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Old 11-30-2019, 04:02 AM   #31
Leo
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Default Re: Beijing Automotive Industry Holding Introduction

Dmitra,
I know there are many limitations to a corporate organization chart, but personally I often find it helpful to understand how a company works and how it came to be. I read a news message this week that BAIC will transform its Zhenjiang branch into a joint venture with Magna Corp from Canada, so the above chart is already outdated

Thanks for the run down of the BAIC Group history. I do wonder about it, especially the pre-1994 situation. A holding comes in different forms, but most have some ability to appoint directors to subsidiaries, set strategic plans or distribute resources. To me it feels BAIC Group in the early form is not quite such a holding, it feels more like a cooperative between (slightly) related industries. I am not in any way an expert in Chinese (business) history, so does this make any sense?
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Old 11-30-2019, 10:04 AM   #32
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Default Re: Beijing Automotive Industry Holding Introduction

Quote:
Originally Posted by Leo View Post
Dmitra,
I know there are many limitations to a corporate organization chart, but personally I often find it helpful to understand how a company works and how it came to be.
I did not rebuke you for the chart; I appreciated it. I had pointed out the limitations (the "slice in time" comment) because I may state certain facts going ahead that could make your chart look a bit outdated (which you have conceded), and thus it should not make you feel disheartened. We all find charts helpful

Quote:
I read a news message this week that BAIC will transform its Zhenjiang branch into a joint venture with Magna Corp from Canada, so the above chart is already outdated
Yes. That its true. They plan to develop and manufacture high-end electric vehicles under the Arcfox brand, or at least that is the stated intention.

Quote:
...To me it feels BAIC Group in the early form is not quite such a holding, it feels more like a cooperative between (slightly) related industries. I am not in any way an expert in Chinese (business) history, so does this make any sense?
Yes, you have more or less grasped the idea: the pre-1994 setup could be viewed as "production for the nation's or party's sake", having less to do with sound business decisions and more on the lines of "making the nation strong in industry", although they did think about increasing efficiency, thus all the group-forming exercises. After 1992 they explicitly moved towards this "modern enterprise system", meaning a proper corporate/company setup with well-defined financial objectives and metrics such as liabilities, etc.

I believe Erik has toured China extensively in the '70s, '80s and '90s, so his input on this question should be valuable.
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Old 11-30-2019, 11:22 AM   #33
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Default Beijing Automotive Industry Holding Introduction

Continuing from post #28:

2. Jiangxi Changhe Suzuki Automobile Co., Ltd. no longer exists as a JV; it is fully owned by Jiangxi Changhe Automobile Co., Ltd. (see post) under a different name: Jiangxi Zhicheng Automobile Co., Ltd.

3. The operation in Guangzhou is not a branch but a separate company: BAIC (Guangzhou) Automotive Co., Ltd. [北汽(广州)汽车有限公司], 100% owned by BAIC Motor Corp. Ltd. (北京汽车股份有限公司). BAIC acquired Guangzhou Baolong Group Light Vehicle Manufacturing Co., Ltd. in 2010 and restructured the facility. (link)

[to be continued]

Last edited by dmitra; 11-30-2019 at 11:29 AM.
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Old 12-01-2019, 01:55 PM   #34
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Default Re: Beijing Automotive Industry Holding Introduction

4. The "Off-Road" mystery.

There have been three confusing entities; let's see what they are:

Beijing Automotive Group Off-road Vehicle Co., Ltd. (北京汽车集团越野车有限公司)
Beijing Automotive Group Co., Ltd. Off-road Vehicle Branch (北京汽车集团有限公司越野车分公司)
Beijing Beiqi Off-road Vehicle Co., Ltd. (北京北汽越野汽车有限公司)

Beijing Automotive Group Co., Ltd. Off-road Vehicle Branch was established in 2013 for R&D and manufacture of BAIC Group's new off-road vehicles. Its base is the Tongxin Road factory in Beijing's Shunyi district.

This is situated just north of BAIC Motor Corp. Ltd.'s former Shunyi plant on Dongying Road that was sold and converted to Beijing-Benz's NEV factory last year when BAIC Motor moved operations out of Beijing. The Dongying Road factory is currently making the EQC. Previously it used to build some Senova models such as the old D50, X35 or X55.

The Tongxin Road plant makes the BJ40/L/F40, BJ80, BJ90 and CTL151 Yongshi (BJ80 military versions). This plant has nothing to do with BAW or BAW's products although the "Yongshi" name (just the name) is common to both companies' vehicles. Even the BJ20 is not part of its product line.

The Tongxin Road base had been operating as a branch of BAIC Group, but in 2017 a new company was set up called Beijing Automotive Group Off-road Vehicle Co., Ltd., 100% owned by the BAIC Group. On January 2, 2019, this new company formally took over the operational responsibilities of the erstwhile branch (link).

