Guangzhou Auto to take slice of Changfeng
May 22,2009
Changfeng announced rencently that Guangzhou Auto are getting ready to purchase a very large share in Changfeng, possibly reaching up as high as 30% of Changfeng.
Changfeng was previously a truck maker for the Peoples Liberation Army, but has since moved into SUV and truck sales. Mitsubishi currently own 14% of Changfeng, where they sell the 1991 Pajero as a bargain SUV, and also later generation Pajero SUVs for sale.
Changfeng currently has a market capitilazation of 5.78 billion RMB, and 14.59% of it is owned by Mitsubishi. The final deal has yet to be decided, but it is expected that Guangzhou Auto will reach for between 25% and 30% of Changfeng stock. Guangzhou Auto had a profitable year in 2008 thanks to its joint ventures with top selling brands Honda, and Toyota.
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