SAIC NAC launches 100-day integration of MG management and SAIC Synchronously

At the start of the new year, a striking sight unfolded on the Shanghai-Nanjing Expressway: 10 Roewe and 10 MG vehicles formed a test-driver team that had successfully passed the Mercedes-Benz race. This group, composed of high-level personnel from both SAIC and Nanjing Automobile, was not just a display of brand power but also a symbol of collaboration. As one of the leaders put it, “We are users at a time, and our role is to identify issues for two major brands.” This event marked a significant step in the integration between SAIC and Nanjing Automobile, which had signed a comprehensive cooperation agreement on December 26 last year. Since then, the largest integrated operation in China’s auto industry has been underway. The recent test drive was just a small glimpse into the broader South-South integration efforts. In early 2024, the “Hundred Days of Integration” initiative was launched by the newly unified SAIC. High-ranking officials from both companies, including SAIC Chairman Hu Maoyuan and senior leaders from Nanjing Automobile, met to discuss strategies and goals. Hu emphasized that “as long as we share the same vision, consistent values, and aligned actions, the South-South cooperation will surely lead to mutual success.” Chen Hong, president of Shanghai Automotive, visited various departments, including MG and Nanjing Iveco, offering guidance and support. Meanwhile, vice-presidents from SAIC Motor took charge of the newly established Xindonghua Company and the new Nanjing Auto Co., Ltd., overseeing the implementation of the integration plan. According to reports, a large number of Nanjing Auto operations have already been integrated with SAIC's systems. In terms of branding, the assets of the MG project will be incorporated into SAIC’s shareholding structure and managed by the SAIC Passenger Vehicle Company. This includes raw material procurement, IT systems, and marketing strategies. Currently, the MG Grand Mercure from Nanjing Automobile is fully aligned with SAIC’s management practices. The company has revised its 2008 budget, introduced a cost management system, improved production planning, and implemented a lean manufacturing model. It has also adopted a global vehicle development process for new products and introduced SAIC’s quality control system. These steps aim to build solid, effective management processes. Under SAIC Passenger Vehicles’ unified strategy, MG is set to launch several new models this year. As a highlight of Nanjing Auto, Nanjing Iveco completed its first European product, the Oka, in January according to the plan set by the SAIC Commercial Vehicle Division. The coordination between SAIC and the SAIC Commercial Vehicle Technology Center has also begun. The revision of the 11th Five-Year Development Plan is ongoing, and new commercial vehicle projects are starting to take shape. The technical collaboration between Shanghai and Nanjing is being clarified, along with future roles within the center. Additionally, over 400 employees from NAC have participated in training programs at SAIC. Both sides conducted more than 30 detailed discussions before the training began. A series of books such as “Dialogue with the World,” “50 Years of SAIC Motor,” “Shangqi Culture Management,” and “Management Model of Becoming a Manager of Everyone” were sent to Xinnan, providing valuable insights into SAIC’s culture, history, and management philosophy. These materials were distributed to senior executives of Dongfanghua Auto and New Donghua. This comprehensive integration effort reflects a bold move toward unification, shared goals, and long-term growth for both SAIC and Nanjing Automobile.

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