Suzuki Accelerates Investment Changan Suzuki Changhe Suzuki Expansion Competition


Reporter Tao Chunyu, an intern reporter, Song Xiangbo, reported that Changan Suzuki will increase its production capacity by doubling its capacity in 2007 to reach 200,000 units. It will add 800 million yuan to Changhe Suzuki to build a production line with an annual production capacity of 100,000 units. Plan to build Changan Suzuki's second factory. All this shows that Suzuki has accelerated its investment in China. In this competition, the biggest winner will be Suzuki Japan. Two Suzuki Japan brothers in China are embarking on an expansion competition. On October 26, Changhe Co., Ltd. (Jiangxi Changhe Automobile Co., Ltd., 600372) issued an announcement that the company will join the Japanese company Suzuki in a joint venture company Changhe Suzuki to increase capital of 800 million yuan to expand the production scale of Changhe Automobile. Changan executives revealed that three days after Changhe Suzuki’s announcement, Chang’an Group and Chang’an Suzuki’s chairman Yin Jiaxu negotiated with the senior executive of Chang’an Suzuki to build a second plant of Chang’an Suzuki with an annual output of 200,000 units, which will enable Chang’an Suzuki’s production capacity to reach more than 400,000 units. . In this competition, the biggest winner will be Suzuki Japan. Changhe Suzuki challenges Changan Suzuki? Changhe shares announced that Japan Suzuki invested 392 million yuan, Japan Suzuki agents invested 80 million yuan, and Changhe invested 328 million yuan. On the 29th, the staff of the Changhe Stocks Securities Department said in a telephone interview with the reporter that after the capital increase, Changhe Suzuki will establish a Jiujiang branch to build a production line with an annual output of 300,000 cars, of which 100,000 will be planned for the first phase of the project. car. The production line will be newly introduced from Suzuki Corporation of Japan, and the first car will be sold offline in 2005. According to reports, this car is the Suzuki Liana debuted this year at the Beijing International Auto Show. In addition, the production line will introduce another Japanese Suzuki model next year. Dong Jianhua, a Southwest Securities researcher who has a deeper understanding of the automotive industry, believes that the introduction of cars is significant for Changhe and Suzuki. Previously, Changhe Suzuki introduced Suzuki mini-vehicles. Changhe Automobile, which had always hoped to enter the car industry, first produced the “Big Dipper” with Suzuki’s technology. Last year, it also developed and produced “Edil”. Although both cars have the concept of a car, they are not real cars. Within two years of the domestic blow-out of the car market, Changhe Co., Ltd., because it did not have real car products, suffered a large decline in sales, and its profits shrank dramatically. Changhe’s first three quarterly report shows that it suffered losses in the third quarter in the first quarter and the second quarter of low profit. A huge amount of capital increase Changhe Suzuki, the purpose is obviously hope to introduce cars, improve performance. Changhe’s replenishment has caused speculation in the industry. According to the industry’s prevailing arguments, the basic layout of Suzuki in China is that Changan Suzuki mainly produces cars, and Changhe Suzuki mainly produces small commercial vehicles such as mini vehicles and SUVs. Now that Japan's Suzuki and Changhe have increased capital to establish a sedan production line, the introduction of sedans means that in the strategic layout of Suzuki of Japan, the planning of the sedan project began to tilt towards Changhe Suzuki? Tung Chee-hwa said that it cannot be so simply considered. Before adding capital to Changhe Suzuki, Japan Suzuki has increased its capital to Changan Suzuki by 800 million yuan and plans to expand its capacity from 100,000 last year to 200,000. Moreover, the new car introduced by Changhe Suzuki is a car that has been produced in Japan; Changan Suzuki's introduction of a car since 2005 is a new car that is being launched globally. Changan Automobile is also an important partner of Japan Suzuki in China. Suzuki Suzuki’s capital increase in Changhe Suzuki can be understood as the fact that Suzuki has increased the weight of Changhe Suzuki in China on the basis of its good cooperation with Changan Automobile. Changan Suzuki’s second plant was built to allow Japan Suzuki to expand its joint venture with Changhe because of a joint venture with Ford. This time Suzuki in Japan added capital to Changhe again, which naturally caused Chang'an to attach great importance. Changhe Co., Ltd. just announced that soon, Changan Group negotiated the construction of Changan Suzuki's second plant. Although Changan Suzuki's top leaders claimed that this was not related to Changhe's announcement, it still made people feel that Changan did not want Changhe to take away Suzuki from Japan. Pamper yourself. Chang Zhen, Suzuki’s deputy general manager in charge of sales, said in an interview with reporters on October 29 that Chang’an Suzuki’s expansion production line will be completed next year. From 2005 to 2007, Changan Suzuki introduced a new car every year from Suzuki, Japan. These new cars will be synchronized with the world and will be listed in the world in the order of Japan, China, Europe and India. This fully reflects that Suzuki has placed great hopes on Changan Suzuki. Li Zhenhuan said that the appetites of the Chinese people who are preparing to buy cars are relatively high now. It is not a globally synchronized model. I am afraid it will be difficult to meet their expectations. Allegedly, these new cars have internationally popular