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#1 ·
BEIJING (AFX) - SAIC Motor Corp Ltd, one of China's largest automakers, said it has appointed Wang Dazong, a former chief engineer and design manager at General Motors, as its vice president.

Wang will be in charge of technical management and product development at the Chinese automaker, including establishing R&D capabilities for launching its own brand vehicles, said SAIC Motor in a statement.

Yale Zhang, head of auto consultancy CSM Worldwide's China operations, told XFN-Asia that there is a growing trend among Chinese automakers to employ more and more overseas professionals to bring in production and management expertise.

Zhang said that most Chinese firms, including Chery and Lifan, already have key R&D personnel who have worked for major international automakers.

'But it is hard to measure how much value these personnel can create for the Chinese automakers in developing their own cars,' Zhang added.

SAIC Motor Corp Ltd said in February that it has set up a company -- SAIC Motor Manufacturing Co Ltd -- to produce automobiles of its own design with an investment of 3.68 bln yuan.

The first model, which was designed based on the Rover 75, is scheduled to be released in the second half of the year.

State media reported earlier this year that SAIC Motor may hire GM China's former president Phil Murtaugh to head SAIC Motor Manufacturing Co Ltd.
Source:forbes
 
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#2 ·
SAIC, FAW drive into Fortune 500

Jin Jing
2006-07-14
TWO Chinese car giants drove themselves into the new Fortune 500 list as a result of the nation's booming auto industry.

SAIC, the Chinese partner of General Motors Corp and Volkswagen AG, took the 475th position with a sales revenue of US$14.3 billion for 2005, two years after it entered the list in 2004.

First Automobile Works Group, China's largest automaker, maintained its name on the list for a second consecutive year and was No. 470 with revenue of US$14.5 billion.

However, its ranking dropped from No. 448 in the last list with US$13.8 billion sales income.

FAW's profit for 2005 totaled US$116 million while SAIC's was US$21 million.

Analysts said SAIC's acquisition of South Korea's Ssangyong Motors Corp, which increases its sales, helped the Chinese automaker back onto the list this time in addition to its rapid development in car manufacturing in the Chinese market.

SAIC overtook FAW as China's largest carmaker for the first time last year when it sold 1.05 million vehicles, a 24 percent jump from a year earlier.

The Shanghai-based company also sold over 680,000 units in the first half of this year.

http://www.shanghaidaily.com/art/2006/07/14/286136/SAIC__FAW_drive_into_Fortune_500.htm
 
#3 ·
SAIC appoints Gao to head its R&D subsidiary

Jin Jing
2006-08-11
SHANGHAI Automobile Industry Corp has hired Gao Jiawei, formerly with General Motors Corp, to strengthen its research and development capability as it seeks to roll out vehicles under its own nameplate.

SAIC Motor Manufacturing Co Ltd, the major platform of SAIC for making vehicles with its own technology, has appointed Gao as the director of its production line-up.

It is understood that the new company is considering producing smaller-sized vehicles, a source told Shanghai Daily.

A SAIC Motor spokesman refused to comment yesterday.

SAIC Motor has an abundance of talent in its pool after lapping up 150 auto engineers from failed carmaker MG Rover.

Gao's appointment comes after SAIC named another former General Motors staffer Wang Dazhong as its vice president in March.

The former GM chief engineer and design manager will be responsible for technical management and product development, including R&D capabilities of the company.

SAIC, China's second-largest automaker, has been aggressively eying expansion after winning the intellectual property right for Rover 25 and Rover 75 from the British carmaker early last year.

The Shanghai enterprise, which cooperated with both General Motors Corp and Volkswagen AG, plans to invest 13.6 billion yuan (US$1.69 billion) to launch 30 models with its own technology in the market over the next five years.

SAIC Motor's first self-branded model, a mid-to-high range family car based on the Rover 75, will roll out in the second half of this year followed by another family car early next year.

