AutoBeta(AutoBeta.net)08/25 Report--

On May 8th, Jiangling announced that it plans to sell 100% of its wholly-owned subsidiary Jiangling heavy truck Co., Ltd. (hereinafter referred to as "Jiangling heavy truck") at a price of no less than 764 million yuan through the public listing of the Shanxi property Rights Exchange Market Co., Ltd. After the completion of the transaction, Jiangling will no longer hold a stake in Jiangling heavy truck.

Three months later, Jiangling heavy truck ushered in the "catcher". On August 24th, Jiangling issued an announcement that as of the expiration of the listing notice, the sale of shares in the transaction was solicited to an intended transferee, namely Volvo Lastvagnar Aktiebolag. After the expiration of the listing notice, the company paid the deposit in accordance with the relevant trading rules of the Shanxi property Rights Trading Market Co., Ltd.

According to the announcement, Volvo Lastvagnar Aktiebolag was established in December 1916, registered in Gothenburg, Sweden, and is 100% owned by AB Volvo (Volvo Group). Its main business includes research and development, procurement, manufacturing and marketing of motor vehicles, spare parts, spare parts and other supporting activities.

In fact, Jiangling heavy truck is also acquired. Data show that in July 2021, Jiangling Automobile transferred all the shares of Taiyuan Changan heavy truck held by China Arms equipment Group and Changan Automobile for 720 million yuan, and completed the change of industrial and commercial information in January 2013. Taiyuan Changan heavy truck was renamed Jiangling heavy truck and became a wholly owned subsidiary of Jiangling Automobile.

The move marks Jiangling's official entry into the heavy truck market, but the business of Jiangling heavy truck has always been not optimistic. According to statistics, Jiangling heavy truck has been in a state of loss from 2013 to 2020, with losses of 220 million yuan, 350 million yuan, 300 million yuan and 520 million yuan respectively from 2017 to 2020.

As we all know, Jiangling Motor is not only developed in the passenger car market, in addition to heavy trucks, pick-up trucks and light buses are also the development field of Jiangling Automobile. However, due to the income of Jiangling heavy truck can not make ends meet, it is also a serious drag on Jiangling's profit performance. The data show that the net profit of Jiangling Motor in 2020 is 550 million yuan, while the loss of Jiangling heavy truck is 522 million yuan. From this, it seems that Jiangling Motor will divest Jiangling heavy steam is a wise move.

After stripping Jiangling heavy truck, Jiangling Motor will have more resources and energy to invest in other businesses, such as the passenger car market. In fact, as one of the traditional Chinese automakers, Jiangling Motor does not have a strong sense of existence in the passenger car market, and it relies more on the Jiangling Ford brand. From road shakers, leaders to affluence, Jiangling Ford's product series is indeed constantly advancing, but Jiangling Ford does not have a strong sense of presence in the market compared with Changan Ford, so Jiangling wants to be bigger and stronger in the passenger car market. Need to rely on Jiangling Ford, and the promotion of dealer system, product system is also imperative.

Jiangling Motor recently announced that Xiang Dongping has become vice president of Jiangling Motor Co., Ltd. and general manager of Jiangling Ford passenger car sales and Service Co., Ltd., fully responsible for the brand, marketing, sales, service, user operation and development of Ford passenger car products produced by Jiangling Motor. Mr. Xiong Yi, former vice president of Jiangling Motor Co., Ltd and general manager of Jiangling Ford passenger car sales and Service Co., Ltd., left for personal reasons.

Data show that since 1998, Xiang Dongping has successively entered SAIC-Volkswagen, Skoda, Volvo and the new car-building force Skyline Automobile. He serves as SAIC-Volkswagen brand executive director, Volvo China sales company executive deputy general manager, Skyline automobile director, chief marketing officer and other positions. On March 22nd, Xiang Dongping became Vice President of Hyundai Motor Group (China), deputy general manager and sales minister of Beijing Hyundai, responsible for the brand's marketing, marketing network and other business. According to the announcement of personnel appointment and removal issued by Hyundai Motor Group on March 22nd, 2021, Hyundai Group (China) Vice President, Deputy General Manager of Beijing Hyundai and sales Minister Xiang Dongping will no longer hold relevant positions in Beijing Hyundai for personal reasons.

Some industry insiders said that Jiangling Automobile divested Jiangling heavy truck, on the one hand, divested long-term loss assets and increased 760 million cash flow, on the other hand, it was able to focus more on the development of light commercial and passenger vehicle business.

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