AutoBeta(AutoBeta.net)05/22 Report--

According to the website information of Shenzhen Municipal Market Supervision Administration Bureau, Chang 'an Peugeot Citroen Automobile Co., Ltd.(hereinafter referred to as "Chang' an PSA") has been officially changed to Shenzhen Baoneng Automobile Co., Ltd. After the change, the investor is Shenzhen Qianhai Ruizhi Investment Co., Ltd.(hereinafter referred to as "Qianhai Ruizhi"), the legal representative is changed from Zhu Huarong to Sun Li, vice president of Baoneng Investment Group Co., Ltd., and all the main members of the new company are updated to Baoneng Department members.

Shareholders sell shares on both sides, where should DS brand go?

According to Sky Eye Information, Qianhai Ruizhi was founded in July 2017 and is 100% controlled by Baoneng Automobile Co., Ltd. The changed business of Baoneng Automobile Co., Ltd. is mainly R & D, production and sales of automobiles and related engines, gearboxes, parts, tools and maintenance parts. It is worth noting that in the changed business scope, the original item of "marketing management services for imported DS brand cars, including after-sales service, brand promotion, product promotion, customer relationship management, etc." has been cancelled.

On November 16, 2011, Changan Automobile and Peugeot Citroen Group invested 7.6 billion yuan to establish Changan PSA, each holding 50% of the joint venture company. Changan PSA mainly produces and sells high-end DS brand models under PSA Group. At present, it has DS5, DS6, DS7 and other products.

However, Chang 'an PSA is not developing smoothly in China. Due to product positioning, pricing and brand, sales volume continues to be depressed and operation continues to lose money. Chang' an PSA gradually becomes the performance "burden" of both shareholders. According to the financial report, Chang 'an PSA accumulated losses of more than 4.9 billion yuan from 2013 to 2019.

In order to solve the survival problem of Chang 'an PSA and strip off the loss-making assets as soon as possible, Chang' an Automobile and PSA Group began to plan how to "unload the burden", and Chang 'an PSA also began to enter the countdown to dissolution. In November 2019, Chang 'an Automobile and PSA Group respectively transferred 50% equity interests in Chang' an PSA, a joint venture company.

In December 2019, Chang 'an Automobile issued an announcement saying that the company had transferred all 50% equity of Chang' an PSA held by the company to Qianhai Ruizhi, with the transfer amount of RMB 1.63 billion yuan. After the completion of equity transfer, Chang 'an Automobile no longer holds Chang' an PSA equity. PSA also announced that it would transfer 50% equity of Changan PSA to Baoneng Automobile.

On May 21,2020, the settlement of PSA 50% equity sold by Chang 'an Automobile and PSA Group to Baoneng Automobile was completed, and the industrial and commercial information was changed.

After the acquisition of Chang 'an PSA, how should Baoneng Automobile layout?

Baoneng Group began to enter the automotive industry in 2017. In 2017, Baoneng Group acquired 51% equity of Guanzhi with RMB 6.63 billion yuan, obtained production qualification of Guanzhi Automobile, and successively established new energy automobile production bases in Guangzhou, Hangzhou, Kunming, Shaanxi, Guiyang and other places.

According to the plan of Baoneng Group, Baoneng will invest 10 billion yuan every year in the research and development of new cars. By 2022, Qoros will launch 26 new cars, but at present, Qoros 'performance in the market is not ideal. According to the data of the Association, the sales volume of Qoros vehicles in 2018 was 62,000, that in 2019 was 23,000, and that in the first quarter of 2020 was only 466, and most of the sales volume mainly came from Baoneng Linkage Cloud Procurement.

However, it is reported that Baoneng Automobile will launch a brand-new automobile brand in the future, which is intended to prepare for the launch of the new brand after the acquisition of Chang 'an PSA. However, in the context of the continuous decline of the automobile market, Baoneng Automobile also faces great challenges.

In the face of the downward environment of the automobile market, DS brand sales continue to decline, huge losses have brought great pressure to both Changan Automobile and PSA Group, DS can have today's outcome must have been expected by many people. Even so, PSA Group still said that DS brand will continue to stay in China and be vigorously developed, will not withdraw from the Chinese market, and DS brand will adopt a new development strategy in China. As for what kind of strategy it is, it has not been officially announced yet.

Some insiders said that although PSA Group said DS brand will not withdraw from the Chinese market, but both shareholders sell shares, DS brand in China has actually existed in name only.

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