Wanxiang Group beat Johnson Controls to bid for A123 success; Geely Holdings was rumored to acquire Aston Martin. Under the background of the intensification of the European debt crisis and other issues, the overseas mergers and acquisitions of Chinese car companies have become increasingly active. It is worth noting that in the global automobile industry structure, the car companies targeted by China’s capital are different from the past—core. Technology has become the main "prey" of overseas acquisitions by Chinese car companies.
China's car companies frequently spread "scandals" overseas
In the world auto industry structure, capital from China is once again active.
After experiencing twists and turns, on December 6th, Wanxiang Group, the largest auto parts manufacturer in China, defeated rivals such as Johnson Controls Communications, Japan N E C and Siemens Germany, and finally won A123 Systems. A123 Systems is a company specializing in the development and production of lithium-ion batteries and energy storage systems in the United States. It is a supplier to BMW, GM and other automotive companies.
According to Reuters news, Wanxiang Group’s bid for the assets of the battery supplier A 123 Systems has been approved by the US court on the 11th. This means that Wanxiang Group, which has basically completed the acquisition of A123 Systems, will not only be able to acquire more advanced battery and new energy technologies in the future, it will also enhance its product competitiveness, and it will also be able to expand the sales of Wanxiang Group in the US market.
At the same time, in the other two rumors about the restructuring of overseas car companies, Chinese car companies also appeared. On December 7, the "Wall Street Journal" reported that the American electric car manufacturer Fisco Motors will first consider seeking investors or buyers from China or Europe because the company executives think that these two regions are developing electric vehicles. The interest exceeds that of the United States. For potential collaborators, Fisker will provide a battery-powered car design that has been developed for more than $1 billion in R&D costs. However, Fisker subsequently denied the possibility of being sold out and bankruptcy, but stressed the intention to find partners.
If the above "smell" is still wishful thinking, in the process of the sale of British sports car brand Aston Martin, the figure of Chinese car companies is clearly clear. It has been reported that Geely Group is negotiating with Aston Martin to acquire it, and the entire process will use the same model as Volvo.
However, on December 11, the news that Aston Martin's bid was closed, "Geely did report for the bid, but in the end the Italian private equity fund took a share and Geely was out." Finally, Italian private equity The fund InvestIndustrial Co., Ltd. and Aston Martin have reached an equity purchase agreement, the former will acquire a 37.5% stake in the latter, about 190 million euros.
“Chinese auto companies have been active again in overseas M&A activities and both internal and external reasons exist.†Zhongshi, an auto analyst, told Nandu reporters. On the one hand, the European car companies, trapped in the quagmire of the sluggish market, hope that the need to rescue themselves from difficulties through the introduction of capital or restructuring will become increasingly strong. Although the US auto market has recovered, but due to the expected uncertainty in the return of investment by new energy auto project investors, it is also looking for the takeover.
On the other hand, although China's auto market has slowed down this year, it still has a huge bottoming effect as the world's largest auto market, providing space and opportunities for overseas mergers and acquisitions. At the same time, in recent years, domestic auto companies have gradually realized that the lack of skills caused by the lack of accumulated technology in the past made it possible to increase the impulse to acquire corresponding technologies through mergers and acquisitions of overseas car companies.
Zhong Shi said that China’s hometown, the world’s largest auto market, will inevitably become a must for international car companies. However, Chinese auto makers, which lack their own system competitiveness, will become bigger and stronger through overseas mergers and acquisitions, enhance their competitiveness, and will continue to have their own place in the future market.
Diversification of overseas mergers and acquisitions gradually emerged
History is always surprisingly similar. Four years ago, it was a financial crisis that created a golden opportunity for Chinese private-owned brand Geely to acquire Volvo and DSI, the world’s second-largest automatic transmission company.
On December 10, Zhejiang Geely Holding Group issued an announcement stating that it has signed three technical cooperation agreements with Volvo Cars. According to the agreement, the two sides will include air quality safety in the vehicle, medium-sized car platforms including small green engines for energy saving and environmental protection, and electrification of automobiles. The parties launched comprehensive cooperation.
Recently, Geely Panda (model configuration picture quotes) and Emgrand EC7 (model configuration picture quotes) and other products reached the domestic C-NCAP five-star collision standard. Yang Xueliang said that this benefited from Geely Automobile's good use of Volvo. Car safety gene.
Through the acquisition of Australia's DSI, Geely has the core technological capabilities for the development and production of automatic transmissions, which greatly increase its product competitiveness. Liu Jinliang, vice president of Geely Group and general manager of Geely Automobile Sales Co., told Nandu that next year Geely will bring the products of Australia's DSI6 automatic transmission to the market. “At present, there are less than 10% of products with automatic transmissions in the self-owned brand models. Geely used DSI automatic transmissions to lower the price of similar products, and at the same time promote the sales and profit growth of Geely Automobile,†said Liu Jinliang.
In December 2009, BAIC acquired Saab’s core technology assets for US$200 million, including three vehicle platforms, Epsilon, GM 2900, and GM 2400, two series turbocharged engines and two transmissions. At this year's Guangzhou Auto Show, Beiqi's own brand of high-end vehicles digesting and absorbing Saab technology was finally unveiled, and the utility of the acquisition was immediate.
