Track Undercarriage,Excavator Track Chains,Rubber Track Rollers,Rubber Track Undercarriage Ningbo Beilun Mingrui Hydraulic Equipment Co., Ltd , https://www.track-chassis.com
In response to the global automotive giants scaling back their international efforts and increasing investments in China, domestic automakers are also taking decisive steps. Companies like Geely, Hafei-Changhe, and Skylark have initiated internal restructuring, commonly referred to as "draft cuts." With the auto market in a downturn, small and medium-sized enterprises (SMEs) are once again facing the risk of being absorbed or merged.
Geely Group, as a leading private automaker, has managed to maintain relatively stable operations. However, on June 28th, Geely executives announced an unusual move: they are inviting new online foreclosed assets to participate in a photography competition for Geely's associate summer camp slogan contest, with the grand prize up for grabs. Meanwhile, Jiangnan Fengguang has begun inviting its first batch of car dealers, signaling a shift in strategy.
Several sales companies are undergoing integration, including the merging of Geely and Maple’s sales networks. The remaining staff will be divided accordingly. According to insiders, this is Geely’s most significant move following the broader downturn in the auto market and the ongoing price war. Liu Jianquan, manager of the public relations department at Geely Automobile Group, described the process as a "normal internal integration," focusing mainly on the consolidation of dispatched personnel from the two original sales companies.
Although Liu Jianping emphasized that there are no fundamental changes to the sales network, both Geely and Maple’s car dealerships will remain independent. However, industry analysts believe that the primary goal of this adjustment may be to improve operational efficiency by reducing staff. In contrast, the reorganization of Hafei and Changhe represents a horizontal external alliance aimed at strengthening competitive positioning through scale expansion.
According to those involved, the merger was driven by external pressures that forced two previously separate entities into one. It is worth noting that both companies were part of the AVIC II group and shared similar product lines, both based on the Suzuki 4301 chassis. They also used the same Dongan 462 and 465 engines. This strategic combination not only reduces procurement and marketing costs but also allows for shared R&D resources.
On the other hand, Skylark has been hit the hardest. During the 8th Beijing International Auto Show, Fuji Heavy Industries unexpectedly announced the abandonment of the "Lark" brand. Guizhou Skylark, which had already struggled financially, faced a similar fate. Retiring from the Japanese market is akin to a painful end for a company that once hoped for success but ultimately failed.
Meanwhile, Pang and his youth group from Zhejiang Jinhua are also feeling the impact. According to insiders, Skylark’s current production capacity is below 20,000 units annually, with actual output far lower. The original Dongjia Guihang Group was already struggling with financial difficulties, making it clear that Skylark is now on the brink of collapse.
A rational market fosters rational business practices. This situation highlights that, if properly managed, small and medium-sized automakers still have room to survive. The current wave of mergers and acquisitions is just the beginning of a more rational and sustainable development phase in the Chinese auto industry.
October 02, 2025