The new Longma development prospects are geometric or integrated with Dongfeng Xiaokang


On December 18th, the 1st phase of Fuzhou Xinlongma Phase I in Longyan City of Longxi was completed. The 150,000-vehicle expansion project was completed and the first microbus new car was off the assembly line. At the same time, the annual construction of a 300,000-unit engine project jointly established by Xinlongma and Wuling Liuji Power Co., Ltd. is officially under construction. Longyan City will become an important “heart” for the production of new Longma vehicles.


Who is the new Ryoma?


Turning over the introduction of the new Longma Auto, the company was established in October 2004 and was jointly funded by the Fuqi Group and the Longyan Municipal Government with a total investment of over 3.5 billion yuan. Fuqi Group holds approximately 51% of the shares, and Longyan City Government holds approximately 49% of the shares. The company mainly produces light, medium and heavy cargo vehicles, sanitation vehicles, and agricultural vehicles. The annual production capacity of various vehicles is more than 20,000.


It is reported that in the early years of the establishment of the new Longma Auto, the project and future plans were limited to the private agreement of the funded parties and the Longyan City Government, and did not obtain approval from the national ministries and commissions. This situation continued until 2010. In September of that year, the Fujian Provincial Development and Reform Commission approved and reported to the Ministry of Industry and Information Technology for official approval.


In August 2012, the National Development and Reform Commission approved the Fujian New Longma Automobile Passenger Vehicle Project. According to an announcement by the National Development and Reform Commission, in August 2012, the National Development and Reform Commission approved the production of mini-buses and engines for Fujian New Longma Automobile Co., Ltd. across the product category. The project is located in Yongding County, Longyan City, Fujian Province, and will form an annual output of minibuses. 10,000 vehicles and 50,000 mini-vehicles, 1.0L capacity and 300,000 1.25L engine production capacity.


At the offline event, Lian Xiaoqiang, chairman of Fuqi Group, said that the first phase of the new Longma expansion project has been completed and put into production. The first new car will be officially launched in April next year. "In the future, the new Ryoma will also produce MPVs, SUVs, etc., and will fully cover the field of passenger cars. There will be no major changes to the new plant, and the production capacity will reach 300,000 to 500,000, which will pave the way for our future development. "Lian Xiaoqiang said.


With the smooth implementation of the 150,000 automobile projects in the early stage and the release of the first mini-subs, the recruitment of distributors for the new Longma Auto has also started. According to insiders, “At present, our investment promotion progresses smoothly and single-shop subsidies are in place. The 3 million yuan shop-building policy has greatly encouraged the dealers. According to the observation of Phoenix Auto, the new car off the assembly line attracted dozens of dealers from across the country, and the new Longma car has deliberately held dealership talks. Yes, some dealers even signed on the spot. ”


The new Ryoma predecession is stressful


From the background of the micro-vehicle business, there is currently no micro-car company that can exist independently and there is a strong group support behind it. Changan Micro-car is a basic company of Changan Automobile Group. Wuling Micro-car has strong support from SAIC and General Motors. Dongfeng Xiaokang takes advantage of Dongfeng Group's all the way. Then, the new Longma car enters this market segment at this time, what is the background behind it?


New Longma Motors is backed by Fuqi Group, which owns such reserve forces as Southeast Automotive, Fujian Benz and Fuqi Research Institute. Lian Xiaoqiang said that he will focus on creating a new Ryoma automobile. It is worth noting that Zuo Zisheng, the general manager of Southeast Automotive at the downline event, and the deputy general manager of Fujian Benz responsible for vehicle production also supported the event. Lian Xiaoqiang said: "The new Ryoma will be the second MPV. The new car is shared with Mercedes-Benz Viano in many aspects such as technology and platform. The current R&D work has entered a substantive stage."


Despite the support of Fuqi Group, Xinlongma wants to occupy a place in such a high concentration of micro-vehicle industry. The front road is still under pressure. The subjective aspect of the mini-vehicle market has changed quietly. The four major micro-vehicle companies, Changan, Wuling, Changhe and Hafei, originally existed. After mergers and reorganizations, they formed the “oligopolists” of SAIC-GM-Wuling and Chang’an. Until this year, they gradually formed. SAIC-GM-Wuling has a unique market structure.


Objectively, it is an indisputable fact that the mini vehicle market slows down. In 2009, the mini vehicle market increased by nearly 80% year-on-year, and in 2010 it also maintained an increase of more than 25%. By 2012, the cumulative growth from January to August was only 0.65 year-on-year. %, it is expected to maintain a slight growth momentum throughout the year. The new Ryoma car is involved in the micro-vehicle field at this time, and it is somewhat "little-timed".


It is foreseeable that in the next few years, the micro-car industry will continue to face the situation of brand differentiation. It is not easy for Xinlongma to grab its own market share in the cracks between strong players.


Or will integrate with Dongfeng Xiaokang


There has been no shortage of mergers and reorganizations in the micro-business industry. Chang'an had previously reorganized Hafei and Changhe, and in the context of Dongfeng’s intention to reorganize the blessing bus, the industry has also focused on the integration of Dongfeng Xiaokang and New Longma.


Whether Dongfeng Xiaokang and Xinlongma will be integrated will not be conclusive at present. However, there are various indications that there is a great possibility that both parties will integrate. Earlier, at the Dongfeng Xiaokang C37 launch conference, Zhang Xinghai, the general manager of Dongfeng Xiaokang, did not deny the possibility of integration. He also revealed that “the further cooperation between the two companies will not happen this year.”


In the new Ryoma first off-line activity, Phoenix Motors found an interesting phenomenon. The position of the general manager of the new Ryoma Automobile was vacant. It is understood that the chairman of the new Longma Automobile is concurrently appointed by Chairman Lim Xiaoqiang of Fuqi Group. The executive deputy general manager is Wu Wenbin and the deputy general manager is Lai Shuimei. Insider of the new Longma Automobile revealed: “The position of the general manager has been vacant for a long time, and it is not clear what the group thinks of the candidate for the general manager.”


According to previous news of Dongfeng restructuring of Fuzhou, if the parties successfully restructured, Dongfeng Group will send a 30-person management team to participate in Fuqi Management and assume the post of General Manager of Fuqi. The phenomenon that the general manager of Erxin Longma Automobile is vacant seems to confirm Dongfeng plans to reorganize the Fuqi.



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