Gasgoo.com (Shanghai February 17) - FAW Car, a subsidiary of FAW Group and manufacturer of the Besturn and Hongqi brands, plans to invest 1.51 billion yuan ($240.41m) to expand its product line, Caijing reported today. The funds will primarily be used for increasing and improving the quality of its Mazda vehicles. By the end of the program, FAW Car's annual production capability is expected to reach 60,000 vehicles.
The majority of the funds, 736.39 million yuan ($116.97m) will be used for building new infrastructure, while R&D expenditure and start-up capital will total 135.14 million yuan ($21.47m) and 641.96 million yuan ($101.97m), respectively. A subsidiary company of FAW Group will be responsible for undertaking the program.
The investment plan first needs to be approved at a shareholders meeting before being implemented.
