Chapter 781 Xiang Torch
In the same year, Xiang Torch and Shaanxi Automobile Gear Factory jointly established Shaanxi Fast Gear Co., Ltd., Xiang Torch invested 131 million in cash, and Shaanxi Automobile Gear Factory invested 1.26 million in physical goods. 100 million.
Xiang Torch holds 51% of the shares, and Shaanxi Automobile Gear holds 49% of the shares.
Soon after that, it acquired Zuanjiang Gear Factory and Zhuzhou Gear Factory, becoming a major player in the field of heavy-duty gearboxes in China.
Occupies more than half of the country's heavy truck transmission field.
Also in the same year, Xiang Torch and Qianjiang Group jointly established Zhejiang Wenling Longjiang Machinery Manufacturing Co., Ltd., with Xiang Torch investing 30 million and accounting for 60% of the shares.
In other words, Delong has extended its influence to the field of motorcycle manufacturing.
After this series of actions, Xianghuo Torch’s share in the auto parts field is getting larger and larger.
But.
Old Tang soon told everyone with practical actions.
My energy is beyond your imagination.
Just after the Spring Festival in 2002, Hunan Torch invested 37 million to join four companies, including Mudanjiang Huatong Auto Parts and Fuao Auto Parts, to jointly establish Mudanjiang Futong Automotive Air Conditioning Company, which was to enter the vehicle air conditioning industry. .
Once again expanding the business margins of Hunan Torch.
With investing step by step.
Lao Tang’s ambition to enter the vehicle field can no longer be hidden.
Hot man, here he comes!
In July 2002, Hunan Torch invested more than 36 million yuan in Dongfeng Motor to jointly establish Dongfeng Off-Road Vehicle Company, and held 60% of the shares.
What needs to be mentioned here is that this Dongfeng off-road vehicle company finally produced a famous military vehicle-Dongfeng Warrior.
It is a pity that Delong has gone bankrupt at that time, and Dongfeng Off-Road Vehicle became a wholly-owned subsidiary of Dongfeng.
Back to the topic.
If we say, Dongfeng Off-Road Vehicle Company is just Delong's small trial in the field of complete vehicles.
Then the next operation is the real highlight.
In September of the same year, Xiang Torch and Shaanxi Automobile Group jointly established Shaanxi Heavy Duty Truck Company with a registered capital of 490 million yuan. Xiang Torch invested 250 million yuan, accounting for 51% of the shares.
Once the news was announced, it instantly shocked the industry.
Before everyone digested this shocking news.
Duang, Duang, Old Tang gave everyone another brick.
At the end of 2002, Hunan Torch announced that it had signed a contract with Chongqing Heavy Duty Truck Group, and both parties jointly established Chongqing Hongyan Automobile Company with a registered capital of 500 million Huaxia coins.
Xiang Torch provided 255 million in cash, accounting for 51% of the joint venture shares.
The news swept through the Chinese business community like a hurricane, and even had a certain impact on the global heavy truck industry.
Why is it so influential?
This starts with China’s heavy truck pattern.
At present, China's heavy truck industry is roughly divided into three major sectors.
The first sector: FAW and Dongfeng sectors. The two companies respectively account for more than 30% of the national heavy truck production and sales.
The second section: Qilu Heavy Duty Truck, Beiqi Foton, Shaanxi Automobile, Chongqing Hongyan.
The four companies, plus FAW and Dongfeng, are the six major players in the country's heavy truck field. Each company's annual output of heavy trucks exceeds 10,000.
The four companies together account for about 22% of the national heavy truck production and sales market.
The third section: Northern Benz, Modu Huizhong, Suzhou Chunlan, Sany Heavy Industry, JAC, etc.
Although the third segment is numerous, its total share in the national heavy truck market is less than 10%.
However, with the continuous opening of China National Heavy Duty Truck market, the heavy truck industry chain has become more and more complete, and competition has become increasingly fierce.
The share of FAW and Dongfeng segments is showing a downward trend, and the second and third segments are rising day by day.
in addition.
As far as heavy-duty vehicles are concerned, there are three tonnage segments:
8-12 tons, which is the strong area of FAW Jiefang and Second Automobile Dongfeng. In this tonnage segment, the two companies account for the entire market More than 95%.
The characteristics of the products in this tonnage segment are: economical heavy trucks.
Most of these products jump from medium-sized cars, and the base is very large.
12-15 tons, this bidding section is a highly competitive section and is also a concentrated section for many manufacturers in the heavy truck field.
Above 15 tons is still the concentrated segment of the three Steyr companies. Shaanxi Automobile, Quancheng Heavy Duty Truck and Chongqing Hongyan have the unquestionable advantage.
Now Delong has acquired Shaanxi Automobile and Chongqing Hongyan, directly occupying 53.8% of the market share of heavy trucks above 15 tons.
Moreover, Shaanxi Automobile is also the only designated unit of Huaxia military vehicles, occupying 95% of the military vehicle market.
After taking control of Shaanxi Automobile and Hongyan, Hunan Torch directly became second only to FAW and Dongfeng with a 12% heavy truck market share.
More importantly.
Xianghuo Torch is not just the ‘Tanhua Lang’ in the field of heavy trucks.
He also controls a golden power chain of 'Xiangli engine + Fast gear + Hande axle'.
Every veteran driver knows: the car, cabin, and bridge are the key assemblies of a car.
Through continuous mergers and acquisitions and development, Xianghuo Torch owns China’s largest gearbox company ‘Fast’ and the top axle manufacturer ‘Hande Axle’.
Although Xiangli Engine is far inferior to Weichai, it is still a second-tier manufacturer.
