Industry Sees Mergers As Key To Survival

by David McMullan, International Editor of China Motor Magazine

companies consolidate for survival and dominance

Last Christmas I hosted the Chongqing motorcycle industry. The meeting, at my house, was a success, as most attendees agreed that they were facing the same problems when considering the future direction of the industry.

Inspired by this I started the Chongqing Motorcycle Industry Council, members of which would convene on a monthly basis in an informal fashion to discuss future export market development and technical upgrading. The council includes export clerks and managers, technical and research and development staff and of course journalists. All are agreed on an industry future through merger.

Back in 2009 Chinese motorcycle heavyweight Loncin bought out fellow manufacturers Kinlon, adding their weight to a company which already boasted a technical working relationship with BMW. This merger propelled Loncin to the status as biggest motorcycle exporter in China and was thought to be a sign of the shape of things to come. Although the motorcycle giants are safe enough in their autonomy, the smaller sized companies are busily vacuuming each other up. Continue reading →