Jianghuai Auto gets 50 mln yuan project grant

Shanghai, January 9 (Gasgoo.com) Anhui Jianghuai Auto Co (JAC) announced today that the company has received the 50 million yuan ($7.32 million) grant from Hefei city, the provincial capital of Anhui, for the carmaker's innovative project, reported Shanghai Securities news today.

Jianghuai Auto was notified on Dec. 22, 2008 of this free grant for the development of its automatic dual-clutch transmission (DCT) project. The municipality of Hefei has set up special aid funds for the city's technological innovation programs. The Hefei-based carmaker said it has recently received the project grant of 50 million yuan.

Jianghuai Auto said that it will count this government grant as the company's deferred income. The project construction period will last from 2009 to 2011 and the account will be cleared in the coming years according to the actually expenditure. Therefore, the government grant will have no great influence on the company's 2008 profits.

The sluggish auto sales and falling output have urged Anhui province to take positive measures to help its automakers weather the crisis. The province will boost its funding and purchasing support for Chery and Jianghuai, whose new cars will be the priority choices for auto buying of the province's local governments at all levels.