Beijing Automobile Industry Holding

**BAIC Group** (officially Beijing Automotive Industry Holding Co., Ltd.) is a Chinese state-owned enterprise and holding company of several automobile and machine manufacturers, located in Beijing, China. Its principal subsidiaries include the passenger car maker BAIC Motor, the military vehicle and SUV maker BAW and the truck, bus and agricultural equipment maker Foton Motor. BAIC's parent is the Beijing State-owned Assets Management Co (Chinese: 北京市国有资产经营有限公司).

In 2014, manufacture of 2.25 million whole vehicles made BAIC the fourth largest among domestic rivals although it placed second in terms of commercial vehicle output.

Through joint ventures, BAIC makes Hyundai and Mercedes-branded autos for sale on the Chinese market.

## History

The roots of the company goes back to 1958 when Beijing Auto Works introduced its Jingganghsan sedan soon to be followed by the Beijing CB4, a V8-engined convertible and limousine.
The company was chosen to manufacture the locally designed 4wd jeeps which replaced outdated American off-roaders and the Russian GAZ. The Beijing BJ210 and its bigger brother, the BJ212 became the standard military vehicles for decades to come.
The first foreign JV of the company was set up in 1983, the Beijing-Jeep. Currently the Jeep Cherokee, Grand Cherokee, various Mitsubishi off-roaders are being manufactured at that company plus an updated version of the BJ212, called the City Cruiser (BJ2020).
Currently the holding company is also engaged in another JV with the Korean Hyundai company. Altogether BAIC has 10 manufacturing plants in the country with a cumulated capacity of over 300,000 cars.

BAIC was one of the top ten most-productive Chinese automakers in 2010. This may be due to subsidiary Beijing Automobile Works and a sustained surge of popularity for Beijing Hyundai products. It reached fifth place by selling nearly 1.5 millions units garnering a market share of more than 8%. 2011 production of 1.5 million whole vehicles made Beiqi the fifth largest vehicle-maker in China that year in terms of units manufactured. BAIC remained fifth in 2012, which saw the company make 1.7 million whole vehicles; 30% of production was commercial or heavy-duty products.

**Saab technology transfer**

After several unsuccessful attempts to buy struggling European automakers in 2009, such as Saab, Volvo, and Opel as well as technology from the American Chrysler, BAIC fulfilled its aim of obtaining valuable Western technology that same year purchasing technology from a former unit of General Motors, Saab Automobile. This allows it to produce older Saab models (but not brand them as Saabs[citation needed]) for sale in China.

The intellectual property bought by BAIC includes the rights to three overall vehicle platforms, Saab 9-3 and Saab 9-5 technologies, two engine technologies, and two transmission systems.

Cars with Saab technology were expected to go on sale in 2012 but didn't debut until May 2013. The first Saab-based model on sale is the C70 or 绅宝 (Shenbao), which may be translated as "gentleman's treasure", although it is sold as the "Senova" in English.
**Southern China expansion**

BAIC aims to expand in Southern China and will purchase Guangzhou Baolong (SSE: 600988) for this purpose gaining a Southern production base and planning construction of two more.

**Electric vehicles**

A trial production run of 30 electric vehicles using Saab and self-developed platforms occurred in late 2010. China subsidies oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.

## Products

BAIC has a wide product line that includes more than the buses that are its traditional manufacture. Offerings encompass many kinds of commercial vehicles, including: agricultural machinery, construction machinery, light trucks, and military vehicles, etc. As of 2010 commercial vehicle production capacity is estimated to be around 700,000 units per year. Production capacity figures may consider engines and vehicles as discrete.

The company sells self-branded consumer products in addition to manufacturing in cooperation with famous name foreign firms. Based on purchased Saab technology, the cars were first offered in 2013 although sales had been expected to start in both 2012 and 2010. While it also make cars with foreign partners, its self-branded vehicles were developed without oversight from a major Western car manufacturer although Western assistance is evident. To support its own brand, in 2012 BAIC hired as a consultant former Ferrari designer Leonardo Fioravanti, and a concept car designed by him was on display at the 2012 Beijing Auto Show.

BAIC-branded military and civilian light trucks have also been produced.

## Operations

Along with several other production bases, four of which are in eastern China, Beiqi controls the former Guangzhou Baolong base in Southern China (most probably in Zengcheng city, Guangzhou, Guangdong province). Plans exist to build two more southern production bases–one in Guangzhou, Guangdong province by 2012 and another in Chongqing.

A planned production base will produce own-brand autos using Saab technology. It may be located in Zhuzhou, Hunan province, or at Sanxiang town, Zhongshan city, Guangdong province, and could become operational in June 2011.

The company claims production bases in at least 26 Chinese cities. This count most likely includes component manufacturers as well.

## Current and former subsidiaries

**BAIC Motor**

*Main article:* Beijing Auto

BAIC Motor Co., Ltd. is a subsidiary of BAIC which manufactures passenger cars and microvans sold under the Senova (绅宝) and Weiwang (威旺) marques, respectively. Founded in 2010 and based in Beijing, Daimler AG acquired a 12% stake in BAIC Motor in November 2013.

**BAW**

*Main article:* BAW

Beijing Automobile Works Co., Ltd. (BAW) is a subsidiary of BAIC based in Beijing which produces light off-road vehicles, trucks and military vehicles.

**BLAC**

The Beijing Light Automobile Company (BLAC), which until 1988 had been known as the Beijing Automobile factory No. 2, started in late 1960s when production of the independently developed BJ130 began. Its introduction was slowed down considerably by the upheavals of the Cultural revolution. In 1984 assembly of the Isuzu Elf/NHR began (originally as the BJ136, later as the BJ1030/1040/1050 series). In 1988 a new plant for these trucks was built with aid from the Japanese, where petrol and diesel light truck engines were also produced. BLAC went bankrupt in 2002.

**Foton Motor**

*Main article:* Foton

Beiqi Foton Motor Co., Ltd. (Foton Motor) is a subsidiary of BAIC which designs and manufactures trucks, buses, sport utility vehicles and agricultural machinery. It is headquartered in Changping, Beijing.

Foton makes commercial trucks in a joint venture with Daimler AG, called Beijing Foton Daimler Automobile Co., Ltd., which sells its products under the "Auman" brand name.

## Joint ventures

BAIC has several joint ventures with foreign automakers, including two with Daimler AG.

**Beijing Hyundai**

Beijing Hyundai Motor Co., Ltd. is an automobile manufacturing company headquartered in Beijing, China, and is a 50:50 joint-venture between BAIC and Hyundai Motor Company. Established in 2002, it manufactures in Shunyi District, a satellite city of Beijing, producing Hyundai-branded automobiles for the Chinese market. New models designed for the Chinese market are due to appear.

**Beijing Benz**

As of 2010 Beijing Benz, a BAIC joint venture with German automaker Daimler AG, makes the Mercedes-Benz C-Class and E-Class models for sale in China and seeks to make more of the models it sells in China locally.

**Beijing Foton Daimler**

Beijing Foton Daimler Automobile Co., Ltd. is a joint venture between Daimler and BAIC subsidiary, Foton Motor which makes commercial trucks.

**Beijing Jeep**

Beijing Jeep Corporation became China's first Sino-western automotive joint venture when it was established in 1984 with American Motors Corporation. Beijing Jeep subsequently became Beijing Benz-DaimlerChrysler Automotive Co Ltd and then Beijing Benz Automotive Co Ltd.