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Beijing Automotive Group

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Beijing Automotive Group

Beijing Automotive Industry Holding Co Ltd
北京汽车工业控股有限责任公司
State-owned enterprise
Industry Automotive
Founded 1958[1]
Headquarters Beijing, China
Area served Worldwide
Products Commercial and passenger vehicles
Owner(s) Daimler AG (12%)
Divisions Beijing Auto
­Weiwang
Subsidiaries BAIC Motor
Beijing Automobile Works
Beiqi Foton Motor
Beijing Hyundai(50%)
Beijing Benz(50%)
Beijing Foton Daimler Automobile(50%)
Website Beijing Automotive Group

Beijing Automotive Group (officially Beijing Automotive Industry Holding Co Ltd) is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers, such as Beijing Automobile Works Co Ltd, etc.[2] Beijing Automotive Industry Holding Co Ltd (BAIC)'s state-run parents may include Beijing Automotive Group (BAIC Group) (Chinese: 北京汽车集团), and The Beijing State-owned Assets Management Co (Chinese: 北京市国有资产经营有限公司).[3] This can explain why BAIC companies are sometimes referred to collectively as the Beijing Automotive Group.

Commonly known by the name Beiqi or the acronym BAIC, it is thought of as the fifth-largest domestic Chinese automaker,[4] but in 2012 the company ranked 4th in terms of production volume making 3.1 million whole vehicles; half of production was classified for commercial or heavy-duty use.[5] It is difficult to determine the percentage of its manufacturing mix dedicated to consumer offerings; the number of cars counted as passenger vehicles by CAAM, a Chinese auto industry association, conflates consumer offerings and light commercial trucks and vans.

Located in Beijing, Beiqi makes Hyundai and Mercedes-branded autos for sale on the Chinese market.

History

Founded in 1958, Beiqi companies build with Daimler AG and Hyundai.[6]

Beiqi was one of the top ten most-productive Chinese automakers in 2010. This may be due to subsidiary Beijing Automobile Works and a sustained surge of popularity for Beijing Hyundai products.[7] It reached fifth place by selling nearly 1.5 millions units garnering a market share of more than 8%.[8] 2011 production of 1,526,300 whole vehicles made Beiqi the fifth largest, in terms of units manufactured, vehicle-maker in China that year.[9]

Saab technology transfer

After several unsuccessful attempts to buy struggling European automakers in 2009, such as Saab, Volvo, and Opel as well as technology from the American Chrysler, Beiqi fulfilled its aim of obtaining valuable Western technology that same year purchasing technology from a former unit of General Motors, Saab Automobile.[10] This allows it to produce older Saab models (but not brand them as Saabs) for sale in China.[11]

The intellectual property bought by Beiqi includes the rights to three overall vehicle platforms, Saab 9-3 and Saab 9-5 technologies, two engine technologies, and two transmission systems.[12]

Cars with Saab technology were expected to go on sale in 2012[13] but didn't debut until May 2013.[14] The first Saab-based model on sale is the C70 or 绅宝 (Shenbao), which may be translated as "gentleman's treasure",[15] although it is sold as the "Senova" in English.[16]

Southern China expansion

BAIC aims to expand in Southern China and will purchase Guangzhou Baolong (

Electric vehicles

A trial production run of 30 electric vehicles using Saab and self-developed platforms occurred in late 2010.[19] China subsidies oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.[20]

Products

Main articles: BAW, Beijing Auto and Foton Motor

BAIC has a wide product line that includes more than the buses that are its traditional manufacture.[21] Offerings encompass many kinds of commercial vehicles, including: agricultural machinery, construction machinery, light trucks, and military vehicles, etc.[22] As of 2010 commercial vehicle production capacity is estimated to be around 700,000 units per year.[1] Production capacity figures may consider engines and vehicles as discrete.

