SAIC Group (officially
Shanghai Automotive Industry Corporation (Group)) is a Chinese
government-ownedA government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
automotive company. It is one of the "Big Four" Chinese automakers (along with
Chang'an MotorsChang'an Automobile Co Ltd is an automobile manufacturer in Chongqing, China, and a state-owned enterprise with China Weaponry Equipment as parent....
, FAW Group, and
Dongfeng MotorDongfeng Motor Corporation along with its listed subsidiaries comprise one of China's largest vehicle manufacturers.Traditionally included as one of the "big 3" Chinese automakers, Dongfeng is currently in the top 4 along with Chang'an Motors, FAW Group, and Shanghai Automotive Industry Corporation...
) and in 2010 produced 3.58 million units, the largest output of any Chinese manufacturer.
SAIC's origins date to the early years of the Chinese automobile industry in the 1940s, and it was one of the few carmakers in Mao's China, making the
Shanghai SH760The Shanghai SH760 is a car produced in China from 1958 to 1991. It was primarily produced for government officials not important enough to warrant a FAW Hong Qi....
for government officials not important enough to warrant a
FAW Hong QiHongqi is a luxury car brand of First Automobile Works. These cars were the first domestically produced Chinese passenger vehicles.First manufactured in 1958, the original Hongqi models were only for high-ranking party elite and remained in production until 1981...
. SAIC participates in the oldest surviving Sino-foreign car making
joint ventureA joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
, with
VolkswagenVolkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
, and has also had a joint venture with
General MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
since 1998. SAIC products sell under a variety of brand names including those of its joint venture partners. The company boasts one of the few domestic Chinese luxury car brands, Roewe.
SAIC has several
publicly listedThis is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
subsidiaries including SAIC Motor Corporation Ltd and HUAYU Automotive Systems Co Ltd .
History
Although its origins lie in an automobile assembly factory established in Shanghai sometime around World War II, SAIC, unlike domestic rivals FAW Group and Dongfeng Motors, has only recently attained a position of prominence in the Chinese vehicle industry. In the 1970s it was a small company, but a cooperative agreement made with Volkswagen in 1984 and the guiding hand of local Shanghai authorities (at one time SAIC was simply an extension of the Shanghai Municipal government) allowed the car-maker to rise quickly. In the 11 years leading to 1996 annual production capacity increased ten-fold to 300,000 units/year, and the company established itself as one of the leading Chinese automakers.
During this time SAIC built an entire component supply chain out of whole cloth in Shanghai. Number and quality of locally produced auto parts subsequently rose. Cars that were previously assembled in China from knock-down kits provisioned by Volkswagen became products almost wholly produced in Shanghai, and between 1990 and 1996 the city more than doubled its contribution to the national output of automotive components, In 1987 the only local components used in one car, the
Volkswagen SantanaThe Volkswagen Santana is a three-box sedan, based on the second generation Volkswagen Passat . It was first introduced in 1981 and is scheduled to remain in production until 2012....
, were tires, radio, and antenna. By 1998 over 90% of the parts used in its manufacture were locally sourced. A goal set by the Shanghai Municipal government, creation of a local parts industry is an example of the influence that body has had on the development of SAIC.
In the 2000s, cooperation with foreign companies continued to be a boon for SAIC, which took on General Motors as its second joint venture partner in 1998 and experienced two-fold growth between 2000 and 2004.
Mergers and corporate developments
The present-day SAIC is the product of numerous mergers, corporate restructurings and joint-ventures. Shanghai Internal Combustion Engine Components Company was founded in December 1955. In March 1958, Shanghai Internal Combustion Engine Components Company and Shanghai Powertrain Equipment Manufacturing Company were merged into Shanghai Powertrain Machinery Manufacturing Company. In January 1960, Shanghai Powertrain Machinery Manufacturing Company was renamed Shanghai Agricultural Machinery Manufacturing Company. In April 1969, Shanghai Agricultural Machinery Manufacturing Company was renamed Shanghai Tractor Industry Company. Shanghai Automobile & Tractor Company was established in July 1984. Shanghai Volkswagen Automotive Co., Ltd. was established in March 1985. In March 1990, Shanghai Automobile & Tractor Company was renamed Shanghai Automotive Industry Corporation. Shanghai Automotive Industry Corp. (Group) was founded in September 1995. In June 1997, Shanghai General Motors Co., Ltd. was established.
