SAIC merges and overhauls Naveco CV brands

Shanghai, February 25 (Gasgoo.com) Fourteen months after it acquired Nanjing Auto, Chinese auto giant SAIC now has started its restructuring of Nanjing Iveco (Naveco), a commercial vehicle division of Nanjing Auto, said 21st Century Business Herald today. 

The Naveco assets are handed over to SAIC's commercial vehicle business division. The Iveco and Guerin (Yuejin) brands will have separate departments for sourcing, quality control, and sales. This represents SAIC's independent double-brand strategy in the commercial vehicle segment just like it is doing in the passenger-car market. The joint venture SAIC-GM-Wuling has been a CV market leader in China.

Naveco can expand SAIC's CV market share and also support the Chinese auto giant's growth in the global market. Meanwhile, after the merger of Nanjing Auto into SAIC, it is also more possible for Iveco to have a larger platform for its operation in China, and the profits-making capability of Naveco has also boosted Iveco's confidence in this fast-growing market.

Back in May 2008, SAIC and Iveco unveiled their jointly developed first vehicle model -- Power Daily, which features the new generation the powerful 3.0L F1C engine and the second generation BOSCH common-rail electric injection system. As Iveco's Daily model specially designed for the Chinese market, Power Daily is expected to become the benchmark for China's future light commercial vehicles.

SAIC and Iveco began to cooperate in 2005 by establishing SAIC Iveco Commercial Vehicles Co Ltd., to produce commercial vehicles using Iveco's technology. The joint venture bought a 67% stake in Chongqing Hongyan Auto, one of China's leading trucks makers, to build another company making diesel engines.

Naveco aims to achieve a steady sales growth in the Chinese market by selling 25,000 Iveco trucks (up12.5%) and 52,000 Guerin trucks (up 10.1%) this year.