The company sells self-branded consumer products, which makes it an outlier among Chinese car manufacturers. Based on purchased Saab platforms, the cars were first offered in 2013 although sales had been expected to start in both 2012 and 2010.[23] While it also make cars with foreign partners, its self-branded vehicles were developed without oversight from a major Western car manufacturer[1] although Western assistance is evident. To support its own brand, in 2012 Beiqi hired as a consultant former Ferrari designer Leonardo Fioravanti,[24] and a concept car designed by him was on display at the 2012 Beijing Auto Show.[25]

BAIC-branded military and civilian light trucks have also been produced.[26] The Beijing Light Automobile Company (BLAC), which until 1988 had been known as the Beijing Automobile factory No. 2, started in late 1960s when production of the independently developed BJ130 began. Its introduction was slowed down considerably by the upheavals of the Cultural revolution.[27] In 1984 assembly of the Isuzu Elf/NHR began (originally as the BJ136, later as the BJ1030/1040/1050 series). In 1988 a new plant for these trucks was built with aid from the Japanese, where petrol and diesel light truck engines were also produced.[28] BLAC went bankrupt in 2002.[27]

Operations

Along with several other production bases, four of which are in eastern China, Beiqi controls the former Guangzhou Baolong base in Southern China (most probably in Zengcheng city, Guangzhou, Guangdong province).[29] Plans exist to build two more southern production bases–one in Guangzhou, Guangdong province by 2012 and another in Chongqing.[18]

A planned production base will produce own-brand autos using Saab technology. It may be located in Zhuzhou, Hunan province, or at Sanxiang town, Zhongshan city, Guangdong province, and could become operational in June 2011.[30]

The company claims production bases in at least 26 Chinese cities.[31] This count most likely includes component manufacturers as well.

Joint ventures

Beiqi has several joint ventures with foreign automakers.

Beijing Hyundai

Main article: Beijing Hyundai

A joint venture with Korean Hyundai Motors, Beijing Hyundai Motor products sold well in 2009 and 2010.[32] New models designed for the Chinese market are due to appear.[33]

Daimler

Daimler AG makes Mercedes-Benz cars and trucks with Beiqi and has two joint ventures with the company.[34]

Car-making venture

Main article: Beijing Benz

As of 2010 Beijing Benz, a BAIC joint venture with German automaker Daimler AG, makes the Mercedes-Benz C-Class and E-Class models for sale in China and seeks to make more of the models it sells in China locally.[34]

Truck-making venture

Beijing Foton Daimler Automobile Co Ltd, a joint venture between Daimler and BAIC subsidiary, Beiqi Foton Motor Co Ltd, makes commercial trucks.[35]

References

  1. For fifth-largest Chinese automaker, see Flexing engineering muscle globaltime.cn, December 22, 2010
  2. For joint venture with Hyundai, see UPDATE 1-Hyundai Motor signs deal with Chinese carmaker reuters.com, Thu Oct 21, 2010 7:36pm EDT
  3. For attempt to purchase Opel, see TIMELINE-Deals between Western and China auto firms reuters.com, Thu Jul 22, 2010 9:04am EDT
  4. For discussion of an asset sale with Chrysler, see Chrysler renews search for China partner: sources reuters.com, Wed Aug 26, 2009 4:27pm EDT
  5. For purchase of Saab technology, see China's BAIC buys Saab assets; Spyker still in talks reuters.com, Mon Dec 14, 2009 5:18am EST
  6. For construction machinery, see Beijing Automotive Import & Export Corporation
  7. For light trucks, see Beijing Automotive Import & Export Corporation
  8. For military vehicles, see BAIHC Information Beijing Automotive Industry Holding Co., Ltd. Official Site
  9. For 2012 expectations, see "Big hurdle for a small brand --- Beijing Auto attempts to grow out of its niche with Saab-based models and new factories." Norihiko Shirouzu. The Wall Street Journal Asia. Hong Kong: Oct 13, 2010. pg. 19
  10. For 2010 as initial launch target, see This year’s goal of BAIC is 950,000 units, new vehicles “Beijing Brand” will be launched out next year BAIC Official Site, 2009-02-11
  11. For probable location, see BAIC invests $736 mln to restructure Baolong's production base gasgoo.com, August 19, 2010
  12. For strong 2010 sales, see The entire Beijing Automotive Group overcomes difficulties —— makes great endeavor to the quicker development BAIC Official Site, 2009-07-20

External links

  • BAIC Official Website (Chinese)
  • BAIC Official Website (English)
  • (BAIEC) Beijing Automotive Import & Export Corporation

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