· Geely DSI's exploration from acquisition to sale
Today, two domestic companies have issued announcements to acquire 61% and 29% of the shares of Geely's DSI gearboxes. If the acquisition is successful, the largest shareholder of DSI will no longer be Geely. The change in the shareholding structure has made it possible for DSI gearboxes to be successfully sold to more domestic independent brand car companies. It will play a positive role in accelerating the development of local industrialization, cultivating the domestic automatic transmission industry chain, gradually increasing production, and steadily and continuously improving overall competitiveness. Mini concrete mixer can be used to mix dry hard concrete, plastic concrete, flow concrete, light aggregate concrete and various mortars, so they were popular in precast concrete plants, industrial and civil construction works, bridges, water works, roads, airport and harbors. JS series mini Concrete Mixers are double horizontal axle forced mixers with two advantages of independent performance or forming simple concrete mixing plants with PLD series of batching machines. Mini Concrete Mixer Machine,Small Concrete Mixer Machine,Self Loading Concrete Mixer,Home Built Concrete Mixer Shandong Zeyu Heavy Industry Science and Technology Co.,Ltd. , https://www.sdcementsilo.com
Historical origin: the value geometry of DSI?
The source of DSI dates back to the 1920s, after which the Australian company was acquired by BorgWarner in 1957 and renamed "Borg-Warner Australia", which began producing automatic transmissions around 1965, followed by 1987 and 2002. The two owners are the British Tire and Rubber Company (BTR) and ION. In 2006, with the ION platform, DSI's 6-speed automatic transmission continued, but its big customer Ford decided to gradually withdraw from the purchase, so DSI found a new customer - South Korea's Ssangyong, and developed products for the Indian vehicle manufacturer Mahendra .
The decline of the global auto industry and the financial crisis have made DSI the biggest victim. Ssangyong's business difficulties after the sudden drop in sales, production stagnation, has now entered bankruptcy procedures, is accepting court custody; SAIC still retains 51% of the shares, but has lost control of Ssangyong. The fall of Ssangyong made DSI fall back. The independent automatic transmission supplier entered bankruptcy at the end of February 2009.
Prior to the bankruptcy of DSI, the products included a four-speed transmission for Ford gasoline vehicles and a six-speed front-rear and full-drive high-torque automatic transmission for Ssangyong.
In addition, DSI is also researching and developing the world's leading 8-speed front-rear drive automatic transmission, dual clutch automatic transmission (DCT) and stepless automatic transmission (CVT).
At that time, Geely's main intention or expectation of acquiring DSI was to introduce DSI automatic transmission products and technology into the Chinese automotive industry, and to provide the world's advanced automatic transmission products to Chinese automobile companies.
Geely's acquisition of DSI has created a sensation in the international automotive industry. At that time, there were reports: "Geely will mass produce DSI automatic transmissions in China as soon as possible. In addition to using DSI automatic transmissions to install Geely vehicles, DSI automatic transmissions will be sold to other independent Chinese automakers, and will also drive Chery. BYD and other Chinese independent automobile companies have increased their investment in the development and production of automatic transmissions, which in turn has set off a wave of Chinese independent brand auto companies marching into 'automatic gears'."
However, it is understood that DSI's research and development in 7AT, DCT and CVT is only at the conceptual level and is not mature enough. Taking DCT as an example, since the introduction of DCT technology in 2002, Volkswagen has carried out large-scale and large-scale applications. At that time, no one in domestic and foreign car companies could achieve such a degree. For Geely, wanting to benefit from DSI's research and development capabilities and push it further, means that you need a strong digestion and absorption capacity.
Geely's acquisition of DSI's follow-up development is facing a bottleneck. The need to upgrade DSI's automatic transmission research and development team, technical database, production process and key component suppliers will be included in Geely. At present, Geely's DSI automatic transmission production in Jining, Shandong and Xiangtan, Hunan has already started, and is in the process of further advancement. Geely DSI6AT has been put into production. The Gili Emgrand series models use the DSI6AT. Geely's original 4AT is still in production. The Geely DSI6AT market has 20,000 to 30,000 units, and now has a monthly output of around 3,000 units. 7AT and 8AT are Geely's strategic development products. With the development of the Chinese market, Geely will research and develop 7AT and 8AT. Geely's 7-stop DCT will be available in 2016. For CVT products, Geely will use the public platform for social support, and does not intend to develop and produce it alone.
