Beijing Auto shopping for Opel

Beijing Auto Works | Ash | May 24, 2009 at 1:02 pm

Beijing Automotive Industry Corp (BAIC) are swelling at the seams with cash after succesful joint ventures programes with Hyundai, Mercedes, and previously Chrysler, and it seems that BAIC are ready to start splashing that cash around.

SAIC and Nanjing Auto have already been out with their chequebook to buy up bankrupt companies technology and branding, and it has served them them well so far. BAIC are reportedly interested in taking over a slice of Opel from GM. The asking price from GM has not yet been announced, but it is expected to be somewhere in the 900 million USD range.

BAIC have not been effected by the global economic crisis, in fact the opposite has happened and their sales have increased an impressive 21.5% over the Jan to April period.

Chinese acquisitions of automotive technology are expected to increase over the remainder of this year as ‘traditional’ automotive companies look to cut costs and improve cash flow by selling off technology, factories, or any other assets.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.