[ROVERNET - UK] For you Chinese Rover people: China's Largest Manufacturers Merge

Glen Wilson rovercar at comcast.net
Tue Jan 1 04:16:56 GMT 2008


China’s two largest car 
manufacturers, Nanjing Automotive Corporation (NAC) and Shanghai 
Automotive (SAIC) merged at a conference held recently in Beijing.

There was fierce rivalry between the two automakers, with both companies 
owning parts of what was once the MG Rover corporation. It took five 
months to come to an agreement regarding the merger, but SAIC finally 
bought out NAC for nearly $300m.

The two companies have agreed to merge all their combined resources, 
including research and design, sales and marketing, manufacturing and 
supply chain management, though the company will continue to trade under 
both names.

The aim is to make SAIC into a large global manufacturer by giving it 
access to the MG brand and NAC’s more modern, larger production 
facilities, whilst NAC leads the operation in the home market.

This is essentially a complete restructuring of the Chinese automotive 
industry; something the Chinese authorities were keen to see happen in 
order to make the country’s car industry more competitive.

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