Weichai Power 20 percent off the bottom of the first overseas shot rifle

Weichai Power 20 percent off the bottom of the first overseas shot rifle

When everyone is concerned about the overseas vehicle assets of Bargain-hunting Overseas, few people are concerned that the acquisition of parts and components is going up. It is not the Chery Automobile, Geely Automobile, and Changan Automobile that have made the most out of this round of overseas hunters. Instead, it is a commercial vehicle company in Shandong, Weichai Power Co., Ltd.

Compared with several large-scale car companies, Weichai Power Co., Ltd. appears to be very calm about the acquisition, and it has nothing to hide.

Weichai Power openly acknowledged the idea of ​​acquisition and put it into action. Through candid Weichai power, we can clearly see his ideas - through the acquisition of overseas core components technology, in order to enhance the Weichai Power's own technical capabilities, so that the product extends to the high-end.

Weichai fancy the French spare parts company

Weichai's power phase includes European automotive technology. The two companies that were tainted and confirmed by Weichai Power were French auto parts companies. One is GM’s auto parts manufacturing plant in Strasbourg, France (GM has finally found a Chinese wealthy to come to the table) and the other is French MOTEURS BAUDOUIN. (This has already been done)

First, buy 20 percent off French powertrain company

Shandong people are really refreshing, quietly, have long been to start. For example, the Baudouin company in France has already become the “food” of Weichai Power. And the price is quite cheap, equivalent to two fold.

Weichai Power stated that on January 23, 2009, Weichai Power (Hong Kong) International Development Co., Ltd., a subsidiary of the Company, obtained the assets of French MOTEURS BAUDOUIN Co., Ltd. (abbreviation: Baudouin) through auction. With a price of 2.99 million euros, Baudouin’s book value is approximately 13.8177 million euros.

(According to the book, this is an economical business. Baudouin is equivalent to a two-fold sale.)

Although Weichai Power stated that it has not yet signed an asset transfer contract, the acquisition project is performing related administrative approval procedures. (However, according to normal procedures, especially under the current big ideas of encouraging acquisitions and upgrades, the possibility of approval of this acquisition is more likely.)

In fact, Baudouin company is still a well-known 100-year enterprise, located in the famous French province of Prosvence. With a registered capital of 3.55 million Euros, it specializes in the design, development and sales of engines and drive assemblies. The main products include engines, gearboxes, propeller shafts and propellers.

Second, the GM's gearbox technology in phase!

Weichai Power stated that after verification, the company’s subsidiary Weichai Power (Hong Kong) International Development Co., Ltd. and General Motors had initial contact with an auto parts manufacturing plant in Strasbourg, France, in December 2008. . The two sides conducted preliminary discussions and research on the possibility of cooperation in technology, products and other aspects.

Although Weichai Power denied that “the company’s shareholders had contacted the acquisition” and did not recognize “intention to reach an agreement and agreement,” it stated that “the company has not entered the relevant decision-making and review procedures regarding the acquisition.”

However, people with discerning eyes knew that there was a play. This is GM's profitable assets. The French branch mainly produces gearboxes with few employees (1200 employees in Strasbourg, 175 technicians and engineers). Even in this downturn in 2008, the GM’s factory in France still earned 44.4 million euros.

General Motors has been selling this French factory for a long time. Since August 2008, it has issued hero stickers, but there are few responders. Weichai Power is one of the few people who has been passed on to the "Smack." (No wind, no waves, can you see that this wave is real?)

Weichai eat leopard gall?

According to the current progress, Weichai Power will be the first Chinese auto company to acquire overseas assets during this round of financial crisis. What made Weichai Power so bold, did he eat leopard gall?

In fact, if we look at the history of Weichai Power, this seems to be an inevitable move!

As we all know, Weichai Power or Weichai Group is originally a product of the integration of capital and assets. It reorganized the Hunan Torch and its subsidiary Shaanxi Zhongqi, and acquired the Hunan Torch to enter the securities market.

In a short span of ten years, Weichai Group transformed itself from a small local company into the second largest heavy truck company in China. From 1998 to 2008, the Weichai Group's annual sales revenue increased from 500 million yuan to 50 billion yuan, and its total assets increased from 1.5 billion yuan to 31.8 billion yuan. The annual export earnings increased from 20 million US dollars to 800 million U.S. dollars. Production and sales volume increased from 2.03 million kilowatts to 70 million kilowatts.

Despite the rapid development, Weichai still has its own short legs. Although externally declared that: the formation of a gold industry chain, enhance the company's ability to resist risks. In this golden industrial chain, the powertrain resources formed by Weichai Power Engine, Fast Transmission, and Shaanxi Hande Axle were gathered. Weichai Group became the only group in the world with a complete powertrain system. However, people in the industry all know that the powertrain technology in China is lower than overseas, and is particularly lower than the European heavy truck group. Relying on the gradual research and catch-up in China, the technological gap in these decades is obviously not feasible.

What's more, Weichai Group is anxious. He can't wait for such a long time. According to the plan, in the next five years of development, Weichai Group plans to exceed 100 billion yuan in sales revenue, and ultimately rank among the world's top 500 companies. (And now, Weichai Group is only 50 billion yuan, which is to double, which is easier said than in the heavy truck segment market. It is impossible to rely solely on the Chinese market.)

How to do? Weichai Group can only go out. We must not go only to the low end, we must not only take the traditional low-end price competition route, and must compete with the world's mid-to-high-end heavy trucks. According to the current technology, it is obviously not feasible. Therefore, we can only take this quick route to acquire advanced technology from overseas.

As stated by Weichai Power, the company will acquire Baudouin's products, technologies and brands in the future, promote the company to further explore foreign markets, draw on the experience in product development and technology management with global positioning, expand the company's product range, and promote Collaborative development of the business.

Go slowly. Anyway, the forerunner, Wanxiang Group, has made a good start. In the last century, it acquired a US parts and components company and eventually achieved its initial dream through overseas sales channels.