The National Enterprise Merger and Reorganization Work Experience Exchange Meeting was held in Beijing where the automotive industry was included

The “National Enterprise Merger and Reorganization Work Experience Exchange Conference” attended by the Minister of Industry and Information Miao Wei has recently been held in Beijing. It includes the Central Financial Leading Group Office, the General Office of the State Council, the State Council Research Office, and the 12 member units of the Interministerial Coordination Group for Enterprise Merger and Reorganization. The relevant person in charge is attending the meeting.

In the revitalization plan of the automotive industry, it is proposed that "through mergers and reorganizations, 2-3 large-scale automobile enterprise groups with production and sales scale of more than 2 million vehicles and 4-5 automobile enterprise groups with production and sales scale of over 1 million vehicles will be formed, and the scale of production and sales will occupy the market share. More than 90% of the number of automotive enterprise groups has been reduced from the current 14 to less than 10". This is the first time that the automotive industry has been ranked as the top eight key industries in the haircuts of the Ministry of Industry and Information Technology for corporate mergers and reorganizations. In the past two years, after GAC reorganized Changfeng Automobile and Gonow Automobile, Changan Automobile Group reorganized Hafei, Changhe, and Dongfeng Motor Company reorganized Dongfeng Yunnan Automobile, etc., mergers and reorganizations of the automotive industry temporarily calmed down.

After two years of rapid development, SAIC, Dongfeng, FAW and Changan have entered “200 million clubs” last year, and only “Baiqi” has entered the “1 million clubs”. Last year, sales of the top ten car companies accounted for 86% of the market share, which is close to the policy line. This is mainly the result of market development, rather than the merits of mergers and reorganizations. With the adjustment of the market this year, the tide of mergers and reorganizations will roll up again.
Miao Miao, Minister of the Ministry of Industry and Information Technology also proposed at the meeting that the promotion of mergers and reorganizations of enterprises should follow the principle of “focusing on promoting effective competition in the market and promoting equal competition and common development among various ownership enterprises”.

At the meeting, Guangzhou Automobile, Dongfeng Motor and Zhejiang Geely exchanged their speeches.