Startup consultancy helps SAIC to self-sufficiency

Following a highly successful 20-month period of development, SAIC is now ready to take ownership of Ricardo 2010 Consultants.

Following a highly successful 20-month period of development by Ricardo 2010 Consultants (a Ricardo subsidiary set up solely for this purpose), SAIC is now ready to take ownership of this venture as planned and has advised Ricardo of its intention to do so over the coming months.

The Ricardo subsidiary Ricardo 2010 Consultants was formed in 2005 to act as the overseas engineering centre of SAIC Motor that would assist SAIC Motor in the development of its own in-house new product R and D capability.

It was intended from the start that if Ricardo 2010 was successful in this task, it was would be transferred at a nominal sum of GBP 1 to the Chinese group as a going concern after a period of time.

Through its links with the wider Ricardo group it has enjoyed ready-made access to advanced automotive technology and state-of-the-art design, test and development facilities.

The period since the formation of Ricardo 2010 has been enormously successful both for Ricardo and for SAIC Motor, and has included the launch of the first vehicles under the new Roewe brand, the recently announced start of manufacture of the KV6 engine in China, and the ongoing development of a completely new family of Roewe brand products.

The transferred business will continue both to be based at offices at the Ricardo Midlands Technical and have strong operational links with Ricardo UK.

"This is an extremely positive outcome for Ricardo 2010 Consultants and its employees as well as for Ricardo and SAIC Motor Company", said Ricardo CEO, Dave Shemmans.

"Ricardo established this business as a means of creating a world-class automotive product development capability for SAIC and the exercise of the option to acquire the business demonstrates our success in this endeavour".

"This is due in no small part to the hard work and innovative skills of the Ricardo 2010's employees as well as their colleagues at SAIC Motor and Ricardo UK.

We look forward to a continued close and mutually beneficial relationship with SAIC Motor both on the existing programmes on which we are already collaborating as well as on future products".

The transfer of ownership of Ricardo 2010 Consultants will have no commercial impact for Ricardo in the financial year ending 30th June 2007.

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