The Chinese car manufacturers Dongfeng Motor and Chongqing Changan Automobile, according to a newspaper report, have advanced fusion negotiations. The two state -controlled companies had conducted detailed discussions about the merging of their business and informed their foreign partners about the merger talks. That reported The “New York Times” on Tuesday.
Possible billions
Dongfeng is worth 4.5 billion euros on the stock exchange, Changan Auto has a market capitalization of 14.5 billion euros after LSEG data.
Speculation about a merger of the two companies had already arisen in February After announcing that their parent companies were planning for restructuring. China his state car manufacturers are urging on technology, innovation and competitiveness more independent of foreign joint venture partners.
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.
Competition for BYD
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.