New energy vehicle business will expand Wuling New Energy will reorganize assets

A few days ago, it was learned from relevant channels that Wuling Motors recently announced that Wuling New Energy will carry out asset restructuring, and Guangxi Automobile, Wuling Motors, Wuling Industry and Wuling New Energy have signed letters of intent.

For now, Wuling New Energy is a wholly-owned subsidiary of Guangxi Automobile Group, while SAIC-GM-Wuling, a subsidiary of Wuling Motors, is a joint venture, in which SAIC Group holds a share 50.1%, and General Motors holds 44%. According to the letter of intent, Guangxi Automobile, Wuling Motors and Wuling Industrial agreed to transform Wuling New Energy into an enterprise with foreign capital investment and engage in the new energy vehicle business.

Specifically, Guangxi Automobile will inject approximately RMB 1.6 billion in non-cash assets and/or cash into Wuling New Energy, of which non-cash assets will include land use rights. Wuling Motors will invest 1 billion yuan and Wuling Industrial will invest 306 million yuan.

It is reported that Guangxi Automobile will integrate and reorganize Wuling’s new energy vehicle-related assets and businesses. These businesses are currently mainly undertaken by Wuling Industrial. Guangxi Automobile plans to create new ones based on the existing main business of commercial vehicles. The energy vehicle business segment comprehensively explores and develops the new energy vehicle business.

After the reorganization of Wuling New Energy's assets, it will engage in the research and development, manufacturing and sales of new energy vehicles in China. Wuling Motors will expand its new energy vehicle business by investing in Wuling New Energy. In the future, Wuling Industry and others will become Wuling The main supplier of new energy, which provides auto parts and other parts for its vehicle production, continues to pay attention.

Editor: Wang Yifei