Recently, Dongfeng Motor Group and FAW Group signed a strategic cooperation agreement, and the two sides jointly built a forward-looking common technology innovation center. It is reported that the innovation center will take the construction of intelligent innovation system as a breakthrough, and cooperate in five areas including new platform construction, network technology and battery engine to give full play to their respective advantages to enhance market competitiveness.

This high-profile cooperation has also caused the merger rumors that have just disappeared to be renewed. There is even a saying in the market that the merger will be completed within the year. However, rumors of the merger of the two, as the strategic cooperation between the second largest automobile group and the third largest automobile group in China, the joint development of forward-looking technologies between central enterprises will also become an important milestone in the development of China's automobile industry.

Market analysts pointed out that although the two are domestic large-scale automobile central enterprises, their own brands are not in the same position in the market. This strategic cooperation is conducive to the complementarity between the two, or is expected to lead the cooperation between domestic independent brands. Develop trends.

Merge rumors are rising again

According to the news released by FAW Group and Dongfeng Motor, the two parties signed a strategic cooperation framework agreement to jointly create a “Forward-looking Common Technology Innovation Center”. Among them, the forward-looking common technology innovation center will be oriented to the forefront of the technological revolution, guided by the innovation-driven development strategy, with the construction of intelligent innovation system as a breakthrough, and adhere to the guidelines of “independent innovation, intelligent leadership, green development, and key breakthroughs”. Vigorously promote the research of FAW Group and Dongfeng Motor in the field of forward-looking common technology.

According to the agreement, FAW Group and Dongfeng Motor will jointly explore the new system and new mechanism of science and technology innovation management on the platform of the Innovation Center, share the technology and investment risks, reduce the research and development costs, and rapidly improve the research on the forward-looking technology of China's automobile industry. Level.

From the perspective of the senior leaders who signed the strategic cooperation agreement, it is not worth paying attention to. Among them, FAW Group attended the leadership including Xu Ping, Qin Huanming, Teng Tieqi, Jin Yi, Dong Chunbo and Wang Zhaoqi; while Dongfeng Motor's leadership included Yan Yanfeng, Li Shaocan, Cheng Daoran, Liu Weidong, Wen Shuzhong, Qiao Yang and Yang Qing. In addition, the main responsible persons of the relevant functional departments and molecular companies of both parties attended the meeting.

However, such a large-scale cooperation between the two sides has also caused the merger rumors that have just ceased to be renewed, which is interpreted as a precursor to the merger of FAW Group and Dongfeng Group. There is even news that the two will be merged at the end of the year.

In 2015, Xu Jianyi, former chairman of FAW Group, was investigated for violations. In the context of the intensive changes of leaders of large-scale central enterprises at the time, Xu Pingbei, former chairman of Dongfeng Motor, served as chairman of FAW Group. At the same time, Yan Yanfeng, then deputy secretary of the Jilin Provincial Party Committee, was transferred to the top of Dongfeng Motor.

More crucially, at that time, the State Council was making great efforts to integrate state-owned resources, vigorously promote the reorganization and integration of central enterprises, and strengthen the quality of enterprises and the performance of foreign markets, thereby realizing the adjustment, optimization, transformation and upgrading of the industry, and building a world-class enterprise. . In addition, Yan Yanfeng, as the old leader of FAW Group, and the “changing coaches” between the two domestic large-scale automobile central enterprises also made the outside world think about it, especially the capital market reacted very fiercely.

However, compared with the steel industry, the shipbuilding industry, the nuclear power industry, and the high-speed rail industry, the merger of FAW Group and Dongfeng Motor has been “seeing thunder and no rain”, and there has been no substantial progress. The news is only rumored. in.

In fact, the advantages and disadvantages of the merger of FAW Group and Dongfeng Motor also have many differences in the industry. The rebounders believe that the auto industry has special characteristics compared with other industries. The simple merger of the two auto giants has no complementary resources. It is better to let the two seize the market. The supporters believe that from the perspective of their respective developments, the development of independent brands is not very good, and it is not broken. The merger of the two can concentrate resources on major issues.