Reports elsewhere said the company has also spent US$22 million to gain the Rover brand from BMW Corp. However, Huang Huaqiong, a spokesman for SAIC Motor, said the Chinese name for the models haven't been decided yet. The company's manufacturing plant aims to produce 300,000 vehicles by 2010.
http://www.shanghaidaily.com/art/2006/08/11/288800/SAIC_appoints_Gao_to_head_its_R_amp_D_subsidiary.htm
 
#6 ·
SAIC/Nanjing - a bit like the Rolls Royce/Bentley sale that VW thought it had scored on, and then BMW removed the big ace for a fraction of the price! Ok, maybe SAIC had contributed previoulsy to MG Rover, and maybe Rover is not such a big prize in British eyes, but Rover is certainly a more useable name in the Far East for prestige cars than MG.
 
#7 ·
SAIC to buy parent's JV stakes

By Janet Ong and Lee Spears (China Daily)
Updated: 2006-12-01 09:27

Shanghai Automotive Co shares surged yesterday after the firm said it will create China's biggest publicly traded carmaker by paying 19.1 billion yuan (US$2.4 billion) in stock for its parent's stakes in ventures with General Motors Corp and Volkswagen AG.
The China Securities Regulatory Commission approved the sale of 3.28 billion shares to SAIC Motor Corp, Shanghai Auto said in a statement yesterday to the city's stock exchange. The company is buying stakes in 16 units from the State-owned parent.

The listing of SAIC's main operations will help the carmaker raise funds to expand in a nation that is set to overtake Japan this year as the world's second-largest vehicle market.

"China is encouraging companies to list in their entirety to reduce transactions within their groups and to enhance transparency," said Zhang Xin, an analyst at Guotai Jun'an Securities Co in Beijing. "Access to the capital markets also makes it easier to develop new products."

Shanghai Auto's shares surged by their daily 10 per cent limit to a two-year high of 6.78 yuan (86 US cents) and changed hands at 6.68 yuan (84 US cents) at the 11:30 am trading break in Shanghai.

The stock has more than doubled this year, outpacing a 78 per cent increase in the benchmark Shanghai composite index.

China's vehicle sales rose 26 per cent in the first 10 months of this year to 5.77 million units.
http://www.chinadaily.com.cn/bizchina/2006-12/01/content_747932.htm
 
#8 ·
SAIC business news

By Jin Jing 2007-7-28
shanghaidaily.com
THE Shanghai Automotive Industry Corp yesterday signed a letter of intent with the Yuejin Motor (Group) Corp that will allow it to tie up with the Nanjing Automobile Corp.

The result will be the biggest alliance in China's auto industry for developing home-branded model.

China's largest auto maker and Yuejin plan to jointly set up panels working on the possibility of cooperation on complete cars, auto parts and auto trades between the two state-owned car makers, SAIC said in a statement late yesterday.

The proposed synergy is based on an assets-restructuring program for both Jiangsu Province-based Yuejin and its subsidiary, Nanjing Auto, with the aim of a comprehensive cooperation with the SAIC, the statement added.

Analysts said the announcement marks the launch of a long-awaited merger between SAIC and Nanjing Auto, which acquired assets and intellectual property rights from the failed British MG Rover Corp to make their own-branded vehicles. "The cooperation will combine the strength of each other and will be carried out in an extensive way," SAIC said in the statement.

"The unity should help to consolidate resources for better efficiency, improve research and development capabilities, expand product mix and lift brand value for a win-win situation."

SAIC lost out to Nanjing Auto in a bidding for the bankrupt MG Rover in 2005. It spent 67 million pounds (US$136.21 million) to get the technology for two Rover models, which helped its listed unit, Shanghai Auto, to unveil its own version of Rover 75 last year, called the Roewe 750 sedan.

Nanjing Auto took over the MG brand and complete assembly lines with a 50-million-pound investment. It will sell the Chinese-made MG-branded models - starting next month - as part of a US$2 billion investment to revive the historical brand worldwide.

SAIC didn't elaborate on the cooperation agreement yesterday, saying the consolidation will avoid competition issuer with Shanghai Auto.
 
#11 ·
Anyone ever heard whether Nanjing plans to import MG Rover's to the U.S.? I saw a new version of what used to be a MGB in America in a British car mag about 10 years ago and it looked pretty good. Retained a lot of that British micro-car charm and looked tight.

