Reorganization Needs New Ideas

On July 16, 2009, the auto business commentary reported that around 10:00 pm on May 20, 2009, a dozen domestic automobile media successively received calls from Hunan Changfeng Automobile Public Relations Company, inviting them to meet with the Guangzhou Automobile Group and the company that proved to be held in Changsha in the afternoon. Changfeng Group's share transfer agreement signing ceremony. But two hours later, he was told to cancel the trip. At 3:30 pm on May 21, the signing ceremony without the participation of industry media was held in Changsha as scheduled. The symbolic significance of the first step in the strategic reorganization of Guangzhou Automobile was adopted.

Just as the inter-provincial acquisitions settled in countless doubts, the rumors of the reorganization of the blessings in the market were again scolded. Before a definitive official version was released, the persuasive pseudo-version was described as such: Both GAC and BAIC proposed a reorganization plan. The negotiations have entered a crucial stage. Where the blessings go, they will be clear in a matter of months. According to further analysis, Fuqi is likely to be split into Beiqi Automobile Fujian Daimler Automobile and GAC Automobile Southeast Automobile.

If you track the history of Chinese autos for a long time, you should know that it was 10 years ago that China's auto import technology and foreign cooperation were in a high tide. However, the protagonist was that multinational companies wanted to enter the Chinese market, and this time, with the help of the automobile industry revitalization plan promulgated by the state at the end of February, the protagonist switched to the domestic “Four Small Four” automobile group.

Many people are sniffing the breath of change from the above rules. Immediately afterwards, they turned their attention to Jianghuai Automobile, which had never been separated from the incident. In June 2009, the spotlights of the securities industry and the automotive industry were focused on an announcement by JAC.

The announcement made a clarification on the article “Dark Cherui’s Nightmare” published in China Business Daily on May 25, 2009 and the signed article “Jianghuai Chery integration suspense settlement” of the “First Financial Daily”: Anhui Provincial People’s Government in the near future The "Automobile Industry Adjustment and Revitalization Plan of Anhui Province" was promulgated; the company has no plans for reorganization with Chery Automobile as stated in the report; given that the company and its controlling shareholders are all state-owned holding companies, it is still unclear whether it will happen in the next three months. Relevant reorganization behavior.

The rumor of the reorganization of Jianghuai Automobile and Chery Automobile, the two auto companies in the same Anhui Province, has a long history. As early as in 2004, the JAC car business just started, and the media was full of speculations about the development prospects of the Anhui automobile industry. For a long time thereafter, people's eyeballs did not seem to lie in the performance of the two automakers' products and the market performance, but focused on the so-called reorganization and integration of the game.

It was finally difficult for public opinion to get cold and the results were pushed to the cusp of public opinion. Zuo Yan'an, chairman of Jianghuai Automobile, has not remembered how many such rumors, speculations and reports have occurred. However, since the unforgettable days of Jianghuai Automobile's submission of the finalist application for the sedan on September 26, 2004, nearly five years have passed. Jianghuai is still Jianghuai, and Chery is still Chery.

Right now, the new round of integration tide seems to have started, SAIC NAC has made a good start, and GAC and Changfeng have continued, and the question of who is always a matter of concern to the good. However, joint reorganization is a worldwide topic and it is also a global problem. Currently, only Renault and Nissan's alliance is successful, but more is the case of BMW's acquisition of Rover and Daimler's acquisition of Chrysler. This is the reality of the global automotive industry.

As a pivotal member of the global auto industry, China’s autos seem to be more political. From the “six major joint ventures” and “three major three small” in the 1980s to the “four big and four small” now, there was no The precedent for success, and how it will be followed, remains to be seen.

On June 9th, 2009, “Automotive Business Review” made an exclusive visit to the Jianghuai Auto Group Zuo Yan’an, who was in the public opinion center, in the red three-story small brick building of the Jianghuai Automobile Group in Hefei. What kind of cooperation he may have for JAC and Chery may give us another more constructive answer

The consistent idea has not changed

"Automotive Business Review": There is a saying that after the companies that used to make commercial vehicles enter the field of passenger cars, they found that the transition is not easy. JAC is also taking this strategic route. Now, do you regret it? Or is there any Other experience?

Zuo Yan'an: Jianghuai engages in passenger cars as a strategic level of thinking. Why JAC engages in sedans is a choice made after comparing the demand characteristics of passenger cars and commercial vehicles. It is related to the long-term, stable, and sustainable development of enterprises. If it is only from my personal point of view, the truck will be finished, and at the most it will be refined. We are still very relaxed, very comfortable, and even successful.

