Shanghai Automotive Industrial Corporation's Strategies for Global
Expansion
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR171
Case Length : 16 Pages
Period : 1984-2005
Organization : Shanghai Automotive Industrial Corporation
Pub Date : 2005
Teaching Note : Available
Countries : China
Themes: Expansion Strategies | Strategic Alliances | Acquisition
Industry : Auto and Ancillaries
To download Shanghai Automotive Industrial Corporation's Strategies for Global Expansion case study (Case Code:
BSTR171) click on the button below, and select the case from the list of available cases:
OR
Buy With PayPal
|
Price:
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra
» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
"SAIC will become one of the top ten car companies in the
world within the next ten to 15 years. It is likely that teenagers in Europe or
the U.S. will be considering a Shanghai Auto car within the next decade."
- Graeme Maxton, an industry consultant in Britain, in 2004.1
"They need a very clear strategy and also excellent
execution. Their lack of experience is in that area. There is a lot they have to
learn."
- An international consultant who worked with SAIC, in 2004.2
SAIC to Launch Own Car Brand
|
In April 2005, the Shanghai Automotive Industrial Corporation (SAIC) announced
that it would launch its own brand of cars by early 2007. This announcement
generated considerable interest in the global automotive industry. The
state-owned SAIC was one of the 'Big Three'auto companies in China along with
First Auto Works (FAW) and Dongfeng Motor, and operated primarily through joint
ventures with foreign companies investing in the country. SAIC's major joint
ventures were with Germany's Volkswagen AG (Volkswagen) and General Motors Corp.
(GM) of the United States. (Refer Exhibit I for the major joint ventures in
China). Upto this point in time, the company did not have any passenger car
brands of its own and only marketed its partners'vehicles.
|
|
Announcing SAIC's plans to develop its own car brand, Zhao
Fenggao, the company's general manager said that the production facility would
be based at Yizheng in the Jiangsu province (where Shanghai Yizheng Automotive
Co., Ltd, a wholly owned company of SAIC, already produced multi-utility
vehicles under the Sabre brand3).
|
|
He also said that the company planned to manufacture
50,000 cars in the first year of production. No other details about the
cars were made known. Analysts however speculated that the cars might be
based on the Rover 75 model manufactured by British automaker MG Rover.
SAIC had purchased the intellectual property rights to the Rover 75 and
the Rover 25 models, along with the Powertrain engine business from MG
Rover in 2004 for £67 million (The Rover brand name however could not be
used by SAIC as BMW owned the rights to that). |
SAIC to Launch Own Car Brand
- Next Page>>
|