Obviously, Geely’s acquisition of DSI has been going on for five years, but Geely’s plan has not been realized. Shandong Geely Transmission Co., Ltd. plans to have a production capacity of 300,000 units; Hunan Jisheng International Power Transmission System Co., Ltd., which owns 50% of DSI, has a planned production capacity of 200,000 units. The actual production of the DSI automatic transmissions of the two factories is far from the two data, and the DSI 7AT and 8AT, which have received much attention from the industry, have not yet been accurately put into production. Last year, Geely’s production site in Chongqing’s Tongliang plan was finally cancelled, which also exposed the shortcomings of Geely’s automatic transmission capacity planning and industrial integration.
On the other hand, DSI Australia's product market and profitability still need to be improved. According to a report released by Shuanglin, DSI's plant in Albury, Australia, faces major adjustments and there are uncertainties in continuing operations. In 2013, DSI registered capital of approximately A$45.56 million.
In this regard, relevant industry experts believe that the original intention and expectations of the acquisition did not materialize? The main reason is that the matching batch does not go up. Specialized production and large-scale matching are the characteristics of auto parts and other auto parts production. Those multinational automatic transmission companies are the automatic transmission suppliers of many auto companies, and the supporting batches are very large, and the scale benefits generated are also great. For example, Japan's Gart can supply CVT to multinational auto companies such as Nissan, Mitsubishi, and Suzuki, and its CVT annual matching capacity is several million units. In contrast, the Geely DSI package has yet to be upgraded.
The digestive capacity needs to be externally supplied to relevant industry experts, and there is still a big gap between Geely's existing 30,000 units of annual 6AT production and 300,000 units of 6AT annual production capacity. Geely wants to digest 300,000 units of 6AT annual capacity, and cannot rely solely on the internal support of the group. Such external supply requires substantial cooperation between domestic independent brand automobile companies.
The matching batch is not going up, which is the commonality of all domestic independent brands of automatic transmissions. The lack of market demand is the root cause of the inability of domestic independent brand automatic transmission production to go up. â€
For a long time, no foreign-branded automakers are willing to adopt China's own-brand automatic transmissions, and domestic independent brand automatic transmissions can only supply independent brand automakers. However, the domestic independent brand vehicle manufacturers and automatic transmission companies lack the spirit of cooperation and each fight, resulting in any automatic transmission company can not become the automatic transmission supplier of many independent brand vehicle companies. Therefore, the Geely automatic transmission can only be used in the group with Geely vehicles. Compared with multinational vehicle companies, Geely's vehicle production gap is very large. In this way, the matching market for Geely automatic transmission is small and the output is small. Chery, Jianghuai and other independent brand vehicle companies independently develop automatic transmissions, even if they have made great efforts to achieve success, they also encounter market development problems.
The union must win, and the division will be defeated. This is an irresistible law in the auto industry of the auto industry. Therefore, domestic independent brand vehicle manufacturers and independent independent brand automatic transmission enterprises (such as Jiangru Rongda who developed CVT and Shengrui developed 8AT) should be united as soon as possible, and have developed their own brands of automatic transmission products. Vehicle companies (such as Geely developing 6AT, Chery developing CVT and Jianghuai developing DCT) should join hands with independent brand automakers eager to acquire automatic transmission products and technologies, and change the status of repeated investment, redundant construction, and decentralization. With the spirit of cooperation of 'achieve others, achieve oneself, and achieve China's automobile industry', we will win market opportunities and do the amount of self-owned brand automatic transmissions in order to achieve scale benefits in the production of self-owned brand automatic transmissions.
Geely's overall consideration before the sale of DSI has been in a relatively embarrassing state after the acquisition of DSI. Li Shufu, the chairman of Geely, has always hoped that DSI automatic transmission will not only be equipped with Geely's complete vehicle, but also sold to other domestic private car companies. However, other self-owned brand auto companies that are Geely competitors are relatively cautious in purchasing DSI products, which has constrained DSI business expansion.
