In China the sixth largest car manufacturer in the world could be created. The state companies Changan and Dongfeng are about to merge, reports the “Frankfurter Allgemeine Zeitung”
With reference to local media. On Sunday, both companies had published corresponding mandatory notifications about a possible restructuring with other corporate groups of the central state, without naming other companies.
The Dongfeng shares skyrocketed by up to 85.8 percent on Monday and in the meantime reached the highest level since July 2022 with six Hong Kong dollars.
Within the People’s Republic, the two companies are already among the largest car manufacturers, but most recently fought with the increasing competition on the home market.
BYD still at the top
According to its own statements, Dongfeng sold around 2.5 million vehicles last year, while Changan came to almost 2.7 million. However, a significant share of these sales comes from joint ventures with international automobile manufacturers. Dongfeng works with among other things Nissan, Honda and Bangot-Citroën together, while Changan partnerships ford and Mazda maintains.
The merged company would get almost 5.2 million vehicles and would be the electric car manufacturer Byd, Currently the largest player China, rank. Internationally, the company, which would be subordinate to the Beijing central government, would line up directly behind the European Stellatis Group and immediately before Ford.
Both carmakers are still quite unknown outside of China, but Changan runs a design center in Munich, and a start of sales in Europe is to follow. Dongfeng has long been represented on the European market with his Voyah electric brand.