Isuzu, who had already had a few business contacts with Isuzu, had previously claimed that SAIC Motor’s vice president, Xiao Guopu, publicly claimed that SAIC would reorganize and re-enter the industry’s vision. On August 10th, Xiao Guopu, Vice President of SAIC Group, suddenly announced at the “Jiading Automobile Forum†that “SAIC Group is stepping up efforts to promote the assets reorganization of Jiangxi Isuzu and others!†It was agreed that Jiangling Motors, the largest shareholder of Jiangxi Isuzu, was outside the company. Information Market Forum) will fall into this - when choosing Ford or GM - a dilemma, as the interests of SAIC, GM and JMC are surprisingly calm. In fact, the reorganization of Jiangxi Isuzu is actually a stone-three bird strategy. As early as 2002, SAIC Motors, Japan’s Isuzu and General Motors, which had stood out in the passenger vehicle business, had signed letters of intent and formally entered the heavy truck industry. When Xiao Guopu announced the reorganization of Jiangxi Isuzu, which produced pickup trucks and light trucks, it meant that the SAIC Group, which had to walk on one leg of the passenger car, began to play a second card, the light truck, to realize the siege in the commercial vehicle sector. At present, the business of Isuzu in China is mainly composed of three pieces: Qingling, Guangzhou Isuzu and Jiangxi Isuzu. Among the businesses of Jiangxi Isuzu, Japan’s Isuzu has basically been decoupled. SAIC is willing to reorganize, Isuzu is certainly willing. Another beneficiary of the restructuring is Jiangling. Since last year, rumors of Ford's increase in Jiangling have spread, but the increase in the number of people still withdraws from Jiangling. Ford has not had a clear statement. During this period, Jiangxi Province once placed great hopes on Ford. “The disclosure of SAIC-Jiangsu Isuzu’s news will increase the bargaining power for Jiangling’s and Ford’s holdings, and it will also be possible to find another joint venture outside of Ford,†said an analyst close to Jiangling. As an indirect interest in this restructuring, Ford has now become the only variable in this restructuring. From Jiangling's internal news, SAIC Motor, which hides the common figure behind it, once the restructuring of Jiangxi Isuzu is successful, may determine the decision of Ford to increase its holding of Jiangling. SAIC Commercial Vehicles counterattack SAIC, FAW and Dongfeng and said that the three major Chinese cars. However, in the current Chinese market, commercial vehicles have long been under the control of FAW Group and Dongfeng Group. The total market share of Liberal Trucks and Dongfeng Trucks is close to 90%. SAIC has been relying on passenger cars to support the market leader. In recent years, FAW and Dongfeng have accelerated the pace of entering the area of ​​Jiajiao through joint ventures with Toyota and Nissan. In addition to the encirclement of second-tier manufacturers such as BAIC, SAIC's competitive pressure from the passenger vehicle market is increasing day by day. One-armed support of the world, after all, is not a long-term plan for SAIC. While maintaining the advantages of the passenger vehicle sector, accelerating the entry into the commercial vehicle market has become an urgent issue for the SAIC Group. According to the new 10-year development plan of SAIC, SAIC Motor will form an annual production capacity of 1 million cars by 2007, of which commercial vehicles will reach 200,000. As early as Xiao Guopu announced the "reorganization of Jiangxi Isuzu", SAIC and Japan Isuzu cooperation in the field of commercial vehicles has already begun. In November 2002, General Motors, Japan’s Isuzu Motors and Shanghai Automotive Industry Corporation signed a letter of intent regarding the establishment of a joint venture in Shanghai for the production of heavy trucks in 2003. According to the letter of intent, Isuzu Motors and its largest shareholder, General Motors, will hold slightly more than 40% of the shares in the joint venture. The joint venture is expected to be officially established in the summer of 2003. Isuzu Motors and General Motors hope that it can become a General Motors Group's commercial vehicle production base in China. At the same time, the joint venture parties hope that from 2003 onwards, they will be able to produce 10,000 large trucks with a load of about 10 tons per year and increase their output to 20,000-30,000 vehicles in 2005. The joint venture will