AutoBeta(AutoBeta.net)12/19 Report--

According to media reports, the mixed ownership reform of FAW Jilin Automobile Co., Ltd. has been completed, with 29.5% of shares held by China first Automobile Co., Ltd. and 70.5% of Shandong Baoya New Energy Automobile Co., Ltd.

Data show that Shandong Baoya New Energy Automobile Co., Ltd. was established in 2009, formerly known as Jinan Baoya Automobile Industry Co., Ltd. Starting from the research and production of electric four-wheelers, the company has gradually joined the fields of electric bicycles, electric beach vehicles and so on, but the technical content of these products is not high. Baoya New Energy intends to enter the passenger car market in 2015, and signed a new energy cooperation project with BAIC, but it came to nothing.

FAW Jilin was founded in 1980 as a light automobile factory in Jilin City. In 1990, he joined FAW Group and changed its name to FAW Jilin Light vehicle Factory. In 1991, FAW Jilin Light vehicle Factory was merged into an enterprise directly under FAW and became a wholly-owned subsidiary of FAW Group. FAW Jilin mainly produces passenger cars, commercial vehicles and special-purpose vehicles, of which the main passenger car brand is Senya, including Senya R7, Senya R7 EV, Senya R9 and other models, but sales have been depressed in recent years.

It is understood that the introduction of Senya M80, S80 and Senya R7, R9 and other models, FAW Jilin annual sales of up to 150000 vehicles. In 2017, FAW Jilin bid farewell to its former glory, with sales of 56000 vehicles that year and falling to 27300 in 2018. After entering 2019, the sales of FAW Jilin are rarely announced to the public.

FAW Jilin is completely on the edge of the market. Data show that FAW Jilin has lost 3 billion yuan for three consecutive years since 2016. It lost 511 million yuan in the first half of 2019, with total assets of 3 billion yuan and liabilities of 3.358 billion yuan, which is insolvent.

At the end of 2019, the Shanghai Stock Exchange disclosed that Shandong Baoya New Energy Automobile Co., Ltd., as an investor, will invest 1.5 billion yuan to acquire a 70.5% stake in FAW Jilin, and Baoya New Energy will become the largest shareholder in FAW Jilin. FAW Jilin completed the reform of "from the country to the people".

In September this year, Shandong Baoya No. 1 Automobile Jilin New Energy vehicle Base, with a total investment of 4 billion yuan, planned annual production capacity of 100000 new energy vehicles, started construction in Yantai Development Zone, covering an area of 840mu, with a construction period of 18 months, building five major process workshops: punching, welding, painting, general and PACK, with an annual production capacity of 60, 000 new energy vehicles.

FAW Jilin said that after the restructuring, its Senya brand will be reorganized and repositioned, targeting customers in cities and counties below the third tier, similar to the Jetta brand under FAW-Volkswagen.

As for how it will develop after the end of the mixed reform? FAW Jilin also said that FAW Group will still vigorously support and fully combine the resources of private enterprises on the basis of retaining its original advantages. In addition, FAW Jilin product Senya R8 has arrived at the store ready for sale, and after-sales service will be fully restored in the first quarter of 2021.

Although relying on the re-development on the basis of FAW Group and Shandong Baoya, judging from the current market environment, it is still very difficult for FAW Jilin to achieve great development in the short term. After all, there are more and more good competitive products in the current market. Whether Senya brand can be obtained, consumer recognition, is still a question mark.

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