AutoBeta(AutoBeta.net)06/05 Report--

The news of Aichi's acquisition of Jiangling Holdings was finally confirmed. Changan Automobile announced on June 4 that Jiangling Holdings Co., Ltd., a joint venture under the company, intends to introduce strategic investors to increase its capital. Aichi Motor plans to increase its capital by 1.747 billion yuan and take a 50 per cent controlling stake.

It is understood that the capital increase and share expansion will be carried out in the form of cash. Aichi Motor plans to increase its capital by 1.747 billion yuan, of which 1 billion yuan will be included in the registered capital and 747 million yuan in the capital reserve. At present, Aichi Automobile has paid a deposit of 300 million yuan.

After the completion of this capital increase, the registered capital of Jiangling Holdings has increased from 1 billion yuan to 2 billion yuan, and Aichi Motor will hold a 50% stake in Jiangling Holdings, making it a major shareholder. Changan Automobile and Jiangling Automobile Group Co., Ltd. both diluted their shareholdings from 50% to 25%.

The cooperation between traditional car enterprises and new car enterprises has become more and more frequent in recent years. Traditional car enterprises are facing market pressure and overcapacity. Although new car enterprises have abundant funds, they do not have the qualification to build cars. The cooperation between the two sides can achieve complementary resources and take what they need. More can drive the transformation of enterprises.

It is understood that Jiangling Holdings Co., Ltd. has the production qualification of brands including Land Wind Automobile, Shangrao Branch 100000 pure electric passenger car production qualification.

Changan Automobile also said in the announcement that the direct reason for Aichi's capital increase in Jiangling Holdings is the decision of the market environment. At present, the SUV market has entered an integration period, the fuel vehicle market has entered an inflection point, and the market layout direction has turned to intelligent and new energy vehicles. Coupled with the fact that the SUV market is currently in a competitive position for all automobile enterprises, the subsequent development of Jiangling Holdings in the SUV market will continue to become more difficult. In order to enhance the development vitality and improve the operational efficiency of Jiangling Holdings, it will be transformed to the direction of new energy and intelligence. And continue to expand the development space of the industrial chain, need to introduce external resources for equity diversification reform, and finally achieve the smooth transformation of Jiangling Holdings.

Aichi is a new car manufacturer founded by Fu Qiang, former president and CEO of Volvo China sales Co., Ltd., in 2016. In May this year, Aichi Automobile accounted for 1 billion of its investment, which will be used for the construction of the Shangrao workshop / production line and the research and development of new models with a production capacity of 300000 new energy electric vehicles, as well as the layout and construction of electric vehicle sales experience stores nationwide. Aichi's U5 mass production model, based on the MAS platform, is positioned as an all-electric medium-sized SUV, which is scheduled to go on sale in the second half of 2019.

According to the data, the operating income of Aichi Automobile in 2018 was 33.19 million yuan and the loss reached 970 million yuan.

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