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Industry consolidation picks up speed as Geely takes over Shanghai Maple

Beijing, 040708. Following the absorption of Nanjing Auto by SAIC earlier this year, a further step in the consolidation of vehicle manufacturing activities in China has taken place, with Shanghai Maple Automobile's (SMA) main production plant having been included in the assets of the sales company of Zhejiang Geely Auto being taken over by Geely Auto.

Geely, which is highly unusual for being tolerated as a publicly listed major Chinese OEM devoid of state control, says it has appointed a new general manager for SMA's manufacturing operations. This effectively puts the last piece of a convoluted takeover of its smaller rival into place. The two first got together in 2002, at which time the then Guorun Automobile Geely Group took a strategic holding in what is now SMA, with the resultant first Maple brand car launched in mid-2003.

Hong Kong listed Geely is moving quickly to consolidate its grip on SMA, creating a new car to be based on its Vision sedan for the Maple brand. This small four-door car premiered at the Beijing show in November 2006, having also been shown as the Geely FC-1 concept at the Frankfurt IAA in September 2005. It went on sale in China the following month with a standard 1.8 litre I4 petrol engine. In some export markets, the Geely Vision is badged 'FC'.

The new Maple car's model name is not yet known but it will give the brand a vastly more modern car than the Citroen ZX-based Huapu, Hisoon, Hysoul and Marindo models that it has launched between 2002 and 2006. SMA's production plant that builds all these cars is based in suburban Shanghai.

Source: Automotive World.