Gac Changfeng Motor Group Strategic Restructuring Case Study

China’s automobile production capacity got surplus with low level of technology and weak competitiveness in the background of rushing global financial crisis in2008, which led to china’s automobile exporting market a downturn and the domestic market competition intense. In response to the severe global economic situation, the chinese government has issued a series of macro-control policies, including the Auto Industry Restructuring and Rejuvenation Plan. In order to meet the objective demands of the global auto industry competition and to seek the path of continuous rapid development of automobile industry under the financial crisis, the major domestic automobile groups have formulated and implemented strategic mergers and acquisitions program one after another. In May2009, Guangzhou Automobile Group and Changfeng Group "got marriad"and promoted the strategic restructuring plan step by step.For those automobile enterprise groups requiring rapid expansion, only the traditional asset restructuring has been difficult to achieve a1+1>2reorganization effect, like the coupling of the SAIC and Nanjing Auto, and the combination of FAW and hippocampus, they began each array when they completed the reorganization of assets and changed the name listed on the end. Single asset restructuring, makes the combined companies like separatist princes, no value created and economies scale effect brought to the group. On the contrary, with many reorganization sequelae to the group, such as a large organizational structure, tedium types of business, weakened synergistic effect, small economies scale, inefficient management and other negative issues.Strategic restructuring, by contrast to the reorganization of assets, can effectively integrate internal and external resources of all kinds, changes in the corporate systematically from the capital operation, business integration, human resources integration and cultural management. In this thesis, the strategic reorganization case of Guangzhou Automobile Group and Changfeng Moto was listed and studied, including a analysis of motivation of strategic reorganization, approaches and contents of strategic reorganization, effects of strategic restructuring, and discussion of success factors that promote the strategic restructuring.Finally, studies in this thesis found that synergies and optimal allocation of resources were realized after the strategic restructuring of Guangzhou Automobile Group to Changfeng Motor."Win-win" Restructuring targets were reached between businesses and enterprises, enterprises and employees, businesses and the Government’s. Guangzhou Automobile Group restructuring of the Changfeng Motor, will provide some experience to those Group companies to achieve strategic objectives through strategic restructuring.