Most Americans would poo-poo the idea of buying a MG because of the lack of their crashworthiness, anyway. There would be a small audience, though. Triumphs were also quite popular here in the 60's and 70's with the TR-3, TR-4, TR-250 and TR-6.
 
#13 ·
SAIC Changes Its Name

From China Car Times.

SHANGHAI Automotive Co Ltd, the listed unit of China’s biggest car maker, has been renamed Shanghai Automotive Group Co Ltd, marking the completion of an assets restructure of its parent, the company said in a statement yesterday.

Shanghai Auto, 83.83 percent owned by Shanghai Automotive Industry Corp, sold additional shares to the parent for taking its stake in two venture with General Motors Corp and Volkswagen AG. The move helped Shanghai Auto increase competitiveness by focusing more on car manufacturing instead of auto parts. Shanghai Auto is now responsible for making SAIC’s self-owned car models including Roewe 750 and other upcoming new products.
 
#14 ·
SAIC Motor to Set Up Transmission Subsidiary

The new subsidiary is to be called SAIC Motor Automotive Transmission Ltd. It will have registered capital of CNY 1.6 billion.

All the businesses, employees, assets, and liabilities of Automobile Gear Works will be totally infused into the new subsidiary.

The new arm is to be engaged in the research and development, manufacturing, and provision of automobile transmission assembly both at home and abroad. It also focuses on the manufacture of automotive gearboxes used in the
 
#18 ·
SAIC Boosts Investment, Challenging GM, VW in China

SOURCE: http://www.bloomberg.com
Seonjin Cha and Irene Shen
Nov. 29 (Bloomberg) -- SAIC Motor Corp., China's largest automaker, will increase spending to make cars of its own design, heightening competition with its partners General Motors Corp. and Volkswagen AG.
The company will spend at least 20 billion yuan ($2.7 billion) to develop between 20 and 30 new models by 2012, President Chen Hong said at a press conference in Shanghai today. That compares with an earlier plan to spend 13.7 billion yuan by 2010.
SAIC Motor is moving up from being a low-wage assembler of overseas brands and is developing five platforms, ranging from recreational vehicles to compact cars. The carmaker has purchased technology from the U.K. and South Korea to help with its own designs.
``It will take SAIC three to five years to build its own brand and catch up with overseas rivals,'' said Wang Liusheng, an analyst at China Merchants Securities Co. in Shenzhen. ``SAIC Motor has competitive edge over its overseas rivals with lower costs in parts purchasing.''
SAIC Motor rose 3.4 percent to 24.34 yuan at the close of trading in Shanghai. The shares have almost tripled this year.
China Growth
Car sales in China surged 24 percent to 7.15 million in the first 10 months of 2007 because of economic growth. The benchmark CSI 300 Index has more than doubled this year, fueling demand as more than three-fifths of Chinese stock-market investors buy new cars with their profits.
``China has become the most important market for all carmakers,'' said Wang. ``SAIC has great potential to develop in its own country.''
The carmaker expects group sales of more than 200 billion yuan this year, Chen said. The company is spending about 8 percent of sales on research and development.
The automaker expects to sell a total of 600,000 own-brand vehicles by 2010, including Roewe sedans.
SAIC Motor's parent in also in talks about a possible tie- up with Nanjing Automobile Group Co., the Chinese maker of MG cars, to expand its own-brand line-up.
``M&A is something you grasp when opportunities arise,'' said Chen. ``We'll continue to closely monitor market situations in China as well as overseas.''

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net Irene Shen in Shanghai at ishen4@bloomberg.net
Last Updated: November 29, 2007 05:36 EST
 
#21 ·
SAIC plans to introduce 30 new cars in next five years!

December 18th, 2007 - the Chinese motoring press are reporting that SAIC plans to push out 30 cars over the next five years, that includes five new platforms.

Roewe has been selling well so far this year, with SAIC selling 18,000 Roewe 750’s between March and November of 2007, and on average sells around 2000 vehicles per month in 2007.

China Car Times knows of the Roewe 750 (W161 platform) and the Roewe 550 (W261 platform) we are now hearing rumors of an S161 platform which will form the basis of a small car, the Roewe SUV is based off the S100 platform.

