Dongfeng Group's intent to acquire Fujian Motor Industry Group has gained approval from the provincial government of Fujian, Economic Observer News reported today. Dongfeng now has priority in a possible acquisition of Fujian Motor.
Following acquisition, Fujian Motor will adopt Dongfeng's business strategy, playing an important part in helping the manufacturer expanding into the passenger automobile market in the south of China. With the help of Fujian Motor, Dongfeng should be able to make further inroads in the passenger automobile, commercial vehicle and auto part markets.
Dongfeng Board Chairman Xu Ping, General Manager Zhu Fu, and Deputy General Manager Zhou Wenjie met with Fujian government officials in the manufacturer's home city of Wuhan, Hubei. Dongfeng has sent a representative group to inspect Fujian Motor's financial and business state earlier this month. Discussions on how best to proceed are still underway.
Dongfeng has yet to make any official statements on the issue, saying only that it is currently in negotiations with several automobile enterprises in the country. BAIC, which was at one time touted to be the upcoming owner of Fujian Motor, has already halted discussions with the company.
