On August 28, 2011, the Kunming State-owned Assets Supervision and Administration Commission agreed to transfer the 100% property rights of the Yunnan Internal Combustion Engine Plant to China Chang'an without compensation according to the "Transfer Agreement." Yunnei Power will become the future " Changan Commercial Vehicle ."
Allegedly, Yunnei was notified that Kunming SASAC has obtained the “Approval of the People’s Government of Kunming Municipality on the Gratuitous Transfer of State-owned Property Rights of Yunnan Internal Combustion Engine Plant†and agreed to transfer the 100% property rights of the Yunnan Internal Combustion Engine Factory to gratuitously. China Chang'an. The transfer of property rights mentioned above is still subject to the approval of the State Council SASAC, the China Securities Regulatory Commission and other departments. After the completion of the transfer of state-owned property rights, China Chang'an will hold a 38.14% interest in Yunnei Power. China Changan will try to build a light commercial vehicle heart through Yunnei Power.
It is understood that entering the light commercial vehicle market has always been an important strategy for China Chang'an, and diesel engines are the core components of light commercial vehicle products. Therefore, obtaining engine resources is the key to China Changan entering the light commercial vehicle market. The high-end passenger car and light commercial vehicle business being developed by Changan will also benefit from the joining of Yunnei Power. China Changan’s commitment to Kunming SASAC is that by 2015, China’s Chang’an will use Yunnei Power as a platform to invest RMB 1 billion to build a state-level enterprise technology center for diesel engine powertrains and develop high-performance energy-saving and environmentally friendly diesel engines. China Changan diesel engine R&D, production, and export base. Under the premise of a good market response, the investment amount may increase to more than RMB 5 billion. At that time, Yunnei’s diesel engine production capacity will increase from the current 600,000 units/year to 1.2 million units/year.
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