FAW to spend $620 mln on own-brand car R&D

Shanghai, April 29 (Gasgoo.com) Chinese auto giant FAW Group recently said that this year it will spend 4.23 billion yuan ($620 million) on the research and development (R&D) of its own-brand vehicle models, xinhuanet.com said today.

FAW Group brought 22 vehicle models of its four own brands Jiefang, Hongqi, Xiali and Besturn, 11 engines and three transmission products to the 2009 Shanghai auto show earlier this month. The number of FAW’s own-brand vehicle models on display at the show was the largest among Chinese automakers. This indicates the company has shifted its strategic focus back onto its own brands.

Displayed on the "China FAW" stages are the company's self-developed products, which include the high-end Hongqi SUV, B-class Besturn sedan, Besturn B50 HEV hybrid sedan, hybrid bus, and the top-class CA12GV engine (China's first self-developed V-12 engine). They reflect the new energy technology development and application by the Chinese automaker.

Of the 22 own-brand models of FAW, four all-new passenger car models will be released to the market soon. In addition, two medium- and heavy-duty trucks are also set for launch this year. FAW expects the annual sales of its own-brand vehicles to account for 50% of its total sales starting next year. The company aims to sell 2 million vehicles in 2010 and 3 million units in 2012.

To boost its investment in the own-brand vehicle development, FAW has earmarked 4.23 billion yuan for this year's own-brand car R&D projects, up nearly 62% from the budget in 2007. The auto giant said that it will invest 13 billion yuan in the own-brand field by 2013. It has reached the point of no return on the road to "own brand" development, a top executive said.