________________________

Beijing Beiqi Off-road Vehicle Co., Ltd. is a different cup of tea altogether. It is a sales and property-owning company. It was established in December 2012 by BAW (北京汽车制造厂有限公司). When BAW left Beijing and relocated to Huanghua (Hebei) in the early part of this decade, BAW sold this company and its Beijing property holdings, particularly the inactive factory in Renhe Industrial Park, Shunyi dt., to BAIC Group (in September 2013). Currently Beijing Beiqi Off-road Vehicle Co., Ltd. is constructing a large resettlement housing project (more than 4000 dwelling units) on the factory land in cooperation with BAIC Group's realty arm, Beijing Beiqi Hengsheng Real Estate Co., Ltd. (a.k.a. BAIC ETERNAL).

Last edited by dmitra; 12-02-2019 at 12:46 AM. Reason: typo
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Old 12-02-2019, 06:26 AM   #35
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Default Re: Beijing Automotive Industry Holding Introduction

Very helpful post about the "Off-road mystery"!

So now I understand where the Offroad Vehicle Company comes from, but where is it going?
Up until recently BAIC Motor Co ltd sold its cars under 4 brands: BAIC Senova, BAIC BJEV, BAIC BJ and Wevan (Weiwang). BAIC Senova and BAIC BJEV have been joined under the "Beijing" name and Wevan has been transferred to BAIC Changhe. That leaves BAIC BJ, for which BAIC Motor commisioned the cars from the Offroad Vehicle Company.

BAIC Motor's 2019 interim report says about this:
Quote:
Since June 2019, BAIC Group Off-road Vehicle Co., Ltd. (formerly known as the Off-road Vehicle Branch of BAIC Group, “Off-road Vehicle Company”) has ceased to accept the Company’s production commission for the “BJ” series off-road vehicles (mainly BJ 40 and BJ 80 vehicle models), and the Company has ceased to sell the above-mentioned “BJ” series off-road vehicles.
I guess these BJ-products are quite successfull in the market, so I don't expect to be cancelled. Does this mean that BAIC Group will sell these BJ-series vehicles itself? Will they also feature a "Beijing" logo, or are they continued to be sold as BAIC BJ?
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Old 12-02-2019, 10:08 AM   #36
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Wevan has practically been reduced to one model now: M60, and that has always been made by Changhe.

Beijing Automotive Group Off-road Vehicle Co., Ltd. having become a separate company, it will undertake its own marketing and not depend on "commissioning" of production by another. If this article is to be believed, it...
Quote:
became an independent operating company integrating R & D, procurement, manufacturing, and marketing.
In February 2019, the off-road vehicle company set up a 100% subsidiary, Beijing Automotive Group Off-road Vehicle Sales & Service Co., Ltd. (北京汽车集团越野车销售服务有限公司). Furthermore, I think these articles will leave no room for doubt:
https://www.autohome.com.cn/news/201911/952753.html.
https://www.pcauto.com.cn/guangzhou/1899/18992564.html

As of recently, "BJ" vehicles were being marketed by BAIC Motor Sales Co., Ltd. This is wholly owned by BAIC Motor. Their website (www.baicmotorsales.com) still features the "BJ" vehicles, including BJ20.
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Old 12-02-2019, 11:19 AM   #37
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Default BAIC Magna

More on the BAIC Magna Zhenjiang plans:

https://finance.sina.cn/stock/relnew...=102&cid=76524
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Old 12-05-2019, 11:45 AM   #38
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Default Re: Beijing Automotive Industry Holding Introduction

5. Borgward.

I have noted down some updates here.
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Old 12-07-2019, 05:30 AM   #39
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Default Re: Beijing Automotive Industry Holding Introduction

Thanks for the further details on BAIC Offroad.
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Old 12-23-2019, 09:20 AM   #40
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I found the comments here very helpful. In an effort to gets things clear (for myself) I've taken the time to order all of my notes. I present most of them below, shaped as a timeline.

Although it's a long list, I don't I completely understand the entire history of the companies involved. The first decades seem quite straightforward and the later era is relatively well document in the press, but there's a period in between (let's say the 1980's en 90's) that remains a mystery to me.

Here is the timeline. I have left out reference to specific car model production dates and lots of other minor details.

1951-06-10
Kuomintang No. 409 Automobile Repair Factory and Beijing Auto Repair Factory are placed under Logistics Department of People's Liberation Army Military Command. Combined these entities become known as PLA 6th Automobile Manufacturing Company.

1951-07-08
No. 409 Automobile Repair Factory produces Jinggangshan motorcycle (based on BMW motorcycle). At some point this factory is renamed Beijing Motorcycle Factory.

