Written by Cláudio Afonso | LinkedIn | X
China’s state-owned automakers Changan Automobile Co. and Dongfeng Motor Group Co. are in advanced discussions to merge, the New York Times reported Tuesday, citing two people familiar with the matter.
The companies have held “detailed talks on how to combine their operations and told their foreign partners of their intentions,” the report said.
The two automakers each disclosed in February that their parent companies were involved in potential restructuring plans with other state-owned enterprises. Dongfeng said at the time that its controlling shareholder, Dongfeng Motor Corporation, was in discussions on a possible restructuring with another SOE.
The move could change its indirect controlling shareholder but not the actual controller, subject to regulatory approval. The company said the plan was not expected to have a significant impact on its operations.
Changan includes brands such as Chang-An, Deepal, Avatr, and joint ventures ChangAn Ford, ChangAn Mazda and JMC. The carmaker held a European launch event last week, announcing plans to expand to at least 10 regional markets in Europe by the end of the year. Changan aims to sell 3 million vehicles globally in 2024 and reach 5 million units annually by 2030.
Over the next three years, Changan plans to roll out nine models in Europe, including the Deepal S07, which is scheduled to go on sale in the second quarter.
The NYT report also noted that Dongfeng is a major supplier of military vehicles to China’s People’s Liberation Army, while Changan is a subsidiary of a Chinese military contractor.