BAIC’s Three-year Contact with Suzuki Receives No Result

Shanghai, April 10th, Gasgoo - It's revealed that Changhe Suzuki will launch a new model, an A0-class car coded as New Solio. It's said that the model, together with M70 and H40D, will be listed as the three main force models for Changhe Auto. However, one insider reveals that the new model's technologies are mainly guided by BAIC Changhe and Suzuki provides no technological supports.

In fact, BAIC said in 2013 that it would actively introduce Suzuki's new models for deepening cooperation when it purchased Changhe. BAIC Group has contacted with Suzuki for several times in the past three years but no consistent strategy has been made for Changhe Suzuki’s future developments. In fact, Japanese technological and managerial staff has now moved out of Changhe. The cooperation between two sides only focused on key parts. Suzuki is unwilling to provide any new technologies to Changhe.

Now BAIC Group is the only supporter for Changhe Group. The Freda M50, launched in 2015, was originated from BAIC Weiwang M20 platform. The other two SUV models Q25 and Q35 also share the same platform with SAAB X25 and X35. BAIC Group always hopes to adopt a “two brands strategy“ to produce differentiated products. It's revealed that BAIC brand will focus on middle-and-high-end and commercial market, while Changhe brand will target on youngsters' market, just like the difference between Hyundai and KIA.

But Changhe's performance still needs to be lifted. Currently, Changhe's hot models are mainly sold in third-tier or fourth-tire cities in Jiangxi Province. BAIC is also undergoing transformation on Changhe Auto. According to plan, its Hongyuan factory engine production line, Jingdezhen R&D center and Jiujiang New Energy Project will be constructed in 2017. BAIC Changhe will also try to cover product line with cars, SUVs, MPVs, mini-buses and alternative energy vehicles this year.