1953-xx-xx
Beijing Auto Repair Factory, now known as 1st Automobile Accessory Factory starts producing auto parts (carburettors, fuel pumps, etc).

1958-06-10
1st Automobile Accessory Factory reveals Jinggangshan car. Factory subsequently renamed Beijing Automobile Works.

1966-04-xx
Beijing No. 2 Automobile Works established by PLA Military Command. This second factory starts producing light trucks.

1973-07-30
Beijing (Municipal) Automotive Industry Company, or BAIC Group for short, established by Beijing municipal government. This company takes over control of Beijing Automobile Works, Beijing 2nd Automobile Works, Beijing Motorcycle Factory and several other local industries from PLA Military Command.

1980-xx-xx
BAIC Group restructured and renamed Beijing (Municipal) Automotive Industry Corporation.

1983-05-05
Beijing Jeep Co Ltd established as joint venture between Beijing Automobile Works (69%) and American Motors Corporation (31%). Many assets, including production of the BJ212 off-road vehicle, are transferred to the joint venture. Beijing Automobile Works itself only produces some auto parts and logistics services.

1987-xx-xx
BAIC Group abolished and replaced with new entity after management reform: Beijing Automotive Industry Joint Company.

1987-xx-xx
American Motor Corporation is replaced by Chrysler Corporation as partner of Beijing Automobile Works in the Beijing Jeep joint venture.

1987-06-xx
Beijing Automobile Works and Beijing Motorcycle Factory are merged into a new company called Beijing Automobile and Motorcycle Joint Manufacturing or Beijing Automobile and Motorcycle United Co.

[Comment: this is where it starts to get very confusing to me. Is there really a merger between BAW and BMF or is BAM an intermediate holding? For the following years I keep finding references to all three entities. Also all 1987 events seem related to me, but I can't find any details on the process taking place.]

1988-04-22
Beijing 2nd Automobile Works is incorporated as Beijing Light Automobile Co Ltd.

1992-06-xx
BAIC Group renamed Beijing Automotive Industry Corporation.

1993-09-xx or 1994-01-xx
There is some kind of transaction between Beijing Automobile Works/Beijing Automobile and Motorcycle Joint Manufacturing and an entity called Shandong Zhucheng Motor Co Ltd. I can't find anything specific about it. In this transaction BAIC Group apparently loses control of BAW/BAM to Wang Jinyu, the owner of Shandong Zhucheng.
I also can't find out how that transaction influences the Beijing Jeep joint venture. Since the shares were held by BAW, I assume Beijing Jeep is now formally out of BAIC Group control as well.

1994-xx-xx
BAIC Group incorporated as Beijing Automotive Industry Group Corporation Ltd.

1996-08-28
Beiqi Foton Motor Co Ltd is incorporated as subsidiary company to BAW/BAM. Again some assets are reshuffled. The article Dmitra links in one of the earlier posts says that BAW/BAM becomes mostly a hollow company.

1998-xx-xx
Chrysler Corporation is replaced by DaimlerChrysler AG as partner in the Beijing Jeep joint venture.

1998-05-11
Beiqi Foton Motor is listed on the Shanghai stock exchange.

2001-10-xx
An new company called Beijing Automobile Works Co Ltd is formed with 33% shareholding for BAIC Group and 67% for Beijing Automobile Assembly Plant, owned by Yao Changsheng.

[Comment: Again this a puzzling transaction to me. There seems to be a reshuffle of assets again, but I can't really find out who owns what. I do have a note that says that Beiqi Foton at this point is owned 32% by new BAW and 4% by BAIC Group. Other shares are probably floated. But where does it leave Wang Jinyu of Shandong Zhucheng, did he sell out at the floatation?]

2002-xx-xx
The Beijing Light Automobile Co Ltd is liquidated.

2002-10-18
BAIC Group creates wholly owned BAIC Investments Co Ltd, which forms a 50/50 joint venture with Hyundai Motors called Beijing Hyundai Motor Co Ltd.

2004-12-07
The Beijing Jeep joint venture is dissolved. Latest shareholding: BAW 58%, Daimler 42%. A new 50/50 joint venture is established between BAIC Group an DaimlerChrysler AG called Beijing Benz DaimlerChrysler Automotive Co Ltd.

2006-10-xx
Xu Heyi is appointed the new director of BAIC Group and he instigates sweeping reform within the group. In the following years he sets up an independent R&D institute, a parts and components group (including several joint ventures with foreign component manufacturers) and a financial services and trading group. All of which I will not go into any further.

2007-09-14
Beijing Automobile Works Co Ltd transfers all its shares of Beiqi Foton Motor to BAIC Group. BAIC Group now owns 36% and is the controlling shareholder.

