The BAIC group will merge all its brands into one
- The Chinese group BAIC, which is owned by the Beijing municipal government, is made up of many brands (excluding JVs), such as BAIC Changzhou Automotive, Beijing, BAW, BJEV, BeiqiFoton Motor, Borgward, Changhe, FotonGratour, Huansu and Weiwang.
- BAIC Group recently announced its decision to merge and rationalise all these brands into a single one: Beijing. This decision comes at a time when the BAIC group has been losing market shares in China for several years now, despite the (ephemeral) success of its electric cars (EU Series).
- The year 2019 ended with a sales volume of 953,000 units (including 404,950 passenger cars) compared to 1,078,000 units in 2018, 1,270,021 units in 2017 and 1,374,000 in 2016, the year when the BAIC group had achieved its best historical performance. The volume recorded in 2019 (-30% in three years) returned to the 2013 level, which is one of the worst results recorded by a Chinese carmaker.
- BAIC group management hopes that bringing all of its brands together under one Beijing logo will achieve significant economies of scale through rationalization of ranges, components and locations. This strategy involves the end of the Borgward brand (a subsidiary of BAIC) and above all of the BeiqiFoton heavy utility vehicle branch which generates more than half of the group's sales. Above all, it will be necessary to rebuild a coherent and rational range under the Beijing logo.
Contact us: info@inovev.com