sales exceeding 734,000 units, a year-on-year increase of 52.8%. In 2024, Dongfeng Group achieved automobile sales of 2.48 million units, a year-on-year increase of 2.5%, with self-owned brand sales reaching 1.37 million units, a year-on-year increase of 34.3%, accounting for 55% of the group's sales.

Based on this calculation, the total automobile sales of CHANGAN AUTOMOBILE and Dongfeng Group in 2024 reached 5.16 million units, surpassing the sales of China's automotive champion BYD, which stood at 4.272 million units

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