SAIC to sell cars in Europe

Shanghai Automotive Industry Corp. will start selling cars in Europe as early as next year -- two years sooner than many industry observers expected, say European distributors.

China's biggest carmaker will distribute cars of its new brand, Roewe, through the dealer network of its Korean subsidiary SsangYong. The China-built cars will be sold under the SsangYong badge.

SAIC has a two-step strategy to enter the European market. Selling cars through SsangYong dealers is the first step. The second step starts in 2010, when SAIC launches Roewe cars in Europe through a new SAIC distribution network.

It will be similar to Hyundai and Kia. The Koreans are in the same group but have separate brands and networks, said a person familiar with SAIC's plans.

Dutch dealer group Kroymans likely will distribute Roewe cars though its 170 SsangYong dealers in Germany, Belgium and the Netherlands starting late next year.

"It would be a good opportunity for us as we already have a SsangYong dealer network in these countries," said Milco de Vries, Kroymans' chief operating officer.

Koelliker Group, Italy's largest private importer, also will sell Roewes.

"We will distribute Roewe cars in Italy, Austria and Hungary beginning in 2009," a Koelliker spokesman said.

Olivier Panissaud, SsangYong France's product marketing manager, would not confirm that his company will sell Roewes. But he said that past experience has shown that it is good to launch a new brand through an existing dealer network.

Madrid-based Berge Automocion expects to start selling Roewes in Spain, Portugal and Poland late next year or early 2009.