On June 18, according to overseas media reports, Great Wall Motors are considering acquiring a factory in Brazil in Brazil in order to expand overseas. According to informed people, the two companies are negotiating with possible transactions, and the purchase cost may be as high as 100 million US dollars, and the acquisition procedure may be terminated at any time.
If the message is true, this will be another new move in the Great Wall overseas acquisition layout in the past two years. In 2020, the Great Wall won two universal plants located in India and Thailand.
In this regard, Daimler said that the company is exploring different possibilities for the Brazilian factory, but is it taken by the Great Wall and refuses to review.
[1] Is there any need to acquire Daimler Factory?
In recent years, Great Wall Motors significantly accelerate the layout of overseas markets. First, because the growth of the Great Wall Auto itself, the growth of China’s largest autonomous brand, Harvard H6 and other models are ranked first, for Great Wall Motors, the development may encounter development bottlenecks. So going out is also a general trend.
Second, the current role in the Great Wall is very good in overseas markets. Even in the South American market. The Great Wall “Cannon” was rated as the best pickup card in Australia, New Zealand, Chile. In Chile, the Great Wall cannon launched only one month later, it won the “Year Best Patherpick” award, which is the most valuable award in the Chilean Automobile Industry. The Great Wall “Cannon” pickup also participated in NZ AutoCar’s annual automotive selection, after the leader of the world, won the Picka “Year Best Type” Award.
Third, in the influence of the epidemic, and the transformation and upgrading of the global automobile industry, some old car brands in Europe and the United States can be gradually contracted, and China’s car brands are constantly growing. Therefore, the Great Wall car has built a vehicle factory in Russia, and the original general car is in two factories in India and Thailand. Therefore, the changes in the international situation in the automotive industry have also given the Great Wall Motors an opportunity to expand overseas markets. Now or never. Therefore, I believe that the Great Wall Cars really want to acquire Davler’s factory.
In fact, the scale of the Irazmapolis plant in Sao Paulo is not very large. It is the only passenger car factory in Brazil in Brazil. It has been put into production in March 2016, Daimler invests in 600 million RYL (near 200 million euros), with an annual production capacity only 2 Ten thousand. The plant stops production in December 2020.
However, in the factory, there is a test site in a small area. This test site is currently Mercedes-Benz’s largest truck and passenger car test center in South America. There are approximately 1.3 million square meters (about 150 football fields), and there are 16 different test pavements when constructing in 2018.
Considering that Great Wall cars have been in South America, and the capacity of this factory is not very large, there is also a test site. For the Great Wall, you can buy too much cost, and then retrofit .
[3] What is the resistance to the front of the Great Wall?
The independent brand is going to overseas acquisition factories. In fact, in addition to price factors, it depends on the relationship between the two countries, as well as local social stability, labor, hydropower, road and other infrastructure, local taxes and fees and many more. Therefore, the acquisition is not enough.
And for the Great Wall Acquisition, there is also a very interesting place that Geely Automobile Li Shufu is the biggest shareholder of Daimler. The Great Wall and Geely Motors are opponents who compete with each other. Geely made a joint venture, while the Great Wall is with BaoThe horse has been joint venture and has established a beam car. BMW and Daimler are also an opponent of water. So the Great Wall acquired Daimler’s factory, it is estimated that Daimler has to think about it, selling the factory to a “opponent” is good or bad. Of course, the above is just my personal guess. Can you successfully acquire, but also to see the official final release.