China’s Foton Prepared for the Production of 100,000 units of Cars So Long as Production Qualification Obtained

Gasgoo.com (Shanghai DEC 16) Foton in China announced on December 11 to invest 4.724 billion yuan on dividing the existing capacity into that of MPVs and that of cars through internal restructuring and technical renovation on its original factory of MPV in Beijing.

Foton plans to establish a limited company of MPV with registered capital of three billion yuan on the basis of the original factory of MPV.

The original capacity of 180,000 units will remain unchanged with 100,000 units assigned to cars. The maximum capacity of the new factory can reach 360,000 units per year.

Borgward will be put into production in the new factory later. And the production of cars has also restarted according to Foton.

But what attracts more attention turns out to be how Foton can obtain production qualification, about which Foton has kept silent. Foton suddenly announced on October that it had figured out solution to deal with competition it would meet in the car segment with BAIC, the controlling shareholder of Foton.

However, there is not any news about how to develop the car business after that.

Insiders said that Foton could directly get production qualification if restructured by BAIC. Or it can acquire shell resource but need to pay much.

As the construction of new factory and the production of products proceeding, it won’t take long for Foton to take part in the competition among passenger vehicles in China.