2008-12-30
BAIC Group acquires majority share of Beijing Automobile Works Co Ltd. BAIC Group now owns 51%, Beijing Automobile Assembly Plant/Yao Changsheng 49%.

2009-01-29
Beiqi Foton Motor reaches production licence agreement with Daimler AG for heavy trucks.

2009-11-14
BAIC Group establishes Beijing Electric Vehicle Co Ltd (BJEV) and Beijing Pride New Energy Battery Technology Co Ltd as wholly owned subsidiaries.

2009-12-14
BAIC Group acquires SAAB IP (3 platforms, 2 engines, 2 transmissions).

2010-08-xx
BAIC Group forms a joint venture with Yinxiang Industry Group called BAIC Yinxiang Automobile Co Ltd. BAIC Group holds 26% of the shares, the Zhang family (through several Yinxiang entities) holds 58% and the China Development Bank the remaining 16%.

2010-08-18
BAIC Group acquires Guangzhou Baolong Light Vehicle Co Ltd.

2010-09-28
BAIC Group renamed Beijing Automotive Group Co Ltd.
At the same time BAIC Group forms with 5 partners (Beijing Shougang Group and some investment funds) BAIC Motor Co Ltd, with BAIC Group owning 51%. This company is formed to develop and produce self-branded cars, based on the acquired Saab IP. Several assets are transferred to BAIC Motor. These include BJEV, BAIC Inverstment (and thus the Hyundai joint venture), Guangzhou Baolong and a new Zhuzhou production base.

2011-06-xx
Beijing Benz DaimlerChrysler Automotive Co Ltd renamed Beijing Benz Automotive Co Ltd.

2012-02-18
Beijing Foton Daimler Automotive Co Ltd is established as an 50/50 joint venture between Beiqi Foton Motor and Daimler AG.

2013-xx-xx
BAIC Group creates Off-Road vehicles group as a branch.

2013-02-01
BAIC Group transfers all its shares in Beijing Benz to BAIC Motor.
At the same time Daimler AG acquires an 12% share of BAIC Motor.

2013-11-xx
BAIC Motor acquires an extra 1% share in Beijing Benz (BAIC Motor 51%, Daimler AG 39%, Daimler China Invest 10%).
Also BAIC Motor transfers its shares in BJEV to BAIC Group.

2013-11-25
BAIC Group acquires 70% of Jiangxi Changhe Automobile Co Ltd from FAW. The remainder of the equity is held by the Jiangxi SASAC.

2013-12-20
BAIC Group forms a joint venture with Yunnan Jingcheng Group, parent of Ruili Airlines. The company, BAIC Yunnan Ruili Automotive Co Ltd, is owned by BAIC Group (40%), BAIC International Development Co Ltd (30%) and Yunnan Jingcheng Group (30%).

2014-01-24
Beiqi Foton Motor wholy acquires German company Borgward AG, through a subsidiary Foton AutoTech set up in 2010. In 2015 Foton AutoTech is renamed Borgward Group AG.

2014-03-xx
BJEV is renamed Beijing New Energy Vehicle Co Ltd.

2014-12-19
BAIC Motor is listed on the Hong Kong stock exchange. BAIC Group retains 45% of the shares, Beijing Shougang 14% and Daimler AG 10%.

2016-03-xx
Beijing Borgward Automobile Co Ltd (factory) and Borgward Automotive (China) Co Ltd (management company) established, subsidiary to Borgward Group.

2016-03-14
BAIC Group acquires 35% of Fujian Benz. The equity is then transferred to BAIC Motor.

2017-03-xx
BAIC Off-road group incorporated as wholly owned subsidiary Beijing Automotive Group Off-road Vehicles Co Ltd.

2018-07-xx
After a series of equity transactions, BJEV gains a backdoor listing on the Shanghai stock exchange. The listed company is Beijing BluePark New Energy Technology Co Ltd, of which BJEV is a wholly owned subsidiary. BAIC Group remains the controlling shareholder, with 23% direct interest, 6% through BAIC Motor and 10% through Beijing SASAC. During the process Daimler AG acquires 4% of Beijing BluePark.

2019-07-22
BAIC Group acquires an 5% stake in Daimler AG. Later in the year reports emerge that BIAC Group intends to raise this stake to 10%, to replace Geely's Li Shufu as Daimler's largest shareholder (currently 9,7%).

2019-07-25
After several equity transfers Shenzhen Ucar (Xiamen) Information Technology Co Ltd has acquired 67% of Beijing Borgward Automobile Co Ltd, which has become the parent of Borgward Automotive (China) Co Ltd. Beiqi Foton Motor continues to own 33% of Beijing Borgward and 100% of the European assets under Borgward Group.
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