Next phase in Ricardo collaboration with SAIC

Following a highly successful twenty month period of development by Ricardo 2010 Consultants Ltd (a Ricardo subsidiary set up solely for this purpose), both of new products for SAIC Motor Company as well as of a world-class engineering organisation, 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 Ltd 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&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 £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 plc and for SAIC Motor Co Ltd, 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 Ltd.

“This is an extremely positive outcome for Ricardo 2010 Consultants Ltd and its employees as well as for Ricardo plc and SAIC Motor Company”, said Ricardo plc 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 Ltd. 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 Ltd will have no commercial impact for Ricardo plc in the financial year ending June 30, 2007.