The government-forced consolidation in the Chinese auto industry continues. The Beijing Auto Industry Corporation (BAIC), owned by the Beijing government, buys 70% of Jiangxi Changhe Auto (web), owned by the Jiangxi provincial government, which keeps the remaining 30%. BAIC pays a mere 80 million yuan ($13 million), which indicates Changhe Auto is worth less than its assets.
Changhe Auto has a joint venture with Suzuki, sells Suzuki-developed vehicles under its own name, and makes mini vans. The move aims to help revive the manufacturer of small vehicles after four years’ cooperation with another auto giant, Chang’an Automobile Group, failed to boost its growth.
Yet another new entry into the minivan segment. A very crowded place with Wuling and Chang’an as the numbers one and two for ages. Other auto makers saw there was much money to be made and jumped in. The Changhe Fuyun is just as cheap as all the others, price starts at 43.800 yuan and ends at 45.800 yuan.