Guangzhou Auto buys 29% of Changfeng Auto

Changfeng Automobile, Guangzhou Auto | | May 20, 2009 at 10:07 pm

In the first auto merger of 2009, Guangzhou Auto has announced that it has bought 29% of Changfeng Auto earlier today.

Yesterday it was reported that Guangzhou maybe ready to take on upto 30% of Changfeng Auto, but the actual amount has come in at a slightly less 29%.  Hunan based Changfeng Auto are currently in the process of developing their own range of cars, including sedans, and compact SUV’s for the domestic market, it may have been this massive bargaining chip that aroused Guangzhou’s interests in the auto maker, this and their JV with Mitsubishi makes Changfeng an interesting buy.

As a result of this purchase, Guangzhou Auto is planning to postpone its planned IPO on the Chinese domestic stock market this year.

ash 010 web avatar Guangzhou Auto buys 29% of Changfeng Auto

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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1 Comment so far, why not add your thoughts as well?

  1. avatar jason says:
    May 20, 2009 at 11:52 pm

    china had too many automaker,too small and too weak,
    is right move to merger among them, Guangzhou auto is
    one of the best automaker in china, but their success
    is totally depend on the jv business, i hope that the buy
    of changfeng is to speed up the development of own brand car rather than as a chance to work with mitsubishi.

    Reply

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