A few days ago, some media reported that "Dongfeng Fuqi's marriage" or failed to rejoin the negotiations. Citing the insiders of Fuqi Group, “Fuzhou Automobile is not willing to be completely restructured by Dongfeng Motor. The previous reorganization was made by the government. However, in fact, Fuxin's own wish for independent development has not changed.â€
"Not willing to be" is a dissatisfaction with the "Fuzhou Dongfu" marriage. The non-performance of the parties since the signing of the cooperation agreement between the two sides also reflected that the parties concerned were gradually becoming indifferent to this matter, and the reorganization of Fuqi that had been tangled for many years was shelved again.
Dongfeng and Fuqi should not be "marriage" in the end. This is not a question of one-sidedness, but rather what people stand for. From the perspective of Fuqi, there is no doubt that Fuqi should be reorganized. The decline in the sales volume of Southeast Automotive led to the loss of Fuqi. Although Fuqi has been seeking external cooperation and has successively approached BAIC and Guangzhou Automobile, it has not become a reality in the end.
However, if we look at the needs of both parties, the desire for cooperation between the two sides is not so strong. The reorganization of Dongfeng and Fuqi is more like an "image project." This is precisely the situation that is often encountered in domestic mergers and acquisitions. The cooperation between Dongfeng and Fuqi is also playing such a role.
Similar to previous FAW annexation of Tianjin Automobile and Changan, the integration of AVIC Automotive, executive-led is still an important promoter of Dongfeng Fuqi reorganization. Although the government's support is very strong, this kind of "Lang-Lang-style" administrative cooperation may well cause the company to fall into a "lose-lose" situation.
Recalling the mergers and acquisitions of international auto giants, there are also cases of failure. Daimler’s acquisition of Chrysler, Ford’s acquisition of Volvo, and Volkswagen’s acquisition of Suzuki have all paid a terrible price. The growing domestic automobile enterprises should, in particular, be able to act with due diligence in the wave of mergers and reorganizations and make careful decisions.
In the final analysis, reorganization is only a means, not an end. Enterprises are concerned about whether mergers and reorganizations can bring benefits, and whether they are good for their own development. It can be said that the termination of "Dongfu Love" is not a bad thing. After all, government-led restructuring has not been an optimistic conclusion.
From the current perspective, Fuqi has not yet had enough products and capabilities to support its development. Therefore, the first thing Fuqi needs to do is still to fully open up the demand to find the right target, to match the market demand, and to achieve alliance integration across companies and regions across industries. Otherwise, the merger and reorganization of the "Lang-Lang" is a shotgun. The restructuring that simply scales up and fails to improve the quality of development is doomed to withstand the test of the market.
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