Integration of Huizhong and Iveco Shanghai Automotive Co., Ltd.

SAIC Motor will integrate the resources of Shanghai Huizhong and SAIC Iveco as two commercial vehicles and make up for the shortage of heavy-duty vehicles so that commercial vehicles, passenger vehicles, and parts and components can go hand in hand.

On the 22nd, Shanghai Automotive Co., Ltd. (600104.SH, hereinafter referred to as "Shanghai Automotive") held its first shareholder meeting after the completion of the issuance of additional shares to achieve overall listing, saying that the board of directors had decided to place SAIC Iveco Commercial Vehicle Investment Co., Ltd. in Shanghai Automotive.

This means that SAIC Motor will integrate the resources of Shanghai Huizhong and SAIC Iveco into two commercial vehicles and make up for the shortage of heavy-duty vehicles so that commercial vehicles, passenger vehicles, and parts and components can go hand in hand.

Statistics show that in the first three quarters of this year, the market share of Dongfeng Motor (600006.SH) and FAW Group in the heavy-duty vehicle industry reached 22.35% and 21.65%, respectively. Compared with the two major automobile groups in China, SAIC Group's shortcomings in heavy vehicles are obvious. The "First Financial Daily" noticed that although SAIC Motor has become the first domestically listed auto company, the 50% stake in SAIC Iveco, a joint venture commercial vehicle company, has not been incorporated into it; in other words, On the vehicle side, SAIC Motor currently owns Shanghai Huizhong, which produces SAIC GM Wuling and manufactures passenger cars, chassis and a small number of heavy vehicles. It is not too late for Shanghai Auto to want to squeeze into the first echelon of heavy vehicles.

At the second temporary shareholders meeting of Shanghai Automotive in 2006, Gu Feng, deputy manager of SAIC Asset Management Department, made it clear that the board of directors had decided to put Shanghai SAIC Iveco into Shanghai Auto. In the future, it will regard the results of negotiations with Iveco. , to determine how to integrate assets in heavy vehicles, may produce Iveco brand heavy vehicles, may also produce their own brand of heavy vehicles. (