Dec. 14 (NBD) -- Automotive industry participants are wondering whether Baoneng Group is going to buy out all auto enterprises.
The joking statement comes on the heels of the rumors about the Chinese financial conglomerate's planned takeover of a few automakers.
A source close to Changhe Automobile recently told NBD that Baoneng is now seeking to buy a stake in Changhe Suzuki, rather than complete takeover.
Another person familiar with the matter revealed that the Shenzhen-based conglomerate is currently conducting due diligence, and that it remains unknown whether the deal will be finally made.
Previous reports show that Baoneng has shown interest in purchasing stake in Chinese luxury car company Qoros and German car brand Borgward.
All of these demonstrate that the company is determined to establish a presence in the auto industry.
However, Changhe Auto said that it hasn't received information on the rumored deal with Baoneng.
At present, Changhe Suzuki is nearly at a standstill in terms of new product launch. Of the four models the company has introduced, two have almost gone out of production. This puts the marque's dealerships in a struggling situation.
A person close to BAIC Group, which takes up a 70 percent stake in Changhe Auto, told NBD that Qoros, Borgward, and Changhe Suzuki are all at rock bottom, but have both factories and production qualification, making them great purchase targets.
In addition to scouting for acquisitions, Baoneng is preparing for its own vehicle projects.
In October of this year, the financial services provider reached an agreement with Fuyang District of east China's Hangzhou city to invest around 14 billion yuan (2.1 billion U.S. dollars) to build a new-energy car factory there, which is designed to produce 300,000 cars annually.
A month later, the company sealed a deal with southwest China's Kunming city to construct a new-energy car plant with a yearly capacity of 500,000 cars as well as an auto parts manufacturing factory in the city.
It is hard to say whether these projects will be advanced as scheduled, industry insiders analyzed.