use the existing equipment of Shanghai Automotive to reduce capital investment. Some key components, such as diesel engines, will be imported from Japan. At that time, relevant persons in the SAIC Group office stated that SAIC Group had already had plans to enter the heavy truck market. Currently, in the product chain of SAIC, there is a lack of truck location. With the advancement of the western region, major projects and infrastructure projects, the heavy truck market is rapidly increasing. According to the statistics, from January to September 2002, the total truck sales increased by 40.56%, and the heavy truck market experienced the most rapid growth. In the first half of the year alone, the production and sales volume of heavy trucks increased by 113.06% year-on-year, and their share in the truck market increased by 9.21 percentage points, which is even stronger than that of economical family cars. The actual strategic significance of SAIC and Isuzu is not just that. Insiders pointed out that SAIC's involvement in the commercial vehicle market is a “counterattack†for FAW and Dongfeng’s large-scale entry into the KIA industry in recent years. SAIC also needs such cooperation to show its close relationship with GM and general strategic partners. The second channel of Jiangling was followed by Sun Min from Jiang Ling, and Jiang Ling put forward the development strategy of “make it bigger first and become stronger laterâ€. Under the guidance of this strategic ideology, Jiangling executives proposed a reorganization route of “diversification of property rights subjects†and have been actively seeking strategic partners. At the high-level forum for reform and development of Chinese enterprises held this year, Jiangling Group Chairman Wang Xigao said: “As a key aspect of improving the endogenous competitiveness of enterprises, other companies in the group (excluding JMC shares) are also striving to explore a mixed ownership economy. As the main form of corporate restructuring, to achieve the diversification of the main body of property rights, to promote the transformation of business management mechanisms, the conditions of the enterprises, a mature one, restructuring a company.†Jiangling related sources said privately, Jiangling's development has passed its peak period, and The current largest partner, Ford, has focused its strategic focus on Ford Changan, and there is no clear idea for the future strategic planning of Ford JMC. Due to the needs of future development, Jiangling actually urgently needs to introduce new heavyweight strategic partners to increase his weight in Ford's mind. SAIC's announcement of the reorganization of Jiangxi Isuzu coincides with the idea of ​​Jiangling actively introducing strategic partners. Since the last provincial party committee leadership, Shanghai has strengthened economic cooperation between Jiangxi. As a key enterprise of the two places, Jiangling and SAIC come together under the auspices of the two governments. It is widely believed that it is a matter of time. At present, Jiangling's restructuring is mainly two modes. The first is the introduction of strategic investors, through the integration of internal and external parts and components companies, to use the financing capabilities of advantageous resources, to carry out appropriate low-cost expansion, and to establish joint ventures with more powerful companies or internationally renowned companies. After the unraveling of the new issue of Isuzu SAIC and Jiangling, the entry of Isuzu in Japan was only a matter of course. As one of the most powerful truck manufacturers in the world, Japan’s Isuzu has suffered a series of losses for three consecutive years because of a shrinking domestic market and a poor record in the United States. As early as August 2002, Japan’s Isuzu announced a three-year revival plan, which included strengthening management, layoffs, strengthening cooperation with General Motors, the largest shareholder, and seeking “leaping development†in China and Southeast Asian countries. According to Isuzu’s goal, the Chinese market will have to sell 70,000 vehicles by 2005. Analysis of the industry, and SAIC once again joined forces to reorganize Jiangxi Isuzu, is the "leaping development" of specific measures, it will also be a key step in its three-year revival plan. At present, there are three joint venture partners of Isuzu in China, namely Chongqing Qingling, Jiangxi Jiangling and Guangzhou