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2018 | OriginalPaper | Chapter

3. SAIC, a Giant of the Domestic Market

Author : Qiushi Feng

Published in: Variety of Development

Publisher: Springer Singapore

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Abstract

This chapter focuses on the second production model. Shanghai Automotive Industry (Group) Corporation (SAIC), currently the largest Chinese carmaker, is owned by the Shanghai municipal government and has established two joint ventures with Volkswagen and General Motors. In this chapter, the development of SAIC is charted as a process manipulated by a strong local government sponsored by central government. Under the communist regime, Shanghai used to be the national economic center of China and its local officials carried substantial political weight with the central administrators. However, after the reform, Shanghai was asked to hold back as a safety measure to reduce risks in the national reform. Soon after the ending of these restrictions in the early 1990s, local officials chose carmaking to revitalize the local economy. Following strenuous lobbying, the local initiatives were finally approved and supported from above. In particular, the idea of establishing joint car production ventures received unprecedented acknowledgment from central leaders, despite its political sensitivity. In sum, the developmental pathway of SAIC was primarily shaped by a strong local state with critical endorsement from above.

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previous chapter FAW, “Senior Son” of the Chinese Automobile Industry
next chapter Chery Auto, Champion of National Brands
Footnotes
1
The four persons mentioned are Jiang Zemin, Zhu Rongji, Wu Bangguo, and Huang Ju—all of whom were major municipal leaders of Shanghai, and consecutively appointed party secretary of Shanghai from 1987 to 2002. All were later recalled to central government, rising as national political leaders.
 
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Metadata
Title
SAIC, a Giant of the Domestic Market
Author
Qiushi Feng
Copyright Year
2018
Publisher
Springer Singapore
Book
Variety of Development

Print ISBN: 978-981-10-5911-7

Electronic ISBN: 978-981-10-5912-4

Copyright Year: 2018

DOI
https://doi.org/10.1007/978-981-10-5912-4_3