Changfeng Motors to expand SUV, pickup capacity

Shanghai, May 30 (Gasgoo.com) Hunan Changfeng Motors Co. has plans to increase its urban SUV and pickup capacities by 50,000 units by issuing 100 million new shares to raise funds for lineup and facility expansion.

The carmaker debuted its all-new Liebro CS7 SUV at the recent 2008 Beijing auto show and will start its production later this year, with an expected annual capacity of 30,000 units, after this product’s development and technical innovation are completed by early June.

Changfeng Liebra CF2 (CS6) is a middle- to high-end urban SUV and its annual capacity will top 30,000 units after Changfeng's manufacturing facilities are expanded this year. The Chinese maker of SUVs and pick-up trucks, owned 16% by Mitsubishi Motors, said on Wednesday it planned to raise about 900 million yuan ($129 million) via a share placement for its expansion.

Changfeng Motors would issue up to 100 million new shares, or nearly 20% of its expanded share capital, to as many as 10 institutional investors such as asset management firms and securities houses. The company said funds raised would help it to expand its vehicle line-up and boost its annual production capacity by 30,000 SUVs and 20,000 pick-up trucks.

With the funding, its subsidiary Changfeng Yangtze will boost its capacity to make 20,000 CT5 pick-ups annually by 2010. The self-developed CT5 product will be a leading model for Changfeng Motor to enter the pickup market.