Why deny the acquisition of Shanghai Automotive cloud power?

2010-06-22

About two weeks ago, Cloud Power (000903.SZ) Department of Operations Management, a responsible person I interviewed in said that the company did not and Shanghai Automotive (600104.SH) to cooperate in the capital level, the intention of spreading outside the cloud on the Shanghai Auto acquisition within the force about to say is not true.

The source further said that the Cloud Power has been in power a year ago, with the Shanghai Automotive launched the depth of products and technical cooperation, mainly 1.9L diesel engine for the Roewe 550 in the matching. As the match engine generally requires 18 months. Therefore, the diesel-powered version of Roewe 550 is expected to debut next year.

In addition, the Cloud Power is still in force on the 0.9L and 1.4L small-displacement two more on cooperating with Shanghai Automotive, joint research and development. 1.4L displacement which will be used in future models SAIC-GM-Wuling, and 0.9L displacement may be used in future A0 SAIC-level small car. But the product development cycle may be more than 3 years.

Thus, Shanghai Automotive has a number of vehicle manufacturers in China, the first field in the layout of small-displacement diesel. However, the inference from such cooperation within the Shanghai Auto power should buy the cloud, the evidence is not conclusive.

Shanghai Automotive sectors, has repeatedly denied.

Why optimistic diesel markets? Shanghai Automotive, said one insider, although the traditional image of the domestic diesel supply is very unstable, while diesel refining aspects of the process because of the problem has been difficult to ensure emissions compliance.

However, crude oil refined into gasoline, diesel fuel are in accordance with a certain percentage, with the large increase our total refining, the actual amount of diesel fuel has been increasing. Currently the major cities, gasoline and diesel supply situation, and 3 years ago has been very different. At first, the diesel supply shortage has turned into gasoline supply shortage.

Against this background, SAIC that the diesel engines, particularly large space for development of small diesel engines. In addition, greater combustion efficiency, the development of the European experience, more environmentally friendly than gasoline.

Although the reasons are adequate, but can not see inside to buy the Cloud Power, Cloud loss in 2009 is still in the state. It is such a partner for SAIC, it should be said, or rely on SAIC very large. Since the technical cooperation will solve all SAIC would like to solve problems, while SAIC in cooperation, as well as full voice, then why make capital co-operation?

SAIC shareholders in General Meeting, I asked a question Hu Maoyuan, future large-scale acquisitions will do, he said no, and the future of SAIC's primary energy is to buy off the assets of NAC fully utilize.


At present, the Cloud Power of net assets of 2.5 billion, SAIC ostentatious, but this much money out at once, is very laborious. In addition, and did eat NAC different cloud power is a listed company, the actual controller is Kunming SASAC.

The acquisition of listed companies in China, especially the acquisition of state assets controlled by the listed companies more difficult, really speak for themselves. Of course, not rule out the local state-owned assets within the force is a block that goes "bad assets", hoping to revitalize the introduction of SAIC. This kind of thing, had Liuzhou Wuling to have happened. He went to SAIC, re-Wuling to launch Shanghai GM Wuling.

The problem is that the object is not a listed company reorganization, restructuring in the SAIC Shangchaigufen over two listed companies, China is the local domain car can be controlled by the SASAC, restructuring them but left the money into the pockets of the right pocket.

Ramon brand moral embodies the perfect balance of dynamic and static, starts with the low ROAR of the beast and the thunderbolt; at idle speed sounds like forest streams, silent and poised.

Ramon D19TCI "high-oxygen-level" diesel engine steady stream of power moment, racing car powerful, completely unlike my previous test drive some of diesel vehicles.

Kunming Ramme Powertrain Limited, by virtue of having Germany origins D19TCI diesel engine products, has won the China automobile industry association and China internal combustion engines jointly issued "2010 annual energy saving power Award".

Windy wrote: Kunming Ramme Powertrain Limited, by virtue of having Germany origins D19TCI diesel engine products

mckenzie1971 wrote:If this engine is going into MG cars what ever happend to the g series engine that powertrain were developing before mg rover went bust i would of thought it was almost ready to go into the cars .

patpending wrote:don't tell me these were (like previous SEAT engines allegedly) developed by Porsche!

Diesel powered cars within the cloud completion of the project up to production (2010-12-18)

It is understood that yesterday, a wholly-owned subsidiary of Dynamic cloud Power Systems Co., Ltd. Kunming Silent Thunder (Ramon) held the formal operational ceremony, marking the additional public offering of cloud power project "car engine capacity building projects," the official completion of production.

