Recently, three companies of Dongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng Motor") jointly announced that Dongfeng Huashen Motor Co., Ltd. (hereinafter referred to as "Dongfeng Huashen") has absorbed Dongfeng (Shiyan) Special Commercial Vehicle Co., Ltd. ( Hereinafter referred to as "Dongfeng Special Trade"), Dongfeng (Shiyan) Special Body Co., Ltd. (hereinafter referred to as "Dongfeng Special Vehicle"). After the merger, Dongfeng Huashen was retained, and the registered capital was RMB 543,302,244,340. Dongfeng Special Trade and Dongfeng Special Vehicle were cancelled according to law, and the debts and debts of the parties to the merger were borne by the renewal company. It is understood that Dongfeng Huashen, a new member of the Dongfeng Department, will be unveiled in Shiyan on December 28.
When inquiring about the national enterprise credit information disclosure system, the author discovered that Dongfeng Huashen had previously been Dongfeng Shenyu Vehicle Co., Ltd., and the name change was completed on December 8, 2017. On the same day, the information of its responsible person, registered capital, business scope, and senior management personnel also changed accordingly. And this was only 35 days after the “Hua Shen†brand was officially released in Wuhan on November 4.
In fact, the process of rapid integration of the Dongfeng commercial vehicle segment is not difficult to find clues from the previous trend. It can be said that Dongfeng Huashen merged with the other two companies, but it was only part of the accelerated integration of Dongfeng Motor.
In July this year, the General Office of the State Council issued the Implementation Plan for the Restructuring of Central Company Companies, and the requirements of the implementation plan were that before the end of 2017, except for central financial and cultural enterprises, all the central enterprises registered under the ownership of all industrial enterprises and regulated by the SASAC Restructured into a limited liability company or a joint stock company registered under the company law. In accordance with regulations, Dongfeng Motor Company conducted a system reform of the company and changed its name to Dongfeng Motor Group Co., Ltd., and completed the industrial and commercial change registration on November 14, 2017. After the restructuring of the parent company of the group, the integration of subsidiary companies becomes inevitable.
Luo Yuanhong, Assistant General Manager of Dongfeng Motor, pointed out at the time of the release of the “HuaShen†brand that the “HuaShen†brand is not only the market-oriented behavior of Dongfeng responding to changes in China's commercial vehicle market, but also a strategic move for Dongfeng's internal commercial vehicle business optimization. It tried to create a new brand to strengthen the leading edge of Dongfeng Commercial Vehicle in the industry. The release of the “HuaShen†brand made the positioning of Dongfeng’s commercial vehicle business more clear and the division of labor more reasonable, resulting in a brand pattern of “One main and two pairs and three arrowsâ€.
In my view, from the perspective of Dongfeng Commercial Vehicles, it is not to merge external commercial vehicle companies, but to start from their own companies or to better integrate resources. After the merger of the three companies, the most important is to optimize the integration of resources, the formation of an independent research and development, manufacturing, marketing system, and vigorously develop Huashen brand. On the basis of avoiding internal business conflicts, complementary advantages will be formed, and relying on economies of scale, the market share and profit will eventually increase. This is also in line with the initial strategic intention of the “Hua Shen†brand.
From the inside and outside of Dongfeng, Dongfeng started in Shiyan in 1969. After 48 years of development, Dongfeng Commercial Vehicle Co., Ltd. (hereinafter referred to as Dongfeng Commercial Vehicle) and Dongfeng Motor Co., Ltd. (hereinafter referred to as “Dongfengâ€) were formed. Dongfeng Liuzhou Automobile Co., Ltd. (hereinafter referred to as "Dongfeng Liuqi") three commercial vehicle business units. Dongfeng Commercial Vehicle Co., Ltd. and Dongfeng Motor Co., Ltd. have adopted the Dongfeng brand, focusing on the mid- to high-end mainstream commercial vehicle market, and breaking through to the high-end and overseas markets. Dongfeng Liuzhou Automobile adopts the Dragon brand and focuses on regional mid-to-high-end markets to meet regional transportation requirements; Dongfeng special With the Huashen brand, the company specializes in private cars and special chassis markets to satisfy the private custom and special needs customers. The three major commercial vehicle segments, starting from their own advantages, occupy the advantages of domestic commercial vehicle segments and form the business growth of the Dongfeng commercial vehicle segment.
Judging from the status quo of the development of commercial vehicles in China, this year's commercial vehicle market has experienced explosive growth, which has overdrawn the market demand to a certain extent. In order to achieve better development in the future, Baotuan Heating is undoubtedly a shortcut. In addition, in the “Made in China 2025†and the “Outline for Medium and Long-Term Development of the Automotive Industryâ€, the state clarified the construction of “a powerful automobile countryâ€. As a central state-owned enterprise, Dongfeng Motors has no responsibility but how to better develop forces and further consolidate and expand Dongfeng’s overall advantages in the commercial vehicle industry will become Dongfeng Motors' needs to consider. It seems that internal integration is their first step.
It is worth noting that the three companies that participated in this integration were all Dongfeng Special Trade Company. After the integration, the number of Dongfeng Special Business Subsidiaries was changed from 12 to 10, namely Dongfeng Huashen Automobile Co., Ltd., Dongfeng SUV Co., Ltd., Dongfeng Yunnan Automobile Co., Ltd., and Dongfeng Special Steam (Shiyan) Bus Co., Ltd. Vehicle companies, Dongfeng Special Steam (Shiyan) Special Vehicles Co., Ltd. and other four special-purpose vehicle companies and two component companies. Just from the quantitative point of view, there is still room for integration of Dongfeng Special Trade in the future.
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