2 billion yuan! Three heavy contracts boost the development of Chongqing Automobile Industry

On April 23, the transformation and upgrading of Chongqing automobile industry ushered in a major moment.
On the same day, Tang Liangzhi, deputy secretary of Chongqing municipal Party committee and mayor, met with Zhu Yanfeng, Secretary of the Party committee and chairman of Dongfeng Motor Group Co., Ltd. (hereinafter referred to as Dongfeng company), and attended the strategic cooperation framework agreement between Chongqing municipal government and Dongfeng company, the agreement on jointly building medium and high end new energy vehicle projects by Liangjiang New Area, Dongfeng company and Xiaokang Co., Ltd., and Dongfeng The company and Xiaokang Stock Co., Ltd. signed the agreement on deepening strategic cooperation of the whole value chain to build Xiaokang group into a million vehicle enterprise with high quality development. Chongqing municipal leader Zhengdong, deputy general manager of Dongfeng company you Zheng, chairman Zhang Xinghai and chief operating officer Ma Jianchang attended the signing ceremony.
Deepen the practical cooperation between Chongqing and Dongfeng to boost the high quality development of Chongqing Automobile Industry
On behalf of Chongqing, Tang Liangzhi welcomed Zhu Yanfeng and his party to Chongqing to deepen strategic cooperation, and expressed gratitude to Dongfeng Motor for its support for Chongqing’s development. Tang Liangzhi said that the automobile industry is an important pillar industry in Chongqing. Not long ago, Chongqing specially held a forum on high quality development of automobile and motorcycle industry to make specific arrangements and arrangements. Chongqing will seize the policy opportunity of national economic recovery, the strategic opportunity of the construction of double city economic circle in Chengdu Chongqing region, the opportunity of industrial transformation and upgrading, and the market opportunity generated by the epidemic situation. Based on the current situation, Chongqing will comprehensively promote the resumption of work and production, focus on the long-term, and make full efforts to promote the transformation and upgrading, so as to better promote the high-quality development of the automobile industry. It is hoped that taking this signing as an opportunity, Dongfeng will continue to increase its investment and development in Chongqing, further deepen practical cooperation in the construction of medium and high-end new energy vehicle projects, integration of vehicle and parts resources, and boost the high-quality development of Chongqing automobile industry. Chongqing will spare no effort to provide high-quality and efficient services for the development of enterprises in Chongqing.
Zhu Yanfeng thanks Chongqing for its support for Dongfeng’s development in Chongqing. He said that Dongfeng is willing to work with Chongqing to seize the opportunity of in-depth adjustment of the automobile industry, jointly grasp the implementation of the cooperation agreement, further expand the space for cooperation, actively participate in the transformation and upgrading of Chongqing’s automobile industry, promote the cooperation projects to maximize the benefits, and contribute to the economic and social development of Chongqing.
According to the strategic cooperation framework agreement signed by Chongqing municipal government and Dongfeng company, the two sides will continue to support Dongfeng and its enterprises in Chongqing through their partners to accelerate their development, jointly build medium and high-end new energy vehicle projects, and extensively carry out cooperation in the field of auto parts.
Invest 2 billion yuan in Jinkang new energy to jointly build medium and high-end new energy vehicles
According to the tripartite agreement signed by the Management Committee of Liangjiang New Area, Dongfeng company and Xiaokang shares, the three parties will focus on increasing investment in Jinkang new energy vehicles under Xiaokang shares, provide support for the development of Jinkang new energy in terms of policy, financing, production, management and sales, and build it into a medium and high-end new energy vehicle with an annual output of 150000 vehicles and an output value of more than 30 billion yuan by 2025 Energy vehicle benchmarking enterprise. To this end, Chongqing Municipal People’s government and Liangjiang New Area Management Committee will designate the main body or fund to jointly establish SPV (Special Purpose Vehicle), and SPV will invest 2 billion yuan in Jinkang new energy.
Jinkang new energy vehicle, located in Liangjiang New Area, has formed the core technology of “China’s leading and world advanced”, to the “China’s leading and world-class” intelligent manufacturing factory, and then to the industry-leading high-end intelligent electric vehicle products with high-quality closed-loop. Recently, the industry-leading intelligent electric vehicle Cyrus 5 has been delivered to experience users.
Automobile industry is one of the pillar industries in Liangjiang New Area. At present, Liangjiang New Area has gathered 8 automobile enterprises such as Jinkang new energy automobile and hundreds of core parts supporting enterprises, accounting for 70% of the city’s automobile production and sales.
The signing of the contract will not only promote the development of the automobile industry in Liangjiang New Area towards high-end, high-quality and high-tech, but also play a strong demonstration and leading role in enhancing the ability of the regional automobile industry chain to resist risks, enhancing the market brand and international influence, and increasing the vitality and toughness of the automobile industry.
Deepening strategic cooperation between Xiaokang and Dongfeng to promote the integrated development of their business
As early as 2003, Xiaokang Co., Ltd. and Dongfeng Co., Ltd. first tried the mixed economy, and established “Dongfeng Xiaokang Automobile Co., Ltd.” with 50% of each investment, they adhered to the “market-oriented and innovative operation” business model, and both sides cooperated closely to give full play to the long-term board effect, and successfully opened up a new path of vehicle manufacturing. Over the past 17 years of cooperation, the two sides have successfully implemented the “innovative cooperation mode between private enterprises and central enterprises”, which is regarded as a successful example of cooperation between private enterprises and central enterprises. So far, Dongfeng Xiaokang and Dongfeng scenery brand car market has exceeded 4 million.
Under the current policy environment that the State supports the development of mixed ownership economy and promotes the mixed reform of enterprises, learning from the valuable experience of Dongfeng Xiaokang joint venture, Xiaokang shares acquired 50% shares of Dongfeng Xiaokang by issuing additional shares to Dongfeng company. Dongfeng Xiaokang has become a wholly-owned subsidiary of Xiaokang shares, and Dongfeng company has become the second shareholder of Xiaokang shares. Since then, Xiaokang shares have been transformed from private enterprises into joint ventures with both state-owned and private capital.
In this contract signing, the mechanism advantages of Xiaokang shares will be combined with the resource advantages of Dongfeng company to give full play to the synergy and long board effect. This can not only achieve better resource integration, overall coordination and management, but also promote better through joint development, sharing platform, procurement collaboration, new energy vehicle field collaboration and marketing collaboration