GAC invests $ 4.4 million in new R&D facility in Detroit, sees stock price rise with fluctuation today

Shanghai (Gasgoo)- Chinese automaker GAC Group is building a new research and development (R&D) facility in Farmington Hills, Michigan of the U.S., according to local media in the U.S. The company saw its stock price rise with fluctuation today. As of press time, its active stock price reached HKD 7.48 per share with an increase of 2.19% and the latest market valuation were HKD 109.8 billion.

The Guangzhou-based automaker is investing more than $4.4 million in the R&D facility in order to expand its current operation in overseas market. Reportedly, the move will create 62 local jobs.

GAC Group is searching for a place to locate its North American headquarters. The placement of the new R&D facility nearby Detroit's three auto giants will generate a “strong impact” on that decision, according to local media. 

The group's R&D center in the Silicon Valley of California has gone into operation as early as April, 2017, focusing on advanced technology R&D, design ideas and product planning. The new R&D facility under construction in Michigan is the second one it plans. 

GAC Group attended the 2018 North American International Auto Show in Detroit earlier this year with an ambitious plan to enter the U.S. market in the fourth quarter of 2019. Meanwhile, the Trumpchi GS8, a SUV model being sold in China under GAC Group's self-owned brand Trumpchi, was showcased at the Cobo center and is expected to be the first model entering the United States. To meet American users’ demand for SUVs, the company will step into the U.S. market with a large-sized 7-seat model.