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Shanghai Automotive Industry Corporation

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Shanghai Automotive Industry Corporation
Type Public
Headquarters Shanghai, China
Key people Hu Maoyuan
Industry Automotive
Products Automobiles
Revenue (turnover) increase RMB 230 billion (2009)[1]
Total assets increase RMB 203 billion (2009)[2]
Total equity increase RMB 50 billion (2009)[2]
Employees 89,106 (annual average for 2009)[1]
Website www.saicmotor.com
The Shanghai Automotive Industry Corporation (SSE: 600104) (
中文:
; abbreviated 上汽 Shàngqì or SAIC, pronounced /ˈseɪ.ɨk/) is a government-owned, Chinese automobile manufacturer.

One of the "Big Five" Chinese automakers, SAIC participates in the oldest surviving foreign-Chinese joint venture, with Volkswagen. It also has a joint venture with General Motors.

It was the most-productive vehicle manufacturer in China in 2010 selling 3,56 million units.[3]

HistoryEdit

SAIC's long and storied history spans nearly fifty years and has seen the company through more than one total transformation. Along with First Automobile Works, SAIC was one of the few carmakers in Mao's China, making the Shanghai SH760 for government officials not important enough to warrant a FAW Hong Qi.[4]

SAIC Motor and its joint ventures in China sold 2.72 million vehicles in 2009.[5]

Foreign acquisitionsEdit

In addition to its joint ventures with foreign companies, SAIC has sought ownership of several foreign carmakers.

MG Rover-SAIC incomplete negotiationEdit

In August 2004, it was learned that SAIC was in talks to buy Britain's MG Rover Group. 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 75 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 TF 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 Rover name from BMW Group 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 Rover in 2000.

The company has plans to release an updated version of the Rover 75 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 factory in the British West Midlands.

In December 2008, SAIC has been in talks with Ford to purchase Volvo for $6 billion.[6]

Ssangyong Motors purchaseEdit

In late 2004 SAIC bought a 51% stake of SsangYong Motor Company and took over management. In January 2009, after recording a $75.42 million loss, the company was put into receivership. This may have been due to the global economic crisis and shrinking demand.[7]

Company employees and analysts have blamed SAIC for stealing technology from the company and failing to live up to its promise of continued investment.[8]

SAIC denied allegations of technology theft made by company employees.[9] 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.[10]

Electric vehiclesEdit

SAIC revealed an all-electric version of the Roewe 350 powered by lithium-ion batteries in late 2010.[11] It is not certain if the vehicle will be offered to consumers,[citation needed] but a small electric vehicle is supposed to be on the market in 2012.[11] China subsidies oil[12] and some Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.[13][14]

Joint ventures and subsidiariesEdit

Chinese-foreign joint ventures:

Other automotive companies owned by SAIC:

SAIC Equipment Companies

See alsoEdit

ReferencesEdit

External linksEdit

Smallwikipedialogo This page uses some content from Wikipedia. The original article was at Shanghai Automotive Industry Corporation. The list of authors can be seen in the page history. As with Tractor & Construction Plant Wiki, the text of Wikipedia is available under the Creative Commons by Attribution License and/or GNU Free Documentation License. Please check page history for when the original article was copied to Wikia

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