JAC to expand B-class production line

Chinese carmaker Jianghuai Automobile Co.,Ltd.(JAC) revealed that it will invest 2.8 billion yuan ($427 million) to expand the B-class production line in its annual report recently.

The carmaker will spend the money on two main projects: passenger car production base expansion, and upgrading of capacity and R&D ability. An employee of JAC said sedan and heavy truck departments of the company have made great breakthroughs in technology and product structure.

The report also said that JAC sedan has achieved the balance of profit and loss by the end of 2010, and started to turn a profit since 2011.

JAC will continue to pay special attention to passenger car development. Its current capacity is 240,000 units, and the sales volume last year has exceeded 200,000 units, which make it urgent to increase capacity. 

The expansion project will complete by the end of 2012, which mainly produces B-class cars such as 1.6L Heyue. The target capacity is 600,000 units.