Changan Auto may buy into Xiamen Golden Dragon Bus

Shanghai, June 3 (Gasgoo.com) Chongqing Changan Automobile Group, one of China's top four carmakers, is planning to buy into Xiamen Golden Dragon Bus Co., Ltd., in order to expand its presence in the commercial vehicle sector, SinoCast reported yesterday, citing insiders.
 
Xiamen Golden Dragon Bus, based in the southeastern Chinese city of Xiamen, Fujian province, has been a major player in the Chinese commercial vehicle sector. The bus company is controlled by Xiamen King Long Motor Group (60%) and Hong Kong-based Jarlung Group (40%).

Through its three production bases, Xiamen Golden Dragon Bus is currently capable of produce 15,000 large- and medium-sized coaches and 25,000 small-sized coaches annually. Its product line-up covers the 4.8 to 18-meter-long bus models with 5 to 86 seats.

Changan Auto Group acquired Hafei Auto and Changhe Auto in late 2009, and signed a joint venture agreement recently with PSA Peugeot Citroen. Reportedly Changan will also likely form a JV with the commercial car division of Volkswagen AG.

Changan aims to outrace Dongfeng Motor Group and then FAW Group to become China's No. 2 automaker. To this end, it is expanding into more auto-making sectors, and Xiamen Golden Dragon Bus may be the next target of this expansion.