Anhui Jianghuai Automobile
Encyclopedia
JAC Motors (SSE
:600418) is a Chinese state-owned
automobile and commercial vehicle manufacturer. The company is based in Hefei
, Anhui Province, China
.
In 2010 it was one of the top ten most-productive vehicle manufacturers in China selling 458,500 units for 2.5% market share
and reaching eighth place. Estimated production capacity is over 500,000 units/year as of 2009. Production capacity figures may consider engines and vehicles as discrete.
on the Shanghai Stock Exchange
in 2001.
JAC has historically only produced commercial trucks (under the brand name Jianghui), but MPV
s and SUVs appeared in the 2000s. By 2007 the company had gained government approval for passenger car production but, nonetheless, continued to be referred to as a truck maker.
In a recent event a 2009 Chinese government indication that it was in continued support of consolidation in the Chinese auto industry led analysts to predict the possibility of JAC joining with Chery
since they are both located in Anhui province
. On the surface such a merger would make sense: Chery mainly built passenger cars and JAC was almost entirely focused on trucks at the time. Since then, however, JAC has made it clear that they are not interested in consolidation under the aegis of the larger Chery
. JAC has began to concentrate more on passenger cars, and a 2010 announcement of a new electric vehicle
program may at least partially have been an effort to stave off the rumored merger.
Sales reached more than 300,000 units in 2009 including 12,100 sold overseas.
activities include donations to support forest preservation as well as to educational opportunities for the poor.
and NC2 Global
(itself a Navistar/Caterpillar joint venture) on 16 September 2010. The NC2 joint venture will manufacture heavy duty trucks and parts, while the Navistar joint venture will build medium to heavy diesel engines in China with parts and services provisioned by Navistar. The new companies will both be located in Hefei where JAC is also based.
Some exports are in the form of knock-down kits, which are assembled at overseas factories in countries including Egypt
, Ethiopia
, and Vietnam
. As of 2010 a possible factory in Slovakia
is under discussion. Such factories are not necessarily owned by or affiliated with JAC. Knock-down exports are an easy way to gain access to developing markets without added after-sales service costs.
In 2009 JAC started a partnership with a distributor in Brazil, the SHC group. As of early 2011, it had more than 10,000 firm orders from its Brazilian partner. In 2009 JAC also had plans to build a production base in the country.
s. Some of its models may be real standouts. In 2009 a Pininfarina
-designed city car, the JAC Tojoy, won numerous awards including the J.D. Power China Automotive Performance, Execution and Layout (APEAL) award.
In the 2000s its flagship model was the Refine (Ruifeng in Chinese). The restyled 2004 Ruifeng Gold featured 60% Chinese-made part content.
oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric vehicle
s as Western companies have yet to develop much of a lead in the technology.
, capital of Anhui province
, is complemented by two overseas R&D centres in Turin
, Italy
, and in Tokyo
, Japan
.
A 40,000 unit/year medium-to-heavy truck production base should become operation in 2012 and is probably located in Hefei
. Production capacity figures may consider engines and vehicles as discrete.
Shanghai Stock Exchange
The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...
:600418) is a Chinese state-owned
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
automobile and commercial vehicle manufacturer. The company is based in Hefei
Hefei
Hefei is the capital and largest city of Anhui Province in Eastern China. A prefecture-level city, it is the political, economic, and cultural centre of Anhui...
, Anhui Province, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
In 2010 it was one of the top ten most-productive vehicle manufacturers in China selling 458,500 units for 2.5% market share
Market share
Market share is the percentage of a market accounted for by a specific entity. In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very useful.Marketers need to be able to...
and reaching eighth place. Estimated production capacity is over 500,000 units/year as of 2009. Production capacity figures may consider engines and vehicles as discrete.
History
Established in 1964 as Hefei Jianghuai Automobile Factory, its name was changed to Anhui Jianghuai Automobile Co Ltd in 1997. The company made an IPOInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the Shanghai Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...
in 2001.
JAC has historically only produced commercial trucks (under the brand name Jianghui), but MPV
Minivan
Minivan is a type of van designed for personal use. Minivans are typically either two-box or one box designs for maximum interior volume – and are taller than a sedan, hatchback, or a station wagon....
s and SUVs appeared in the 2000s. By 2007 the company had gained government approval for passenger car production but, nonetheless, continued to be referred to as a truck maker.
In a recent event a 2009 Chinese government indication that it was in continued support of consolidation in the Chinese auto industry led analysts to predict the possibility of JAC joining with Chery
Chéry
Chéry is a commune in the Cher department in the Centre region of France.-Geography:An area of farming and forestry, comprising the main village and a hamlet, situated in the valley of the river Arnon some south of Vierzon, at the junction of the D75, D165 and the D68 roads.-Population:-External...
since they are both located in Anhui province
Anhui
Anhui is a province in the People's Republic of China. Located in eastern China across the basins of the Yangtze River and the Huai River, it borders Jiangsu to the east, Zhejiang to the southeast, Jiangxi to the south, Hubei to the southwest, Henan to the northwest, and Shandong for a tiny...
