Goodbye, Chang’an PSA!

According to the website information of Shenzhen Municipal Bureau of market supervision, Chang’an Peugeot Citroen Automobile Co., Ltd. (hereinafter referred to as “Chang’an PSA”) has been changed to Shenzhen Baoneng Automobile Co., Ltd., which means that Chang’an PSA is officially renamed Baoneng Automobile Co., Ltd.
After the change, the investor was Baoneng Automobile Co., Ltd., a 100% wholly-owned subsidiary. Shenzhen Qianhai Ruizhi Investment Co., Ltd. (hereinafter referred to as “Qianhai Ruizhi”) changed from a joint venture to a sole proprietorship of Baoneng, and its legal representative was changed from Zhu Huarong to Sun Li, vice president of Baoneng Investment Group Co., Ltd. at the same time, all the main members of the new company were also updated to be members of Baoneng automobile department. As early as November 28, Chongqing Chang’an Automobile (10.420, 0.43, 4.30%) Co., Ltd. was listed on the Chongqing stock exchange group, selling 50% of the shares of CAPSA (Changan Peugeot Citroen). Subsequently, PSA group also announced to the outside world that it transferred another 50% equity of CAPSA. Now, DS, the only model brand of Chang’an PSA, has been officially taken over by Baoneng.
DS losing money all the way
According to public information, Chang’an PSA was jointly established by Chang’an Automobile and PSA in 2011, with a registered capital of 4 billion yuan and 50% equity respectively, and the cooperation period is 50 years. But until a year ago, the sale had been in the red.
According to the sales data, from 2016 to 2019, the sales volume of DS decreased year by year, which were 16123, 5800, 3867 and 2110 respectively. Poor sales have led to a decline in dealers. According to the information data released by Chang’an PSA, there are 211 dealers at most, and the number will be reduced to 75 by January 2020. According to the financial report, from 2013 to 2019, Chang’an PSA has accumulated losses of more than 4.9 billion yuan. In fact, Chang’an has made great efforts. At the beginning of 2018, Chang’an Automobile and PSA group also announced an increase of 1.8 billion yuan to Chang’an PSA, totaling 3.6 billion yuan, which did not make DS brand any better.
In terms of products, Chang’an PSA focuses on building high-end DS brand products, but its sales performance in China is poor, and its luxury brand attribute has not been recognized in China. Today’s DS brand is on the verge of delisting, and the continuous large loss of Chang’an PSA has exhausted the patience of both shareholders. It is reasonable to be eager to get rid of this hot potato.
Many factors are involved in the dissolution of Chang’an PSA joint venture and the decline of DS brand in China. “On the one hand, it entered the Chinese market late, the product positioning was not clear, and the brand recognition was low. Especially in terms of brand awareness, DS can’t be compared with Mercedes Benz and BMW, and can’t ‘sit and wait’ for consumers to discover themselves; on the other hand, excessive reliance on PSA group for technical resources and high price positioning are considered to be the main reasons for the sluggish sales of DS brand, and the low sales volume also leads to the continuous shrinkage of DS brand’s sales channels in China. “Relevant people in the industry have analyzed.
Baoneng group began to enter the automobile industry in 2017. At the end of the same year, Baoneng spent 6 billion yuan to acquire 51% equity of Guanzhi automobile from Chery.
Qianhai Ruizhi was established on July 31, 2017, with Baoneng automobile as the shareholder and Yao Zhenhua as the actual controller. After the change, Baoneng’s business mainly includes the R & D, production and sales of automobiles and their related engines, gearboxes, spare parts, tools and maintenance parts.
As for Guanzhi, Baoneng automobile will invest 10 billion yuan annually in new car research and development in the future according to the “Five Year Plan” to revitalize Guanzhi released in 2018. By 2022, Guanzhi will launch 26 new cars, including 18 traditional fuel vehicles and 8 new energy vehicles. But so far, the performance of Guanzhi automobile in the terminal market has not improved much. It is obvious that this acquisition of Chang’an PSA has its intention. Although Baoneng has many automobile projects in hand, it seems that it does not have such a mature and highly integrated factory as Chang’an PSA.
In addition to gaining the control right of Shenzhen factory and obtaining the complete set of automobile production qualification, the factory has kept pace with PSA group’s global standards from process to equipment, which is rare for buyers, especially for new car manufacturers.
According to Baoneng, the actual annual production capacity of Baoneng automobile is 350000, and the planned annual production capacity of Baoneng is 2.9 million. “Baoneng automobile will increase investment in R & D, technology, capital, talents and resources in Shenzhen manufacturing R & D base, and jointly create greater value for customers, industry and society. “Yao Zhenhua also said,” automobile is the core competitiveness of Baoneng in the next 20 years, and the goal is to make Baoneng automobile group into an automobile group with strong competitiveness and international influence in 10-15 years, with the goal that the automobile revenue will account for more than half of Baoneng group’s revenue by 2027 at the latest. ”
Perhaps the land that can be used by the high-end real estate companies is to get a lot of land for further use. It is understood that Chang’an PSA has three pieces of land, including vehicle, R & D and logistics, all of which are industrial land, with a total area of 1.37 million square meters and a vehicle land area of 996100 square meters. The built-up building area is 558100 square meters, and the remaining floor area of plot ratio is 736800 square meters. The land area of R & D center is 300000 square meters, with 47000 square meters of completed building area and 208000 square meters of remaining floor area Square meters; logistics land area of 700000 square meters, no construction. At present, Baoneng automobile factory is all over South China, East China and North China. So far, Baoneng has claimed that its total investment has reached 200 billion yuan in Guangzhou, Kunshan, Kunming, Guiyang and other places, with a total production capacity of nearly 3 million vehicles. It also makes people doubt the intention of enclosure.
In any case, Yao Zhenhua is one step closer to realizing his “car dream”. And can ambitious real estate tycoons settle down to create