GWM: No intention to acquire FCA

Rumors of Great Wall Motor's cooperation with the Fiat Chrysler Automobile (hereinafter referred to as FCA) have been around for a long time. It has been reported that Great Wall Motor (GWM) intends to acquire FCA. Recently, Wei Jianjun, the chairman of GWM, responded to the rumors of cooperation with FCA when communicating with IIA: Great Wall Motor did not talk about this with FCA, and we will still focus on developing ourselves.

GWM has no intention to acquire FCA

Prior to this, it was reported that many car companies such as GWM, GAC, and Hyundai were competing to acquire FCA. In particular, the intention of GWM leaders to acquire FCA's Jeep brand seemed quite clear. The incident even caused fluctuation in GWM’s share price, causing a suspension for many days. However, the results of the acquisition of FCA by GWM at that time were not confirmed.

When talking about the rumors of cooperation with the FCA again, Wei Jianjun said: "We still have to be strong first. Since the culture gap, the cooperation of this kind is rarely successful and difficult to operate. We have not talked about this with the FCA, and we are still focusing on developing ourselves."

GWM itself must first become stronger. Only when the business model, corporate culture, management efficiency and other aspects maintain a high balance with the partners, the two sides may be able to reach a consensus on cooperation and achieve a win-win situation.

GWM does not choose to "purchase"

Compared to Geely, the "purchase" business model does not seem to be suitable for GWM. According to incomplete statistics, Geely has operated more than 10 overseas mergers and acquisitions in the past ten years, involving funds of hundreds of billions of yuan. It has successively acquired Volvo Group, Malaysia Proton, Terrafugia, an American Car Flight Company, and Danish Saxo Bank. Last year, it even acquired a 9.69% stake in Daimler for US$9 billion.

GWM, by establishing R&D centers and assembly plants overseas, promotes the strategy of “going out” to expand the company's international influence. According to industry analysts, GWM's business model is more prudent and stable. This approach can reduce the investment risk of the company itself, and can also enhance the brand's overseas market, and obtain recognition from local distributors. In addition, GWM also enhances customer satisfaction by serving local users, which in turn are recognized by users.

GWM globalization mode is turning on

In the development direction, GWM starts from both the international and domestic markets. In the international market, GWM's Tula factory in Russia has started production, which has become one of the important signs of the company's internationalization. Previously, GWM has set up six R&D centers in Japan, the United States, Germany, India, Austria and South Korea, and established five KD assembly plants in Malaysia, Ecuador, Iran, Tunisia and Bulgaria to gradually improve the layouts in international R&D, manufacturing and assembly.

In the domestic market, GWM adopts new technologies and the big data to improve the quality of its operations and deepen its communication with consumers. At the same time, in the dealer model, GWM explores new service and environment based on the current 4S stores, and builds a consumer channel and environment that are more suitable for the future "Internet Plus" form. In terms of productivity, GWM relies on Xushui, Tianjin, Taizhou and other assembly plants to ensure that the quality of automotive products meets the standards.

Summary: At present, GWM has sold 430,239 new cars in the first five months of this year, a year-on-year increase of 5.11%. It is worth mentioning that GWM has also achieved periodical success in exporting products to foreign countries. In the first five months of the year, 23,594 new cars were exported, a year-on-year increase of 19.4%. GWM achieved growth in the current sluggish auto market. 2019 also marks the first year of GWM's “going out” strategy. Starting from the Tula factory in Russia, GWM has launched a departure signal to become a global SUV leader. Instead of simply purchasing overseas assets, GWM chooses to make itself stronger. This is the globalization model created by GWM.