Weichai Power intends to acquire GM's auto parts manufacturing plant in Strasbourg, France. For this, the reporter asked the relevant person in charge of Weichai Power to verify that they did not understand the matter and declined to comment on it.
At present, GM has lost tens of billions of dollars and how its assets will be handled has received attention from all walks of life. According to Agence France-Presse, GM’s subsidiary in France produces gearboxes. In addition to 1,200 employees in Strasbourg, it employs 175 technicians and engineers. Last year’s profit reached 4440. Million euros. “The hungry camel is better than Marthaâ€. The size of the company’s assets has caused many car manufacturers that have been caught in the economic crisis to back away. Since August 2008, when they started looking for acquirers, few people have been interested in it, but Weichai Power has Become the only "foreign company" interested in acquiring this company.
AFP reporter learned during the interview with Roland Robel, representative of the Federation of Labor Unions of the General Strasbourg branch that: "At the end of February this year, the purchaser will provide acceptable conditions to the manufacturer."
Weichai Power aims at overseas markets for a long time. In February 2007, Tan Xuguang, the head of Weichai Power, had an interest in Delphi Corporation’s North American portion of assets for bankruptcy protection and eventually lost nothing.
At the end of January this year, Weichai Power (Hong Kong) International Development Co., Ltd., a wholly-owned subsidiary of Weichai Power, invested 8 million euros in the Rhône Estuary Province of southern France and successfully acquired MOTEUR SBAUDOUIN (France) Co., Ltd. in France. The company produces high-power diesel engines used by the French Navy, which fills the gap in the production R&D technology of Weichai Power's high-power engines of 16 liters and above.
This time, Weichai Power also aimed at General Motors' branch factory in France. What exactly does this move mean?
Some people speculated that Weichai Power may have to set up factories overseas, but does Weichai Power have sufficient funds to support it? According to Zheng Xianling, chief mechanical researcher of CITIC Securities, “Chinese companies’ acquisition abroad does not have to be overseas. The establishment of factories is more about the technical advantages, brand advantages, and broad market network of Chinese and international companies."
She also said: "The current financial and economic crisis has caused a heavy blow to the U.S. economy, and the U.S. auto industry has been in crisis. At this time, it is a good time for Chinese companies to "buy the bottom" to carry out mergers and acquisitions. Of course, overseas acquisitions are in the overall strategic layout of the company. The next steps cannot be separated from the internationalization strategy that the company wants to achieve."
Market analysts analyze that there are many types of acquisitions that can be joint ventures, joint acquisitions, or transfer of equity. The most important thing is whether or not resources can be optimized. If the resources cannot be effectively integrated, such acquisitions will be "not worth the candle".
Another source said: "Wuxi Power's negotiations to acquire the general plant in Strasbourg will continue for several months. The results of the negotiations are still unknown."
Weichai Power has now become China's largest auto parts group from a single engine manufacturer. It has the largest scale, most complete product lines, and synergy effects in the areas of basic components such as powertrains, transmission systems, and axle systems. Good industrial clusters and strive to become a general power company with international competitive advantages.
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