Isuzu Bus Factory. In 1993, Jiangling Isuzu Automobile Co., Ltd. was established as a joint venture between the Jiangxi Automobile Manufacturing Plant, Japan’s Isuzu Auto Co., Ltd. and Itochu Corporation. Jiangling owns 75% of Jiangxi Isuzu, and Japan Isuzu owns 12.5% ​​of the other 25% of shares, symbolizing the full cooperation between Japan’s Isuzu and Jiangling Group and its entry into technology, capital, and management. Jiangling and Qingling are the earliest and most important partners of Japan’s Isuzu in China. However, both are in a disparate position in Japan’s Isuzu’s Chinese strategy. On June 18, 2004, at the Xinjiang Logistics Vehicles Exhibition held by Qingling Company, the managing director of Japan’s Isuzu Motor Company, Moyuki Yoshihide, said in an interview with Jiangxi Isuzu: “Early because the central government’s support for Jiangxi Province was We are in a joint venture relationship, but in the current situation, we have no business dealings with Jiangxi.†On the contrary, for Qingling, Mochizuki believes that “Qingling not only plays a role in China’s strategy, but also in Isuzu International. The strategy Zhongqing Ling also has an important position.†Mochizuki also stressed that Qingling’s vehicles are the latest technology of Isuzu’s, and they are the world-class quality of Isuzu. They have always represented Isuzu’s quality and technology in China. The status of Qingling in the heart of Isuzu is evident. With SAIC's restructuring of Jiangxi Isuzu, does Isuzu's strategic focus change? Qingling Motors was previously the main producer of Isuzu's high-end light vehicles. It was not until the second half of last year that Isuzu authorized the production of Isuzu F-series heavy trucks. At present, SAIC is carrying out heavy-duty cooperation with subordinate enterprises Shanghai Huizhong and Isuzu. Once the company successfully reorganizes Jiangxi Isuzu, it will also have pickup, light truck and heavy truck operations. This will overlap with Qingling in business. How Isuzu balances the relationship between SAIC and Qingling, especially with the cooperation with SAIC is a common figure. This will become a new issue and be placed before Isuzu.
Commercial Vehicle Counterattack: Reorganization of Jiangling's Triangle Interest Chain
Isuzu, who had already had a few business contacts with Isuzu, had previously claimed that SAIC Motor’s vice president, Xiao Guopu, publicly claimed that SAIC would reorganize and re-enter the industry’s vision. On August 10th, Xiao Guopu, Vice President of SAIC Group, suddenly announced at the “Jiading Automobile Forum†that “SAIC Group is stepping up efforts to promote the assets reorganization of Jiangxi Isuzu and others!†It was agreed that Jiangling Motors, the largest shareholder of Jiangxi Isuzu, was outside the company. Information Market Forum) will fall into this - when choosing Ford or GM - a dilemma, as the interests of SAIC, GM and JMC are surprisingly calm. In fact, the reorganization of Jiangxi Isuzu is actually a stone-three bird strategy. As early as 2002, SAIC Motors, Japan’s Isuzu and General Motors, which had stood out in the passenger vehicle business, had signed letters of intent and formally entered the heavy truck industry. When Xiao Guopu announced the reorganization of Jiangxi Isuzu, which produced pickup trucks and light trucks, it meant that the SAIC Group, which had to walk on one leg of the passenger car, began to play a second card, the light truck, to realize the siege in the commercial vehicle sector. At present, the business of Isuzu in China is mainly composed of three pieces: Qingling, Guangzhou Isuzu and Jiangxi Isuzu. Among the businesses of Jiangxi Isuzu, Japan’s Isuzu has basically been decoupled. SAIC is willing to reorganize, Isuzu is certainly willing. Another beneficiary of the restructuring is Jiangling. Since last year, rumors of Ford's increase in Jiangling have spread, but the increase in the number of people still withdraws from Jiangling. Ford has not had a clear statement. During this period, Jiangxi Province once placed great hopes on Ford. “The disclosure of SAIC-Jiangsu Isuzu’s news will increase the bargaining power for Jiangling’s and Ford’s holdings, and it will also be possible to find another joint venture outside of Ford,†said an analyst close to Jiangling. As an indirect interest in this restructuring, Ford has now become the only variable in this restructuring. From Jiangling's internal news, SAIC