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Capacity of new Nanjing Auto lifted up to 200,000 next year, official says
Shanghai. March 12 (Gasgoo.com) – The new Nanjing Auto is expected to have an output capacity of 200,000 vehicles by the end of next year, a senior official from Shanghai Automotive Industry Corporation (SAIC) said yesterday.
"The new Nanjing Auto is an important part of the SAIC’s local brand initiatives,” Chen Zhixin, deputy general manager of the SAIC group and general manager of new Nanjing Auto told Nanjing Auto’s MG business conference earlier this week.
MG and Roewe will operate independently under the SAIC group, Chen said. “It is very clear to us that MG has been positioned as an upscale sports car model.”
The former Nanjing Auto acquired bankrupt MG Rover's models and assets for $104 million in 2005, outbidding China's biggest carmaker Shanghai Automotive Industry Corp (SAIC).
China's biggest automobile industry group Shanghai Automotive Industry Corp (SAIC) signed a merger contract with Nanjing Automobile (Group) Corp at the end of 2007.
Under this contract, SAIC will acquire all assets owned by Nanjing Auto, including OEM and component parts manufacturing facilities. In return, Nanjing Auto will acquire no more than 8 percent of SAIC's stakes after the merger, an insider familiar with the talks said.
By the end of 2008, Nanjing Auto's assets, about RMB 2 billion (USD 272 million) will be injected into SAIC Group.
The two parties will jointly develop MG and Roewe brands based on Rover technology following the merger. The two companies currently are sharing the same technology, derived from the now-defunct British carmaker MG Rover.
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