SAIC to boost its own-branded cars

Shanghai Automotive Industry Corp (SAIC), one of the three largest auto groups in China, said yesterday it will expand its local technical center to boost development of models under its own brand.

With a planned area of 500,000 square meters, the SAIC Motor Technical Center, is designated to strengthen capabilities in vehicle manufacturing and power train systems, according to Gao Weimin, president of the center.

With an area of 130,000 square meters, the first phase of the technical center is expected to be completed by the end of 2007 and the total investment involved is about RMB 1.8 billion.

The center has now hired more than 600 engineers, and the number will go up to 1,500 by 2010 and 2,000 by 2012, Gao said.

SAIC has also established its own technical center in Britain after taking over the former R&D center of MG Rover Corp, the Ricardo 2010, and R&D facilities in South Korean's Sangyong Motor with a controlling stake.

The three technical centers in Shanghai, Britain and South Korea will work together to optimize its research and development capability for its self-branded models.

SAIC plans to sell 600,000 units of its own-branded cars by 2010, which will account for 30% of its total sales. Its first own-brand vehicle, the Roewe 750 sedan, was launched in March this year.

SAIC is the parent company of Shanghai Automotive Co. Ltd. <600104>, the country's largest car marker. Together with First Automobile Works (FAW), and Dongfeng Motor Corp (DFM), the "Big Three" is currently hold more than 40% market share in terms of production in China.