SAIC, DFM raise 12 bln yuan for own-brand cars
- Source: Gasgoo
- [14:15 July 21 2010]
- Comments
Shanghai Automotive Industry Corporation (SAIC) last week raised 10 billion yuan ($1.49 billion) and Dongfeng Motor Corporation (DFM) raised 2 billion yuan ($29.9 million) for the R&D of their own-brand cars, media reported.
It is reported that the funds raised by DFM will mainly be used for the R&D of its passenger cars, critical powertrain and components, and to enhance the competitive advantage of hybrid and clean fuel vehicles.
In fact, on June 26, an engine plant with an annual production capacity of 300,000 units for Dongfeng passenger cars had started construction and was scheduled to complete in 2011. This indicates that DFM has a strong requirement for technology R&D for its own-brand cars.
The reporter was informed that SAIC's 10 billion funds will focus on the construction of its four own-brand projects, including own-brand passenger car project (phase I and phase II), own-brand passenger car R&D project and own-brand commercial car project.
With the increased investment in production and technology, the two listed companies will maintain a healthy momentum of growth in their future performance.
