Changan plans 4 billion yuan investment
Chongqing Changan Automobile Co., the Chinese partner of Ford Motor Co., will spend 2 billion yuan ($302 million) to develop small engines and 1.6 billion yuan to expand minivan production, the company said.
In a statement to the Shenzhen stock exhange, Chongqing Changan offered details of its plans to spend the 4 billion yuan to be raised through the sale of 411 million additional shares of stock.
The company also plans to spend 380 million yuan on research into its own brands, the company said. Chongqing Changan announced its intention to raise 4 billion yuan in December.
Chongqing Changan, whose parent has a passenger-car venture with Paris-based PSA Peugeot Citroen, intends to develop its own-brand vehicles as China aims to increase the market share of vehicles developed by local automakers.
China's domestic carmakers may account for 50 percent of the market share in the nation by 2015, according to a recent report by Macquarie Group Ltd.