It is understood that Ramon power was established in November 2009, the registered capital of 50 million yuan, specializes in the development of diesel engines for cars and auto parts production, the annual production capacity of 15o,000 units, the maximum annual output of 200,000 units. Currently, Ramo has successfully launched a passenger car powered by D16TCI, D19TCI diesel engines, will soon launch D09TCI, D14TCI, D25TCI, D30TCI series diesel engines.

The company has successfully carry JAC, Liu steam, Beiqi, Foton, Zhengzhou Nissan and other automobile companies and the Shanghai Shenma hybrid buses, and in talks with several companies, the market volume of 15,000 units to maintain. In 2010, Ramo power to achieve sales of 7,000 units, the company in 2011 from 15,000 to 20,000 units up to 2012 up to 30,000 to 40,000 units. Company products are the most representative D19TCI diesel engines, diesel engines using international advanced auto parts new core technology, the power, torque, fuel consumption, noise indicators have reached international advanced level.

Diesel powered cars within the cloud development began in 2002, the company FEV Engine Technology Co., Ltd. and Germany signed a technology agreement to jointly develop the international advanced level of energy-saving environmental protection D16TCI diesel engines. Germany's FEV Engine Technology Co., Ltd. is the world's leading independent engine engineering company, has extensive design experience in China. Three years later, China's first released to the public with independent intellectual property rights, off the assembly line production line from its own energy-saving environmental protection D16TCI diesel engine passenger cars

mckenzie1971 wrote:If this engine is going into MG cars what ever happend to the g series engine that powertrain were developing before mg rover went bust i would of thought it was almost ready to go into the cars .

Roverman wrote:I very much doubt they have the rights to the G Series now.

Windy wrote:

Roverman wrote:I very much doubt they have the rights to the G Series now.

I can't see why MGR would have signed them away but I guess we will never know.

Using the nice alloy block from this engine must be an advantage over the heavy iron block of the G Series so I can understand why they might not want to use the whole G. The clever part of the G-Series would be the fuel injection system and that would be produced by someone like Bosch so I doubt there is much to stop them developing a new head based on the G-Series even if they don't own the G itself.

Talks between Piaggio Vehicles, the Indian subsidiary of Piaggio & C.s.p.a of Italy, and General Motors for engine sourcing fell through.

General Motors was in discussion with Piaggio India to source diesel engines for its passenger and commercial vehicle models, which it intends to launch from the Shanghai Automotive Industry Corporation (SAIC) portfolio.

But due to unspecified reasons, GM has now opted to source engines from one of the Chinese engine making companies, said people in the know.

The Italian company is expanding its unit at Baramati in Maharashtra from where it plans to manufacture one-litre and two-litre diesel engines to cater to two- and four-wheelers. Experts say these engines were best suited for vehicles from GM-SAIC, including a multi-seater passenger van and a mini truck. Production has begun and will become fully functional by April.

This is, however, not the first time that GM India is outsourcing engine manufacturing to a third party despite having an operational factory that makes engines for cars. The company will source BS-IV engines from the Delhi-based Sonalika Group for the Tavera.

"General Motors was in talks with some companies for sourcing of engines. They are free to source it from anywhere they wish," said Ravi Chopra, chairman and managing director, Piaggio Vehicles.

General Motors India executives were not available for comment. SAIC recently bought 50 per cent stake in GM India for around $500 million. GM is now planning to get diesel engines from Yunnei Diesel Engine Company, a southwest China-based company.

Mid last year, SAIC, which produces petrol engines, had evinced interest in having operating control of Yunnei which would lead to the access of a new set of diesel engines.

Piaggio, meanwhile, is investing ¤60 million towards setting up the new facility for manufacturing diesel and petrol engines. Production of the range of petrol engines, including 125cc and 150cc capacity, has already started with exports to Italy.

Piaggio's diesel engine capacity of 50,000 units per annum has been set up for the company's four-wheeler vehicle. The petrol engine capacity, serving the two-wheeler purpose, is set at 100,000 units per year initially.

It is also planning to set up a two-wheeler manufacturing plant at Baramati with an investment of ¤30 million. The company plans to start production of the Vespa LX 125 automatic scooter from this new plant by the end of next year.

The new plant will have an annual capacity of 150,000 units per annum initially. The ungeared scooter segment is dominated by Honda with a market share of nearly 45 per cent.

Changan Auto takes over Kunming Yunnei Power

From Global Times - 08 January 2011

Kunming Yunnei Power Co., Ltd. announced Thursday that China Chang'An Automobile Group (CCAG) has taken over the company's shareholder Yunnan Engine after the State-owned Assets Supervision and Administration Commission of Kunming, Yunnan Engine's actual controller, transferred its whole property to CCAG gratis.

