SAIC on a buying spree, takes up 50% of Shanghai Diesel Co
SAIC is clearly not content with its purchase of Nanjing Automobile Co, SAIC has gone one step further and purchased 50.32% of Shanghai Diesel Engine Co for an amazing 127 million USD (923.42 million yuan)
Shanghai Electric Group (yes, these names do confuse us) sold their 50.32% share of Shanghai Diesel Co to SAIC for unknown reasons.
SAICs reasons for buying Shanghai Diesel Co remain unclear, but we believe that SAIC is aiming to get into the commercial vehicle sector, where diesel engines are widely used.
Shanghai Diesel is one of the larger players in the diesel engine area in China, making engines for passenger vehicles, cars, trucks, buses and machinery, Shanghai Diesel also export to around 50 different countries around the world.
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hmm I wonder what SAIC is up to . It looks like to me that they are stocking up alot of ammunitions for a big war here.
I think they must have listened to the Beijing Govt very attentively when they said ‘Go forth, and challenge the foreign marques!’
They’ve spent a lot of money in the past week or so. I wonder if a Roewe diesel will ever be made from this?
I hope so. OK, so they bought Rover and changed the back and the insides but basically it’s a sound and safe car, that stil looks good. If they crak the diesel market then they’ve got a very good chance of succeeding in Europe. Now they own MG as well could we get MG’s back in Europe where the name means something with some good, refined and high performance diesels. If they managed this, combined with a good price and good build quality then they could very well do it. Good luck to them.
SAIC would have learnt a lot from their joint venture partners over the last few years but do they really have what it takes to compete with the big boys in their own markets? Having a few cash cows in the local market is good for them but without a truly world class product of their own to take on the big manufacturers how successfully will they really be?
The Roewe is a good stepping stone for them to producing something good but it still needs to be proven outside China to see how successful it can be.
For SIAC to truly attack the major brands in their home markets they will need something pretty special to do so as well as a large chunk of US$$$ to set themselves up properly.
Will GM and VW back SAIC when they enter into the US and European markets the same as they do now??
Chery seems do be doing to opposite and is miles ahead of SAIC on this front…… Maybe Chery is the next acquisition for them while they have the check book out
SAIC already owns a fair percent of Chery, its the only way Chery could get a license to legally produce cars, before that they were illegal, but under Wuhu government protection.
Ash, do you have any idea if SAIC provide Chery with technical support?
Possibly – I am not 100% sure. Eric may know.
“Shanghai Diesel is one of the larger players in the diesel engine area in China, making engines for passenger vehicles, cars,…….”
Which passenger car uses the Shanghai diesel engine?
Im researching that now – from what I understand, Shanghai Diesel has Euro 4 spec but only for bus/truck use.