FAW Group to spend $2.8B on own-brand vehicle R&D
- Source: Gasgoo
- [01:17 May 21 2010]
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China's auto giant FAW Group Corp recently said that it plans to invest 19 billion yuan ($2.8 billion) in research and development (R&D) over the next five years to speed up its own-brand vehicle development and to boost sales, Shanghai Daily reported.
FAW Group, Chinese partner of Toyota Motor and Volkswagen AG, expects its auto annual sales to hit 4 million units by 2015, with its own-brand vehicles accounting for 50 percent of the total. Its sales grew 27 percent to 1.94 million units last year and the sales target for this year is set at 2.3 million.
As part of its efforts to improve its car-making technologies and build up its brand image, the No. 2 auto group in China aims to focus R&D on its home-grown vehicles. Most Chinese automakers intend to raise their sales volumes and market shares by developing their own vehicle brands.
Changchun-based FAW Group, which makes its own-brand Besturn and Xiali cars, will launch 26 new or revamped vehicle models by 2015. The plan will include 11 brand-new vehicles, with four under the Redflag (Hongqi, or HQ) brand, the oldest Chinese car nameplate.
FAW is expected to launch its plug-in hybrid and all-electric cars in October on a trial basis. The company has invested 300 million yuan in these cars' engineering.
