Beijing Automotive Industry Holding Company has agreed to take over smaller rival Guangzhou Baolong. This helps the Beijing auto company to secure a foothold in the competitive southern China market.
BAIC is a China partner of Daimler and Hyundai Motors. It will also invest 5 billion yuan to expand Guangdong Baolong's existing plant in south China and add a new plant. The company has been planning to expand its national presence in China, now the world's biggest auto market.