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BAIC Group and Guangzhou Zengcheng People's Government, Guangzhou Jingye Investment Company, and Zengcheng Public Assets Management Co., Ltd. jointly signed the Beiqi South China Base Project Cooperation Agreement in Guangzhou. BAIC Group acquired all the stock assets of Guangzhou Baolong Group Light Vehicle Manufacturing Co., Ltd. (hereinafter referred to as â€œGuangzhou Baolong Light & Gasâ€) in a restructured way, and established the South China Base in the form of a wholly-owned subsidiary. The base was settled in Zengcheng, Guangzhou.
The signing ceremony was attended by Zhang Guangning, Secretary of the Guangzhou Municipal Party Committee; Zhang Guifang, Chairman of the Municipal Peopleâ€™s Congress; Lin Yuanhe, Chairman of the Municipal People's Congress; Zhang Xiaoyun, Executive Vice President of the China Machinery Industry Federation; and relevant leaders of the National Development and Reform Commission, Beijing and Guangzhou. This is also enough to explain the strategic significance of Beiqi Zengcheng project.
In recent years, after continuous efforts, Guangzhou has achieved the development of passenger cars, trucks, special vehicles and parts and components. Last year, Guangzhou City further increased its support for the automotive industry, achieving an output value of 225 billion yuan for the automotive industry and 1.1 million cars for the year. Gan Xin, deputy mayor of Guangzhou, said that the completion of the overall project of Beiqi Holdings South China Base in Zengcheng will help promote the city's overall demand for a production base with an industrial output value exceeding 100 million yuan.
Zengcheng Municipal Party Committee Secretary Xu Zhiyu said that Beiqi's own brand project was the first major backbone project after Zengcheng was promoted as a national industrial park, and it played a pioneering role in Guangzhou's eastward strategy, making Zengcheng an important front for the strategy of the eastern part of Guangzhou.
Occupy the strategic location of the Quartet Beiqi accelerates its national layout
According to the plan, BAIC Group will build a South China base for the production and export of BAIC's own-brand passenger cars based on the reorganization of Guangzhou Baolong Light & Gas. Beiqi Huanan Base plans to establish two vehicle factories in phased construction. The first plant will be rebuilt and expanded to an annual production capacity of 100,000 vehicles on the basis of Guangzhou Baolong's existing plant, and the second plant will have a planned production capacity of 200,000 vehicles per year. The total investment of the project is 5 billion yuan. After the two-phase production capacity reaches 300,000 units, it is estimated that the annual sales revenue will be 20 billion yuan, and the entire vehicle and parts and components can realize an output value of approximately 80 billion yuan, which will drive the rapid development of the related automobile service industry.
More than ten days ago, Beijing Automotive Group and Chongqing Yinxiang Industrial Group signed a strategic cooperation framework agreement. Both parties will establish a joint venture company in Chongqing, a major city in southwest China, to produce complete vehicles. Together with Hunan Zhuzhou Base, which will be available at the end of this year, and the upcoming self-developed passenger car production and research and development base in Beijing Shunyi Automobile City, Beiqi Group will have four projects in South China, South China, Southwest China and North China. Azimuth completes the strategic layout of its own brand of passenger cars.
The reason why BAIC pursues scale expansion is because the state encourages the domestic auto industry to carry out structural adjustments and mergers and reorganizations to form several large auto groups and support them from the policy. Beiqi, which is currently the fifth largest in the industry, needs to seize this. Opportunities will strive to enter the â€œnational teamâ€; on the other hand, from their own development needs also need to improve the competitiveness of the system, establish a rational distribution of industrial clusters, from the supply of spare parts, product launch, market differentiation, logistics and distribution and other fields of implementation of the group Construction and management will help reduce costs and improve resistance to risks, thereby enhancing BAIC's overall strength and competitiveness.
Create a domestic merger and reorganization of classic cases
The reorganized Guangzhou Baolong Group Light Vehicle Manufacturing Co., Ltd. is a privately-owned limited liability company whose registered place and production place are in Zengcheng City. It has the legal and effective qualification for R&D, production, sales, and service of 6-head automobiles. BAIC Group reorganized all resources of Baolong Light & Gas without any historical problems, including Baolong Light & Gas's equity, land, plant, equipment, qualification, and vehicle product announcements, etc., and obtained local government policies, land, Funding support, creating a domestic merger and reorganization of the automotive industry, "to attract large numbers, to avoid disadvantages," a model.
In terms of industrial policy, BAIC's acquisition of Baolong is in line with the auto industryâ€™s policy of â€œAccelerating structural adjustment, accelerating mergers and acquisitions, and improving independent innovation capabilities.â€ This not only helps BAIC rapidly become a large internationally competitive company. Automobile Group is also conducive to revitalizing stock assets and promoting regional economic development.
The Zengcheng City where Guangzhou Baolong Light & Gas Co., Ltd. has unique geographical advantages and industrial advantages. Not only enjoy all the preferential policies of the national economic and technological development zone, but also from the geographical point of view, Zengcheng has Honda in the east, Toyota in the south, and Nissan in the north. It is located at the intersection of the three major automotive industry sectors and the Guangzhou-Shenzhen (Shenzhen) economy. The middle part of the belt has an industrial base that is quite attractive.
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