BAIC is better known simply as ‘Beijing Auto’. 北京汽车
Beijing Automobile Works, sometimes abbreviated as BAW, is a Chinese car manufacture based in Beijing. BAW produces light off-road vehicles and trucks. BAW produces civilian as well as military vehicles.
January 5, 2009 – On December 30, 2008, Beijing Automotive Industry Holdings Co., Ltd. (BAIC) signed a deal with Beijing Automobile Assembly Co., Ltd. to restructure Beijing Automobile Works Co., Ltd. (BAW), said China Business News today. BAIC will become a majority shareholder (51%) of BAW and make it a manufacturing base of crossover vehicles.
The BAW assets have been a major obstacle for BAIC to get listed in the stock market. The restructuring of BAW will straighten up the assets relations between the two companies and is a move of great significance to BAIC and its chairman Xu Heyi. An executive of BAIC said that it had been hard to get the majority shareholding of BAW controlled by private investors.
Founded in 1953, Beijing Automobile Works merged with Beijing Motorcycle Company in 1987 to form the Automobile and Motorcycle United Company (BAM). Beijing Automobile Works Co.,Ltd (BAW), was founded in 2001 and incorporates the original Beijing Automobile Works, Beijing Jeep, Beijing Automobile Assembly and Beiqi Foton, with Beijing Auto Assembly holding 66.67% of the new BAW. This majority share came from private investment.
AS one of the four auto-making companies of BAIC, the strength of BAW has been its making of crossover vehicles. This time BAIC put its Jeep 2500 model and other resources into BAW to make BAW a manufacturing base of own-brand crossover SUVs.
BAIC has planned to launch its self-developed SUV and sedan models to the market in 2010. It will build two crossover vehicle platforms and four passenger vehicle platforms, according to BAIC’s new product strategy.