Beijing Automotive Industry Holding Corporation
Encyclopedia
Beijing Automotive Industry Holding Co Ltd is a state-owned enterprise
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...

 and holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 of several Chinese automobile and machine manufacturers, such as Beijing Automobile Works Co Ltd
Beijing Automobile Works
Beijing Automobile Works , sometimes abbreviated as BAW, is a Chinese car manufacturer based in Beijing. BAW produces light off-road vehicles and trucks. BAW produces civilian as well as military vehicles.-History:...

, etc. Beijing Automotive Industry Holding Co Ltd (BAIC)'s state-run parents may include Beijing Automotive Group (BAIC Group) , and The Beijing State-owned Assets Management Co . This can explain why BAIC companies are sometimes referred to collectively as the Beijing Automotive Group.

Commonly known by the name Beiqi or the acronym BAIC, it is thought of as the fifth-largest domestic Chinese automaker.

Located in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

, Beiqi makes Hyundai
Hyundai
Hyundai ) is a global conglomerate company, part of the Korean chaebol, that was founded in South Korea by one of the most famous businessmen in Korean history: Chung Ju-yung...

 and Mercedes
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...

-branded autos for sale on the Chinese market.

Beiqi was one of the top ten most-productive Chinese automakers in 2010. This may be due to subsidiary Beijing Automobile Works
Beijing Automobile Works
Beijing Automobile Works , sometimes abbreviated as BAW, is a Chinese car manufacturer based in Beijing. BAW produces light off-road vehicles and trucks. BAW produces civilian as well as military vehicles.-History:...

 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
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...

 of more than 8%.

Product line

Today the company has a wide product line that includes more than the buses that are its traditional manufacture. Beiqi products encompass many kinds of commercial vehicles, including: agricultural machinery
Agricultural machinery
Agricultural machinery is machinery used in the operation of an agricultural area or farm.-Hand tools:The first person to turn from the hunting and gathering lifestyle to farming probably did so by using his bare hands, and perhaps some sticks or stones. Tools such as knives, scythes, and wooden...

, construction machinery, light truck
Light truck
Light truck or light duty truck is a U.S. classification for trucks or truck-based vehicles with a payload capacity of less than 4,000 pounds...

s, 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.

Saab technology transfer

After several unsuccessful attempts to buy struggling European automakers in 2009, such as Saab, Volvo
Volvo
AB Volvo is a Swedish builder of commercial vehicles, including trucks, buses and construction equipment. Volvo also supplies marine and industrial drive systems, aerospace components and financial services...

, and Opel
Opel
Adam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...

 as well as technology from the American Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....

, Beiqi fulfilled its aim of obtaining valuable Western equity that same year purchasing technology from a former unit of General Motors, Saab Automobile
Saab Automobile
Saab Automobile AB, better known as Saab , is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. It is the exclusive automobile Royal Warrant holder as appointed by the King of Sweden...

. This allows it to produce older Saab models (but not brand them as Saabs) for sale in China.

The intellectual property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...

 bought by Beiqi includes the rights to three overall vehicle platforms, Saab 9-3
Saab 9-3
The first generation 9-3, a substantially improved 'new-generation' Saab 900 was launched in 1998 for the 1999 model year. Saab claimed that 1,100 changes were made, including a revised suspension in an attempt to tighten up the handling characteristics of its predecessor, the Saab 900...

 and Saab 9-5
Saab 9-5
The Saab 9-5 is an executive car produced by the Swedish automobile maker Saab. The first generation was introduced in 1997 as the replacement to the Saab 9000 for the 1998 model year. At the time, the car represented a great leap forward for Saab...

 technologies, two engine technologies, and two transmission systems.

Cars based on Saab technology should go on sale this year.

Southern China expansion

Beiqi aims to expand in Southern China, and will purchase Guangzhou Baolong for this purpose gaining a Southern production base and planning construction of two more.

Electric vehicles

A trial production run of 30 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 using Saab
Saab Automobile
Saab Automobile AB, better known as Saab , is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. It is the exclusive automobile Royal Warrant holder as appointed by the King of Sweden...

 and self-developed platforms occurred in late 2010. China subsidies
Subsidy
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 because Western companies have yet to develop much of a lead in the technology.

Joint ventures

Beiqi has several joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...

s with foreign automakers. The following is an incomplete list.

Beijing Hyundai

A joint venture with Korean Hyundai Motors, Beijing Hyundai Motor products sold well in 2009 and 2010. New models designed for the Chinese market are due to appear.

Mercedes

Daimler AG
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...

 makes Mercedes-Benz cars and trucks with Beiqi and has two joint ventures with the company.