Core Technology Becomes Overseas M&A Focus
At the end of September this year, Dongfeng Motor Company announced that it had begun to acquire Sweden’s T Engineering Company and established its first overseas R&D base. According to the basic agreement signed between the two parties on December 8 last year, Dongfeng Motor will first acquire 70% of the shares of T Engineering, and the remaining 30% will be completed within the next two years.
Zhu Fushou, general manager of Dongfeng Motor Company, stated that Dongfeng’s overseas mergers and acquisitions are trying to use international resources to introduce, digest and absorb key technology assemblies, and gradually cultivate Dongfeng’s own core talents and technologies.
Although holding capital, domestic car companies that feel increasingly competitive pressure have apparently become more pragmatic when it comes to overseas acquisitions. If the acquisition target is a brand, companies need immediate access to intellectual property and engineering knowledge. In the acquisition of parts and components, it is necessary to obtain the latest intellectual property rights, as well as manufacturing and development capabilities, and apply them quickly to vehicles in China.
With the acquisition of core technologies by Chinese auto companies and their initial success, multinational auto giants have begun to be vigilant and to curb the development of Chinese auto companies and eliminate technology leakage.
However, it is worth noting that the acquisition of core technologies through mergers and acquisitions has the advantage of rapid technological upgrading and the rapid formation of scale. However, it is difficult to integrate.
Consultant Kearney pointed out that Chinese companies must effectively integrate acquisitions of overseas car companies. In addition to establishing a capital-holding relationship, shareholders need to reengineer foreign acquired companies in terms of their corporate vision and values ​​in order to share their values ​​and strategic ambitions. The infiltration and indoctrination of the acquired company are conducive to integrated management, and it also benefits the subsidiary and the parent company to work toward a common strategic goal.
survey
Predicted by China's auto market in 2013: 83% think it will continue to grow slightly
As 2012 is coming to an end, the Chinese auto market will continue to adjust in 2011. The overall sales growth will be flat, and it is expected that it will end at around 5%. When the auto market is about to close its doors this year, the auto market will receive more attention next year. Recently, a survey shows that more than 80% of participants believe that the increase in the auto market next year will not have much fluctuations compared to this year and will remain between 0-10%.
Over eight adults are cautiously optimistic
According to the survey, 42% of participants believe that the auto market growth will be between 5% and 10% next year, 41% will be between 0 and 5%, and the number of people holding these two views will reach 83%, which is the absolute mainstream.
The recovery of macroeconomic stability and the main theme of encouraging domestic demand will stimulate the consumer demand for automobiles. At the same time, the continuous improvement of China's consumer environment, the increase in new cars brought by competition, and the decline in car prices will be positive for next year’s auto market. factor.
However, rising oil prices, traffic congestion and shortage of parking spaces are also obstacles that cannot be ignored. In the past two years, the possibility of further expansion of the automobile purchase restrictions introduced by several cities has not diminished. In addition, congestion charges and sewage charges introduced this year may also be introduced next year. The interaction of these important factors will influence the trend of the auto market next year. Judging from the results of this poll, positive factors will play a greater role.
In the survey, a number of experts pointed out that overall, the current domestic consumer confidence index is not high, whether the macro or micro-policy adjustments may affect the final results of the development of the automotive market to a large extent. A well-executed policy measure may break all previous estimates. However, what is important is not accuracy, but through the perspective of people in the industry to understand the confidence of all parties in the future development of the Chinese auto market.
Uncertain prospects for self-owned brands and Japanese cars
After the market share continued to decline in the past two years, the self-owned brand cars began to show signs of recovery at the end of the third quarter of this year. However, the survey shows that the market performance of independent brands will not be clear next year. It is only 29% of participants optimistic that it will regain market share next year, and more people choose not to be optimistic and neutral. In recent years, although the overall strength of self-owned brands has improved, there is still a large gap from foreign brands, especially in the brand and management system. This situation cannot be significantly improved in a short period of time.
Japanese car performance is another focus of the auto market next year. Affected by the Diaoyu Islands incident, Japanese car sales fell sharply in September and October this year, but it has rebounded in November. Will Japanese cars return to pre-crisis levels next year? Survey shows that the vast majority of people in the industry are not optimistic. Up to 60% of participants believe that although the Japanese car has shown signs of recovery, it is likely to run for a relatively long period of time at a low level. The reason is that before the crisis broke out, the Japanese car was already tired in China. Over the past five years, sales of Japanese cars in China have grown at an average annual rate of 15%, which is only half of their European competitors. This was attributed to the strategic preservation in China, the slow pace of vehicle replacement and the disconnection of the decision-making mechanism from the Chinese market.
However, Japanese cars led by Toyota and Honda have already begun to awaken. In the first half of this year, they all formulated aggressive market strategies, increased the introduction of new models, and plan to localize the latest energy-saving technologies. Within a period of time in the future, if the political relationship between China and Japan does not repeat, Japanese cars still have opportunities. In the survey, 25% of people believe that the level of Japanese cars returning before the next year or even surpassing the crisis is not an impossible task. The remaining 15% of participants believe that they can restore bad judgments and choose "not to say."
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