After experiencing Shaanxi Automobile, Asian Star Bus, and German Man Company, the dream of the giant engine maker Weichai Power is expected to be realized in Chongqing. On March 2, 2010, the reporter learned from the informed sources that Shandong Weichai Power will invest 800 million yuan in Jiangjin to build a 5000 passenger car plant with annual production capacity. At present, Weichai is negotiating with Chongqing Municipality to acquire Chongqing Chuanjiang Automobile, which has been losing money, in order to obtain vehicle production qualification.
Weichai wants to acquire Chuanjiang Automobile
“Weichai Power took a peek at the Chuanjiang Motor Company in Jiangjin Baisha and hoped that it would obtain a passenger car production catalogue in Chuanjiang through backdoor and realize its dream of making cars for many years.†Yesterday morning, an informed source familiar with the project revealed.
Many people don't know Chuanjiang Automobile. It is understood that Sichuan Jiangjiang Automobile Co., Ltd. is known as Chongqing Chuanjiang Vehicle Manufacturing Co., Ltd., located in Jiangjin Baisha, Chongqing, and mainly produces vans, dump trucks, traction cars, medium and light buses and sleeper buses. Chuanjiang Automobile is also well-known in the southwestern region and has produced and sold nearly 10,000 vehicles in its glorious period. However, in recent years, due to poor management and fierce competition in the commercial vehicle market, it has been heavily indebted and was hosted by the Jiangjin government.
Informed sources said that in the key projects of the Chongqing automobile industry chain in 2010, Changan Ford Mazda's expansion technology, Chang'an Suzuki No. 2 Plant and Weichai Automobile Plant project will be included. “Shandong Weichai had a factory in Jiangjin, and it was a matchmaking by senior leaders of the municipal government. Therefore, Weichai and Sichuan River were 'good'.†The person familiar with the matter said that the negotiations on Weichai’s acquisition of Chuanjiang had already been conducted. In the past half year, the negotiation process has been complicated and tortuous. Recently, there has been breakthrough progress. The final result should be achieved in 2010. “At the upcoming Jilu Economic Cooperation Summit, it should be a node.â€
In the afternoon of March 2nd, the reporter tried to contact Ding Lixin, the supervisor of Shangchai Diesel Engine Co., Ltd. to verify the matter, but his office staff informed: “Dai always had a business trip. I don’t know what you are asking. If there is any, let’s wait for an announcement.†However, an official who declined to be named in the Jiangjin District Economy and Information Technology Committee affirmed: “The incident is definitely right. However, Weichai is a listed company. Therefore, the announcement shall prevail.â€
Plans to invest 800 million yuan to build a new base in Jiangjin
The reporter has compiled a "Chongqing Key Industry Development Planning and Industry Chain Project Planning Research Report" recently edited by the Chongqing Municipal Economic and Information Commission and found some information about Weichai's entry into the market. In accordance with the plan of Chongqing Municipality, Weichai will complete a total investment of 800 million yuan in the Weichai vehicle project, improve the supporting system, and build a 30 billion-class commercial vehicle industry chain. It is reported that the initial capacity of the Weichai vehicle project is designed to be 5,000 vehicles, and the estimated new output value is 3 billion yuan. The person familiar with the matter said that the government of Jiangjin District has already started a project named "Weichai and Chuanjiang Automobile Cooperative Project Earthwork Square" at Desen Industrial Park. The total excavation volume of the project is about 3.5 million cubic meters, and the bidder is Chongqing. City Desen Industrial Park Construction Co., Ltd. The factory start date is expected to be on Labor Day 2010, including factory buildings, office buildings, etc., and is scheduled to be completed by the end of 2012.
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Chuanjiang Motor is the most valuable "license"
Since Weichai Power formally broke away with China National Heavy Duty Truck in 2006, China National Heavy Duty Truck has been trying hard to strengthen its engine segment, and Weichai Power has never given up the dream of getting into vehicle manufacturing.
In June 2007, Weichai Power had increased the capital of 416 million yuan in Shaanxi Zhongqi, trying to control Shaanxi Automobile to enter the vehicle field, but was blocked by Shaanxi Automobile, which sought to be listed as a whole. Afterwards, Weichai again ties up with the world heavy truck giant German Manger and announced that it will form a joint venture with Man. However, this “sweet dream†was quickly intervened by old rival Sinotruk. German Man announced in July 2009 that it spent 6.048 billion euros to buy shares. China National Heavy Duty Truck became the second largest shareholder, and WeiChai's dream of car also failed to materialize. During this period, there was also an obituary scandal involving Weichai and Zhejiang Yaxing buses, but no results.
“From the point of view of Weichai's strength, the Suqian River car is the only one in the eyes of Weichai. The most valuable one is the car production catalogue he owns. Weichai’s dream of making cars for many years may be in 2010. Chongqing achieved."
View related topics: Weichai Power: Expanding Auto Parts Gold Industry Chain
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