Chery’s positive response and JAC reorganization are unlikely

A few days ago, under the scrutiny of reporters, relevant senior management of Chery Automobile responded positively to the reorganization of Chery and JAC. Chery said that due to issues such as the large differences between the two sides, the possibility of reorganization is not high. At the same time, Chery is preparing for IPO work prior to listing.

"The possibility is not big, the style gap between the two sides is too large." According to a rumor that the Jianghuai and Huai will reach a reorganization agreement with Chery in the fourth quarter, assistant general manager of the Chery Automobile Jin Yibo told reporters. As a spokesperson for Chery Automobile, Jin Xiaobo believes that Chery pursues a radical style of continuous innovation and pioneering new fields, while Jianghuai is a stable company. The gap between the two sides in the car culture is excessive. At the same time, JAC has been involved in the field of cars, and Chery has also begun to enter the commercial vehicle market, so the complementarity between the two sides is not so strong. In his view, mergers between companies must first meet their respective strategies, taking into account whether 1 plus 1 can be greater than 2. "It's not that simple," Kim said.

“We have no way of clarification and there is no way to explain that both the country and the Anhui document have come out and everyone feels that Chery and JAC are definitely going to get together. But in fact, the documents of Anhui Province are for the entire province’s automobile industry planning. The two documents referred to by Kim Bobo are the “Auto Industry Adjustment and Revitalization Plan” explicitly encouraged by the State Council in March and the “Auto Industry Adjustment and Revitalization Plan of Anhui Province” launched in Anhui Province in May. Among them, in the country's automobile industry planning, Chery's position is to become one of the “four to five automobile enterprise groups with production and sales scale of over one million vehicles”.

However, although Chery said that he did not have this idea, the government's intention has always been the promoter of "Qijiang restructuring." In this regard, Jin Xiaobo explained that “policy is only a train of thought, and more depends on the development requirements of the company.” It is reported that the sounds from the Anhui provincial government that were cited by the media are largely in the Anhui Automobile Industry Association. Some people's personal views have not yet made any progress at the policy level. However, people in the industry pointed out that judging from the existing domestic reorganization cases, whether or not the two parties can ultimately cooperate is not controlled by the wishes of either party.

Jin Yibo said that Chery and Jianghuai have not yet come into contact with this matter. At present, they are not preparing for this. But before the two sides did consult on cooperation in the field of procurement.

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