Two of China’s largest automakers — Shanghai Automotive Industry Corp. (SAIC) and Nanjing Automobile Corp. — have announced that they will merge in an effort to better compete globally. SAIC — which acquired Nanjing — is currently the Chinese partner of General Motors and Volkswagen , and also has its own Roewe brand. Nanjing purchased the MG brand from the MG Rover Group in 2005, but will now be owned by SAIC.
SAIC will take control of Nanjing’s British assembly plant, which is preparing to produce MG roadsters. SAIC will use the plant to build sales in Europe. “The British business will become SAIC’s new platform for overseas markets and a window of SAIC toward Europe,†Chen Hong, president of SAIC, told Automotive News.
No time frame was given for when the new MG will begin production, but Chen says production will start soon.
According to Automotive News, Fiat’s current deal with Nanjing to produce passenger vehicles in China will be dissolved. The two companies will continue to produce commercial vehicles in China.