It can be said that in the field of Chinese heavy trucks, except for FAW, Dongfeng, Quancheng Heavy Duty Truck and Foton, other truck companies basically have to look at the face of Hunan Torch.
Even these four companies have to buy accessories from Hunan Torch.
Through this series of mergers and acquisitions.
In 2003, it owned more than 30 complete vehicle and parts companies including Shaanxi Heavy Duty Truck, Chongqing Hongyan, Dongfeng Off-Road Vehicle Co., Ltd., Fast Gear, Zhuge Gear, Qi Gear, and Hande Axle. Hunan Torch’s sales revenue exceeded 10 billion Huaxia coins.
There are only two companies in the entire Chinese automobile industry that can compare with Hunan Torch.
FAW and Dongfeng.
The revenue of the three companies is around 11 billion Huaxia coins, and the difference is not big.
It can be said that Hunan Torch is now undoubtedly the top three Chinese automobile giants. Hunan Torch is also the crown jewel of Delong Group’s industrial assets.
Dozens of companies, large and small, at home and abroad, are coveting this declining giant.
Xu Liang’s biggest target in acquiring Delong is also Hunan Torch.
To be honest, Xu Liang admires Old Tang very much.
No matter which industry Delong enters, his aim will always be number one.
The Big Three?
Hey tui.
Grandpa wants to be the boss!
So, after entering 2003, the expansion of Hunan Torch is still in full swing.
And it was a big deal right from the start.
Acquired 75% of the equity of China Aerospace Brilliance Automobile Co., Ltd. with 580 million Huaxia coins.
So who is this Aerospace Brilliance?
Why is hair so expensive?
Here we have to mention the arrogant enemy - French automobile giant Renault.
In the 1980s and 1990s, Volkswagen, which was the first to enter the Chinese market, made a lot of money here and was the envy of many of the world's automobile giants.
Honda, Toyota, General Motors and other automobile giants rushed in.
Renault is one of them.
In 1993, Sanjiang Aerospace Group, which produces light vehicles and heavy-duty off-road vehicles under the Wanshan and Jiangbei brands, established a joint venture with Renault to establish the Sanjiang Renault project in Xiaogan.
Introducing Renault "Tafik" luxury van and other series of models, the project has a total investment of US$98 million and an annual output of 40,000 light vehicles.
Renault's technical strength is no worse than that of the Germans, and the 'Tafik' is also a successful model in Europe. The entire cooperation looks bright.
But the proud Gallic Rooster is obviously far inferior to the Germans in terms of pragmatism.
They do not trust the quality of Huaxia Industries and have been unwilling to localize the industrial chain.
As a result, more than 75% of the parts of the Tafiq have to be transported thousands of miles from Renault's European factories.
High freight and labor costs keep the price of Tafik commercial vehicles high.
In comparison, the price of Brilliance’s ‘Sea Lion’ is only about 40,000 to 50,000 yuan.
Although it is not as good as the Tafik in terms of comfort and quality, the Hiace is undoubtedly more popular because it is sturdy, cheap and can be used for both passengers and cargo.
At its peak, 60,000 vehicles were sold a year.
In contrast, Sanjiang Renault, which sold 4,000 units in eight years, was reduced to rubbish.
The once golden phoenix has now become a grass chicken.
Sanjiang Group, as the controlling shareholder, also retreated.
It happened that at this time, Huachen, who was rapidly growing in strength, came to the ring with Sanjiang Renault.
One wants to sell and the other wants to buy.
The two sides hit it off immediately.
At the end of 2000, Brilliance reached an agreement with China Aerospace Science and Industry Group to restructure China Aerospace Automotive Industry Corporation, a subsidiary of China Science and Industry Group, into China Aerospace Brilliance Automobile Co., Ltd., with each party holding 50% of the shares. .
But the management rights are completely handed over to Brilliance.
From now on.
Reno’s mixed-race daughter became the ‘Chinese housewife’.
The Tafik model has also entered Brilliance's marketing channels.
But a mere Tafik model cannot even meet one-tenth of the 40,000-ton production capacity of the Sanjiang Renault project.
Brilliance, which is determined to be the boss of China's passenger cars, is certainly not willing to do this.
So we actively contacted Renault of France, hoping to improve the production line and produce Renault's 'Gango' model.
Renault, which is already optimistic about the Chinese market, is absolutely convinced.
After the last failure, Renault was no longer determined.
I readily agreed to localize the supply chain of Tafiq models.
A rich supply chain is Brilliance's strength, so Tafik directly cut the price by 60,000 yuan, causing a sensation and causing Tafik's hot sales in a short period of time.
At the same time, the transformation of the production line is also in full swing, and the introduction of the 'Ganguo' model has also come to an end.
Just when everything was looking bright, something happened to Brilliance.
Historical reasons.
At this time, many well-known companies were actually state-owned enterprises.
Lenovo, Haier, Midea, etc. are all like this.
When the reckless heroes started a business, most of them wanted to break free from the shackles of their superiors and become the boss themselves.
After all, human nature is selfish.
But the higher authorities are reluctant to give up the local pillar industry.
What if you run away?
Do I still need local employment and profits and taxes?
So, the dispute started.
Some people are smarter, have deep and well-connected people in the city, and finally succeed in restructuring the company and take the company into their own hands.
For example, Lenovo.
Some failed, and the founders were driven out of the company in despair.
For example, Brilliance.
There are others who will die together, such as Jianlibao.
After Brilliance founder Yang Rong was kicked out of Brilliance, everything he had done before was liquidated, including the Sanjiang Renault project.
With an order from the head office, all middle-level managers of Brilliance Renault based in Sanjiang began to withdraw, and Brilliance's restructuring of Sanjiang was completely interrupted.
(End of this chapter)