CHINA: SAIC shares rise on BMW assembly rumours
Shares in SAIC Motor rose nearly 3.7% on Monday, outperforming the broader market, after a Chinese newspaper said the automaker may assemble BMW's 7 series sedan locally.
The Oriental Morning Post, citing unidentified SAIC sources, had said SAIC, China's biggest automaker, was in talks with BMW to assemble the 7.
The two sides had explored opportunity to manufacture premium cars in China around 2007, but the talks were suspended because of the global financial crisis, the semi-official paper said, according to Reuters.
SAIC told the news agency in an emailed statement that it would not comment on market speculation.
A BMW China spokeswoman said the company had a good business relationship with its partner Brilliance Auto, parent of Brilliance China Automotive Holdings, and had not approached other companies for a new partnership.
A BMW-Brilliance JV assembles 3 and 5 series cars in the northern Chinese cities of Shenyang, including long wheelbase versions unique to the local market.