Let’s rush for “French Car” car in Hubei, subsidy war explained
Zebra Consumption Fan Jian Let's go to Hubei to buy a car! With a subsidy of 90,000 yuan, you can buy a Citroen C6 for 120,000 yuan. This month, the round of automobile subsidy war initiated by Dongfeng Motor has lasted for ten days, and the heat has not decreased. French cars, which have been sluggish in China for a long time, have ushered in unprecedented attention. "If you want to roll it, roll it to the end." Under the influence of the subsidy effect of Dongfeng Motor, many domestic car companies and localities have intensively followed up. At present, at least more than 30 brands have joined the army of subsidies or price reductions. The trend of new energy replacing fuel vehicles is irreversible. Price reductions and subsidies can only boost sales in the short term. For the long-term
Dongfeng Auto (600006 CH): Dongfeng Motors' Partial Offer
Shares may continue to get a short-lived sentiment boost as DFMG asserts control. But pricing, relative to peers appears full. I wouldn't be chasing DFAC here. Dongfeng Motor (489 HK) (DFMG) has entered into an agreement to buy back the controlling stake in Dongfeng Automobile (600006 CH) (DFAC) from Nissan Motor (7201 JP). DFMG and Nissan's JV (split 50:50) holds a 60.1% stake in DFAC. Under the agreement, 29.9% of the JV's stake in DFAC will be transferred to DFMG. Subsequent to the completion of the transfer, DFMG will launch a partial offer for 25.1% of DFAC, with a view to holding 55% of shares out in DFAC. Full analysis here:- https://www.smartkarma.com/insights/dongfeng-auto-600006-ch-dongfeng-motors-partial-offer?utm_source=tiger_community By David Blennerhassett, Insight Pro