Motor, which hides the common figure behind it, once the restructuring of Jiangxi Isuzu is successful, may determine the decision of Ford to increase its holding of Jiangling. SAIC Commercial Vehicles counterattack SAIC, FAW and Dongfeng and said that the three major Chinese cars. However, in the current Chinese market, commercial vehicles have long been under the control of FAW Group and Dongfeng Group. The total market share of Liberal Trucks and Dongfeng Trucks is close to 90%. SAIC has been relying on passenger cars to support the market leader. In recent years, FAW and Dongfeng have accelerated the pace of entering the area of ​​Jiajiao through joint ventures with Toyota and Nissan. In addition to the encirclement of second-tier manufacturers such as BAIC, SAIC's competitive pressure from the passenger vehicle market is increasing day by day. One-armed support of the world, after all, is not a long-term plan for SAIC. While maintaining the advantages of the passenger vehicle sector, accelerating the entry into the commercial vehicle market has become an urgent issue for the SAIC Group. According to the new 10-year development plan of SAIC, SAIC Motor will form an annual production capacity of 1 million cars by 2007, of which commercial vehicles will reach 200,000. As early as Xiao Guopu announced the "reorganization of Jiangxi Isuzu", SAIC and Japan Isuzu cooperation in the field of commercial vehicles has already begun. In November 2002, General Motors, Japan’s Isuzu Motors and Shanghai Automotive Industry Corporation signed a letter of intent regarding the establishment of a joint venture in Shanghai for the production of heavy trucks in 2003. According to the letter of intent, Isuzu Motors and its largest shareholder, General Motors, will hold slightly more than 40% of the shares in the joint venture. The joint venture is expected to be officially established in the summer of 2003. Isuzu Motors and General Motors hope that it can become a General Motors Group's commercial vehicle production base in China. At the same time, the joint venture parties hope that from 2003 onwards, they will be able to produce 10,000 large trucks with a load of about 10 tons per year and increase their output to 20,000-30,000 vehicles in 2005. The joint venture will use the existing equipment of Shanghai Automotive to reduce capital investment. Some key components, such as diesel engines, will be imported from Japan. At that time, relevant persons in the SAIC Group office stated that SAIC Group had already had plans to enter the heavy truck market. Currently, in the product chain of SAIC, there is a lack of truck location. With the advancement of the western region, major projects and infrastructure projects, the heavy truck market is rapidly increasing. According to the statistics, from January to September 2002, the total truck sales increased by 40.56%, and the heavy truck market experienced the most rapid growth. In the first half of the year alone, the production and sales volume of heavy trucks increased by 113.06% year-on-year, and their share in the truck market increased by 9.21 percentage points, which is even stronger than that of economical family cars. The actual strategic significance of SAIC and Isuzu is not just that. Insiders pointed out that SAIC's involvement in the commercial vehicle market is a “counterattack†for FAW and Dongfeng’s large-scale entry into the KIA industry in recent years. SAIC also needs such cooperation to show its close relationship with GM and general strategic partners. The second channel of Jiangling was followed by Sun Min from Jiang Ling, and Jiang Ling put forward the development strategy of “make it bigger first and become stronger laterâ€. Under the guidance of this strategic ideology, Jiangling executives proposed a reorganization route of “diversification of property rights subjects†and have been actively seeking strategic partners. At the high-level forum for reform and development of Chinese enterprises held this year, Jiangling Group Chairman Wang Xigao said: “As a key aspect of improving the endogenous competitiveness of enterprises, other companies in the group (excluding JMC shares) are also striving to explore a mixed ownership economy. As the main form of corporate restructuring, to achieve the diversification of the main body of property rights, to promote the transformation of business management mechanisms, the conditions of the enterprises, a mature one, restructuring a company.