Guangzhou Auto buys coach maker for 1rmb

Guangzhou Auto | Ash | September 29, 2010 at 8:58 pm

China’s central government is eager to push consolidation on the burgening Chinese car industry, but Guangzhou Auto’s recent purchase of Guangzhou’s Yue Jiang Coach Company for a mere 1rmb.

According to information supplied, it appears that Yue Jiang Coaches has already gone bankrupt as of 2008 and no longer has the ability to produce vehicles, however its assets are apparently 80 million RMB, net assets are worth over 86 million RMB.

Guangzhou Auto has recruited an asset management company to review Yue Jiang’s accounts and look over Yue Jiang’s debt of 120 million RMB. Although Guangzhou Auto has taken over the company, Yue Jiang will still be permitted to carry out its own R&D for a period of 3 years.

It is unclear what Guangzhou Auto are eager to become a coach maker, however both Chery and BYD have recently announced their plans for pure electric or hybrid coach technology, it could be that Guangzhou Auto are eager to play catch up with their neighbours.

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.