21st century
In October 2002 it was announced that SAIC would pay $59.7 million for a 10 percent stake in the G.M. Daewoo Auto and Technology Company. In October 2004 SAIC acquired a controlling 48.9 percent stake in
SsangYong Motor CompanySsangYong Motor Company is the fourth largest South Korean automobile manufacturer. The name SsangYong means double dragons.SsangYong was acquired by India's Mahindra & Mahindra Limited in February 2011, after being named the preferred bidder in 2010 to acquire the bankruptcy-protected company...
of South Korea for US$500 million. In November 2004 SAIC issued a statement to the Shanghai Stock Exchange announcing that it was creating a new holding company, Shanghai Automotive Group, to house all of its car manufacturing interests.
In August 2004 it was reported that SAIC was in talks to buy Britain's
MG Rover GroupMG Rover was the last domestically owned mass-production car manufacturer in the British motor industry. The company was formed when BMW sold the car-making and engine manufacturing assets of the original Rover Group to the Phoenix Consortium in 2000....
. In November, it was announced that SAIC could take a 70% stake in a joint venture company shared with MG Rover in return for its £1 billion investment. In March 2005, Shanghai Automotive Industry Corporation (SAIC) and Nanjing Automobile Corporation (NAC) announced their intentions of acquiring 50% and 20% shares of MG Rover respectively. However, in April 2005, it emerged that SAIC would not proceed with the MG Rover deal, after concerns about the British automaker's financial stability. This news sent MG Rover into administration receivership. SAIC had claimed that it had already acquired Intellectual Property Rights in some Rover products for £67 million in the autumn of 2004, including the Rover 25, the
Rover 75The Rover 75 is an executive car produced initially by the Rover Group at Cowley, Oxfordshire, UK, and later by MG Rover at their Longbridge site in Birmingham, UK...
and the Rover Powertrain K-series engine, but the Administrators advised that there was still interest in saving some other parts of the company, including MG, and Friday, 13 May 2005 was set as the deadline for bids from potential investors.
In June 2005, it emerged that SAIC held the rights to the
MG TFThe MG F and later the MG TF are mid-engined, rear wheel drive roadster cars produced from 1995 onwards. The MG F was the first all-new car to bear the MG marque since the MG MGB, produced from 1962 to 1980...
sports car. Commentators in the British media claimed that the rights were transferred by its former owner, MG Rover, to SAIC accidentally. SAIC bid for MG Rover assets but on 22 July 2005, the Nanjing Automobile Corporation purchased the British Group for £53 million. Having bought the rights to a number of Rover models, the group tried to purchase the
RoverThe Rover Company is a former British car manufacturing company founded as Starley & Sutton Co. of Coventry in 1878. After developing the template for the modern bicycle with its Rover Safety Bicycle of 1885, the company moved into the automotive industry...
name from
BMW GroupBayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
for £11m, but this bid also failed and the Rover brand eventually went to the Ford Motor Company Inc. of the USA after its exercised its right over the name following its purchase of
Land RoverLand Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
in 2000. The company has plans to release an updated version of the
Rover 75The Rover 75 is an executive car produced initially by the Rover Group at Cowley, Oxfordshire, UK, and later by MG Rover at their Longbridge site in Birmingham, UK...
as the 750, under the main brand name of Roewe. At the end of 2007, Nanjing Automobile Corporation entered Chinese Government-supported talks with SAIC about a possible merger. Their cars, MG 7 (NAC) and Roewe 750 (SAIC) share mechanical features. The takeover was completed on 26 December 2007, transferring all NAC assets to SAIC ownership, including the MG name and the
Longbridge plantThe Longbridge plant is an industrial complex situated in the Longbridge area of Birmingham, United Kingdom. It is currently owned by SAIC Group and is a manufacturing and research and development facility for its MG Motor subsidiary....
in the British West Midlands. In December 2008, SAIC has been in talks with Ford to purchase Volvo for $6 billion.
SAIC Motor and its joint ventures in China sold 2.72 million vehicles in 2009.
In January 2009, after recording a $75.42 million loss, SsangYong Motor Company was placed into receivership. This may have been due to the global economic crisis and shrinking demand. Company employees and analysts have blamed SAIC for stealing technology from the company and failing to live up to its promise of continued investment. SAIC denied allegations of technology theft made by company employees. Regardless, SAIC was charged by the South Korean prosecutor's office for violating company regulations and South Korean law when it ordered and carried out a transfer of proprietary Ssangyong technology that was developed with South Korean government funding over to SAIC researchers.