Surely our more astute readers will realize that SAIC are actually claiming that they can bring out a new car every two months over the next 60 months/five years.
source: China Car Times
 
#22 ·
Excellent news for SAIC - the company sold 1.5 millions vehicles in first eleven months of 2007!

December 20 2007 - Shanghai Automotive Industry Corp (SAIC) has sold 1.5 million vehicles in the first eleven months of this year, reaching its sales target for the full year of 2007, China Business Times reported today.

SAIC's passenger vehicle sales have reached 996,675 units in January through November, up 22.5 percent from a year earlier. In passenger vehicles, Shanghai VW sold more than 400,000 units, and Shanghai GM sold 430,000 vehicles. Ssangyong, a subsidiary of SAIC, has experienced buoyant sales in Chinese market.

During the same period, SAIC sold 30,000 commercial vehicles (heavy and light duty trucks), 15 percent higher than its full year target.

The company is expected to sell 1.6 million vehicles by year end. By 2010, SAIC will be able to produce and sell 2 million vehicles and of which 600,000 will be SAIC's self-developed models, the company said earlier.
source: Gasgoo.com
 
#23 ·
Sales results for 2007.

January 9, 2008 – Shanghai Automobile Industry Corporation, or SAIC, still holds No.1 position in China automobile industry by selling 1.69 million vehicles in 2007, up 25.8 percent from one year earlier, the company announced yesterday.

In passenger vehicle sales, SAIC sold 1.13 million units, up 24.3 percent year-on-year. Shanghai General Motors has consolidated its leading position in China’s passenger vehicle sales by selling more than half a million vehicles in 2007, while Shanghai VW sold 456,000 units and Ssangyong sold 136,000 vehicles.

SAIC also sold 16,000 Roewe vehicles since it was launched in March of 2007.

In commercial vehicle sales, SAIC sold 553,000 units, up 29 percent from one year earlier. SAIC-GM-Wuling sold 520,000 mini-vans (Wuling Star) in 2007, up 23.8 percent year-on-year; SAIC-Iveco-Hongyan sold 24,000 trucks, up 69.7 percent year-on-year.
source: Gasgoo.com
 
#24 ·
China's SAIC Motor net profit surges 242% in 2007

From gasgoo.com:
March 27, 2008 - SAIC Motor Corp Ltd., listed company of China's largest automaker Shanghai Automotive Industry Corp (SAIC), posted a net profit RMB 4.63 billion ($656,000) for the whole year of 2007, up 242% over the previous year.

In 2007, SAIC has sold a total of 1.69 million vehicles in the Chinese market, up 25.8% year on year, and 1.13 million of them were passenger vehicles, an increase of 24.3% from one year earlier. The number makes it the leading automaker in China in terms of sales.

Its two passenger car joint ventures with General Motors Corp and Volkswagen AG sold 500,308 and 456,424 vehicles respectively last year, while commercial vehicle ventures Saic-GM-Wuling and Saic-Iveco Hongyan each sold 520,000 and 24,000 vehicles. Sales of South Korea subsidiary Ssangyong Motor were 136,000 vehicles, up 13%.

Also by the end of last year the listed company had issued RMB 6.3 billion convertible debts, which provided fund support for improving R&D facilities and capabilities.

Due to increased auto sales and capital injection, the automaker's total revenue last year has reached RMB 104 billion ($14.8 B), a growth of 434% from one year earlier.

Earnings per share stood at RMB 0.708, up from RMB 0.355 a year earlier.

The company said it has set a sales target of 1.9 million units for 2008, with total revenues growing to RMB 119.1 billion. It predicts that China's total domestic auto demand will grow by 10% to 9.7 million units this year.

From China Car Times:
SAIC top brass are probably kicking themselves that they didnt stick a bid in for Landrover and Jaguar, after a record breaking 2007 they can easily afford it!

In 2007 SAIC sold 1.69 million vehicles, which translates into a 25.8% year on year increase on 2006. Profit in RMB was 4.63 billion RMB. Of the 1.69 million vehicles sold, 1.13 million were automobiles.