fashion styling, and they all have their own unique features in terms of safety, economy and environmental performance. With the introduction of three new models, Changan Suzuki’s production and sales volume will reach 200,000 by 2007. At the same time, Changan Suzuki is preparing to build a second factory. “Yin Dong wants us to come up with the idea of ​​building a second factory and then exchange opinions with the high-level Japanese Suzuki.” Li Zhen said. According to the plan, by about 2008, Changan Suzuki's second plant was completed and put into production. In the future, Changan Suzuki will introduce a new globally-equivalent vehicle from Suzuki, Japan, which will be produced in the second factory. After 2008, Changan Suzuki's existing plant will improve the three new models that have been introduced. It is initially envisaged that the capacity of Changan Suzuki's second plant will be 200,000. In the future, Changan Suzuki will produce 400,000 to 500,000 vehicles in China. In fact, Changan Suzuki, which has always been low-key, has launched a series of public relations activities since September this year for the launch of new cars next year and for future expansion. On September 8, Changan Suzuki announced in Beijing that it had recalled 157,000 Chang'an Alto cars due to the "Tube liners may cause the tubing to wear out." At the press conference, Li Zhenyun, deputy general manager of Changan Suzuki’s new marketing, made his debut. At that time, industry insiders said that Changan Suzuki’s recall was actually paving the way for the company’s new strategy to be officially launched, as well as for the new car swift (Swift) that will be listed next year. Suzuki China has begun to exert its power in China. Japan Suzuki feels low-key and develops slowly. In 1993, Suzuki established Changan Suzuki, a joint venture company with Changan Group. In 1995, Alto was listed on the market and the antelope was listed in 2000. Changan Suzuki has been established for more than 10 years, but only two models are launched in the Chinese market. In April 2001, Changan Group announced a joint venture with Ford to give Suzuki a great stimulus. While protesting against Changan, in 2001, Suzuki began to reduce its holdings of Changan B shares in order to exert pressure on Changan. In the same year, Suzuki Motor Co., Ltd. President Suzuki also reached an agreement with Changhe’s direct competitor Changhe Group to expand its cooperation with Changhe. Joint venture scope, while introducing more models. However, Changhe Suzuki's market performance was not satisfactory after the introduction of the Big Dipper and self-developed ADL. Japan’s Suzuki’s prudent investment attitude in China made it miss the blowout of the Chinese auto market for two years. Moreover, its competitors in China have begun to increase investment in China, Japan Suzuki finally sit and ready to send force. Capitalizing on Changan Suzuki, it will strive to double its production capacity in 2007 to 200,000 units. It will add 800 million yuan to Changhe Suzuki to build a production line with an annual production capacity of 100,000 units. Plan to build Changan Suzuki's second factory. All this shows that Suzuki has accelerated its investment in China. It is reported that Changan Suzuki will build a second factory. In August this year, Yin Jiaxu and Li Zhenlu had a very big relationship with Japan in the friendly meeting with Suzuki. On September 16, Chang’an CM8 new car listing news conference, Yin Jiaxu said with pride: “Chang'an took its own brand, independent intellectual property rights road, not only not to be blamed by partners, but to allow them to respect us more. In August of this year When we met with Suzuki in Japan, the original time was three hours and we were very glad to talk about it. After the meal, we went on two more hours. When I took pictures, I said to Suzuki, in order to show respect. We photographed under the Japanese flag. But he said no, or take pictures under your Chinese flag." From this we can see that the relationship between Changan and Suzuki has once again become closer. Some analysts said that the real reason for Suzuki and Changan to abandon the predecessors, the relationship has improved greatly because of Chang'an good momentum of development in recent years. In the first half of this year, sales of Chang'an Group entered the top three in the automotive industry, subverting the traditional pattern of the automotive industry. Although Changan Suzuki has only two models, it is currently operating at full capacity. "The sales volume reached 100,000 last year and this year it can ensure sales of 110,000 units," said Li Zhen. Chang'an Suzuki's sales have steadily increased. In 2002 and 2003, it ranked second in domestic economy car sales for two consecutive years. The benefits of Changan Suzuki are far better than Changhe Suzuki. As a businessman, Suzuki Xiu naturally understands the principle of "no eternal friends, only eternal interests." Chang'an’s strength and Chang’an Suzuki brought huge profits to it, which naturally matched Suzuki’s need to accelerate investment strategies in China. Li Zhenyun also revealed that in the future, Japan Suzuki will have more strategic adjustments in China, and Suzuki (China) Investment Company is under intense preparation for construction and will be listed in Beijing this year. According to industry analysts, the establishment of a Chinese investment company is a sign of Suzuki's move from behind the scenes to the stage. Japan Suzuki may use investment companies to start integrating China’s investment and fully intervene in key areas such as joint venture sales. Suzuki is preparing to exhibit in China.

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