SAIC Motor

SAIC Motor Corporation Limited researches and develops, produces, and sells passenger and commercial vehicles in the People's Republic of China and internationally. Its auto parts and components include power drive systems; chassis; interior and exterior trims; and components and smart product systems for new energy vehicles, such as batteries, electric drives, and electronic controls. The company also provides logistics and transportation services, mobility services, automobile life-support services, energy-saving and charging service, etc.; chargers, photovoltaic power generators, hazardous waste disposal services, and power battery recycling solutions; and engages in the auto finance, corporate finance, insurance sales, and investment businesses. In addition, it engages in the research and development of automobiles; manufacture and sale of automobile transmissions, electricity-controlled burning oil products, engineering machinery facilities, and diesel engines and spare parts; equity and venture capital investment, industrial consulting and investment, asset and investment management, storage and consulting service, network technology, etc.; manufacturing and processing of machinery; real estate development and operation, and property management; and development, operation, leasing, and property and investment management of industrial workshops and supporting facilities. Further, the company offers sales and after-sales services; marketing, warehouse, and logistics services for automobiles; property management and innovation services, etc.; insurance agency, hospitality, beverage, and catering services; publishing and distribution services; automobile electronic systems and components; hardware and electricity components; building materials; and sells vehicles, electromechanical products, etc. The company is based in Shanghai, the People's Republic of China. SAIC Motor Corporation Limited is a subsidiary of Shanghai Automotive Industry Corporation (Group).

Although it has a long history, originating from an automobile assembly factory established in Shanghai sometime around World War II, SAIC, unlike domestic rivals FAW Group and Dongfeng Motors, has only recently attained a position of prominence in the Chinese vehicle industry. A small company in the 1970s, SAIC owes its rise to more than an increase in domestic demand for passenger vehicles. A cooperative agreement made with Volkswagen in 1984 followed by the formal establishment of Shanghai Volkswagen Automotive Co Ltd in March 1985 allowed it to produce competitive cars with foreign technology. Early success at SAIC may also be a result of guidance provided by local Shanghai authorities; at one time SAIC was simply an extension of the Shanghai Municipal government. For these two reasons and more, SAIC grew swiftly. In the 11 years leading to 1996, annual production capacity increased ten-fold to 300,000 units/year, and the company established itself as one of the leading Chinese automakers.During this period, SAIC effectively built an entire modern automotive component supply chain in Shanghai from scratch, and the number and quality of locally produced auto parts rose significantly. Cars that were previously assembled in China from knock-down kits provisioned by Volkswagen became products built from parts produced in Shanghai, and between 1990 and 1996 the city more than doubled its contribution to the national output of automotive components. In 1987, the only local parts used in one car, the Volkswagen Santana, were tires, radio, and antenna, but by 1998 over 90% of the components used in its manufacture were locally sourced. A goal set by the Shanghai Municipal government, creation of a local parts industry is an example of the influence that the local government has had on the development of SAIC.

In June 1997, SAIC formed a second major joint venture, Shanghai General Motors Co Ltd, with General Motors. The new joint venture began operations in 1998, and helped to drive a doubling in SAIC's vehicle production between 2000 and 2004. Initially partnering with foreign automakers, creating joint ventures with component suppliers, such as the American Visteon, may now help underpin SAIC success.

At the start of the 2000s, SAIC made several acquisitions in Korea. In 2002 it participated in GM's purchase of Korean automaker Daewoo, acquiring a 10% stake in the newly formed GM Daewoo company for US$59.7 million, and in 2004 it also assumed control of an ailing South Korean automaker, SsangYong Motor, paying US$500 million for 48.9% ownership of the company. Around this time SAIC created a new holding company for its subsidiaries employed in passenger car production, Shanghai Automotive Group.In the middle of the decade, SAIC attempted to acquire the British automaker MG Rover, but in 2005 was outbid by another Chinese automaker, Nanjing Automobile. SAIC did manage to obtain some MG Rover technology that was incorporated into a new line of luxury sedans sold under the Roewe marque, and it subsequently purchased the winning bidder.While the company saw sales success in the late 2000s, with 2.72 million vehicles sold in 2009, its 2004 purchase of an ownership stake in a Korean SUV-maker, Ssangyong, soured. In January 2009, after an additional US$45 million was provided to it by SAIC, SsangYong Motor Company was placed into receivership in Korea. Courts might have mandated SAIC reduce its ownership, and by 2010 a 51.33% share of the Korean company had become a 10% one. The 2009 Ssangyong failure also saw riot police quell protesting Ssangyong workers who staged a 77-day-long sit in. SAIC may have benefitted from exposure to some technology from Mercedes that Ssangyong controlled during this time.

In 2010, SAIC produced 3.58 million units, the largest output of any China-based automaker that year.In June 2010, Magneti Marelli and Shanghai Automobile Gear Works officially launched a new joint venture plant in the Jiading district near Shanghai, China. SAGW, the main Chinese manufacturer of transmissions for the automotive sector, is a subsidiary of SAIC Motor.

In February 2011, SAIC unveiled a new commercial vehicles marque, Maxus.On 13 April 2011, vehicle assembly resumed at the MG Motor UK Longbridge plant as the first MG 6 to be produced in the United Kingdom came off the production line, but ended in 2016 when SAIC moved production to China. it retained a technical subsidiary SAIC Motor UK on site until 2019.

In 2011, SAIC produced 3.97 million vehicles, the largest output of any China-based automaker that year.In June 2012, SAIC's United States-based subsidiary Shanghai Automotive Industries Corp USA, Inc. opened a new North American Operations Center in Birmingham, Michigan. The opening ceremony was attended by Rick Snyder, Governor of Michigan, Oakland County Executive L. Brooks Patterson, and senior executives from General Motors and SAIC Motor. The 30,000-square-foot, three-story facility will house nearly 100 staff and focus on sourcing components.In 2012, SAIC retained its top spot among domestic rivals by producing around 3.5 million units.

The present-day SAIC is the product of numerous mergers and corporate re-structurings. Shanghai Internal Combustion Engine Components Company was founded in December 1955. In March 1958, Shanghai Internal Combustion Engine Components Company and Shanghai Powertrain Equipment Manufacturing Company were merged into Shanghai Powertrain Machinery Manufacturing Company. In January 1960, Shanghai Powertrain Machinery Manufacturing Company was renamed Shanghai Agricultural Machinery Manufacturing Company. In April 1969, Shanghai Agricultural Machinery Manufacturing Company was renamed Shanghai Tractor Industry Company. Shanghai Automobile & Tractor Company was established in July 1984. In March 1990, Shanghai Automobile & Tractor Company was renamed Shanghai Automotive Industry Corporation. Shanghai Automotive Industry Corp was founded in September 1995.

SAIC Motor strives to grasp the trend of industrial development and speeds up the innovation-driven industrial transformation, and it is growing into a full-range vehicle products and travel services provider from a traditional manufacturing enterprises.

The first automobile group in China with annual sales exceeding 7 million.SAIC Motor makes its 14th appearance on Fortune Global 500 in July 2018, ranking 36th with a revenue of $128.8 billion.