Companies pushed to consolidate often fail

Over the past three decades, "consolidation" has been a buzzword in the Chinese auto industry.

Early policy in the 1980s aimed at a consolidation of the "big three and small three". The government selected the winners from among the three big brands - FAW, Dongfeng and SAIC - and three smaller brands - BAIC, Tianjin Motor and GAC.

To this day, the industry remains heavily fragmented, but the government remains committed to a top-down blueprint for consolidation.