China Watch : SAIC Motor raises $1.5B to help fund own brands

Automotive News Europe/Bloomberg, 15th December, 2010

SHANGHAI (BLOOMBERG) – The China partner of General Motors Co. and Volkswagen AG, SAIC Motor Corp., completed a private share placement that raised 10 billion yuan ($1.5 billion) to help it develop own-brand and new energy vehicles.

Shanghai Automotive Industry Corp., the company’s parent, agreed to buy about 10 percent of the 720.98 million shares in the placement for about 1 billion yuan, SAIC Motor said in a statement to the city’s stock exchange on Wednesday. While most of SAIC Motor’s vehicles are made with GM and VW, the automaker aims to sell 180,000 of its own-brand vehicles this year, President Chen Hong said in March.

SAIC Motor owns the design rights to MG Rover’s Rover 25 and Rover 75 cars, and renamed the Rover cars in China as Roewe after taking over the rights in 2005.

SAIC Motor also plans to expand a technology center to compete against foreign rivals including Ford Motor Co. and Toyota Motor Corp. in China, which surpassed the United States in auto sales last year.

The Chinese Government is encouraging domestic automakers to develop their own brands and alternative-energy technology.

[Source: Automotive News Europe/Bloomberg]

Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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