China's BAIC Expands Further by Acquiring Smaller Rival
By Michelle Krebs August 18, 2010In another step in the consolidation of the Chinese auto industry, Beijing Automotive Industry Holding Co. (BAIC) will take over smaller rival Guangzhou Baolong and invest $736 million to expand its current southern China plant and add a new one.
BAIC, one of China's largest automakers, is a company on the move. BAIC had made a bid to invest in Swedish auto company Saab, when General Motors put it on the market. That attempt failed. However, in December, BAIC did acquire the intellectual property rights and tooling for Saab's 9-3 and previous generation 9-5 to build them in China; production is set for 2011.
Last month, BAIC, with a partner, was rumored to be in talks with Japan's Fuji Heavy Industries, which makes Subaru cars, about a production venture in China.
BAIC already has partnerships with Korea's Hyundai and Germany's Daimler in China. It had been the partner of Jeep, the earliest Western pioneer to make vehicles in China.
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