FAWning Over Brilliance?

Bertel Schmitt
by Bertel Schmitt

China’s auto industry has more than 100 companies. The Chinese government has been strongly suggesting that this number gets more manageable through mergers and acquisitions. One of these mergers seems to be on its way.

If China’s 21st Century Business Herald (translation via Gasgoo) is not mistaken (and the Herald is far from infallible) FAW and Brilliance are talking about a wedding.

“This matter has not taken shape yet,” a planning executive of FAW Group said to reporters, not denying that there are merger talks. Brilliance and FAW have common DNA anyway.

Eight years ago, FAW Group sold its controlling stake in Jinbei Auto to Brilliance. Now FAW plans to buy back Jinbei, which makes self-developed Brilliance. Eventually FAW wants to buy the parent group Brilliance, along with its prized BMW joint venture. BMW and Audi under one corporate roof should be interesting.

FAW is one of China’s “Big Five.” Along with their own brands, FAW operates joint ventures with Toyota, Volkswagen, Audi and Mazda. Their Tianjin Xiali factory produces the Miles ZX40, an electric version of the Daihatsu Move which became the first Chinese-built vehicle sold in the United States.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • TonyJZX TonyJZX on Jun 17, 2009

    that was my 1st thought too there used to be heaps of american car brands from duesenberg to stanley to cord to tucker that have all bitten the dust my second thought is that is must be the inevitable calm before the storm while we see the traditional old guard in turmoil (ie. Ford/GM/Chrysler and to lesser extent the Japanese) are we in the intervening years before the koreans and chinese and perhaps the indians begin to become the new automotive superpowers? i think this is sadly inevitable