Saying Goodbye to Twenty Years of "Shanghai" Cars to Battle the World

Even after a time of two decades, SAIC still keeps in mind its own brand, the “Shanghai” brand sedan. The "Shanghai" car that had been stopped in November 1991 will be revived.

"The 'Shanghai' brand has been included in the product planning of SAIC's passenger car, but it is still in the planning stage. The relevant information on the resumption of mass production of this brand will be announced after the exact plan for resumption of production." "First Financial Daily" reporter.

Even though SAIC Group still “dodged” the “Shanghai” brand car's remanufacturing time, the “Shanghai” brand has appeared in the notice issued by the Ministry of Industry and Information Technology on January 19 for vehicle production companies and products (No. 233). SAIC Motor will soon use SAIC to launch Dongfeng, a new generation of Roewe's high-end replacement models. It will also launch the "Shanghai" brand sedan to the market. This means that the days when the “Shanghai” brand car is revived will be just around the corner.

SAIC Group is the largest auto group in China, accounting for one-fifth of China's auto market sales. On January 31st, the performance forecast released by SAIC Group indicated that the company's net profit in 2011 is expected to increase by more than 40% to approximately RMB 20 billion, and the growth rate of vehicle sales far exceeds the average growth rate of the industry.

However, SAIC Motor’s total sales volume is mainly contributed by SAIC Motor’s joint ventures with Volkswagen and General Motors, which together account for almost 90% of SAIC’s total sales. The sales of self-owned brands of Roewe and MG, etc., in 2011 were similar to those of 2010, which is not good news for SAIC Group, which strives to be the industry leader.

Although the overall Chinese auto market continued to grow in 2011, the market share of independent brands did not rise. Looking beyond Chery, Geely and other independent brands, the industry also looks forward to investing in the top four automotive groups in China. FAW Group and BAIC Group have also launched new independent brands.

In 2006, before and after the launch of the new generation of family sedans Roewe of SAIC, the rejuvenation of the “Shanghai” brand was once the focus of the industry, and SAIC eventually introduced a brand new Roewe brand. Although afterwards, the "Shanghai" brand car was also adopted in the Roewe model's fuel cell and hybrid concept car, but it basically remained in the concept car stage.

The “Shanghai” brand sedan, born in 1958, is a landmark product. In the 1970s, there was a saying that “Northern Red Flag South Shanghai”, the Red Flag sedan of the FAW Group and the Shanghai sedan of the SAIC Group went hand in hand. Compared with the Hongqi sedan, which is located in the official car, the “Shanghai” brand sedan is more suitable for entering the homes of ordinary people.

However, the degree of concern of the “Shanghai” brand sedan began to decline slowly after the joint venture between SAIC Motor and Volkswagen. In 1985, Shanghai Volkswagen JV was established. The Shanghai Volkswagen production line and Shanghai brand car production line were in the same factory. Taking into account the different positioning of the two products, SAIC Group has moved away from the "Shanghai" brand car production line. Due to lack of funds and technical support, the "Shanghai" brand car was finally suspended in November 1991. From birth to production suspension, the "Shanghai" brand sedan produced a total of 77,041 cars.

"After launching the "Shanghai" brand, SAIC Motor will have three independent brands. More than one brand will contribute more. The launch of the 'Shanghai' brand may evoke consumer recognition, and the significance of the self-owned brands it carries is greater. This will be a good marketing start for SAIC Motor,” a veteran of the car told reporters. In any case, SAIC must first arouse people’s interest in its own brand in order to win the capital market. With the recognition of consumers, it is considered officially entering the fast lane of development. "The launch of the "Shanghai" brand car may be a new beginning."