The AVIC Automotive Business will be assigned to the Changan Automobile Company under the Corps Group before the end of the year

The AVIC Automobile Company, which is owned by AVIC, will be allocated to the China Ordnance Equipment Group free of charge. The China Changan Automobile Group Co., Ltd., which is owned by the Bingzhuang Group, will be responsible for the signing of the agreement at the latest by the end of the year.

Yesterday, an insider of Changan Automobile disclosed to the reporter of the Morning Post that the business of AVIC, including Hafei, Changhe, and Dongan Power, may be allocated to the military outfit group free of charge.

“The negotiations between the CNG and AVIC Automobiles are not like the 'Southern Cooperation', and they need to pay for the corresponding M&A funds. This is actually a free allocation of state-owned assets, which is the equivalent of left-handedness and right-handedness,” the source said. It is precisely because of this that the Corps Group will never take the form of a joint venture with AVIC Automobile in the next integration as the industry has speculated.

Industry insiders believe that the new CNAC spins off its auto business and can concentrate more on doing large-scale aircraft projects. The Corps Group can expand its automotive business. In addition, the Ministry of Industrialization Information has been promoting the integration of AVIC's automotive business into the CSFB Group, and both of them are state-owned companies. Therefore, the aviation business of AVIC is assigned to the Bingzuo Group, and there are no major problems.

Hafei and Changhe are very beneficial supplements to the Changan mini-vehicle segment. After integration, they can effectively counter the “old rival” SAIC-GM-Wuling, further consolidating Changan’s position in the industry’s top four.

The "Auto Industry Adjustment and Revitalization Plan" regards Chang'an Automobile as one of the "big four" and encourages it to merge and restructure nationwide. Changan Automobile also wants to make it big, so it will enter the ranks of large-scale automobile companies with an annual output of 2 million.
View related topics: Military Equipment Group and AVIC Restructuring - Changan M&A Changhe Hafei

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