Strategic cooperation seeks complementary resources

However, rumors of the merger of the two, as the strategic cooperation between the second largest automobile group and the third largest automobile group in China, will become an important milestone in the development of China's automobile industry.

Data show that Dongfeng Motor sold 4.276 million vehicles last year, an increase of 10.44%. Among them, the Dongfeng self-owned brand car sales totaled 1.377 million, an increase of 13.03%. However, it has not yet formed a strong Dongfeng brand. Dongfeng Fengshen, Dongfeng Fengxing, Dongfeng Scenery, etc. are only in their respective market segments, achieving simultaneous sales growth.

Similarly, FAW Group achieved a cumulative terminal sales of 3.147 million units last year, an increase of 10.9% year-on-year, exceeding the sales target set at the beginning of the year. However, the share of self-owned brands is less than 19%.

In sharp contrast, domestic local state-owned car companies and private car companies have made great progress in their own brands. Among them, in just a few years, GAC Chuanyu broke through 370,000 units in production and sales, and this year it will reach 500,000 units; and Great Wall Motor sold more than 1 million units last year, and its profits exceeded 10 billion yuan.

Market analysis pointed out that behind the relatively small market size, product competitiveness is relatively weak, and the deeper reason is the lack of research and development. This cooperation will achieve cooperation between central enterprises, achieve complementary resources, and achieve breakthroughs in common technologies.

Yan Yanfeng said that Dongfeng and FAW have been actively seeking cooperation projects that are more in-depth and extensive, and have positive significance for the development of both sides. After the cooperation and exchanges in the fields of gearbox and engine in the early stage, the two sides decided to establish a larger scale cooperation project and jointly build a forward-looking common technology innovation center. In the future, the two sides should deepen communication and exchanges, open up ideas, promote site selection, innovate institutional mechanisms, recruit talents and motivate talents, and at the same time solidify the mutual visit mechanism between Dongfeng Motor Corporation and FAW, so that the cooperation between the two sides will continue to have new results.

Will kick off the cooperation of domestic large-scale car companies

In fact, the cooperation between large automobile groups in the development of common technologies is relatively common internationally. In 2014, in order to narrow the gap with small-sized engine technology in Europe, Toyota, Suzuki, Nissan, Fuji Heavy Industries, Honda, Mazda, Mitsubishi and Japan Automotive Research Institute signed a cooperation agreement to jointly develop small diesel engines, turbochargers, and pellets. The most basic problem of the engine in terms of recycling and efficiency.

However, although China's own brands have experienced more than a decade of development, even if millions of car companies have appeared one after another, they are still in a single-handed situation.

In 2012, Guangzhou Automobile Group signed a strategic alliance agreement with Chery. The two parties will jointly plan and cooperate in vehicle development, powertrain, parts and components, R&D resources, energy conservation and new energy vehicles, international business, and manufacturing management. , exchange and other aspects.

However, this cooperation has not been substantially carried out, and the cooperation between the two sides has finally disappeared.

The cooperation between FAW Group and Dongfeng Motor has not only opened up the deep cooperation between the central enterprises of the automobile, but also brought the prelude to cooperation between large domestic auto companies. It is reported that another central enterprise, Changan Automobile, also intends to join the technical cooperation between the two.

"Strengthen cooperation through mutual visits, deepen cooperation, enhance mutual competitiveness, achieve fruitful results, and share together. This will be a precious and shining moment for the future development of both sides. We must remember this precious moment." Ping said that in the face of the "Thirteenth Five-Year Plan", the two sides will play a synergistic effect, learn from each other's resources, build a forward-looking common technology innovation center, and explore new energy vehicles and other fields in the future.

Cui Dongshu, secretary general of the Association, pointed out that more cooperation in basic research and development is conducive to better concentrating efforts to break through key areas, and the design of vehicle models in the application field is also a la carte. Each design unit and related enterprises develop synergistically to form an effective Internal competition. The lack of competition within state-owned enterprises and the formation of inefficient and ultra-high-cost systems also require competitive adjustments.

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