• Dec 26, 2007

Industry analysts widely agree that one of the principal factors preventing Chinese automakers from succeeding outside of China is the local industry's fragmentation, with over 100 automakers vying for their slice of the proverbial pie. However, a merger announced Wednesday between two major Chinese automakers, Shanghai Automotive Industrial Corp (SAIC) and Nanjing Automotive Group, stands a stronger chance of succeeding in the international car market as a larger group.

The merger, which has been long anticipated, involves SAIC paying $285.7 million for Nanjing. In return, Nanjing's parent company acquires 4.9 percent of SAIC Motor Corp.

The products of SAIC's joint ventures with GM and Volkswagen Group account for 14% of the domestic market in China, selling 1.25 million vehicles in the first ten months of 2007. Nanjing, meanwhile, sold less than 80,000 over the same period, making the acquisition a merger in the same sense as Mercedes had "merged" with Chrysler. Nanjing, however, owns MG Rover, whose plants in England SAIC hopes to use as a foothold into the European market.

[Source: Automotive News – subscription required]



I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 13 Comments
      • 7 Years Ago
      • 7 Years Ago
      what a great graphic.
        • 7 Years Ago
        Agreed. Great job guys.
        • 7 Years Ago
        The graphic is alright, but the caption made me laugh.
      • 7 Years Ago
      but really, who doesn't love vehicle voltron?
      • 7 Years Ago
      SAIC goes to bed with Nanjing Auto (both PROC state owned)..Okey! Go figure...



      • 7 Years Ago
      Very confusing headline as SAIC is also the acronym for a top defense contractor "Science Applications International Corporation". Do trademarks hold any water internationally? SAIC is pretty big time in the consulting world, you would think they would have a problem with another company of the same name.
        • 7 Years Ago
        when the IC stands for "international/industrial corporation," you're really only working with the first 2 letters. Should a company really have the rights to the letter 'S' followed by the letter 'A'?
      • 7 Years Ago
      "...vehicle Teams...LAUNCH!"

      XD.

      Always laughed the "feet" being 4x4s--That were each as large as two train locomotives side by side. ..and how there were no connections or hinge joints, the rest of the parts just magically stacked on top and stayed.
      • 7 Years Ago
      VOLTRON! (Or, Voltron's bitch cousin, Vehicle Team)

      Still, very cool nonetheless.
      • 7 Years Ago
      i had that robot action figure toy when i was a kid!!! each part becomes its own vehicle/aircraft!! it was awesome lol
      • 7 Years Ago
      Auto Voltron was a pale shadow of Lion Voltron. Still, I give props for the graphic.
      • 7 Years Ago
      I am surprised that the central government in Beijing doesn't become more involved in forcing more mergers.

      Then again the central government doesn't own the companies but rather the provincial governments own the companies which contrary to popular belief there is a big difference between the two. SAIC is owned by the provincal government of Shanghai and has little input from Beijing, same for Nanjing so thats what makes it tougher because one province could lose out to the other but with Nanjing and Shanghai being fairly close it should be ok.

      I guess what it comes down to is the fact that the the lobbiests (sp?) from the provinces are pretty strong right now, keeping the companies seperate. I am sure that will change in time.
    • Load More Comments