According to analysis by relevant industry experts, Geely hopes to change Geely's role as both a DSI transmission manufacturer and a major customer. However, such an embarrassing situation is only the reason for Geely to sell DSI equity. The more important thing is that the output of DSI automatic transmission is not enough. Its competitiveness in terms of cost has become a common problem faced by many transmission companies in China. At present, the output of each automatic transmission platform in foreign transmission plants is several times that of the domestic single automatic transmission platform. Even if the technical level of domestic enterprises can compete with foreign-funded enterprises, it is difficult to maintain the advantage in terms of cost.
In fact, Geely had plans to sell DSI shares. In May 2014, Geely Group has started to issue the entire issued share capital of DSI (A$83.35 million, approximately RMB 514 million), 50% equity of Hunan Jisheng International (approximately 85.5 million RMB), and all the Shandong Geely Transmissions have been issued. The share capital (approximately RMB 100 million) was divested from its Hong Kong-listed company Geely Automobile Assets and prepared for the smooth advancement of the sale of DSI's equity. It can be seen that Geely has been looking for suitable buyers.
The strength companies joined forces to increase the success rate of the acquisition. In 1987, Shuanglin Group has 21 wholly-owned and controlled subsidiaries, 18 shareholding subsidiaries and 3 branches. The industry involves manufacturing, trade, tourism and leisure, and education. Investment holding groups in other industries. Its wholly-owned Shuanglin shares are listed on the GEM of the Shenzhen Stock Exchange. The company specializes in auto parts, interior and exterior decoration, air conditioning, headlight lighting, plastic parts for power systems, sheet metal parts, machined parts and other components and assemblies. Development and production.
It is no coincidence that Shuanglin Group can become a buyer. Although the acquisition was officially launched in recent months, the contact between Shuanglin Group and Geely Automobile has long been available. As an auto parts supplier, Shuanglin Group has had exchanges and cooperation with Geely Automobile, and both parties have mutual understanding.
The extensional development strategy is the development mode of Shuanglin Group in recent years and in the future. The automobile and parts industry is also very suitable for adopting the merger and integration method to expand the scale of the enterprise and enhance its performance and competitiveness. Shuanglin believes that the acquisition will help Shuanglin to extend its product structure to the transmission sector, enrich its core auto parts and expand its global business.
The acquisition, Jinshajiang Venture Capital is also a very important role, it plans to acquire a 29% stake in DSI. This is an investment company with a certain investment strength in the fields of automotive core parts and new energy vehicles. Not long ago, Jinshajiang Venture Capital also teamed up with Geely and New Dayang Electromechanical Group to form a Geely New Ocean joint venture to produce urban miniature electric vehicles.
In the future, all parties will develop or be optimistic. Shuanglin Group does not have experience in R&D and management of automotive transmissions. For the first time, Shuanglin Group, which is involved in the field of automatic transmissions, can operate DSI companies to ensure the sustainable development of DSI's technical team. In this regard, the relevant person in charge of Geely believes that “If the acquisition is successful, Shuanglin Group will try to maintain the integrity of DSI's existing R&D team and take more measures to support the stable development of the R&D team. Currently, the growth rate of domestic vehicle sales tends to Stable, while the output of automatic transmissions will maintain double-digit growth. More mature automatic transmission products are needed to be put on the market as soon as possible. Shuanglin Group has sufficient reasons to intervene in this field."
Geely expects to make DSI a truly independent automatic transmission supplier through equity changes, making DSI a public product. At the same time, more energy will be focused on the development of the whole vehicle, and will no longer be tied to DSI.
Relevant industry experts said that the domestic transmission companies are not only Geely DSI, but also Chery, which develops CVT, and Jianghuai, which develops DCT, and still lacks experience in the production and integration of automatic transmissions. If Shuanglin Group successfully holds DSI, it can accelerate the development of local industrialization through the global procurement of supply chain and continue to enrich the quality of foreign suppliers, foster the domestic automatic transmission industry chain, gradually increase production, and steadily and continuously improve overall competitiveness. To positive promotion.