AutoBeta(AutoBeta.net)02/19 Report--

On February 18, Zhongtai issued a clarification notice in response to some media reports that "Great Wall Motor" swallowed "Zhongtai and acquired the Zhongtai Linyi factory". Zhongtai Automobile said in the announcement that it has been verified that the company and its subsidiary Linyi Branch in Jiangnan and Zhuotai Automobile sales Company have not signed any strategic agreement with Great Wall Motor. As for whether the local government of Linyi parts Company signed a strategic agreement with Great Wall Motor and whether Linyi parts Company is taken over by Great Wall Motor, the company is unable to judge because it does not involve the company and its subordinate companies. In addition, Zhongtai Automobile also said that part of the lease agreement between the company's Jiangnan Linyi Branch and Zhuotai Automobile sales Company and Linyi parts Company has expired, because the two companies have stopped production and production, and there are basically no production and operation activities. therefore, for the expiration of the agreement, the two companies have not renewed their leases, and the follow-up disposal of assets belonging to the two companies has not yet been determined.

Great Wall Motor has previously responded: "in November 2021, Great Wall Automobile and Linyi Municipal Government formally signed a contract for the Linyi vehicle and parts production base project." The signatories to this project are Great Wall Motor and Linyi Municipal Government, and no other third parties are involved. " In addition, the automobile industry pays close attention to the Baidu map and learned that the Linyi Zhongtai automobile base at 76 Hong Kong Road, Hedong District, Linyi City, has now been changed to "the production base of vehicles and spare parts in Linyi". While the nearby Zhongtai bus station, Linyi Zhongtai Hotel and Zhongtai Automobile North Gate and other landmarks, it is not difficult to speculate that this was once the world of Zhongtai Automobile.

As for how to interpret the responses of Zhongtai Motor and Great Wall Motor. Generally speaking, the production and operation of Zhongtai Automobile Linyi factory is realized by leasing, and the relevant companies have stopped production and production for a long time when the agreement expires, so the company and its subordinate companies have not renewed the lease. Great Wall Motor signed a contract with Linyi Municipal Government as early as November 2021, which naturally has nothing to do with Zhongtai Automobile which realizes production and operation by leasing.

Data show that the factory is located in Linyi Economic and technological Development Zone, covering an area of 2000 mu. Zhongtai Motor started construction in April 2014 and was fully completed in August 2015, mainly for the production of Zhongtai SUV. After Great Wall Motor took over, it will mainly build an annual production base of 120000 vehicles, engines and spare parts, etc. According to media reports, the Linyi factory will be responsible for producing two new models of the Great Wall, and the two new cars have been developed and can be directly mass produced and put on the market.

As for why Great Wall Motor took over the Zhongtai Linyi factory in a low profile? Basically, Great Wall took over the Zhongtai auto plant rather than participating in bankruptcy restructuring, which is also consistent with the previous acquisition of Hanteng and Hanlong plants, quietly disclosing relevant information to the market to avoid unnecessary misunderstandings.

At present, China's automobile market is facing a major change, and the stock competition is becoming more and more obvious. Before Great Wall took over the Zhongtai Linyi plant, Great Wall had restructured the Jingmen plant of Cheetah, the Hanteng Shangrao No.2 plant and the Hanlong plant in Hubei Daye. Up to now, Great Wall Motor now has Tianjin, Baoding, Xushui, Rizhao, Yongchuan, Taizhou, Pinghu, Zhangjiagang, Jingmen, as well as Hanteng factory and Hanlong factory. In addition to the domestic market, Great Wall also distributes overseas markets. Since 2019, it has acquired Tula processing plant in Russia, Taligon processing plant in India, Luoyong processing plant in Thailand and Mercedes-Benz processing plant in Brazil.

On July 17, 2021, Great Wall Motor Chairman Wei Jianjun issued an open letter saying: "this year is my thirtieth year of building a car at the Great Wall. The so-called 'standing at 30' may be thought by many people at this special time that Great Wall, after 30 years of growth, has grown from small to big, from weak to strong, from self-confidence to self-confidence. In fact, it is not optimistic. When we face global competition, that is, in a world full of uncertainties, we have to ask: will Great Wall survive next year? " According to Wei Jianjun, Great Wall Motor has developed rapidly in the past 30 years, but in the face of great changes in the current market, in the face of the global economic downturn, new car-building forces, and the "sandwiched attack" of foreign brands, coupled with the superimposed impact of the epidemic, the future development prospect of Great Wall Automobile is not optimistic. On June 28th, Great Wall Chairman Wei Jianjun announced the strategic goal of 2025, which will hit the global annual sales of 4 million new cars by 2025, with an operating income of more than 600 billion yuan.

The worries raised by Wei Jianjun of the Great Wall are also justified. At present, China's automobile market is beginning to show a state of polarization. The "adversity" of traditional car companies and even new energy car companies has come in 2022, while weak brands such as Zhongtai, Cheetah and Lifan have begun to be merged by mainstream brands. at the same time, brands such as Geely, Great Wall and BYD need to increase investment in technology and research and development to maintain their market position. Previously, Geely managed the Changfeng Cheetah car plant, participated in the restructuring of Lifan, BYD and Niuchuang Technology took over the Mahayana car factory, and ideal Motor acquired the second factory of Beijing Hyundai. As far as the Chinese market is concerned, mergers and acquisitions will become the norm, and Zhong Tai Linyi plant by Great Wall Motor will not be the exception.

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