BAIC may acquire Jiangsu-based manufacturer with intent of establishing local factory

Gasgoo.com (Shanghai June 3) - BAIC Group's management team is currently in the process of negotiating with the government of Jiangsu to acquire or merge with local manufacturer Zhenjiang Automobile with the aim of establishing a production site in the province, the Beijing Times reported earlier this week, citing sources close to the manufacturer. BAIC has yet to officially comment on the news.

"If there are no complications, BAIC's new manufacturing base for East China will be located in Zhenjiang," the source stated, adding that BAIC has been in negotiations with the government of Jiangsu. According to national legislation, if an automobile enterprise wants to set up a factory in a province it is not located in, it must first acquire or merge with a certified local manufacturer. If BAIC is indeed aiming to establish a factory in Jiangsu, Zhenjiang Automobile would be the perfect candidate for the manufacturer to cooperate with.

Zhenjiang Automobile is a local government-owned manufacturer which possesses official certificates to produce all vehicles types aside from sedans. If BAIC is able to find a way to establish a production sites in cooperation with Zhenjiang Automobile, it will possess five major factories in the country, with its site in Beijing's Shunyi District having begun operation following the market debut of its new Shenbao D280 own brand car earlier last month. Currently, the majority of BAIC's sales are of models manufactured at its production site in Zhuzhou, Hunan.