SAIC may start to purchase engines from Nanjing Auto

Shanghai Automotive Industry Corp (SAIC) may start to source engines from Nanjing Automobile (Group) Corp and equipped them on SAIC’s Roewe model, a report citing suppliers to the OEM and unnamed sources at Nanjing Auto said yesterday.

The unidentified sources claim that buying engines from Nanjing Auto is a primary motive for SAIC to form a partner relations with Nanjing Auto. Neither SAIC nor Nanjing Auto is available to comment on this purchase deal.

Last month SAIC and Nanjing Auto signed a letter of intent for a strategic alliance, but both sides have said their agreement “does not imply any substantial commitment, nor did the agreement offer any details on future cooperation between the two automakers.”

Two years ago, Nanjing Auto outbid SAIC to acquire the assets of a collapsed UK-based auto maker.

But shortly thereafter, SAIC bought the intellectual property rights to MG's designs, and based on this acquisition SAIC launched its Roewe brand this past January.