Gree said to be a shareholder of FAW Xiali
Shanghai (Gasgoo)-Recently, Dong Mingzhu, chairman and president of Gree Electric Appliances, and her Gree team were seen in Tianjin FAW Xiali Automobile Company and Tianjin FAW factory. Consequently, it is rumored that Gree plans to buy shares of FAW Xiali.
A source inside FAW Xiali said that on September 15, Dong, with her team, conducted final negotiation with the automaker on becoming its shareholder. Related workers have already sent to Tianjin FAW Xiali. The unnamed source also said that FAW Xiali will announce the progress of the equity purchasing as early as next week.
Meanwhile, BENEFO, the second largest shareholder of FAW Xiali, will withdraw as a shareholder. After Gree’s being a shareholder, FAW Xiali will make a shift to electric vehicles and won’t produce traditional fuel vehicles.
In the past two years, Gree Electric’s leading advantages of an air conditioner producer have dwindled and its business layout has to embrace diversification. At the end of last year, Dong personally and several other enterprises including Dalian Wanda Group announced to invest Zhuhai Yinlong. This time Faw Xiali attracted Dong’s attention.
Industry analysts said that investment Dong’s investment on Xiali means a lot to the laywoman.Dong Mingzhu once said it was Yinlong’s leading lithium titanate cell technology that made her to buy its shares. However, Yinlong is lacking of experience in producing vehicles and its production line still needs great improvement. If Gree succeeds in becoming FAW Xiali’s shareholder, it will make a good reforming opportunity for FAW. For Dong herself, the plan to make vehicles will make great progress. But it still need time to see whether the products will be popular in the market.
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