Recently, the Ministry of Industry and Information Technology released the announcement of "Specially Publicized Vehicle Production Enterprises (First Batch)" in accordance with the "Notice Concerning Establishing the Exit Mechanism for the Automobile Industry." According to the announcement, 48 automobile manufacturers including Jilin Tongtian, Harbin Bus Factory, Guizhou Bus Factory, Yangzhou Xinya Vehicle, and Lanzhou Yutong Bus entered the special publicity list.

According to the requirements of the Ministry of Industry and Information Technology, the above 48 companies must make corrections within two years to meet the entry requirements as soon as possible. If these companies do not pass the assessment within two years, they will lose their auto manufacturing qualifications and exit the auto production field.

Accelerating the pace of mergers and reorganizations In July 2012, the Ministry of Industry and Information Technology issued the "Notice on Establishing the Exit Mechanism for the Automobile Industry". According to the notice requirements, automobile and motorcycle manufacturers that cannot maintain normal production and operation will be included in the special publicity list.

Enterprises that cannot maintain normal production and operation refer to zero or very few sales for two consecutive years (less than 1,000 passenger cars, less than 50 large and medium-sized passenger cars, less than 100 light passenger cars, and less medium- and heavy-duty trucks. In 50 vehicles, less than 500 light trucks, less than 100 special vehicles for transport, and less than 1,000 motorcycles. The 48 companies that first entered the “warning” list were all within this range.

"If these companies do not produce for a long time or let other companies that do not have self-control disguise their production, this will be detrimental to the automotive industry in the long run and it will also be detrimental to consumers." Zhang Xiaoyu, Vice President of China Machinery Industry Federation, accepts "Securities Daily" In an interview, the reporter stated that “at the moment, the interests of some local companies may be damaged, but for the specialization and group development of the automotive industry, it is an active policy for consumer services.”

Senior investigator Li Yuheng of China Investment Consulting Co., Ltd. told reporters: “The Ministry of Industry and Information Technology announced the first batch of withdrawal from the list of 48 car companies, which means that China’s auto exit mechanism will soon be established and will gradually improve. With the establishment of auto exit mechanism, the merger and reorganization of the industry will also accelerate further. This part of the car companies that have persuaded and retired will become powerful and intend to expand the goal of mergers and reorganization of car companies."

At present, there is a phenomenon of “discrete”, “disorderly” and “weak” in the automotive industry in China. There are numerous automobile manufacturers, but their strengths are uneven. The introduction of the follow-up exit mechanism will help regulate the development of China's auto industry, and the concentration of the auto industry will be further enhanced. At the beginning of this year, the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission jointly issued the “Guiding Opinions” to rank the automotive industry as the first of nine key mergers and restructuring industries, and proposed that in 2015, the industry concentration of the top 10 vehicle manufacturers should be From 82.2% in 2010 to 90%.

Finding the Acquirer's Resuscitation Assets From the list, most of the companies that have been dismissed have already been suspended or semi-discontinued, with little or no annual output and sales. "The withdrawal of this part of the car companies will not substantially affect the industry's competitive landscape. However, for listed car companies, the list of persuading and retiring companies provides a list of external mergers and acquisitions, which is conducive to their external integration and expansion." Li Yuheng Say.

“The Ministry of Industry and Information Technology requires these 48 companies to effectively restructure within 2 years. If they do not get better integration and resume production within 2 years, or if they meet the exit conditions given by the Ministry of Industry and Information Technology, these car companies will be The qualification of production is abolished and qualifications are scarce.” Zhang Zhiyong, a well-known analyst in the automotive industry, told reporters.

Zhang Zhiyong pointed out that the Ministry of Industry and Information Technology has issued an exit mechanism and is intended to revitalize existing base production resources. Therefore, these manufacturers must not relocate or change their addresses. Even if acquired by other companies, they must use the original production base for production.

From the perspective of car companies, the cost of acquiring a production base for reconstruction is even higher than the cost of building a new base. Then, the largest capital that these companies intend to withdraw from is production qualification.

“Originally, these companies can sell qualifications or lease qualifications, and according to the existing exit mechanism, other auto companies can wait for two years before the Ministry of Industry and Information Technology withdraw their production qualifications. Therefore, for these 48 companies, they must truly activate their resources. The effective way is to seek the involvement of other car companies and find the 'big tree' that they are willing to buy, and prevent it from closing down, said Zhang Zhiyong.

However, whether such a “mess” company is willing to acquire it is a problem.

Take Lanzhou Yutong as an example, the reporter learned that the base belonged to Yutong Bus. In 2003, Yutong Bus established Lanzhou Yutong to open up the Northwest Market. Due to the lease of Lanzhou Yutong's land for production and operation, Yutong Bus stated that it was unable to increase investment in equipment investment, technological transformation, and technological innovation. The base stopped production and operations in October 2009.

In June 2011, two years later, in order not to weigh on the performance of listed companies, Yutong Bus announced that it will spin off Lanzhou Yutong from a listed company and transfer it to the company’s controlling shareholder Zhengzhou Yutong at a price of 4,484,500 yuan.

Obviously, Zhengzhou Yutong is also unmotivated to rectify this "mess", and whether it can find "backing" in the future is worrying.