China urges state-owned carmakers to merge

The Chinese government is interested in some of its state cars manufacturers merged, specifically those who have fought with the transition to electric vehicles and have not yet established a successful export program.

Gou Ping, vice president of the Council that supervises state assets, told the publications, including Nikkei, needs a strategic realignment of state car manufacturers in the country so that they can better spend the development and manufacture of money, as well as to address foreign markets.

Although he did not call any car manufacturer by name, it is widely understood that he referred to Changan, FAW and Dongfeng.

100s of new car offers are available through Caorexpert at this time. Get experts on your side and get a great offer. Navigate now.

Since 2017 Channan, FAW and Dongfong have been developing jointly EV and their associated technology. Changan and Dongfong published press statements in February of this year stating that “would restructure” with another unidentified state company, which leads to speculate that the two companies would soon merge.

Before the increase in the demand for electric vehicles, these three, together with SAIC, formed the “great four” of China, and all are state -owned.

Since the country re-rooted capitalism in the 1980s and 1990s, several regionally administered state companies have benefited from the rules that require foreign car manufacturers to have a co-equal local manufacturing partner to produce cars within China.

The first engines in the market, such as Volkswagen, Audi and Buick, obtained strong market shares. Recent advances in EV technology, and local design and engineering much improvements have seen companies crashed to public awareness and obtain significant sales both at home and abroad.

In particular, Byd has gone from a supplier of thin candles to demolish Volkswagen to become the best -selling brand of China in 2023. In 2024 he almost imposed on Tesla to the most popular EV brand title in the world.

While SAIC, through its MG and LDV/Maxus brands, has been able to mount the wave with competitive electric offers and success in export markets, Changan, Faw and Dongfong have not had so much luck.

Established in 1862 as a weapons manufacturer, Changan is prior to communist China for 87 years. Based in Chongqing, in the center of the country, the company did not immerse the foot in the automotive waters until the early 1980s, when it entered a joint company with Suzuki. That association was dissolved in 2018, but Changan continues to produce cars along with Ford and Mazda to this day.

Changan also produces cars under his own brand, as well as the Marques Deepal and Avat. Deepal was launched in Australia in 2024, and is currently expanding its network and range of distributors.

FAW, or First Automotive Works, was the first car manufacturer created by the communist government and is based in Changchun, about four hours by car from the North Korean border. In 1953, the car manufacturer initially concentrated on trucks, but towards the end of the 50s branched in passenger cars with the Hongqi brand.

Until the last decade, Hongqi has mainly created luxury vehicles for senior government officials, as well as for the events of the President and the State. Other brands administered by FAW include Besunne and Jiefang, and the company currently sells FAW trucks in Australia. FAW produces cars in alliance with Toyota and Volkswagen/Audi.

Dongfeng was founded in 1969 as a truck creator. In the 1990s, the Wuhan -based company began to follow joint companies with foreign brands. To this day, it maintains associations with Honda, Nissan and Peugeot-Citroen. He was previously a manufacturing partner for Kia and Renault.

It currently produces cars under its own brand, as well as Voyah and M-Hero.

Although the scope of the export of Dongfeng is limited, the company obtained some international fame in 2014 when the French government and the French government accumulated 800 million euros ($ 1.4 billion) to rescue PSA Peugeot-Citroen. For his efforts, Dongfeng obtained a 14.1 percent participation in the PSA. Since the fusion of PSA with Fiat Chrysler to form Stellantis in 2021, Dongfeng has gradually reduced his participation in the French-Iallian-American-American car manufacturer to about one percent.