In February 2011, SAIC unveiled the
MaxusMaxus is a commercial vehicle marque owned by SAIC Group. It was launched in March 2011.The name of the marque originates from the Maxus model of the defunct British commercial vehicle manufacturer LDV Group, following the acquisition of LDV's intellectual property by SAIC in 2010. The first Maxus...
marque as a new global brand for its commercial vehicles in a ceremony at the Shanghai Science and Technology Museum. On 13 April 2011 mass production resumed at the MG Motor UK Longbridge plant as the first
MG 6The MG6 is a mid-size car built by Shanghai Automotive Industry Corporation, derived from the Roewe 550 and hence distantly related to the Rover 75, sharing its front subframe...
to be produced in the United Kingdom came off the production line.
Operations
Marques
SAIC sells under a variety of
brandThe American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
s. Brand names that are exclusive to SAIC include
BaojunBaojun is a brand of low-cost automobile sold only in China by SAIC-GM-Wuling Automobile, a partnership between General Motors and Shanghai Automotive Industry Corporation....
,
MaxusMaxus is a commercial vehicle marque owned by SAIC Group. It was launched in March 2011.The name of the marque originates from the Maxus model of the defunct British commercial vehicle manufacturer LDV Group, following the acquisition of LDV's intellectual property by SAIC in 2010. The first Maxus...
, MG, Roewe, Wuling, and Yuejin. Some products produced by SAIC joint venture companies bear the brand names of their foreign partners. Joint venture vehicles are sold under marques such as Buick, Chevrolet,
IvecoIveco, an acronym for Industrial Vehicle Corporation, originally an alliance of European commercial vehicle manufacturers such as Fiat , Unic and Magirus. Iveco is now an Italian truck, bus, and diesel engine manufacturer, based in Turin...
,
ŠkodaŠkoda Auto , more commonly known as Škoda, is an automobile manufacturer based in the Czech Republic. Škoda became a wholly owned subsidiary of the Volkswagen Group in 2000, positioned as the entry brand to the group...
, and Volkswagen.
Joint ventures and subsidiaries
SAIC participates in cooperative efforts with foreign automakers that see the products of global heavyweights like General Motors and Volkswagen made and sold in China. Sino-foreign
joint ventureA joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
s that SAIC is involved with include Nanjing Iveco Auto Co Ltd ("New Naveco"), Saic-Iveco Commercial Vehicle Co Ltd,
SAIC-GM-Wuling AutomobileSAIC-GM-Wuling Automobile is a joint venture between General Motors and Shanghai Automotive Industry Corporation of China and Liuzhou Wuling Motors Co., Ltd...
,
Shanghai Volkswagen AutomotiveShanghai Volkswagen Automotive Co., Ltd. is a joint venture company between Volkswagen Group and Shanghai Automotive Industry Corporation established in 1984...
, and
Shanghai General Motors CorporationShanghai General Motors Company Ltd. is a joint venture between General Motors Company and Shanghai Automotive Industry Corporation that manufactures and sells Chevrolet, Buick, and Cadillac brand automobiles in mainland China. Shanghai GM was founded on June 12, 1997 with 50% investment each...
.
Production facilities
SAIC has many production bases in China. These include sites in
ChongqingChongqing is a major city in Southwest China and one of the five national central cities of China. Administratively, it is one of the PRC's four direct-controlled municipalities , and the only such municipality in inland China.The municipality was created on 14 March 1997, succeeding the...
,
Liuzhou-History:thumb|Liuchow in 1945.Liuzhou has a history of more than 2,100 years. The city was founded in 111 B.C. when it was known as Tanzhong....
,
ShanghaiShanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
,
ShenyangShenyang , or Mukden , is the capital and largest city of Liaoning Province in Northeast China. Currently holding sub-provincial administrative status, the city was once known as Shengjing or Fengtianfu...
,
Qingdao' also known in the West by its postal map spelling Tsingtao, is a major city with a population of over 8.715 million in eastern Shandong province, Eastern China. Its built up area, made of 7 urban districts plus Jimo city, is home to about 4,346,000 inhabitants in 2010.It borders Yantai to the...
, and
YantaiYantai is a prefecture-level city in northeastern Shandong province, People's Republic of China. Located on the southern coast of the Bohai Sea and the eastern coast of the Laizhou Bay, Yantai borders the cities of Qingdao and Weihai to the southwest and east respectively.The largest fishing...
. It also has an assembly plant in the United Kingdom, the
Longbridge plantThe Longbridge plant is an industrial complex situated in the Longbridge area of Birmingham, United Kingdom. It is currently owned by SAIC Group and is a manufacturing and research and development facility for its MG Motor subsidiary....
.
See also
- List of Chinese automakers
- List of Volkswagen Group factories
External links