Last week, JAC announced the latest situation of JAC- Volkswagen joint venture project. According to the announcement, Volkswagen China has completed the industrial and commercial registration change for the capital increase of Jiang Qi Holdings, Volkswagen China and Jianghuai Automobile for Jianghuai Volkswagen. Jianghuai Volkswagen Co., Ltd. was officially renamed as Volkswagen (Anhui) Co., Ltd.
Specifically, Volkswagen invested 2.383 billion yuan in Jiang Qi Holdings (parent company of Jianghuai Automobile) and 1.6 1 billion yuan in the joint venture company Volkswagen Anhui. After the capital increase is completed, among Jiang Qi Holdings, the shareholding ratio of Volkswagen and Anhui SASAC is 50: 50. In the joint venture company Volkswagen Anhui, Volkswagen's shareholding ratio reached 75%, and Jianghuai Automobile's shareholding ratio dropped to 25%.
At this point, Volkswagen has completed the absolute control of the joint venture project of Jianghuai Volkswagen, and Jianghuai Automobile, whose share ratio has dropped to 25%, is even not worthy of the name in the joint venture project.
It is reported that the original Sihao brand under JAC Volkswagen will return to JAC passenger cars, and the marketing work of the brand has also stopped completely. The cage will be Volkswagen's own product.
According to the Agreement on the Product Portfolio Framework of JAC Volkswagen Co., Ltd. previously issued by JAC Automobile, the product portfolio framework of the joint venture company will be further refined and optimized after Volkswagen completes the capital increase agreement for JAC Volkswagen. Volkswagen promises to award the joint venture company 4-5 Volkswagen Group brand products, all of which will be built on Volkswagen's MEB platform. In addition, Volkswagen Group's B-class cars, C-class cars and even commercial vehicle products will be preferentially produced in the joint venture company.
The maximum production capacity of the factories undertaking the above products will be 250,000 vehicles in 2025 and 400,000 vehicles in 2029. In order to cooperate with the product planning adjustment, Volkswagen Anhui will also usher in a round of organizational structure adjustment to meet the needs of the controlling party.
It can be predicted that Volkswagen Anhui and its factory will become one of the important landing entities of Volkswagen's electrification strategy in China, and Volkswagen Anhui will gain more resources.
Among SAIC Volkswagen and FAW-Volkswagen, which have no news about the share ratio reform, Volkswagen has to split the accounts with its partners in half every year. The share ratio structure of FAW-Audi joint venture project in China is more complicated, and there are more participants sharing profits. The existence of Volkswagen Anhui will inevitably increase the public's chips, and the threat of inconsistent products or projects turning to Volkswagen Anhui appears from time to time. Whether to transfer control or find other equivalent chips has become a problem that North and South Volkswagen and even FAW Audi must think about.
From a broader perspective, Volkswagen Anhui is not a case of renaming a joint venture company. In 2020, the share ratio of commercial vehicles will be liberalized. Earlier this year, Sichuan Hyundai Motor Co., Ltd., a joint venture between Sichuan Nanjun Automobile Group and Hyundai Motor Group, was completely acquired by foreign parties and became a wholly foreign-owned enterprise. At present, the company has changed its name to Hyundai Commercial Vehicle (China) Co., Ltd.
In contrast, because its main business is passenger cars, BMW Brilliance confirmed early that it will adjust the share ratio structure, but due to the restrictions of the transition period of share ratio opening, it will not be completed until 2022. Similarly, from time to time, Beijing Mercedes-Benz, which reports stock ratio adjustment news, will suffer for another two years.
A blessing in disguise is a blessing in disguise, and so is Jianghuai Automobile, which was put into the joint venture project of Jianghuai Volkswagen. After the announcement, JAC recorded two daily limit boards. It shows that the capital market is generally optimistic about the development prospects of the joint venture project after Volkswagen Holdings. Even if Jianghuai's share ratio in this project is only 25%, it will bring new performance growth. There is only a saying that "the rise is not terrible, and whoever is missing will be embarrassed". Losing the controlling stake and being excluded from the name of the subsidiary can actually record the daily limit. While rejoicing in the stock price rise, I think Jianghuai has some bad tastes.
From another point of view, the joint venture company is partly the product of the concept of "market for technology", and everyone has their own views on its advantages and disadvantages. However, brands that cooperate with powerful foreign parties and share profits regardless of technological progress do exist. After the restriction of share ratio is opened, the gradual retreat of weak brands will not only appear in the normal metabolism of independent brand camp, but also in the change of share ratio between parent company and joint venture company.
While having fun, China's automobile industry also needs to be vigilant. More and more multinational automobile companies are bound to gain control of joint ventures. Facing the wave of the new four modernizations, they will complete the layout in China market with a more flexible and positive attitude. How to keep the right to speak, strive for more right to speak, or explore other forms of joint venture and cooperation, and use it to occupy a better position in the new era, needs more thinking from independent brands.
Text/Qin Zhicong
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.