Yunnan Engine has 38.14 shares of Yunnei Power.

Kunming Yunnei Power, which was delisted last month, resumed trading after the transfer.

As a Chinese car maker under the China Ordance Equipment Group Corporation, CCAG made a deal with the Kunming government, promising to invest 1 billion yuan ($150 million) in Yunnei Power in the next five years. The aim is to make the company a research and development center as well as an import and export base of diesel engine.

In addition, CCAG will meet market demand to invest another 5 billion yuan ($ 754 million) to increase the company's production capacity of diesel engines from 600,000 units per year to 1.2 million units per year, with an estimated annual income of 12 billion yuan ($1.8 billion).

Kunming Yunnei Power achieved annual revenue of 24.9 billion yuan ($377 million) in 2009, and its net profit reached 170 million yuan ($25.6 million). The company's revenue from the first three quarters of last year was 16.66 billion yuan ($251 million), and the net profit reached 70.4 million yuan ($10.6 million).

Its Launch Time

Cloud Power (Yunnei) held "China's own brand passenger car diesel engine to enter the EU market launch ceremony

Leaders at the signing ceremony




On January 9th, Yunnei Power Co, a batch of 5500 units exported to the United Kingdom off the assembly line ceremony held in New Area into production D19 engine (Euro V). Meanwhile, the diesel engine aboard the company with independent intellectual property rights SAIC MG6 sedan will go on sale in the UK, marking the Chinese passenger car diesel engine with excellent quality quality formal entry into the EU market.

It is understood that, in 2009, with the cloud power (Yunnei), SAIC signed a joint development agreement, in cooperation with the German FEV, with a total investment of 1.2 billion yuan, based on D19 engines meet Euro IV emissions regulations, jointly developed to meet Euro V emissions regulations D19 Euro V engine. D19 Euro V passenger car diesel engine main indicators are better than similar products in the EU enterprise, mass production took place on October 30, 2012, to match the engine's MG6 models marketed in the United Kingdom will be the first quarter of this year.

Yang Bo, CEO of cloud power, introduced late company will rely on its own technology and product advantages, strengthen foreign design companies, automobile companies and research institutes, the depth of cooperation in product development and market expansion, firmly grasp countries vigorously promote the policy opportunities for diesel passenger cars, the company's technology and product advantages as the core competitiveness cultivate as the company's new growth point, the D series diesel engine, the company's support to achieve leapfrog development, the development of the domestic economy to make more major contribution. Bo said: "The current domestic firewood the palanquin market weakness has two reasons, first, the technical level of a few years ago the Chinese enterprises is difficult to achieve the advanced level, noise, pollution emissions; second is China's oil did not meet the requirements, emission reduction did not pay attention to this situation will change in the future. sought after diesel vehicles received abroad, the future should be better, the cloud power diesel engine has reached the international advanced level, will further improve the level of product quality, within the cloud power diesel sedan series engine to create, from 0.3L to 3.0L displacement have the type of product the most complete, the next cloud power engine will be a high-speed development process. Bo also said that, due to technological innovation and progress, the cloud-powered products reach the Europe Ⅴ, Ⅵ EU no problem, diesel engine exhaust pollution problem has been resolved, even better than the gasoline engine. Is not only the product into the highly competitive, demanding higher in Europe and America, in the country, we start with the implementation of domestic taxi widely into the market, SAIC MG6 firewood push, in October this year we have the confidence within the cloud power come up with 300 million yuan to do R & D, and I believe that output will reach 6-7 billion, even hybrids and pure battery cars, we also have an advantage.

Kunming, deputy secretary, Mayor Kunming achieve leapfrog development potential in the industry, I hope in the industry, the key industrial. Municipal government in product promotion use, introduction of talents, as well as research and development and technological innovation ", to give businesses more inclined to support cloud power units in the SAIC, German FEV, Tongji University, Kunming University comprehensive and wide-ranging, deep-level cooperation. He believes that, the cloud power New Area into production and the D19 engine (Euro V) 5500 export batch off the assembly line, marking the company has taken a new step in the innovation-driven transformation and upgrading, expanding the market ".

It is reported that the future development of the Yunnei Power will be the "12th Five-Year" development strategy as the basis, based on multi-cylinder small bore diesel engine manufacturing, production and sales of diesel engines in 2016, 600,000 units, including 400,000 units of commercial vehicle diesel engines, passenger 200,000 units of car diesel engine, three-year operating income reached 50 billion, five-year and strive to operating income of 100 billion yuan to achieve the goal of the company to become leader of the multi-cylinder small bore diesel engine.