JAC Motors - History

History

Established in 1964 as Hefei Jianghuai Automobile Factory, its name was changed to Anhui Jianghuai Automobile Co Ltd in 1997. The company made an IPO on the Shanghai Stock Exchange in 2001.

JAC has historically only produced commercial trucks (under the brand name Jianghui), but MPVs and SUVs appeared in the 2000s. By 2007 the company had gained government approval for passenger car production but, nonetheless, continued to be referred to as a truck maker. When it was known as a commercial vehicle manufacturer, JAC cooperated with Hyundai Motors. Beginning in 2003, it assembled Hyundai MPVs although this stopped sometime prior to 2007. At least two models based on Hyundai technology continued to be made by JAC after the cooperation was cancelled–a MPV and a SUV. Hyundai explored setting up a joint venture with the company in 2004, but the plan was soon discarded.

In a recent event a 2009 Chinese government indication that it was in continued support of consolidation in the Chinese auto industry led analysts to predict the possibility of JAC joining with Chery since they are both located in Anhui province. On the surface such a merger would make sense: Chery mainly built passenger cars, and JAC was almost entirely focused on trucks at the time. Since then, however, JAC has made it clear that they are not interested in consolidation under the aegis of the larger Chery. JAC has begun to concentrate more on passenger cars, and a 2010 announcement of a new electric vehicle program may at least partially have been an effort to stave off the rumored merger.

Sales reached more than 300,000 units in 2009 including 12,100 sold overseas.

In 2010 it was one of the top ten most-productive vehicle manufacturers in China selling 458,500 units for 2.5% market share and reaching eighth place. JAC dropped one spot to ninth in 2011 making nearly 500,000 vehicles, and in 2012 a fall in units produced to about 445,000 precipitated the company's moving down one more rung in the rankings. Estimated production capacity is over 500,000 units/year as of 2009.