Shanghai, November 25 (Gasgoo.com) SAIC Motor Corp Ltd said its board has approved a plan to set up a joint venture with its parent company, Shanghai Automotive Industry Corp (SAIC) with a total investment of two billion yuan ($293million), an XFN-Asia report said today.
In a statement filed with the Shanghai Stock Exchange, the company said the joint venture - Shanghai Jieneng Automotive Technology Co Ltd - will focus on developing key hybrid or electric power technology, such as electric powertrains and transmissions.
Registered capital of the venture will be 600 million yuan, with SAIC investing 540 million yuan for a 90 pct stake and SAIC Motor holding the rest 10 pct stake with an investment of 60 million yuan. The remaining capital will be raised through banks loans and other sources.
SAIC already made it clear that it hopes to raise production up to 10,000 hybrids a year by 2010 and commercialize a hybrid model under its own brand. The automaker said last year that it would get into the hybrid sector starting 2008.
SAIC's joint ventures have started to use the hybrid technologies earlier. Shanghai GM introduced a hybrid version of the Buick LaCrosse at the beginning of this year. Shanghai VW's hydrogen fuel-cell Passat Lingyu cars were put into service at the 2008 Beijing Olympics later in August.
Buick Lacrosse hybrid