Sales with its joint venture partners worked out as follows: GM sold 508,380 vehicles, and VW 456,424. SAIC’s minivan and truck making ventures, SAIC-GM-Wuling and SAIC-Iveco Hongyan each sold 520,000 and 24,000 vehicles. Some more good news for SAIC bosses are that sales at its Korean owned manufacturer, Ssangyong, are up 13%. Ssangyong sold 136,000 vehicles in 07, a respectable figure for essentially a niche market player.

SAIC is planning to push the goal posts even further in 2008, with them planning to sell 1.9 million vehicles. Can they meet those targets? Possibly, the Chinese Car Industry shows no signs of slowing just yet.
 
#25 ·
Re: SAIC business news

SAIC looks into future

By Hao Zhou (chinadaily.com.cn)
Updated: 2008-04-09 17:33


On April 1 this year, the entire equity of Nanjing Automobile (Group) Corporation was put under Shanghai Automotive Industry Corporation (SAIC)'s name, and the integration work of both giant automakers entered a new phase.


Nanjing Auto had suspended its long-lasting cooperation with Italian automaker Fiat after SAIC signed its merger deal on December 26 last year with Yuejin Motor Group, controlling shareholder of Nanjing Auto.


However, as orders for SAIC's car models continue to outpace its production capacities, China's largest passenger car maker is considering rejuvenating Nanjing Fiat's car production line.


The 21st Century Business Herald reported earlier that Shanghai Volkswagen, Volkswagen's 50-50 joint venture with SAIC, will pay 1.5 billion yuan ($214 million) to SAIC for Nanjing Fiat assets.


"Shanghai Volkswagen is continuing preparations for assembling its current car models in Nanjing," SAIC said in a statement posted on its website.


It has also been reported that the new base for Shanghai Volkswagen will engage in production in the middle of 2008 and is expected to have production capacity of 100,000 cars by 2010.


At the same time, SAIC, a leader in the passenger car market, also has ambitious plans to produce 400,000 independently developed commercial vehicles between 2006 and 2010.


Although it has bought SsangYong's technology and started to produce the Sunwin-branded coaches under cooperation with Volvo, it was still hardly able meet this year's sales target of 700,000 commercial vehicles.


Wuxi-based Soyat, previously owned by Nanjing Automobile, could be SAIC's next merger target for expanding its commercial vehicle output. The 21st Century Business Herald said SAIC had sent an expert panel to look into the feasibility of buying out Soyat.


http://www.chinadaily.com.cn/bizchina/2008-04/09/content_6603923.htm
 
#26 ·
SAIC profit rises on China's Volkswagen car demand.

SAIC Motor Corp., China's biggest automaker, boosted first-quarter profit 7 percent after selling more cars at ventures with Volkswagen AG and General Motors Corp.

Net income climbed to 1.24 billion yuan ($177 million), or 0.191 yuan a share, from 1.16 billion yuan, or 0.177 yuan, a year earlier, the Shanghai-based carmaker said in a statement to the city's stock exchange. Sales rose 14 percent to 28.9 billion yuan from 25.5 billion yuan.

SAIC Motor's auto sales growth trailed the total market because of cooling demand for Buick Excelles made by its venture with GM. The company tripled profit last year after buying 19.1 billion yuan of assets from its parent to gain direct access to the world's second-largest vehicle market.

"Given the company's huge base and rising raw material prices, it will be more and more difficult to maintain fast profit growth," said Zhang Xin, an analyst with Guotai Junan Securities Co. in Beijing.

SAIC Motor's vehicle sales climbed 15 percent in the first quarter to 463,683, according to the China Association of Automobile Manufacturers. The overall market expanded 21 percent. China is likely to surpass the U.S. as the world's biggest car market by 2015, according to Volkswagen.

Sales growth at GM, which only builds vehicles in China through ventures, slowed to 7.4 percent last quarter, trailing Volkswagen as Chinese drivers shunned GM's Excelle in favor Volkswagen Santanas. Volkswagen builds the Santana through a separate venture with SAIC Motor.

GM's first-quarter sales in China were also hit by the country's worst snowstorms in five decades, which disrupted the delivery of parts and shipments of new vehicles from minivan- maker SAIC-GM-Wuling Automobile Co.

SAIC Motor agreed to buy Nanjing Automobile Group Corp.'s auto-making units late last year to add new models including MG cars and trucks.
source: Bloomberg
 
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