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Chinese carmakers to join forces
jaguarChinese car giant Shanghai Auto (SAIC) and the country's oldest carmaker Nanjing Automobile Corporation (NAC) will set up a working group to study how they could work together in the highly competitive market, according to state press. Beijing wants it to restructure so that only the biggest carmakers and those that are growing rapidly remain, Chinese authorities being concerned about overcapacity in the country's car industry.

Chinese media said authorities were also concerned about competition between the two groups which share the same technology that derived from the former British carmaker MG Rover. In July 2005, NAC bought the rights to develop the historic MG, Austin Healey and Healey models from the bankrupt group that was once maker of the iconic Mini and Jaguar. SAIC bought the rights to two Rover models but not the brand name, but instead found its Roewe marque last October.
Publication date: 29 July 2007 / All News...

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