Research On The Countermeasure For Improving The Profitability Of FAW Xiali

Since the 21 st century,China's automobile industry has developed rapidly,corporate mergers and acquisitions have played a crucial role in the development of the industry.The current Chinese economy has shifted from high-speed development to medium-to-high-speed development.In face of the limited vehicle,energy saving,environmental protection,consumption upgrade,and the challenge of technological upgrading represented by Internet+ and new energy vehicles,the government hopes to break the competitive landscape of the automobile industry through policies and make China a world leader in the automotive field.For this reason,many companies hope to obtain high-quality resources through mergers and acquisitions,form economies of scale,and enhance the competitiveness of enterprises.In recent years,FAW Xiali's automobile production and sales have been declining.It has continued to lose money,its profitability has been continuously reduced,and its operating capacity has basically fallen into desperation.It has been unable to improve its current difficulties through its own capabilities,and both the SASAC and FAW Xiali itself hope to improve their profitability through mergers and acquisitions,and have also publicly sought the transferee.However,the merger and acquisition process of the company is not smooth.The case of Gree Electric,headed by Mingzhu Dong refused to merge with FAW Xiali,which also explains the difficulty of the acquisition of FAW Xiali,Except to Gree,Tesla and Geely may also become the recipients of FAW Xiali.This paper mainly discusses the improvement measures of FAW Xiali's current profitability problem,and the measure mainly studies from the perspective of mergers and acquisitions to improve profitability.The content of this paper is divided into six parts.The first part introduces the background and significance of the research,the current research status,content and methods.The second part introduces the theory of profitability,corporate mergers and acquisitions and strategy.The third part quantitatively analyzes the profitability of FAW Xiali,and analyzes the existing problems of FAW Xiali profitability and the causes of the problems.The fourth part analyzes the motivation of FAW Xiali M&A from the internal and external environment,and the problems in the M&A process.The fifth part studies the countermeasures to improve the profitability of FAW Xiali.It mainly studies the feasibility of mergers and acquisitions and the specific measures to improve profitability through mergers and acquisitions.It also analyzes some countermeasures that can improve profitability in the case of merger failure.The sixth part draws the research conclusions of the paper and makes a prospect for the conclusion.I hope that the analysis and research in this paper can improve the problems of FAW Xiali's profitability.