BAIC to Build Plant in Lithuania

Except the numerous bids submitted for European brands, this is the first major step made by the Chinese carmaker Beijing Automotive (BAIC) towards a long-awaited European expansion. It appears that the Chinese automaker is looking to build a production facility in Lithuania that could help the manufacturer establish a strong network to distribute cars to buyers on the Old Continent.

"Beijing Automotive Industry Holding hopes to enter the European market both in terms of logistics and production and trade," said, according to gasgoo.com, Daumantas Lapinskas, an aide to Lithuanian Economy Minister Dainius Kreivys. "The company sees Lithuania as a potential partner and will explore the market."

Together with Geely and BYD, BAIC is trying to bring China a larger share in overseas markets, with new models, usually known for low prices, prepared for launches in both the US and Europe.

Furthermore, BAIC has long tried to purchase one of the ailing European carmakers, no matter if we're talking about Opel or Volvo. After losing the race for Opel against Magna and RHJ, the company is now planning to purchase Ford's Swedish unit currently involved in negotiations with Geely.

"Based in China's capital city of Beijing, where there's an excellent business environment and a rich source of talent, and by taking advantage ofitsfully integrated infrastructure and industry resources, BAIC is well prepared to continue to expand its presence in China and world auto market," Xu Heyi, President of Beijing Automotive Industry Corp. (BAIC), was quoted as saying in July, just after the Chinese company was excluded from the takeover talks with General Motors.