SAIC starts producing new engine

SHANGHAI -- Last month, SAIC Motor Manufacturing Co. began producing an engine that meets European emissions standards, spokesman Andy Chen says.The gasoline engine is based on a previous-generation MG Rover engine. It was developed with help from Ricardo, an engineering consultant in the United Kingdom. Chinese companies are still relying on foreign technology for advanced engine development.The 2.5-liter V-6 engine will go into SAIC Motor's first self-branded car, the Roewe sedan, which is based on the Rover 75 sedan. Volume assembly will begin midyear. SAIC plans to export the car to Europe, but not until 2009 or 2010.In 2004, parent company Shanghai Automotive Industry Corp. bought the intellectual-property rights to the Rover 75 and Rover 25 models and a number of Rover engines from now-defunct MG Rover. Suppliers for the KV6 engine are mainly companies owned by or investments of SAIC, Chen says.Most also supply Shanghai GM or Shanghai VW, SAIC's joint ventures with General Motors and Volkswagen. This approach ensures high quality, Chen says. SAIC Motor aims to sell 30,000 Roewe sedans in the first year. Annual capacity will be between 60,000 and 70,000 units. Hu Maoyuan, chairman of Shanghai Automotive, said at the car's unveiling that SAIC Motor had planned to export it to Europe by year end but has delayed that to ensure that the car will meet overseas standards.You may e-mail Alysha Webb at alyshawebb@yahoo.com

SAIC starts producing new engine

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