Due to the rumors of the acquisition of ZTE Automobile, Yang Rong once again returned to the public vision.
A few days ago, Zhengdao Group issued an announcement that the company and ZTE Automobile entered into a memorandum of understanding to acquire no less than 51% of the equity interest of ZTE Automobile. ZTE Motor responded to the matter by saying that it had "real contact" with Zhengdao Group, but it was limited to the initial stage of contact. But it is an indisputable fact that the two sides are in contact and have intentions.
Speaking of Baoding, most people first think of Great Wall Motors, in fact, Baoding also has a well-established car company ZTE Motors. Founded in 1949, ZTE Motor, which has been focusing on the pickup truck market, began to enter the passenger car market in 2009, with "1, 5, 6, 7" production qualifications, and has a factory in Baoding and Rizhao, of which the Rizhao factory has a production capacity of 100,000 vehicles.
Although ZTE Automobile is not as famous as the Great Wall, it is also famous in the industry, so who is Zhengdao Group? Can swallow ZTE? Zhengdao Group is mainly engaged in the business of electric vehicles, mainly including electric buses, engines and related batteries and new energy promotion projects, developing key components for new energy vehicles and producing single-layer graphene.
For the introduction of the Zhengtao Group, it is all decent, it seems that the two did not intersect before, in fact, it is not. Speaking of the acquisition intention of Zhengdao Group and ZTE Automobile, I have to say about Yang Rong, the head of Zhengdao Group.
Yang Rong, chairman of the board of directors of Zhengdao Group, is an "old man" in the automotive industry, who once served as the chairman of the former Shenyang Jinbei Bus Manufacturing Co., Ltd. and the chairman and president of Brilliance China Automobile Holdings Co., Ltd. His road to car building can be described as a big ups and downs, many times questioned by all sides, and now he has spent years still working in the automotive industry.
What impressed Yangrong most was that under the capital operation led by Yangrong, Brilliance Auto was listed on the New York Stock Exchange, becoming the first Chinese state-owned enterprise concept stock in the US stock market, creating the first case of overseas financing of Chinese state-owned enterprises. However, Chengye Brilliance was defeated by Brilliance, and with Brilliance being taken over, Yang Rong later had to leave for the United States.
In 2009, Yang Rong appeared in the public eye again, announcing that it relied on zhengdao group to build cars, this time choosing new energy vehicles. However, because his car-making dream is a bit too "grand", investing 10 billion US dollars and building a production capacity of 3 million vehicles is not unbelievable.
In 2017, Zhengdao released the first electric concept car H600, which is an extended-range electric C-class car, the energy storage device uses a graphene battery, its energy density is 300wh/kg, and the combined mileage of oil and electricity is more than 1000 kilometers. This has attracted the attention of all parties, but it has not yet been mass-produced.
At present, Zhengdao Group is in a state of suspension.
The reason why the cooperation between Zhengdao Group and ZTE Automobile is not shallow with Yangrong is for a reason.
In 1999, ZTE Motor, then known as the "Zhengye Group", had to seek restructuring due to the shrinking market share and the pressure of the debt crisis. After the negotiations with the Great Wall entered a stalemate, Brilliance Automobile took the opportunity to enter, and the two "flash marriage" established Hebei ZTE Automobile, and ZTE also participated in the negotiations of the BMW project.
At this time, Yang Rong in Brilliance is the time of infinite scenery.
Until the end of 2002, Brilliance Auto was nationalized and ZTE Auto was abandoned. In 2003, Xinhuachen withdrew from Zhongxing Automobile and also took the BMW project with it. In 2013, ZTE cooperated with GAC, but GAC Changfeng, GAC Gio, and GAC ZTE integrated by GAC were not successful.
Therefore, Yangrong is no stranger to ZTE Automobile, and returning to the Chinese auto market is a well-known concern of Yang Rong, the founder of Zhengdao Group, and restructuring ZTE Automobile is a good choice. In the track of new energy vehicles, the Chinese market plays a pivotal role.
Zhengdao Group has begun due diligence on ZTE Automobile, which is expected to be completed in the third quarter of 2022, and the parties to the MouU will negotiate a formal agreement on the possible acquisition. If implemented, the acquisition will bring synergies that will help to enhance the Group's competitiveness and profitability.
After winning ZTE, Zhengdao Group can naturally obtain various qualifications for automobile production. Yangrong has released a "831111" right way automobile plan: in the next 8 years, to achieve a production capacity of 3 million vehicles, an output value of 1 trillion yuan, a tax of 100 billion yuan, to provide 100,000 people with employment, per capita annual income of 100,000 yuan. However, the implementation of this grand plan is questionable.
After 20 years of exile, can Yang Rong still borrow ZTE to return to the peak?