Disgraced Duo: China's SAIC Soon Bigger Than GM And Ford Together

Bertel Schmitt
by Bertel Schmitt
disgraced duo china s saic soon bigger than gm and ford together

Ouch, that hurts, or “tong, tong!” as they say in China. “China’s largest automaker, SAIC Motor Corp, is poised to surpass the combined market value of General Motors Corp. and Ford Motor Co.” Bloomberg followed the market capitalization of the three automakers as far back as the year 2000. Then, Ford and GM were worth $100b, about 50 times the value of SAIC. At the end of last week, the difference shrunk to a mere $570m. As the stock of both GM and Ford are twirling further down the toilet, the Shanghai auto maker will soon be bigger than both former Detroit giants together. Says Bloomberg: “GM most recently traded at $3.01 per share in New York Stock Exchange composite trading and Ford was at $1.80, for a combined market value of $6.14 billion. SAIC shares ended the week at 5.8 yuan (85 cents), for a value of $5.57 billion.” Want some background?

The Shanghai Automotive Industry Corporation (SAIC) began as the state-owned Shanghai Tractor Automobile Corporation. In 1984, the company entered a joint venture with Volkswagen, initiated by Carl Hahn, formerly head of Volkswagen of America. They built the Santana and became the cradle of China’s mass-motorization.

A decade later, SAIC entered a joint venture with General Motors, much to the “dismay” ( Herald Tribune) of their German partner. However, the polyamorous relationship survived. Two years ago, SAIC shocked both their German and their American boyfriends by announcing that they would produce their own cars in China, and that they would even export them to Europe. The latter has not happened. Yet.

In 2007, SAIC bought the Nanjing Automobile Corporation, which had acquired British MG Rover in 2005. However, in a replay of the Volkswagen/Rolls Royce trademark slugfest, BMW successfully claimed ownership of the Rover brand, which was eventually sold to Ford as part of the Range Rover deal. SAIC launched an updated Rover 75 as the Roewe 750. Roewe (in pinyin “Rongwei”) is pronounced similar to the British pronunciation of “Rover.”

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  • Bertel Schmitt Bertel Schmitt on Nov 17, 2008

    @Michael: The Chinese stock market is down 70% stince Jan.

  • Netrun Netrun on Nov 17, 2008

    SAIC would probably be worth a lot more if the Chinese stock market wasn't down 70% this year. That whole "decoupled from the American stock market" theory didn't hold any water, turns out. I'm still sure that GM and F shouldn't get bailed out for the simple reason that at market capitalizations less than $5B no one's interested. If either company was really that well-run, someone would have bought them a long time ago.

  • SCE to AUX Base Price: $99,795 US / $115,133 CANAs Tested: $100,370 US / $115,133 CANBoth versions can't cost the same in CAN $.
  • SCE to AUX @Matt Posky: This may surprise you, but I agree with your criticisms is this story.This vehicle has the look and weight of the Telluride, but without the right chops. A vehicle like this is intended to be a great highway cruiser loaded up with all the stuff one takes on a trip - not a 0-60 racer.My former Sedona (RIP, sniff) had a great blend of space, power, and towing capacity. It was lovely for countless road trips, but it was a ponderous commuter.The EV9 won't make a great road trip car due to its short range, and it is too hulking to make sense as a commuter. They should have fitted a 150 - 200 kWh battery so it could at least go some distance, and that might justify the bulk.No way I'd go in for ~$60k for this vehicle.
  • Jeff S I like the looks of this car and in today's dollars it might not be that bad a buy but my issues with this Genesis would be Hyundai's reliability in recent years has been below average and getting a car like this serviced at a Hyundai dealership. I do like the rear reclining rear seats and the massage settings. Beautiful car but I would take the safer option of a preowned Lexus which gives you better reliability and lower maintenance costs than the South Koreans and the Germans. Genesis is definitely a luxury car with the extras that are standard but it is still a Hyundai. These will depreciate a lot as do the German cars which once they get old a Pandora's box of issues crop up and they become expensive to maintain. Good write up.
  • Tylanner Cinnabon is the holy grail but Starbucks or Dunkin will do. I will only resort gas-station coffee in extraordinary circumstances.
  • Akear My Fusion is nearing the 200,000 miles mark. However, I do not want to replace it with an unreliable Escape, which could blow its engine by 60,000 miles. Ford has gone down hill since Fields was forced out. Both Hackett and Farley have made Ford the nation's recall king. What happened..................