BAIC to begin producing new engines by end of December

Gasgoo.com (Shanghai December 27) - BAIC's subsidiary company, Beijing Automotive Powertrain, will be able to start manufacturing new series of engines by the end of this month, Economic Observer News reported today.

According to BAIC Group Deputy General Manager Ma Tongli, the manufacturer has already successfully completed testing of new 2.0 L and 2.3 L engines. Mr. Ma also revealed that, after four months of work, BAIC started assembly of the cylinders and cylinder heads necessary for the engines, and that full engine production will begin by the end of the month.

Beijing Automotive Powertrain was established in August 2009. The company, which is fully owned by BAIC Group, focuses on the research, development and production of engines and transmissions. BAIC's investments in the company are planned to reach a total of ten billion yuan ($1.58b). The company's total annual production capacity looks set to reach 400,000 engines and 600,000 transmission systems by 2015.

In December 2009, BAIC Group spent $200 million to purchase Saab technology. Then, in November of last year, the manufacturer's subsidiary company begun successfully producing own brand engines, signifying that it had successfully made use of Saab technology.