SAIC to Hike Efforts to Promote Its Brands

SAIC Motor Corp.'s new Chairman Chen Hong tells shareholders the company will take unspecified steps to bolster demand in China for its domestic MG and Roewe brands.

SAIC generates its profits through 50:50 ventures with General Motors and Volkswagen. But China's central government has been pushing the country's major carmakers to strengthen their own marques.

So far those efforts have failed. Domestic brands continue to lose market share in China, slipping below 22% in May compared with nearly 27% in May 2013. Sales of SAIC's own brands were virtually flat at 85,200 units in January-May compared with a 7% gain for its GM venture over the same period.

Chen tells shareholders the company is studying a plan to open a venture capital firm in California's Silicon Valley to help solve SAIC's shortage of technical talent and limited ability to innovate.