Changan Auto plans sedan production base in Beijing

Shanghai, June 24 (Gasgoo.com) Chongqing Changan Automobile Co., the Chinese partner of Ford Motor and Mazda Motor, plans to build a sedan production base in Beijing city to boost the company's competitiveness in North China, reported 163.com yesterday, citing insiders.

Last week, an economic planning official from the capital city told reporters that the Beijing municipal government was in talks with Changan Auto about the possibility of the automaker setting up a sedan production base in Beijing with an annual capacity of 300,000 units.

The cooperation talks between Beijing city and Changan Auto was going smoothly to the substantial stage, said the official, adding that the Beijing government has offered more favorable policies to attract Changan Auto than those once offered to Geely's Volvo project (for a Volvo plant in Beijing).

After its recent acquisition of Hafei Auto and Changhe Auto from AVIC, China's aviation giant, Changan Auto Group now boosts 21 vehicle plants across the country. In addition to the four bases in Chongqing, Hebei, Jiangsu and Jiangxi, the company has added five production facilities in Heilongjiang, Anhui, Shanxi, Guangdong and Shandong.

A researcher of Changan's Beijing engineering center said that construction of a production base in Beijing could improve Changan Auto's competitive edge in North China. However, Beijing Auto will have a strong rival on its doorstep as Changan is becoming China's No. 3 automaker.