But why do we have to make a transition? On the one hand, the light truck market has a good potential, but after all, it is not an ordinary household product. On the other hand, the market for large trucks and medium and heavy trucks is also limited. It is impossible for a country to build roads, build bridges, or build houses all day. Otherwise, the country is far from mature. How many years in Europe do not build houses, do not build roads, where are so many trucks? At that time, when the GDP growth rate drops below 5%, the new and updated demand for large commercial vehicles will decline. How do you digest the production capacity? Two years later, China’s heavy-duty truck capacity may be 1 million vehicles, and actual demand will be 500,000 to 600,000 vehicles.

There are also lively cases in the world. For example, in Japan, after the Asian financial crisis of 1997, the remaining companies that could survive and make profits were almost all passenger car companies. Like Mitsubishi, Nissan Diesel, Isuzu, and Hino, not a single day was better, especially for medium and heavy trucks.

There are still good days in the middle of Isuzu. Why? It is mainly to do light trucks. All companies with medium and heavy trucks are not allowed. You can see that Hino is typical. Even though its products and brands are among the top trucks in the world, it is difficult to escape. This state of Japan has given us great warning. If you pursue years of good days and relaxed days, then there is no problem, but you have to do it for a long time. You can't do without a passenger car.

So is it your consistent idea that this idea has not changed?

Will not change. This is a knowledge and understanding of the law. As long as it is a commodity that enters the family, this market potential is unlimited in China, and it is the same in the world. We have said all day that the car itself is not a problem. It is not terrible. We are afraid that it will be no time for oil. What is terrible is these things.

You can imagine no concept of a car. Before the 1960s, everyone didn't have (cars) and they were used to it. But if you don't have it later, you can't imagine it.

Have you ever thought that if you don’t have a car project at the time, will it be faster or less costly through acquisitions?

Things in China, not to mention China, are the same in the world. Until now, no problem in the world is a strategic alliance between Renault and Nissan. Others have problems. The most typical is BMW, when it bought Rover, it can be said to have lost his wife and folded soldiers. This case is so clear to you, what kind of company is BMW? Is it not a child than we are? He is an adult and we are children. It is such a concept. He is not capable of doing well. What can we do? SAIC's ability to internationalize is good . Is it still not enough to pay tuition on the acquisition of Ssangyong ?

In the automotive industry, there are not many cases of successful acquisition and integration, and China is even more so. If you look at China's development from the planned economy to the market economy, what kind of integration, what restructuring, has never stopped. How many successful cases?

So this kind of integration is very difficult. If we can succeed, it is to follow the rules I have said: The integration between state-owned enterprises, the integration of enterprises is difficult, the integration is not difficult; the integrated enterprise is not difficult, the integration is difficult. This is a law. To be successful, this state-owned enterprise is rotted, and another state-owned enterprise has purchased it in the past, so there is not much problem.

You are like us taking Ankai. It is not easy for you to make it very efficient soon. This we can realize for ourselves. Another one, you have to use the car as a strategic business. You don't swim in the water. How do you know the depth of the water? How do you know how swimming is? You do not understand the product, do not understand the demand, and never understand it. Even if you give you a business, you can let it go. There is no right to speak, no right to speak.

So Jianghuai introduced MPV, then SUV, and then went to the car. We are taking such a process of gradual progress, constant search for feelings, training the team, and absorbing resources.

Cooperative restructuring should be diversified

"Automotive Business Review": GAC has just acquired Changfeng, and the outside world is saying that BAIC is going to acquire Fuqi. Then, the focus of the media is gathered here, which is the integration of JAC and Chery. What is your attitude towards this opinion?

Zuo Yan'an: I also talked about this issue during the two sessions. The problem of reorganization is very sensitive. In my opinion, reorganization is divided into three levels.

The first one is cooperative restructuring. It does not matter who reorganizes or who merges with others. It does not mean that cooperation and reorganization are more complete. In the cooperative reorganization, it is divided into two parts.

First of all, when our country encourages cooperation and reorganization, it should have a clear development strategy: what exactly do we have to do? In 10 or 20 years, are we a car power or a car power? If it is a big consumer of automobiles, I don’t think it will be too far to reach this goal. It is nothing more than a joint venture brand. All the streets run are joint venture brands.

However, if you are a car power country, I agree with the following view: 70% of the cars are self-owned brands. This shows that our research and development capabilities, market capabilities, brand capabilities, and the ability to make money from technology are basically formed, so that we can call it Manufacturing to consumerism on two levels of consumerism. If it is such a goal, the guiding ideology and policy orientation of cooperation and reorganization will be different. Or how do you support it?

Second, cooperation and reorganization should be diversified. For example, PSA Peugeot Citroën is a typical example of cooperation in some products or manufacturing projects. Their products intervene in each other, one production line makes two brands, and manufacturing resources and supporting resources are shared.

