Top stories of Changan Automobile in 2018
Shanghai (Gasgoo)- Chongqing Changan Automobile Co., Ltd. (Changan Automobile) saw its full-year sales in 2018 slid 25.6% from the previous year to 2,137,785 units, according to the automaker's sales report. It said the annual sales of its self-owned Changan brand amounted to 1,499,747 units, exceeding 1 million units for the fourth year in a row.
However, speaking of the full-year sales of each subsidiary, the negative growth happened to all of them. Particularly, Changan Ford, the major force among joint ventures, should see its sales in 2018 nearly halved over the previous year.
Gasgoo hereby summarized Changan Automobile's significant events that happened in 2018, helping you review how the automaker developed itself during the past year.
Changan Automobile, Huawei, China Mobile cooperate in connected vehicles
On January 11, Changan Automobile signed a strategic cooperation agreement in Chongqing with China Mobile, China Mobile IoT Company Limited and Huwei Technologies to conduct joint development and study on LTE-V and 5G technology for connected vehicles.
In accordance with the agreement, the companies would build V2X testing fields together and co-develop telematics terminal. Besides, they would have in-depth cooperation in 4G internet of vehicles and explore the development of 5G technology for connected vehicles. The building of V2X testing field was expected to promote the marketization of V2X technology. The further development and exploration would help to improve the connectivity efficiency and accelerate the development of internet of vehicles.
Changan Automobile to recall 252,087 CS75 models
Changan Automobile planned to recall a total of 252,087 vehicles from March 2, according to the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China.
The recall involved part of new CS75 models manufactured between July 26, 2016 and February 24, 2018, with a total volume of 252,087 units. The model went on sale in April, 2014.
It is the defect in the electronic control unit (ECU) that triggered the recall. Under extreme conditions, ECU of recalled vehicles lakes control over the engine's fuel injection strategy adjustment. When the vehicle is in a low temperature environment or at a low speed for a long time, the liquid gasoline in the engine oil cannot evaporate in time. Consequently, the engine oil would increase with the passage of time. If the owner overlooks the engine oil alarm, the engine would be damaged and cause safety hazard after continuous running.
Tencent, Changan Automobile to build ICV joint venture, co-develop IoV solution
On April 12, Tencent and Changan Automobile officially signed a cooperation agreement to establish an ICV (intelligent-connected vehicle) joint venture. Both parties would focus on developing IoV integration solutions as well as relevant operational businesses and services, Pony Ma, Tencent's chairman, and Zhu Huarong, Chongqing Changan's president, revealed at the signing ceremony.
According to local media, the cooperation might involve two major parts. One is to develop basic ICV solutions, namely, taking advantage of Tencent's existing in-vehicle products to enhance the automaker's vehicle power. For instance, Tencent (including Wechat)'s IoV services, such as social communication, mobility payment and account systems, can be applied into the models of Chongqing Changan.
The other major part is to explore a deep cooperative development in resource integration and advantage complementation. To be specific, Tencent's abilities in content ecology, Internet security, AI, big data and cloud computing will help promote its partner's product competitiveness.
BYD teams up with Changan Automobile on new energy vehicles
On Apr. 17, BYD and Changan Automobile signed a cooperation framework agreement to deepen their cooperation in new energy vehicles (NEV) and work together to empower the development of Chinese NEVs.
BYD and Changan Automobile would jointly focus on the designing, matching, testing and manufacturing of NEV's electric drive products, which integrate electric control, electric motor and reducer into one. They targeted to finish the development of electric drive products and achieve mass production of the products. It was expected that some Changan models would carry the new high-tech product next year.
Changan Automobile to build four independent brands
Changan Automobile planned to build four independent brands and promote 21 BEVs (battery electric vehicle) and 12 HEVs (hybrid electric vehicles) in total by 2025, the company released its new strategies on April 23.
Apart from the existing Changan Passenger Vehicle (PV), the company would still promote an all-new mid-to-high-end brand. Besides, the automaker officially renamed Changan commercial vehicle unit as “Oushang Cars” and its light vehicle unit as “Kaicheng Cars” which is positioned as a smart logistics CV brand working on improving the urban logistics efficiency.
Changan Russia receives RMB 250 million of investment from Changan
Changan Automobile planned to add RMB 250 million of investment in its wholly-owned subsidiary, Changan Russia to meet the subsidiary's liabilities and supplement its operating funds, according to the automaker's statement released on May 7. Due to the deficiency of Changan Russia's cash flow, Changan Automobile aimed to solve the fund shortage, which was resulted from the expansion of business, via the added investments. As planned, Changan Russia was slated to be a pioneer to march into the Commonwealth of Independent States (CIS) countries and Eastern European markets.