†Jiangling related sources said privately, Jiangling's development has passed its peak period, and The current largest partner, Ford, has focused its strategic focus on Ford Changan, and there is no clear idea for the future strategic planning of Ford JMC. Due to the needs of future development, Jiangling actually urgently needs to introduce new heavyweight strategic partners to increase his weight in Ford's mind. SAIC's announcement of the reorganization of Jiangxi Isuzu coincides with the idea of ​​Jiangling actively introducing strategic partners. Since the last provincial party committee leadership, Shanghai has strengthened economic cooperation between Jiangxi. As a key enterprise of the two places, Jiangling and SAIC come together under the auspices of the two governments. It is widely believed that it is a matter of time. At present, Jiangling's restructuring is mainly two modes. The first is the introduction of strategic investors, through the integration of internal and external parts and components companies, to use the financing capabilities of advantageous resources, to carry out appropriate low-cost expansion, and to establish joint ventures with more powerful companies or internationally renowned companies. After the unraveling of the new issue of Isuzu SAIC and Jiangling, the entry of Isuzu in Japan was only a matter of course. As one of the most powerful truck manufacturers in the world, Japan’s Isuzu has suffered a series of losses for three consecutive years because of a shrinking domestic market and a poor record in the United States. As early as August 2002, Japan’s Isuzu announced a three-year revival plan, which included strengthening management, layoffs, strengthening cooperation with General Motors, the largest shareholder, and seeking “leaping development†in China and Southeast Asian countries. According to Isuzu’s goal, the Chinese market will have to sell 70,000 vehicles by 2005. Analysis of the industry, and SAIC once again joined forces to reorganize Jiangxi Isuzu, is the "leaping development" of specific measures, it will also be a key step in its three-year revival plan. At present, there are three joint venture partners of Isuzu in China, namely Chongqing Qingling, Jiangxi Jiangling and Guangzhou Isuzu Bus Factory. In 1993, Jiangling Isuzu Automobile Co., Ltd. was established as a joint venture between the Jiangxi Automobile Manufacturing Plant, Japan’s Isuzu Auto Co., Ltd. and Itochu Corporation. Jiangling owns 75% of Jiangxi Isuzu, and Japan Isuzu owns 12.5% ​​of the other 25% of shares, symbolizing the full cooperation between Japan’s Isuzu and Jiangling Group and its entry into technology, capital, and management. Jiangling and Qingling are the earliest and most important partners of Japan’s Isuzu in China. However, both are in a disparate position in Japan’s Isuzu’s Chinese strategy. On June 18, 2004, at the Xinjiang Logistics Vehicles Exhibition held by Qingling Company, the managing director of Japan’s Isuzu Motor Company, Moyuki Yoshihide, said in an interview with Jiangxi Isuzu: “Early because the central government’s support for Jiangxi Province was We are in a joint venture relationship, but in the current situation, we have no business dealings with Jiangxi.†On the contrary, for Qingling, Mochizuki believes that “Qingling not only plays a role in China’s strategy, but also in Isuzu International. The strategy Zhongqing Ling also has an important position.†Mochizuki also stressed that Qingling’s vehicles are the latest technology of Isuzu’s, and they are the world-class quality of Isuzu. They have always represented Isuzu’s quality and technology in China. The status of Qingling in the heart of Isuzu is evident. With SAIC's restructuring of Jiangxi Isuzu, does Isuzu's strategic focus change? Qingling Motors was previously the main producer of Isuzu's high-end light vehicles. It was not until the second half of last year that Isuzu authorized the production of Isuzu F-series heavy trucks. At present, SAIC is carrying out heavy-duty cooperation with subordinate enterprises Shanghai Huizhong and Isuzu. Once the company successfully reorganizes Jiangxi Isuzu, it will also have pickup, light truck and heavy truck operations. This will overlap with Qingling in business. How Isuzu balances the relationship between SAIC and Qingling, especially with the cooperation with SAIC is a common figure. This will become a new issue and be placed before Isuzu.