Changan Auto merge with AVIC's auto business

• Source: Global Times
• [14:18 November 10 2009]
• Comments

Changan Automobile Group Co. announced Tuesday that it will take over the auto-making operations of Aviation Industry Corporation of China (AVIC) to integrate into a new auto company, with the existing name Changan Automobile (Group) Co. Ltd (Chana).

As a Chinese automaker under China Ordance Equipment Group Corporation (COEGC), Chana's 23 percent stake owned by COEGC will be transferred to AVIC, the parent company of Harbin Hafei Automobile Industry Group, Changhe Automobile, Dongan Power, Changhe Suzuki and Dongan Mitsubishi.

COEGC will hold a 77 percent stake in Chana, and AVIC will take the remaining 23 percent, according to the restructuring plan.

This is the first merger between State-owned automakers this year. China aims to form two to three major automakers with production and sales capacities reaching 2 million units annually, and four to five companies producing over 1 million units from 2009 to 2011 through mergers and acquisitions.

Agencies and Shi Jierui contributed to this story