. On the surface such a merger would make sense: Chery mainly built passenger cars and JAC was almost entirely focused on trucks at the time. Since then, however, JAC has made it clear that they are not interested in consolidation under the aegis of the larger Chery
Chéry
Chéry is a commune in the Cher department in the Centre region of France.-Geography:An area of farming and forestry, comprising the main village and a hamlet, situated in the valley of the river Arnon some south of Vierzon, at the junction of the D75, D165 and the D68 roads.-Population:-External...
. JAC has began to concentrate more on passenger cars, and a 2010 announcement of a new electric vehicle
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
program may at least partially have been an effort to stave off the rumored merger.
Sales reached more than 300,000 units in 2009 including 12,100 sold overseas.
CSR
Corporate Social ResponsibilityCorporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
activities include donations to support forest preservation as well as to educational opportunities for the poor.
Joint Ventures
JAC announced a pair of joint ventures with Navistar International CorporationNavistar International
Navistar International Corporation is a United States-based holding company that owns the manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Bus school and commercial buses, Workhorse brand chassis for motor homes and step vans, and is a private label...
and NC2 Global
NC2 Global
NC2 Global is a heavy truck and engine manufacturer that is a 50/50 joint venture of Navistar International and Caterpillar Inc. based in Chicago, Illinois. It was formed in 2009 to "develop, manufacture and distribute commercial trucks globally, outside North America and India"...
(itself a Navistar/Caterpillar joint venture) on 16 September 2010. The NC2 joint venture will manufacture heavy duty trucks and parts, while the Navistar joint venture will build medium to heavy diesel engines in China with parts and services provisioned by Navistar. The new companies will both be located in Hefei where JAC is also based.
Sales outside China
Since export began in 1990 (to Bolivia), JAC products have been sold in over 100 nations. Light trucks are a popular export product.Some exports are in the form of knock-down kits, which are assembled at overseas factories in countries including Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
, Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
, and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
. As of 2010 a possible factory in Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
is under discussion. Such factories are not necessarily owned by or affiliated with JAC. Knock-down exports are an easy way to gain access to developing markets without added after-sales service costs.
In 2009 JAC started a partnership with a distributor in Brazil, the SHC group. As of early 2011, it had more than 10,000 firm orders from its Brazilian partner. In 2009 JAC also had plans to build a production base in the country.
Models
JAC has a wide model line that spans from commercial trucks to small city carCity car
A city car is a small car intended for use primarily in an urban area.City cars are sold worldwide and most automotive industry manufacturers have one or two in their line-up. In North-America city cars are often referred to simply as "subcompacts" alongside the superminis. These kind of cars...
s. Some of its models may be real standouts. In 2009 a Pininfarina
Pininfarina
Pininfarina S.p.A. is an Italian car design firm and coachbuilder in Cambiano, Italy.Founded as Società anonima Carrozzeria Pinin Farina in 1930 by automobile designer and builder Battista "Pinin" Farina, Pininfarina has been employed by a wide variety of high-end automobile manufacturers,...
-designed city car, the JAC Tojoy, won numerous awards including the J.D. Power China Automotive Performance, Execution and Layout (APEAL) award.
In the 2000s its flagship model was the Refine (Ruifeng in Chinese). The restyled 2004 Ruifeng Gold featured 60% Chinese-made part content.
Electric vehicles
As of August 2010, JAC plans to make electric or hybrid-electric vehicles at an as-yet-unbuilt production base. China subsidizesSubsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric vehicle
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
s as Western companies have yet to develop much of a lead in the technology.
Production bases and facilities
An R&D facility in HefeiHefei
Hefei is the capital and largest city of Anhui Province in Eastern China. A prefecture-level city, it is the political, economic, and cultural centre of Anhui...
, capital of Anhui province
Anhui
Anhui is a province in the People's Republic of China. Located in eastern China across the basins of the Yangtze River and the Huai River, it borders Jiangsu to the east, Zhejiang to the southeast, Jiangxi to the south, Hubei to the southwest, Henan to the northwest, and Shandong for a tiny...
, is complemented by two overseas R&D centres in Turin
Turin
Turin is a city and major business and cultural centre in northern Italy, capital of the Piedmont region, located mainly on the left bank of the Po River and surrounded by the Alpine arch. The population of the city proper is 909,193 while the population of the urban area is estimated by Eurostat...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, and in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
.
A 40,000 unit/year medium-to-heavy truck production base should become operation in 2012 and is probably located in Hefei
Hefei
Hefei is the capital and largest city of Anhui Province in Eastern China. A prefecture-level city, it is the political, economic, and cultural centre of Anhui...
. Production capacity figures may consider engines and vehicles as discrete.