| SAIC eyeing rival Nanjing Automotive, owner of MG |
SHANGHAI, Apr. 19 (AP) -- Chinese automaker SAIC hopes to cooperate with rival Nanjing Automobile, owner of British carmaker MG, in developing their own-brand cars, SAIC's chairman Hu Maoyan said Thursday.
SAIC, local partner with General Motors Corp. and Volkswagen AG, lost out to Nanjing Automobile in bidding for bankrupt MG Rover Group in 2005. Instead, Shanghai-based SAIC bought technology for two MG models, the 25 and the 75.
SAIC has since launched its own-brand version of the Rover 75, called the Roewe. Nanjing Auto recently rolled out its version of the MG sports car, seeking to revive the historic brand.
"I can declare we are looking forward to cooperation with Nanjing Autos," Hu told reporters on the sidelines of the Shanghai Auto Show, which formally opens on Sunday.
Hu asserted that since both companies were state-owned, it would make sense for them to cooperate.
"We need to use state assets more efficiently and effectively," Hu said. "We believe the leaders of Nanjing Auto are smart enough to understand this principle."
"I believe the government would be glad to see such cooperation," Hu said, without elaborating. He added that "we are always looking for international and domestic partners."
State media have reported that Nanjing Auto is facing difficulties in financing the overseas expansion based on its acquisition of MG, which included its Longbridge factory in central England. The company, which is based in the eastern city of Nanjing, also recently has appeared to be pulling back from a project to build an auto plant in Ardmore, Oklahoma.
Some reports have suggested Nanjing Auto or its joint venture with Italy's Fiat SpA, Nanjing Fiat, might be a target for a takeover by Chery Automobile, China's biggest independent automaker, or some other company.
The spokesman for Nanjing Auto was not immediately available for comment.
The Chinese government has long encouraged consolidation in the auto sector to nurture a handful of manufacturers able to compete in global markets. A tie-up between SAIC and Nanjing Auto would suit that policy.
However, the auto industry still remains divided by regional rivalries _ with new manufacturers still joining the fray. The most recent official figures put the total number of auto manufacturers in China at nearly 150, up from 130 about a decade ago.
|
|
