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Changan's minibus
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Changan seeks outside funding for light commercial vehicle unit
Automotive News China
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2019/2/12
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Changan Automobile Co. is courting external investors to help strengthen its light commercial vehicle business.
It plans to establish a joint venture with eligible investors, the state-owned automaker said in a statement.
The new company will oversee r&d, production and sales of light commercial vehicles and related parts and components. It will also engage in logistics, used-vehicle sales and vehicle leasing, according to a company statement.
The light commercial vehicle unit has maintained growth in recent years, Changan said, without disclosing more operating details about the unit.
According to LMC Automotive, a consultancy, Changan was China¡¯s third-largest light commercial vehicle maker in 2018, following SAIC-GM-Wuling Automobile Co. and Beiqi Foton Motor Co.
SAIC-GM-Wuling is a light-vehicle joint venture between SAIC Motor Corp. and General Motors. Foton is BAIC Motor Group Co.¡¯s truck subsidiary.
Last year, Changan delivered 339,069 light commercial vehicles, including minibuses, pickups and light trucks, an increase of 10 percent from 2017, according to LMC¡¯s data.
Changan is headquartered in the southwest China municipality of Chongqing. While producing and marketing passenger vehicles under the Changan brand, it also runs light-vehicle joint ventures with Ford Motor Co., Mazda Motor Corp. and PSA Peugeot.
Because of steep sales declines at partnerships with Ford and PSA, Changan, a Shanghai-listed company, warned this month that 2018 net profit may have tumbled up to 93 percent to 500 million yuan ($74 million).
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