| Industry | Automotive |
|---|---|
| Founded | 1995 (Shanghai Automotive Industry Corp. (Group)) 1955 (Shanghai Internal Combustion Engine Components Company) |
| Headquarters | Shanghai, China |
| Key people | Hu Maoyuan (Chairman)[1] Shen Jianhua (President)[2] |
| Products | Automobiles, commercial vehicles |
| Production output | 3,582,857 units (2010)[3] |
| Revenue | US$33.63 billion (2010)[4] |
| Employees | 104,588 (2010 average)[3] |
| Parent | Assets Supervision and Administration Commission[5] |
| Website | SAIC Group |
SAIC Group (Chinese: 上汽; pinyin: Shàngqì) (officially Shanghai Automotive Industry Corporation (Group)) (simplified Chinese: 上海汽车工业(集团)总公司; traditional Chinese: 上海汽車工業(集團)總公司; pinyin: Shànghǎi qìchē gōngyè (jítuán) zǒnggōngsī) is a Chinese government-owned automotive company. It is one of the "Big Four" Chinese automakers (along with Chang'an Motors, FAW Group, and Dongfeng Motor)[6] and in 2010 produced 3.58 million units, the largest output of any Chinese manufacturer.[7]
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 SH760 for government officials not important enough to warrant a FAW Hong Qi.[8] SAIC participates in the oldest surviving Sino-foreign car making joint venture, with Volkswagen, and has also had a joint venture with General Motors 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 listed subsidiaries including SAIC Motor Corporation Ltd (SSE: 600104, Chinese: 上海汽车集团股份有限公司) and HUAYU Automotive Systems Co Ltd (SSE: 600741, Chinese: 华域汽车系统股份有限公司).[9]
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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.[10] In the 1970s it was a small company, but a cooperative agreement made with Volkswagen in 1984[11] and the guiding hand of local Shanghai authorities (at one time SAIC was simply an extension of the Shanghai Municipal government[12]) 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.[13]
During this time SAIC built an entire component supply chain out of whole cloth in Shanghai.[14] Number and quality of locally produced auto parts subsequently rose.[15] Cars that were previously assembled in China from knock-down kits provisioned by Volkswagen[16] became products almost wholly produced in Shanghai,[17] and between 1990 and 1996 the city more than doubled its contribution to the national output of automotive components,[15] In 1987 the only local components used in one car, the Volkswagen Santana, were tires, radio, and antenna.[18] By 1998 over 90% of the parts used in its manufacture were locally sourced.[17] A goal set by the Shanghai Municipal government,[12] 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.[19]
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.[20] In March 1958, Shanghai Internal Combustion Engine Components Company and Shanghai Powertrain Equipment Manufacturing Company were merged into Shanghai Powertrain Machinery Manufacturing Company.[20] In January 1960, Shanghai Powertrain Machinery Manufacturing Company was renamed Shanghai Agricultural Machinery Manufacturing Company.[20] In April 1969, Shanghai Agricultural Machinery Manufacturing Company was renamed Shanghai Tractor Industry Company. Shanghai Automobile & Tractor Company was established in July 1984.[20] Shanghai Volkswagen Automotive Co Ltd was established in March 1985.[20] In March 1990, Shanghai Automobile & Tractor Company was renamed Shanghai Automotive Industry Corporation.[20] Shanghai Automotive Industry Corp (Group) was founded in September 1995.[20] In June 1997, Shanghai General Motors Co Ltd was established.[20][21]
In October 2002 it was announced that SAIC would pay $59.7 million for a 10 percent stake in the GM Daewoo Auto and Technology Company.[22] In October 2004 SAIC acquired a controlling 48.9 percent stake in SsangYong Motor Company of South Korea for US$500 million.[23] 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.[24]
In August 2004 it was reported 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 plant in the British West Midlands. In December 2008, SAIC has been in talks with Ford to purchase Volvo for $6 billion.[25]
SAIC Motor and its joint ventures in China sold 2.72 million vehicles in 2009.[26]
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.[27] Company employees and analysts have blamed SAIC for stealing technology from the company and failing to live up to its promise of continued investment.[28] SAIC denied allegations of technology theft made by company employees.[29] 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.[30]
In February 2011, SAIC unveiled the Maxus marque as a new global brand for its commercial vehicles in a ceremony at the Shanghai Science and Technology Museum.[31][32] On 13 April 2011 mass production resumed at the MG Motor UK Longbridge plant as the first MG 6 to be produced in the United Kingdom came off the production line.[33]
SAIC sells under a variety of brands. Brand names that are exclusive to SAIC include Baojun,[34] Maxus,[35] MG,[36] Roewe,[36] Wuling,[37] and Yuejin.[38] 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,[39] Chevrolet,[39] Iveco,[38] Škoda,[40] and Volkswagen.[40]
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 ventures that SAIC is involved with include Nanjing Iveco Auto Co Ltd ("New Naveco"),[41] Saic-Iveco Commercial Vehicle Co Ltd,[42] SAIC-GM-Wuling Automobile, Shanghai Volkswagen Automotive, and Shanghai General Motors Corporation.
SAIC has many production bases in China. These include sites in Chongqing, Liuzhou, Shanghai, Shenyang, Qingdao, and Yantai.[9] It also has an assembly plant in the United Kingdom, the Longbridge plant.[43]
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