Fujian Motor may split for mergers with two suitors

Shanghai, June 3 (Gasgoo.com) In its restructuring move, Fujian Motor in southeast China is likely to split itself for mergers with two earger suitors: Beijing Auto and Guangzhou Auto, and the specific decision will be announced in July, the 21st Century Business Herald said today.

"Fujian Motor has many projects, and this is an advantage," said the company's former chairman Ling Yuzhang to the Chinese business newspaper. Fujian Motor has been cooperating Daimler with AG (for commercial vehicles), Chrysler LLC (for Dodge minivans) and Mitsubishi Motors, and these global carmakers are or were partners of Beijing Auto.

Now Guangzhou Auto is buying 29% of Changfeng Motor, an SUV partner of Mitsubishi Motors, and it seems to have something to do with Fujian Motor through their the Japanese carmaker as their "mutual friend." Guangzhou Auto and Beijing Auto are financially sound equally.

Fujian Motor is made up of the Southeast Motor (SouEast) and joint ventures with Mitsubishi, Chrysler and Daimler. The Fujian provincial government hopes to split its carmaker and sell the SouEast to Guangzhou Auto and Fujian Daimler to Beijing Auto for restructuring.

This arrangement may let down Beijing Auto, who expects to buy all of Fujian Motor, especially the ventures of Mitsubishi and Chrysler with Southeast Motor.

The final decision about the restructuring separation and acquisitions will be hammered out and announced by Fujian Motor and its provincial government in July, when Fujian Daimler rolls out its new light vans.