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an important choice

BAIC teaming up with Soueast? I just don’t know about that. When we look at earlier partners Chrysler Jeep, Hyundai, and Mitsubishi, and the less than exciting outcomes of their tie ups with BAIC, I really wonder if it’s wise for Soueast to enter such a gamble. I think it could find a better partner. Even Hyundai would have been better off teaming up with Jianghuai Auto further south from the start. That’d be a more mainstream location for the frisky Korean giant.
BAIC one of those old holdout SOE’s, is too close to the bureaucratic center to be fluid.
In fact what I would prescribe for BAIC would be a move of its entire operation to Kunming, so it would be able to say, “Heaven is high and the Emperor is far away.” Beijing really doesn’t want that dinosaur in the middle of the bustling Chaoyang district anyway.
 

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But we haven't heard anything more about the merger of BAIC and Soueast that was reported at the new year. Maybe its the pressure from Beijing to shrink the top 14 down to 10 companies as announced also at the start of the year.
But BAIC is already preparing a new production base in Hunan so its anyone's guess as to what will become of these talks.
And would you believe that Chrysler, the company that put BAIC on the map (with AMC), just declared bankruptcy.
 
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