Recently SAIC Motor Corporation Ltd (SAIC) and Iveco signed a framework agreement to further expand their cooperation. According to this agreement, based on the platform of the current SAIC Iveco Commercial Vehicle Investment Co. Ltd., both sides intend to merge in China their resources and build an integrated commercial vehicle business system, creating a domestically leading and internationally competitive large-scale commercial vehicle company.

To seize the good opportunity of the Chinese commercial vehicle market development, and continuously meet the demands of high-quality and full range commercial vehicles, SAIC and Iveco have planned to extend their cooperation from light buses and heavy-duty trucks to large and medium buses, special vehicles and core components.

Furthermore, the two partners will jointly build a technical centre dedicated to the development of the related products, giving rapid response to the users’ demands in a rapidly evolving market. At the same time, the existing business functions will be rationalized, integrating resources, and improving the operational efficiency of the system. The agreement is the baseline for the subsequent feasibility study.

Thanks to the continuous strengthening of this cooperation, SAIC and Iveco will rely on advanced technologies and on a strong commercial vehicles product portfolio to satisfy the domestic market needs and to increase their competitiveness as well as their market share.

Background

In 2006 SAIC Motor, one of the largest Chinese automotive groups, and Iveco, a world leading commercial vehicle manufacturer, started an important cooperation in order to develop the commercial vehicle business in China and meet the local customers’ demands.

The milestones of this cooperation are: in December 2005, SAIC Motor, Iveco and Chongqing Heavy Vehicle Group Co., Ltd. signed a framework agreement; in September 2006, SAIC and Iveco set up a 50-50 joint venture, the SAIC Iveco Commercial Vehicle Investment Co., Ltd.; in the same month, at the presence of the Prime Ministers of China and Italy, SAIC, Iveco and Chongqing Heavy Vehicle Group Co., Ltd. signed their contract in the Great Hall of the People; and in June 2007, SAIC-Iveco Hongyan Commercial Vehicle Co., Ltd. and SAIC Fiat Powertrain Hongyan Co. Ltd. were officially established. In December of the same year, with the signing of the all-round cooperation agreement between SAIC and NAC (Nanjing Automobile Group Corporation), NAVECO (Nanjing Iveco Motor Co., Ltd) became another relevant point of the cooperation between SAIC and Iveco, in the field of light commercial vehicles in China.