Brilliance Auto to set up SPV subsidiary company soon

Shanghai, August 24 (Gasgoo.com) Brilliance Auto will set up a wholly-owned subsidiary making special purpose vehicles (SPV) in China very soon, the Beijing News reports Monday.

Qi Yumin, chairman of Brilliance Auto, said the company would make an initial investment of 25 million yuan ($3.6 mln) on the project. The SPV subsidiary will include four production facilities located in Tieling, Dalian of Liaoning province, Miangyang of Sichuan province and the last one in Shanghai.

Qi added that China's SPV market has a great potential for future growth. China's demand for special use vehicles is expected to go up to 700,000 units in 2010 but domestic SPV capacity only stands at 300,000 units a year currently.

Brilliance Auto said early this month it is in talks with German auto and truck maker Daimler to set up a joint venture making special-use vehicles in China but the details of the joint venture have yet to be finalised.