BAIC is going to acquire Zhenjiang Automobile
- BAIC (Beijing Automotive Industry Corporation) plans to acquire the small Zhenjiang Automobile Chinese carmaker, not in order to increase its volumes but to establish a production site in the province of Jiangsu. For now, BAIC has not communicated on the kind of vehicles that will be manufactured at this site.
- BAIC would have entered into negotiations with the local government of this province, Zhenjiang being a carmaker 100% owned by the state, because of its strategic importance (lorries and specialised vehicle production ).
- In Chinese law, a carmaker willing to produce in a province other than where its headquarters are, must first acquire a carmaker of this province, or merge with one. This regulation reminds the one concerning foreign carmakers who must partner with Chinese manufacturers to be able to produce vehicles in China.
- Zhenjian Automobile has government certificates to produce all types of vehicles, except sedans. So this constructor manufactures trucks and specialised vehicles under the name Shenye.
- Jinggong Zhenjiang Automobile Manufacture Co. Ltd. has two factories which are able to manufacture 10,000 trucks and 5,000 specialized vehicles. One is located in Zhenjiang and one in Inner Mongolia.
- The carmaker also has two redevelopment platforms of specialised vehicles in Hangzhou and Wuhan.
Data source: File #101 - Worldwide production detailed by models
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