Dongfeng Motor denied merger with FAW

Posted on 3/30/2017 10:27:23 AM

With the changes in consumer preferences, Dongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng Motor", 0489.HK) annual income appeared a slight decline, at the same time, the management also denied Dongfeng Motor to merge with FAW The rumors.
At the beginning of 2017, Dongfeng Motor Group and FAW Group signed a strategic cooperation agreement, which makes the market have speculated that China's second largest and third largest car group cooperation is a precursor to the merger of the two. In this regard, Dongfeng Automobile Chairman Zhu Yanfeng held in Hong Kong in 2016 performance conference, said Dongfeng and FAW's cooperation content to build forward-looking common technology innovation center, the two sides will focus on new energy, intelligent network and lightweight and other forward-looking Technology to carry out research, and for the market to discuss other issues "no discussion, no plan", the side denied the Dongfeng and FAW will rumors.
According to Dongfeng Motor Annual Report, as of December 31, 2016, Dongfeng Motor's revenue was approximately RMB124.222 billion, down by about 3.3% year-on-year. The decrease was mainly due to the decline in sales revenue from Dongfeng Mark Citroen Automobile Sales Co., Ltd. Profit attributable to shareholders was approximately RMB13,125 million, representing an increase of 15.6%. The board of directors decided to pay dividend of RMB 0.23 per share.
In the year 2016, Dongfeng signs, Citroen car sales fell sharply, dragging down the total revenue of Dongfeng Motor Group. Dongfeng Motor Group in the latest release of February 2017 production and sales Express show that the first two months of this year, Shenlong double brand sales of less than 50,000, down nearly 50% in China's auto market remains rapid growth in the context of this Poor performance for the market widely concerned.
Dongfeng Motor non-executive director Liu Weidong admitted that the two brands in 2016 sales decline is expected, because the Chinese market consumers are undergoing dramatic changes, the company will adjust the strategy as soon as possible, the introduction of new models, such as the already launched Dongfeng Peugeot SUV4008, and this year will launch the SUV5008 and so on, and actively consider the future cycling price positioning and overall sales revenue, market share and the relationship between income, he said the future development of the brand is confident.
By the impact of consumer preferences, in 2016 China's auto market SUV annual sales growth rate of 44.6%, SUV market competition, some brands even played a "price war" to increase sales. Some people questioned Dongfeng Motor Group's SUV development strategy is too slow, chairman Zhu Yanfeng said that the current Dongfeng own brand Dongfeng Fengshen has three SUV, respectively AX3, AX5 and AX7, 2017 will be added to a new SUV AX4, And will be April 19 during the Shanghai auto show starting from the strategic point of view, has to keep up with the pace of the market. But he said Dongfeng Motor Group will not blindly follow the market to take the price strategy, but really starting from the value of the product, take the road of steady development.
Company management still said that the Group will accelerate the development of new energy automotive business, through cooperation with some overseas brands to jointly develop and reduce development costs, so as to give users a better price. Through the common modular platform (CMP) and electric version of the common modular platform (eCMP) the construction of two platforms to meet market demand. But the group said that Dongfeng cooperation with overseas brands mainly concentrated in the technology, there will be no new brand.

Post a comment

Hello guest, care to post a comment?