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

At the start of the new year, a unique sight was spotted on the Shanghai-Nanjing Expressway: 10 Roewe and 10 MG vehicles formed a test-driving team that had successfully passed the Mercedes-Benz race. This eye-catching formation drew attention from both drivers and passengers, who were high-level executives and functional department members from SAIC and Nanjing Automobile Corporation (NAC). One leader remarked, “We are users at a time, and our role is to identify issues for both major brands.” This initiative came just weeks after SAIC and NAC signed a comprehensive cooperation agreement, marking the beginning of the largest integrated operation in China’s automotive industry. The collaboration between two once-opposing brands has now become a microcosm of the broader South-China Auto integration. In early 2024, the “100 Days of Integration” campaign launched, with SAIC Chairman Hu Maoyuan and over 10 top leaders from NAC engaging in discussions. Hu emphasized, “As long as we share the same goals, consistent values, and coordinated actions, the South-South cooperation will definitely lead to a win-win outcome.” Chen Hong, President of Shanghai Automotive, visited various units such as MG and Nanjing Iveco, offering guidance. Meanwhile, two vice-presidents of SAIC Motor Co., Ltd. took charge of the newly established Xindonghua Company and New Nanjing Auto Co., Ltd., overseeing the implementation of the integration strategy. According to reports, numerous existing operations of Nanjing Auto have already been aligned with SAIC’s business framework. For instance, the assets of the MG project will be incorporated into SAIC shares and managed by the SAIC Passenger Vehicle Company, covering areas like raw material procurement, IT systems, and marketing. Currently, the MG Grand Mercure model from Nanjing Auto is being synchronized with SAIC’s management practices. This includes revising the 2008 budget, implementing a cost management system, improving production plans with lean manufacturing, launching new products through a global development process, and addressing quality issues by adopting SAIC’s quality control standards. These efforts aim to build solid, effective management processes. This year, under SAIC Passenger Vehicles’ unified planning, several new MG models are set to be launched one after another. As a standout unit within NAC, Nanjing Iveco successfully completed its first European product, the Oka, in January as planned by the SAIC Commercial Vehicle Division. Work on integrating SAIC and SAIC Commercial Vehicle Technology Center has also begun, with the revision of the 11th Five-Year Development Plan underway. New commercial vehicle projects are starting, and technical collaboration between Shanghai and Nanjing is being clarified. Additionally, more than 400 employees from NAC have participated in training programs at SAIC. Both parties’ personnel conducted over 30 detailed discussions prior to the training. A number of books, including “Dialogue with the World,” “50 Years of SAIC Motor,” “Shangqi Culture Management,” and “Management Model of ‘Becoming a Manager of Everyone,’” which reflect SAIC’s culture, history, and management philosophy, have been distributed to the senior leadership of Xindonghua Auto and New Donghua. This ongoing integration represents a significant step forward in the collaboration between SAIC and NAC, highlighting their shared vision for growth and efficiency.

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