Changan PSA sets up exclusive marketing department for DS
Changan PSA would continue to position the DS as luxury vehicle brand, and would launch one new DS model per year over the next five years to complete the product lineup of its SUVs, according to Shen Mingjun, executive vice president of Changan PSA. He also added that Changan PSA would set up a new exclusive department to manage the relationship with customers.
Lack of SUV models made DS suffer sales depression with the SUV market growing increasingly popular nowadays. But things went better as they launched their SUV models. At Auto China 2018, DS released its flagship SUV model, the DS7, which was sold more than 3,000 units during Mar. 20 and the period of Auto China 2018.
Changan Automobile loses three vice presidents at the same time
Changan Automobile announced on May 28 that Gong Bin, Huang Zhongqiang and Luo Minggang would no longer serve as the company's vice president.
According to the personnel change statement, Gong Bin would not work in Changan Automobile after he stepped down as vice president. He was officially hired as the company's vice president on April 14, 2011 and had been in charge of the production and marketing of sedan businesses. Previously, he assumed the responsibility of chairman, general manager in Chongqing Jialing Special Equipment Co.,Ltd, chairman and general manager in China Jialing Industrial Co.,Ltd (Group) and vice president in China South Industries Group Corporation (CSGC)'s motorcycle unit, etc.
CCAG transfers 21.56% of Changan Automobile's total shares gratis to China South Industries Group Corporation
Changan Automobile released an announcement on May 31, saying that the State-owned Assets Supervision and Administration Commission of the State Council had approved China South Industries Group Co., Ltd. (CSGC) to take 1,035,312,673 A-shares, or 21.56% of Changan Auto's total shares gratis, which previously were held by China Changan Automobile Group (CCAG).
According to the announcement, Changan Automobile stated as early as on March 16 that the company's free stakes transfer aimed to enhance and optimize its automobile businesses, helping promote the development of Changan Automobile. Meanwhile, CSGC was willing to accept the 21.56% of Changan's total shares. However, the stakes transfer should be reported to and be approved by the State-owned Assets Supervision and Administration Commission of the State Council.
Ford, Changan Automobile name president for new sales service division
Changan Automobile and Ford Motor announced on June 7 that Li Hongpeng and Cao Zhenyu were named as president and executive vice president of Changan Ford's new national sales service division. The appointment would become effective after being approved by Changan Ford's board of directors.
Meanwhile, the new sales service division, as the replacement of the Changan Ford's existing sales company, would officially come into effect on July 1, 2018 and would directly report to the board of directors.
Changan Automobile's RMB 20 billion NEV project starts construction
Changan Automobile's new energy vehicle (NEV) project located in Jiangning District, Nanjing started construction on June 19, according to the notice released by Nanjing Municipal Commission of Economy & Information Technology. Involving RMB 20 billion, the project was planned to reach a production capacity of 240,000 units annually, including a range of pure electric vehicle models, such as high-performance crossover SUV and coupe. The Nanjing-based NEV plant is expected to be put into operation in June, 2020.
It was said that the project, positioned as Changan Automobile's self-owned NEV manufacturing base, would introduce a high-speed, flexible and wholly-closed autonomous production line, together with an efficient energy-saving concept. The new plant was expected to realize an annual production value of RMB 100 billion.
Changan Automobile, Huawei join forces to develop IoV platform
Changan Automobile and Huawei, a leading global provider of information and communications technology (ICT) infrastructure and smart devices, inked a strategic cooperation agreement on July 4 to build a joint innovation center focusing on building an IoV (Internet of Vehicles) platform.
Under the agreement, both parties would jointly build an innovation center to create a R&D platform boasting intelligentization, connectivity, electrification and sharing features. Both parties would make use of Huawei's advantages in information communication and new energy control technology and conduct deep research on advanced technical application scenarios and carriers provided by Changan Automobile.
BYD, Changan announce establishment of vehicle-battery JV
BYD and Changan Automobile singed a strategic cooperation agreement on July 5 in Shenzhen, aiming to establish a joint venture, which specializes in the manufacturing and marketing of new-energy vehicle (NEV) batteries. By virtue of both parties' advantageous resources in such areas as traditional fuel-powered vehicles, NEVs, intelligent internet, sharing mobility and overseas market, BYD and Changan would deepen their cooperation comprehensively with focuses on electrified and intelligent vehicles as well as sharing mobility.
Under their cooperation, Changan and BYD showed their willingness of capital cooperation in both the upstream and downstream of new energy industrial chain. They would jointly develop battery business for NEVs and plan to set up an independent vehicle-battery JV.
FAW, Dongfeng, Changan co-establish T3 mobility joint venture
FAW Group, Dongfeng Motor Corporation and Changan Automobile officially signed a letter of intent in July 13 to jointly establish a T3 mobility service company, marking another significant cooperative step since three companies formed partnership on December 1, 2017.
