Chinese State-Owned Automakers Dongfeng Motor Corporation and Changan Automobile Announce Restructuring Plans
Beijing (Gasgoo)- On the evening of February 9, two major Chinese state-owned automakers, Dongfeng Motor Corporation and Changan Automobile, revealed plans for restructuring initiatives with other state-owned enterprises (SOEs).
Photo credit: Changan Automobile
Dongfeng Motor Co., Ltd. disclosed that its parent company, Dongfeng Motor Corporation, is in talks for a restructuring with another SOE that could alter its ownership structure without impacting its day-to-day operations.
Photo credit: Dongfeng Motor
Similarly, Chongqing Changan Automobile Co., Ltd. also announced that its parent company, China South Industries Group Corporation, is exploring restructuring opportunities with other SOEs.
These strategic moves are in line with recent reforms in China’s state-owned automotive sector.
In response to the growing competition in the new energy vehicle (NEV) sector from companies like Tesla and BYD, the State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC) introduced new performance evaluations for central automotive SOEs. These evaluations focus on technology, market share, and future development.
During the China EV100 Forum in March 2024, SASAC Vice Director Gou Ping highlighted the importance of promoting high-quality mergers, acquisitions, and specialized integration among SOEs to enhance core resources and technological capabilities.
The restructuring efforts aim to optimize industrial layouts, enhance operational efficiency, and improve resource allocation to boost the competitiveness of state-owned automakers in the dynamic automotive industry.
