Beijing Auto Aims to Join Big League
06 July 2009
Beijing Automotive Industry Holding Corp. wants to join other Chinese state-owned automakers, such as Shanghai Automotive Industry Corp. and China FAW Group Corp., in the top tier of China's auto industry.
BAIC has a 38 percent stake in Beiqi Foton Motor Co., China's largest commercial vehicle maker.
To grow, BAIC Chairman Xu Heyi has long wanted to acquire smaller domestic automakers, including Southeast Motor Corp. and Changfeng Motor Co.
China's central government is encouraging state-owned automakers to buy competitors.
Xu, a former Beijing government official who took over BAIC in 2006, also is strengthening BAIC's ability to supply high-quality parts. He formed 12 joint ventures with global suppliers such as Delphi Corp. and Visteon Corp.
BAIC also has 11 wholly owned parts suppliers.
Nevertheless, BAIC's two joint-venture automakers, Beijing Hyundai Motor Co. and Beijing Benz-DaimlerChrysler Automotive Co., still rely heavily on imported parts.
BAIC in 2008 hired Wang Dazong, a U.S.-trained engineer and former SAIC technology chief, to develop its brand.
The company has been talking about developing a sedan using a Mercedes-Benz four-cylinder gasoline engine, but the plan is incomplete.
BAIC also is working with Tsinghua University in Beijing to build hybrid vehicles, which use a gasoline engine and one or more electric motors to power the wheels.
Source : english.chinabuses.com
Editor : July
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