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Both SAIC and Yuejin Motor, the parent company of Nanjing Automobile Corporation (NAC) have confirmed the integrated cooperation between each other after five months’ delicate planning.
On 26th December 2007 Mr. Hu Maoyuan, Chairman of SAIC and Mr. Wang Haoliang, Chairman of Yuejin signed a cooperation agreement at the People’s Congress Hall in Beijing.
According to the cooperation agreement, automotive businesses of NAC will be fully integrated into SAIC. Within the business units of NAC, complete vehicle and first-tied parts business will be integrated into SAIC Motor, a public listed company largely held by SAIC, and other business, related to components, service and trading will be within a newly established joint venture, Donghua Company.
After the merger of the two companies, business planning, R&D, sales and marketing, manufacturing and supply chain management will be fully integrated, contributing towards synergy and better performance throughout home and overseas markets. The long term objective of the cooperation is to build SAIC into China's largest automaker with global competitiveness while NAC into a leading manufacturing base in China.
The comprehensive co-operation sets up a benchmark for the optimization and restructuring of Chinese automotive industry.
The cooperation is fully supported by China's central government and the respective local governments of Shanghai, Jiangsu province and City of Nanjing.
The cooperation will strengthen the functions of R&D, sales and marketing and manufacturing at Longbridge. The UK business is vital for SAIC to enhance its multinational operations competence.
Following the integration there will be a further input of resources into Longbridge. With the TF being the first product launched, it will be followed by other new MG products.
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