According to the statement released by Dongfeng Motor Corporation, the three state-owned automakers would make full use of their resources in vehicle manufacturing and marketing channels and invite partners from other industries to promote the thorough marketization of their joint mobility services from such aspects as talent pool, technologies, personnel structure, investment, etc. The intensified partnership among the three traditional automakers would help them to survive the complex and changeable market climate and strengthen their respective competitiveness in the nascent mobility market.
NIO, Changan Automobile to hold 45% stake in their JV sited in Nanjing
Changan NIO New Energy Vehicle Technology Co., Ltd., a joint venture co-built by Changan Automobile and NIO, rolled in Jiangning Development Zone, Nanjing on Aug. 17. It was said that the new JV planned to have an investment of RMB 5 billion and would start construction within this year. The new JV was expected to research and develop three new models and the first one will be put into production in 2020.
The new company would name William Li, founder of NIO, as chairman, and Li Wei, executive vice president of Changan Automobile, as vice chairman. The JV's CEO would be Yang Fang, who is a veteran in auto industry in such areas as sales, market, R&D and strategy.
Changan Automobile and NIO would take a 45% stake in the JV respectively. The rest 10% stake would be held by senior executives and also would be used to attract talents.
Changan Automobile, Baidu bolster cooperation in autonomous driving
Changan Automobile and Baidu signed a strategic cooperation agreement on August 23 to jointly develop autonomous vehicles and IoV (Internet of Vehicles) businesses, according to local media.
Under the newly-signed agreement, both parties would carry out cooperation to gradually realize the application of autonomous vehicles and integrate IoV businesses. To be specific, the cooperation, focusing on the whole technology chain of autonomous driving, cybersecurity and functional security as well as IoV, would allow two companies to implement pre-research projects, develop technologies for mass production and determine the concrete technical solutions in relevant cooperative domains.
Changan Automobile transfers NEV business, assets to wholly-owned subsidiary
In order to boost the development of new energy vehicle (NEV) business, Changan Automobile announced on Aug. 28 that it planned to reorganize internal assets, arming to transfer part of NEV-related assets, business and staff members to its wholly-owned subsidiary, Chongqing Changan NEV Science and Technology Co., Ltd.
It was said that Changan planned to take May 31 as base date to audit the fixed assets, inventory, other account receivable as well as patents, patent application rights, software copyrights and technology secrets, and would transfer the audited book value to its wholly-owned subsidiary. The asset and liability changes happened between base date of audit and delivery date would be adjusted and transferred according to actual changes.
Changan Automobile wholly controls Changan Suzuki with cost of RMB1
Changan Automobile announced on September 4 that it would acquire the other 50% stake in Changan Suzuki, which was previously owned by Suzuki Motor and Suzuki (China) Investment Co.,Ltd, with RMB 1.
After the acquisition completes, Changan Suzuki would be wholly possessed by Changan Automobile and be incorporated into the consolidated statements of the Chinese parent company.
Changan Automobile invests RMB 4.79 billion to set up NEV production base in Jiangsu
Local media learned from the Environmental Protection Department of Jiangsu Province that Changan Auto would set up a manufacturing base in the province to build new energy vehicles. The total annual capacity of the new base would be 240,000 units and the output of the first phase would be 120,000 per year.
The automaker's subsidiary in Nanjing would cover an area of 1.46 million square meters and the total investment is up to RMB 4.79 billion, of which RMB 3.47 billion is designated for the first phase. The base is slated to start production from 2020.
Changan Automobile NEV subsidiary to introduce new investors for Mission Shangri-La
Changan Automobile announced on October 19 that its wholly-owned subsidiary Chongqing Changan New Energy Vehicle Technology Co., Ltd. (Changan NEV Technology) planned to introduce no less than 3 new strategy investors to accelerate the deployment of the Mission Shangri-La new energy strategy.
According to the announcement, the transaction would be put on the public market and achieved by means of enlarging the shares by increasing capital in cash. After the capital increase, the equity held by new investors should account for no less than 51% of the company's total registered capital, thus Changan Automobile's equity proportion would be no more than 49%.
BENTELER, Changan Automobile inaugurate new JV plant in Chongqing
On November 28th, BENTELER Automotive, the automotive arm of the Germany-based BENTELER International AG, opened a new joint venture (JV) plant in Chongqing, China, along with Jian'an, a subsidiary of Changan Automobile, one of the major car manufacturers in China.
The new plant is operated by BENTELER Jian'an Automotive (Chongqing) Co.,Ltd, a 50-50 JV between BENTELER and Changan Automobile, which focuses on the design, testing, development, manufacturing and sales of automotive chassis modules and component. It also provides relevant services including consultation and support over technology issues.
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