Jianghuai Auto said up to govt to decide on merger with Chery
By Ally Liu From Gasgoo.comJune 22, 2009
Shanghai, June 22 (Gasgoo.com) President of Anhui Jianghuai Automobile Co (JAC) told reporters that the company can't say whether it would merge Chery Automobile Co as it's a case that should be decided by the government, Shanghai Securities News reported Monday.
Mr. Zuo Yan'an said in an interview with the newspaper that Jianghuai did not hold any talks with Chery on a possible merger so far but as a state-control company, the final decision lies in the hands of the government. He said Jianghuai would support the government's decision in this regard.
The central government has issued an industry plan earlier this year to cut the number of major Chinese auto groups to 10 or fewer from 14, and wants two or three mega-producers with annual output of more than 2 million vehicles each.
Later in May Anhui provincial government, where Jianghuai and Chery are based, issued guidelines supporting alliances and mergers among automakers within the province.
Zuo said in the first five months Jianghuai sold 120,600 vehicles, up 12 percent from a year earlier. Sales of passenger cars rocketed 316.8 percent to 22,503 vehicles. The automaker marched into passenger car market in 2008.
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