Truck-making venture

Beijing Foton Daimler Automobile Co Ltd, a joint venture between Daimler-Benz and Beiqi subsidiary, Beiqi Foton Motor Co Ltd
Foton (company)
Beiqi Foton Motor Co., Ltd. , , often shortened to Foton or BFC, is a Chinese company making trucks and agricultural machinery.This BAIC subsidiary makes commercial trucks in a joint venture with Daimler AG, called Beijing Foton Daimler Automobile Co., Ltd...

, makes commercial trucks.

Car-making venture

As of 2010 Beijing Benz, a Beiqi joint venture with German automaker Daimler AG, makes the Mercedes-Benz C-Class
Mercedes-Benz C-Class
The Mercedes-Benz C-Class is a compact executive car produced by the Mercedes-Benz division of Daimler AG. First introduced in 1993 as a replacement for the 190 range , the C-Class was the smallest model in the marque's lineup until the 1997 arrival of the A-Class...

 and E-Class
Mercedes-Benz E-Class
The Mercedes-Benz E-Class is a range of executive-size cars manufactured by Mercedes-Benz in various engine and body configurations. The E initially stood for Einspritzmotor, ; a new feature in volume production vehicles at the time that the E-Class first appeared, with the E as a suffix to the...

 models for sale in China and seeks to make more of the models it sells in China locally.

Own brand

The brand name "Beijing" has been selected for Beiqi own-brand autos, which will go on sale in 2011 although 2010 was the initial launch target. Based on purchased Saab technology, these vehicles will be the first passenger cars the company has produced aside from those made by its Chinese-foreign joint ventures.

The company has also built BAIC-branded military and civilian light truck
Light truck
Light truck or light duty truck is a U.S. classification for trucks or truck-based vehicles with a payload capacity of less than 4,000 pounds...

s. The Beijing Light Automobile Company (BLAC), which until 1988 had been known as the Beijing Automobile factory No. 2, built trucks since the late 1960s when production of the independently developed BJ130 began. Its introduction was slowed down considerably by the upheavals of the Cultural revolution
Cultural Revolution
The Great Proletarian Cultural Revolution, commonly known as the Cultural Revolution , was a socio-political movement that took place in the People's Republic of China from 1966 through 1976...

. In 1984 assembly of the Isuzu Elf/NHR
Isuzu Elf
The is a light duty truck produced by Isuzu. Outside Japan it is known as N-series.The range was primarily available in Japan, Hong Kong and some other Asian countries, and since the late 1980s, also in the United States, Chile, Colombia , and Peru The is a light duty truck produced by Isuzu....

 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.

Production bases

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
Zengcheng
Zengcheng , historically known as Tsengshing , is a County-level city in Guangzhou, Guangdong, China.It is known for the production of blue jeans. In June 2011 it was the scene of a riot of migrant workers.-External links:*...

 city, Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

, Guangdong province
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...

). Plans exist to build two more southern production bases–one in Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

, Guangdong province
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...

 by 2012, and another in Chongqing
Chongqing
Chongqing is a major city in Southwest China and one of the five national central cities of China. Administratively, it is one of the PRC's four direct-controlled municipalities , and the only such municipality in inland China.The municipality was created on 14 March 1997, succeeding the...

.

A planned production base will produce own-brand autos using Saab
Saab
Saab AB is a Swedish aerospace and defence company, founded in 1937. From 1947 to 1990 it was the parent company of automobile manufacturer Saab Automobile, and between 1968 and 1995 the company was in a merger with commercial vehicle manufacturer Scania, known as Saab-Scania.-History:"Svenska...

 technology. It may be located in Zhuzhou
Zhuzhou
Zhuzhou , formerly Jianning, is a city in Hunan Province, China, southeast of Changsha beside the Xiangjiang River. It is part of the "ChangZhuTan Golden Triangle"...

, Hunan province
Hunan
' is a province of South-Central China, located to the south of the middle reaches of the Yangtze River and south of Lake Dongting...

, or at Sanxiang
Sanxiang
Sanxiang Town is a Chinese township situated at the southern periphery of the city of Zhongshan. The population of Sanxiang Township has 33,000 permanent residents and an estimated 140,000 temporary residents. The total area of the town is 96 square kilometres.-Primary industries:*Injection...

 town, Zhongshan
Zhongshan
Zhongshan , also spelled Chungshan and historically known as Xiangshan or Siangshan, is a prefecture-level city in the south of the Pearl River Delta in Guangdong province in southern China. Zhongshan, one of the few cities in China with an eponymous name, is named after Dr. Sun Yat-sen who was...

 city, Guangdong province
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung 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.

External links

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