For example, if you developed it, I didn't. I spent a lot of money developing it. Can I use it for you? Under the framework of market trade, both partners must do so because of strong market competition pressure. Otherwise, the benefits will be affected. This kind of cooperation is actually done by us. In some companies, I think it is doing a good job. The price is right. If you sell me, you will not be able to spend as much as 100 million yuan. This is a level, this kind of cooperation is very easy, and there is not much cost in the cooperation process.

The second is business integration. The business of this company is very strong. The business of that company is very weak, so it is no longer necessary to develop a weak business. A strong business enterprise acquires a weak business from another company. For example, JAC can acquire the business that we can grow bigger and stronger in the right place. A company's light truck business is doing well, but if we use our technology, our brand, and our channels, we may do better. Plus we have a regional layout that can solve the logistics cost problem. I can buy his light truck business. This kind of business asset restructuring costs are also very small, very simple, no one is the problem of Laozi who is a son.

The third level is capital reorganization, asset integration, and the risk of such restructuring is relatively high. Reorganization is not something that has just been brought forward. It is nothing new. I was deeply impressed. At that time, the six largest affiliated automobile companies belonged to the Nanlian Corporation. Someone was joking, and what Nanlian was should be "difficult" and difficult.

For so many years, the integration of large groups did not know how many times they were engaged. The practice of so many years proves that one-way thinking cannot be carried out under the market economic system. How about the future, I still do not know clearly. But there is one thing you must understand. What problems should the company reorganize solve? It is resource allocation that maximizes efficiency. This is the most important.

As Jianghuai Automobile, we are lifting both hands in favour of reorganization. JAC is an active participant and supporter of the reorganization. It is only that this reorganization should follow the laws of the market and the government must actively guide it. Is it possible to give such a condition and give you good integration? How can I support you later? This may be more scientific and more proactive.

In other words, the culture is similar and the advantages can be complementary. There are many types of complementary advantages, business advantages can be complementary, management advantages can be complementary, and channel advantages can be complementary. However, we must also be willing to avoid the duplicate construction. At present, the most important thing for restructuring is to solve the problem of productivity and output efficiency.

Based on this goal, if business can complement each other, as long as it is the intention of both parties, we should all agree and support. As for the specific choices of Jianghuai in the future, it is hard to say now that the situation is constantly changing.

Do business last than heart

"Automotive Business Review": Jiangqi announced an announcement in June and made some clarifications to media reports. However, some people think that the tone is not the same as before.

Zuo Yan'an: The cooperation of independent brands has always been the case, and it is not the time to say this. As I mentioned above, it is necessary to improve the efficiency of resource allocation. All those who do business think so. But how to cooperate, we must follow the internal rules, how to do a good job how to cooperate properly. Not how does one want to collaborate on how to cooperate? This is an essential difference.

Economic activity is influenced by cultural power internally and externally affected by intangible markets. Our attitude towards cooperation has always been positive.

I recently said that doing a car as a business is ultimately better than this.

In the long-term route mentioned in JAC's charter, the quality-benefit road, learning organization, and harmonious ecological chain are the long-term routes. You can't do it without conviction. Therefore, our car is accompanied by Yue. Why do I say that I must be a big girl? Its consumption is very powerful. Wear clothing and work lightly. What we mean by that is that she does not make money. We can raise it without making money, and let the people know what kind of car the JAC is.

During this period of time , there was a lot of public opinion about the bankruptcy protection of General Motors . The Sichuan Tengzhong company suddenly came out to buy Hummer. What do you think?

The mode of doing business, such as thinking modes and modes of operation, is diversified. These are hard to say and hard to judge. For example, we do not really know what kind of company GM is. Instead, it is known through the media. Therefore, he can't make comments on some actions. As far as we are concerned, you simply do not know what he really is. What he wants to do is not clear to you. You only have to look at it. The best thing is to watch it well. If you do well, you can learn and study. If you can't do well, it is a lesson.

However, as far as we are concerned, we believe that Chinese auto companies basically do not have the ability to acquire large companies or large businesses overseas. Money is only a necessary condition, but you need to make it easy to adapt local policies, regulations, and operating environment. Then you don’t know what’s going on inside, and you don’t know how to go on, and the cost of running a place in his place is incredibly expensive. If you can’t live it out in time, you can’t afford it. You’ll quickly give it to you. Drag and drop. TCL is a typical example, home appliances and cars he can not compare, what is the concept of the car? It's not easy to get it.

So I just said that integration is actually three levels: the first level is project cooperation, the second level is business cooperation, and the third level is enterprise acquisition, merger, reorganization, merger, etc., which is on the all-round level of capital. joint.

I think that these three models should do the right thing based on the right time and the right place. This is very important. Some people may think that when is the correct time, what place is the right place, and what is the right thing? This is the running-in, find the feeling. Doing business is like this, there is no certain rule, even if you have a complete evaluation system, you have to accurately determine when to do what kind of thing, when should not do this thing, this time, subjective evaluation is very important.

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