FAW Group to raise R&D spending by 61% in '09

Shanghai, February 19 (Gasgoo.com) China auto giant FAW Group will increase its spending for research and development (R&D) by 61.45% to 4.23 billion yuan ($619 million) this year despite the financial crisis, xinhuanet.com reported today, citing FAW's president.

FAW Group president Xu Jianyi said that it will use the economic crisis "as an opportunity for structural adjustment and innovation" and will focus on the development of energy-saving and environment-friendly vehicles this year, as well as vehicles for China's vast rural areas.

In 2008, FAW spent 2.63 billion yuan in its R&D projects. The automaker sold more than 1.53 million motor vehicles last year, up 6.75% year-on-year, compared with the 23.2% growth of 2007. Its sales revenue for 2008 hit a record 218.4 billion yuan, up 8.8%. Its subsidiary FAW VW sold 499,000 sedans in 2008, atop China's sedan sales rankings of the year.

In its effort to develop low-emission clean vehicles of its own brands, FAW Group will focus on the R&D projects of several new models this year, including the luxury, high-end, medium-size and small-size models of its four platforms. The Jiefang truck platforms will be integrated and upgraded as well.

FAW's bus company is also developing the alternative-energy 12-meter-long buses for urban public transportation and long-distance passenger transportation. The rural areas will be another huge market for auto giant’s clean vehicles for farming and transportation.

FAW Group will launch several of its self-developed new vehicle models in 2009, such as the Besturn B50 and Hongqi HQE sedans, Xiali X121 and X123 economical sedans, L501 light vehicle, V70 and V90 mini-cars, and 12-meter-long buses.