"M&A" has always been accompanied by the development of the international auto industry and has profoundly affected the international market structure. With the further maturation of China's auto market, mergers and acquisitions will become a hot spot in recent years. SAIC's merger and acquisition incident is undoubtedly a typical case and worthy of study. ——Blogger notes
Step by step "win-win" inventory SAIC M & A record
In order to have "core competitiveness and international operating capability" as quickly as possible, SAIC has experienced no less than 10 cases of mergers and acquisitions, and each merger and reorganization is a "self-improvement" of SAIC. In this series of mergers and acquisitions, the following four cases played a decisive role in the development of SAIC.
â—December 2007 Signed "Cooperation Agreement" with Shanghai
Significance: Changing the Industrial Structure of China's Automobile Industry
"Shangnan Cooperation" will be the largest merger and acquisition in the domestic automobile industry for decades. The cooperation between the two will effectively compensate SAIC's shortcomings in commercial vehicles, and will also lay a good foundation for the future development of independent brands. After the signing of the "Agreement on Cooperation," SAIC Motor will put FAW at the back of its annual output of 2 million, leaving the current domestic auto market temporarily forming a new "1+x" pattern.
SAIC and Nanjing Auto, the cooperation of these two large state-owned enterprises, completely overturned the domino merger and reorganization in the domestic auto market. At present, Dongfeng Group has already extended its acquisitions to Hafei Automobile. FAW also had to put the merger and reorganization on the table. The Big Three automobile group will become the culmination of this merger and reorganization, and in time, the "dispersal, chaos, and difference" of Chinese cars will be substantially improved.
â— In October 2004, SAIC acquired a 48.92% stake in Ssangyong.
Significance: The first case of overseas acquisition
On October 27, 2007, after nine months of hard work, SAIC emerged from several powerful companies and acquired a 48.92% stake in Ssangyong Motor. SAIC's acquisition of Ssangyong is an important step in SAIC's international business strategy. At present, Ssangyong’s sales return to SAIC Motor is good and gradually begins to make profits.
More importantly, the SAIC Group’s public bid for South Korea's Ssangyong case, or the first overseas acquisition completed independently by Chinese auto companies, has long exceeded capital significance and has created a precedent for Chinese auto companies to integrate brands and technical resources on an international scale.
â—In December 2004, SAIC and Rover joined forces
Significance: The country’s first high-end self-owned brand comes from this
SAIC hopes to use Rover’s R&D capabilities to create its own brand that can fully be controlled by SAIC. Rover will be seeking funds from SAIC’s capital to develop the market and continue its R&D work. As early as 2004, SAIC Motor, which purchased Rover’s core technology intellectual property, had been hoping to buy the Rover brand. In September 2006, when SAIC Motor was preparing to eventually acquire the Rover brand, Ford Motor Group officially announced that it would The exercise of the right of first refusal resulted in the failure of SAIC and Rover brands.
SAIC’s acquisition of Rover was temporarily suspended, but SAIC’s initiative to develop its own brand did not stop there. In October 2006, based on Rover, the company launched the first domestic self-owned brand Roewe based on high-end products.
â—In 2002, SAIC reorganized Wuling
Significance: Laying the supremacy of miniature commercial vehicles
In 2006, SAIC-GM-Wuling achieved the highest sales volume in the micro commercial vehicle market. SAIC-GM-Wuling continued to perform strongly this year. SAIC-GM-Wuling Automobile Co., Ltd. is a large-scale joint venture invested by SAIC Motor, US General Motors Corporation, and Liuzhou Wuling Automobile Co., Ltd.
At present, under the joint leadership of the three parties, SAIC-GM-Wuling Corporation has fully utilized the advantageous resources of all parties and introduced advanced management concepts and management systems in the world to comprehensively promote the restructuring of enterprise business processes and integration of internal and external resources within the enterprise, in the procurement system and production. The system, technology development system, marketing system, human resources development system, quality assurance system, etc., implement lean management. The management level of the company has been greatly improved, and the Wuling value chain with its core competitiveness has taken shape.
View related topics: SAIC commercial vehicle expansion
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