Not surprisingly, Dongfeng’s framework agreement for restructuring Fuzhou will be signed this month.
"It has been prepared for a long time. There is no problem in signing the contract in December." Sources close to the top of the Fuqi Group disclosed on November 30th. However, Dongfeng Group is quite cautious, saying that it has not been heard that this time has been confirmed.
In fact, Dongfeng Group has been deliberately keeping a low profile on the restructuring of Fuqi. September 17 was also confirmed as the date on which both parties “fixed their parentsâ€. It was widely circulated in the industry, but Dongfeng Group never affirmed it. After a delay of more than two months, Dongfeng is more cautious about the release of signing time.
There is a reason for the cautiousness of both parties. The leader of Dongfeng’s restructuring of Fuqi was the administrative force from the very beginning. “Success and failure depend on the government, not the mere parties.†At the same time, the top government officials of many provinces and cities after the 18th CPC National Congress carried out personnel adjustments, including the change of the Fujian provincial party committee secretary.
Moreover, “the framework agreement is only a cooperative intention, and it will take a long time to enter the substantive cooperation stage.†The above source believes that the framework agreement is like “booking†and it is only when it is “marriage contract†when the cooperation agreement is signed. There are still many issues to be dealt with during this period, such as the assessment of Fuqi Assets and the balance of interests among the Southeast Asian Auto's three largest shareholders.
Two-step frame preliminary
But soon, things became clear. Zhu Fushou, general manager of Dongfeng Group, suggested that Dongfeng is open, cautious and steady in the face of reorganization. Lian Xiaoqiang also changed his mind to say that Dongfeng and Fuqi did not have mergers and acquisitions, and the two sides only cooperated.
At the end of August, the Fujian Provincial Government and Dongfeng held strategic cooperation framework agreement talks and plans to sign a strategic cooperation framework agreement on September 17. However, due to the eruption of the "Diaoyu Island Incident", Mitsubishi Motors, a Japanese shareholder in Southeast Automotive, had to postpone the signing in order to reduce its negative impact.
After this delay was delayed until the 18th National Congress, both parties initially decided to sign the agreement in December. A senior official of Fuqi revealed that the basic framework was originally set, without modification, or in two steps.
According to the agreement set by the two parties in August, the reorganization plan was divided into two steps. After the agreement was reached, Dongfeng acquired 40% shares of Fuqi and realized the first step in the stock market. It also placed a position for Fuqi Group, which currently has a vacant general manager position. General Manager; In the subsequent operations, Dongfeng will support Fuqi on various resources. When Fulan has sold 300,000 vehicles for the entire year, Dongfeng has the right to acquire 20% shares of Fugas and become a controlling shareholder.
“This is also a primary business goal set by Fujian after Dongfeng enters Fuqi. The aim is to hope that Dongfeng Energy can bring about practical changes to Fuqi in the short term,†the source said.
Fujian Automobile Group owns Southeast Automotive, Fujian Mercedes-Benz, New Longma Automobile, Xiamen Auto
In 2010, with the encouragement of the Fujian government, Southeast Automotive was more confident than ever before, setting a sales target of 150,000 vehicles in 2011. However, the target was quickly crushed by reality, and sales growth was extremely difficult. Sales volume declined in 2011. After insisting for two years, its sales this year were even less than 2010.
Two years ago, the company set a target of producing 300,000 vehicles by 2013, leading to a serious surplus of Southeast Asian auto production capacity. "With Dongfeng agreed to sell 300,000 vehicles and then allow its control, so that production capacity can be fully digested, breaking the first phase of the development of the blessing of the disabled."
Multiple variables
The appearance of Mitsubishi and Fuqi Group was considered to be the biggest resistance in Dongfeng’s reorganization of Fuqi. Dongfeng hopes to use Fuqi as an independent brand base in its southeastern region to extend its own brand strategy. Therefore, it hopes Mitsubishi will withdraw.
However, Mitsubishi has been operating in the southeast for many years. Although it has always been guilty of its shareholding structure, “Southeast Motor City is well-equipped and relevant personnel are ready. Even if it establishes a new joint venture with Guangzhou Automobile, Mitsubishi will not be stupid enough to put all its eggs. Into a basket." Southeast car insider analysis.
Mitsubishi’s reluctance to withdraw will also create difficulties for future complex handling of Dongfeng’s integration into Fuzhou. Because Southeast Motor has already formed a dual-brand path, the “Mitsubishi†and “Southeast†brands have also been using two business segments for sales. Therefore, there are internal proposals. In the future, Southeast China Automobile may be split into two companies. It is a self-owned brand company in the southeast and a joint venture with Mitsubishi.
In fact, the bigger variable comes from cooperation itself. The two parties originally planned to sign the ceremony before the 18th National Party Congress and be delayed by the "Diaoyu Island Incident." However, personnel changes in Fujian Province have already taken place. After Sun Chunlan, secretary of the former provincial Party Committee, was transferred to Tianjin Municipal Party Committee Secretary, the secretary of the Fujian Provincial Party Committee was vacant. "Originally, the reorganization will be led by the government. What attitude of the provincial Party committee secretary to take over is the biggest variable." The source said.
According to the analysis of this person, even if the normal signing this month, it is difficult to ensure that the substantive cooperation goes well. "It's just a framework agreement, just like it was just 'come on the family' and it wasn't when you got to the 'father's'. When you and Beiqi also signed the framework agreement, you will not be able to finish it."
The biggest variable may come from how much money you invest. "At that time, Beiqi took out 500 million yuan, and the Fujian government was too few to think that it was profitable, so it temporarily lowered the cooperation. The negotiation with Dongfeng will also involve the question of pricing." The above-mentioned sources said.
In this situation, Lian Xiaoqiang did not dare to make a clear statement about the future. Not long ago, he said that in the future, Southeast Automotive must share the resources of the shareholders, share resources, share talent, and share production. Strengths can support each other.
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