SAIC is stepping up its reorganization of assets in Jiangxi Isuzu

“Shangqi Group is stepping up efforts to promote the restructuring of Jiangxi Isuzu and other assets.” On August 10th, Xiao Guopu, Vice President of SAIC Motor Group, suddenly disclosed SAIC's plan to the outside world at the “Jiading Automobile Forum”. This statement was immediately released by the industry. A loss. Prior to this, rumors about Ford's divestment from Jiangling Motors were stunned. However, at the beginning of August, the chairman of JMC Group responded for the first time, saying that “Ford will not only continue to cooperate with Jiangling Motors, but also increase its investment from capital and technology”. On August 10, Jiangling Motors Corporation issued a clarification announcement on the Stock Exchange, specifically stating that Jiangling Group and Ford Motor Company had been conducting frequent negotiations on the cooperation of Jiangling Motors (including equity transfer) for many years. Negotiations and discussions continue. The response of the president of Jiangling Group and the feeling that this announcement gives people a sense of asymmetry, but it still temporarily suppressed the rumors. However, Xiao Guopu's remarks once again aroused people's concern about Jiangling. Why does SAIC get in? How will it promote the restructuring of Jiangxi Isuzu? What happens to the role of Ford? The mystery of Jiangling seems to have further expanded. On August 12th, the reporter confirmed the matter on the second day after the “Jiading Automobile Forum” ended, to the director of Jiangling Motors Co., Ltd. and the general manager of Jiangxi Isuzu Co., Ltd. Tu Hongfeng. Tu Hongfeng told reporters very clearly: “The integration of company equity is inevitable, and shareholders are also required to make adjustments.” But how to adjust, he did not disclose, because “the program is under discussion, and several parties also require us not to disclose it to the outside world. Affect the development of things." Although Tu did not disclose to reporters how the integration will be carried out, but according to the analysis, SAIC Group fancy Jiangxi Isuzu, which certainly has a common factor. As we all know, SAIC and GM have a very good cooperative relationship, and GM is also a strategic alliance partner of Isuzu. It seems natural for SAIC to take over Jiangxi Isuzu and it is also possible to take into account the interests of all parties. Jiangling Group and Ford own 41% and 30% of Jiangling Motors respectively, and they are the first and second largest shareholders of Jiangling Motors. Jiangling Motors owns 75% of Jiangxi Isuzu, and the remaining 25% are owned by Japan. This complex ownership structure makes Jiangxi Isuzu to be influenced by Ford in its development. And this is Jiangxi Isuzu’s unwillingness to accept, because the major shareholder of Isuzu is the U.S. General Company, and GM and Ford are the “old friends”. “By being controlled by one's own competitor, this is certainly very unwilling in Isuzu, and this kind of equity relationship is also not conducive to the company's development.” Tu Hongfeng said in an interview with reporters. The vice president of Ford (China) Co., Ltd. Xu Guozhen also stated clearly on the phone: "Ford is the major shareholder of Jiangxi Isuzu, but we have never been involved in their business. For the reorganization, Ford is unclear." Xu Guojun's statement and Tu Hongfeng has an inconvenience. However, since Xiao Guopu dares to publicize this matter in public, it shows that this domestic reorganization case is a matter of time. We can also find evidence from another paragraph of Xiao Guopu. At the "Jiading Automobile Forum," he disclosed SAIC's future development strategy: "It will focus on the development of passenger vehicles, vigorously develop commercial vehicles, and actively participate in national restructuring and global competition, and gradually form Shanghai Volkswagen, Shanghai GM, SAIC-GM-Wuling and The five business models of commercial vehicles and self-owned brands are actively looking for other assets reorganization projects in accordance with the principles of strong complementarity of products and reasonable regional distribution, and further expand the market scale. SAIC's reorganization of Jiangxi Isuzu justified Xiao Guopu's remarks and reorganized Jiangxi. Isuzu fully complies with SAIC's development ideas. In particular, the commercial vehicle segment is very complementary to SAIC products. Jiangxi is also in line with SAIC's principle of rational distribution. The reorganization of Jiangxi Isuzu may be inevitable, but the process of reorganization is certainly very difficult because it involves multiple interests. However, Tu Hongfeng believes that there is government support, and that Jiangling Group, Ford and SAIC are all large companies and believe that they have the ability to handle this matter. According to a person familiar with the situation, SAIC Motor’s “tricks” of Jiangxi Isuzu is precisely a match for the government. So, will SAIC's reorganization change the relationship between Ford and Jiangling Motors? Or more directly: Will Ford continue to cooperate with Jiangling? Xu Guozhen did not give an answer to "will" or "not." He said: "Look at development." This is a meaningful statement. (Zhang Xiangdong)
View related topics: SAIC commercial vehicle expansion

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