China: SAIC completes acquisition of Nanjing Auto
Wednesday, April 09, 2008, AutomotiveWorld.com
The acquisition of Nanjing Auto by Shanghai Automotive Industry Corporation (SAIC) was completed on 8 April, three months after the two firms signed the initial agreement to make China's major OEM even larger.
Not only has SAIC bought 100% of the holdings of Nanjing Auto but it plans to invest US$1.2bn to integrate and further develop the smaller company and its products, Gasgoo.com reports.
The automotive portal states that product development, engineering and manufacturing operations will be consolidated.
As for production plans, Nanjing's facilities are expected to have their capacity boosted to 500,000upa by 2012, while SAIC is to work with Nanjing to develop new MG-brand vehicles for both China and export markets.
The first new product of the alliance will be a revised MG7 sedan, equipped with SAIC's 1.8-litre four-cylinder engine, due for launch later in 2008. According to Gasgoo.com, production of the MG3 hatchback will finally begin this year, with a new sedan, the MG5, to be built from 2009.
SAIC plans to build just under two million vehicles in CY2008, with the tally including its joint venture operations with both General Motors and Volkswagen. Having gained the Fiat-Nanjing plant as part of the takeover of its smaller rival, it is also expected to shift some of its own production to the facility.
Published on Wednesday, April 09, 2008
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