Does SAIC and NAC's "Love of the Yangtze River" "come on the knot?"
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"With regard to SAIC and NAC (cooperation), the Shanghai State-owned Assets Supervision and Administration Commission (Shanghai State-owned Assets Supervision and Administration Commission) will soon hold a press conference to explain it." The relevant personage of the Shanghai State-owned Assets Supervision and Administration Commission of the Party and Party Committee has recently come to " If you are looking for a job, the reporter will always state his position.
The statement that SAIC Motors and SAIC Motor Co., Ltd. are benefiting each other has recently been buzzing in the industry.
All due to a series of unusual attitudes of SAIC recently, it has always been cautious that its "ambition" is particularly exposed. The left hand draws on MG by Rover, and the right hand sends dark waves to Fiat. Both arrows are straight.
Active position
Hu Maoyuan, chairman of Shanghai Automotive Industry Corporation (hereinafter referred to as SAIC), is deliberately inciting the nerves of the industry. At the press conference of the Shanghai auto show, he always said to the public, “I, as a legal representative of SAIC, have told everyone very seriously that we hope to join forces with Nanjing Auto.â€
After acquiring the technology and assets of Rover, the British bankrupt automobile company, SAIC and Nanjing Auto (Nanjing Automobile Group Co., Ltd.) have been regarded as direct competitors in the industry. So, on the second day of Hu Maoyuan's statement, a large number of reporters went to Nanjing for verification. Zhang Xin, general manager of Nanjing Automobile MG (MG) Automobile Co., immediately responded: “I don’t know about the leadership, but as long as it is in line with the third road of NAC’s automotive industry, we are willing to cooperate with any auto company.â€
According to sources close to the two companies, Hu Maoyuan and Wang Haoliang, chairman of the Nanjing Automobile Group, had dinner together. Everyone guessed whether this shows that SAIC and NAC could eventually come together.
Second shot
The second explosive news appeared after the "May 1st." According to news from the American Automobile News, Fiat CEO Marchionne said that Fiat is looking for new partners in China and the new joint venture will replace the existing Nanjing Fiat Auto Co., Ltd. The new partner candidate is likely to be Chery, or SAIC.
The public relations department of SAIC Group is not satisfied with the news. However, the high-level of China’s Valeo company, which is part of Fiat’s worldwide support team, said that this matter is very likely, because for Fiat, the powerful SAIC is a good choice. Liu Ningsheng, the head of the Party Group Division of the Nanjing Automobile Group, chose to avoid: "The matter of Fiat and SAIC has been heard, but now all kinds of news are very confusing and the details are not clear."
But no matter what, we have already seen that SAIC shot each of the two major automotive projects of the Nanjing Automobile Group: the Nanjing Fiat project and the Nanjing Auto MG project.
A senior member of SAIC Motor’s parts and components company revealed that Shen Jianhua, president of SAIC, once pointed out that the cooperation between SAIC and SAIC is very basic: First, it is all state shares; Second, it has all purchased some of Rover’s assets and knowledge. Property rights and spare parts production rights; the third is the cooperation with Iveco Casting. Hu Maoyuan also believes: "Shangqi and Nanchang have quite a lot of state-owned components, and the joint operation of state-owned assets should be more efficient."
But the issue of division and separation is not what the two companies can decide. The Nanqi MG project has been listed as the “No. 1 Project†of the Jiangsu Provincial Government. SAIC is also a pillar company in Shanghai. The Jiangsu Provincial State Assets Supervision and Administration Commission acknowledged that it had helped Nanjing Steam in terms of funding, but it did not directly control Nanjing Automobile. Shanghai SASAC stakeholders also stated briefly that they are studying and replying soon.
The Yangtze River Strategy
In fact, the idea of ​​the two mergers has come a long way.
As early as 1998, SAIC, SAIC, and Tecisi AG had jointly invested in the establishment of East China Teksisi Automotive Casting Co., Ltd., both Chinese and foreign companies each have a 50% stake, and its function is to jointly fund SAIC and SAIC. A wholly-owned company provides products. This is seen by the industry as the beginning of cooperation between the two parties. Han Ra, the deputy secretary-general of the China Association of Automotive Engineers, recalled that five years ago, the industry had talked about the merger of SAIC and Nanjing Auto. But after all, it was two independent business units with different backgrounds. It was not easy to promote them.
At the beginning of this century, the SASAC began to gradually implement the “Yangtze River Strategy†of the automotive industry. The so-called “Yangtze River†strategy is based on Chongqing, Wuhan, Nanjing, and Shanghai as the strategic bases, and Changan, SAIC, and Dongfeng as the core to fully integrate the large and medium-sized state-owned auto companies in the Yangtze River basin. Among them, SAIC Motor’s strategic intention is very obvious. That is to deploy its own forces in Yizheng and Nanjing. The most important step is to restructure Nanjing Automobile, because there is a lack of light commercial vehicle platform for SAIC.
In 2005, Wang Haoliang, deputy secretary of the Nanjing Municipal Committee, took over the Nanjing Automobile Group, and one of the important tasks given by the Jiangsu Provincial Party Committee was to strive to complete the merger with SAIC. However, due to the acquisition of Rover, the two sides hurt "feelings" and the cooperation issue will be rarely mentioned.
New Shuangcheng Ji
"The technical aspects are all very good, but the background of the company is different. It is necessary to talk about the problems of the local government." Said Han Lu, the deputy secretary-general of the Chinese Society of Automotive Engineers.
According to industry analysts, there are several options for cooperation between the two parties: The first deep-level cooperation method is to establish a joint venture company. However, Nanjing Automobile has vowed to maintain its controlling position. Is SAIC willing to condescend to 49% of the shares? The second way is technical cooperation. This requires the two parties to reach a consensus on the issue of intellectual property rights. At present, there are still disputes between the two parties. The third way is the market linkage. NMC MG has 30 franchisees in the country and is expected to put it into use in the second half of the year. Compared with Roewe's channel plans for expanding to 110 dealerships this year, it is obviously far from the goal. Cooperation can make Both parties share the sales network to some extent. The lowest level is the price alliance. After all, the products are similar and the pricing is very subtle. If there is no internal solidarity, there will be no benefit to both parties.
An industry insider who has had contact with the Shanghai Municipal Government believes that when Shanghai cooperates with other provinces and cities, Shanghai will generally be the main city. I do not know how the Jiangsu Provincial Government weighed it. Therefore, it is ultimately necessary for SAIC and NAC to conclude. To get together, it must be achieved through a higher level government department.
For the cooperation, SAIC and Nanjing Auto have made a low profile. In fact, they are also waiting, "This is the same root, what to worry about too fast." Hu Maoyuan this meaningful.
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