Investment Updates News
- Shanghai News
Date: 15-Jan-2007 Sources: (Shenzhen Daily)
SHANGHAI Automotive Co., which last month completed a US$2.4 billion restructuring to turn itself into a global player, announced Saturday several new measures aimed at boosting its profile.
The listed arm of General Motors' main Chinese partner is investing in the first phase of an 1.8 billion yuan (US$230.8 million) engineering research center in Shanghai.
It will raise by 868 million yuan its investment in its Shanghai General Motors unit to help boost production capacity and competitiveness, the Shanghai-listed firm said in a statement.
Shanghai Auto also established a subsidiary in Great Britain, SAIC Motor U.K. Holding Co., which will become its main platform for European operations.
Shares in Shanghai Auto, which have jumped more than 65 percent in the last three months compared with a 50 percent jump in the benchmark index, fell almost 6 percent Friday to close at 8.67 yuan.
Shanghai Auto sold 1.34 million vehicles last year, up 27 percent from a year earlier, domestic media said Friday.
Sales of Shanghai GM, a tie-up with General Motors Corp., were 410,000 units, while sales at its venture with Volkswagen AG topped 352,000 units, the Shanghai Securities News said. It did not provide comparative figures.
Shanghai Auto also said last month it had completed a US$2.4 billion restructuring, transforming itself into the largest domestically listed auto maker, after it received a transfer of key operations from its parent company, SAIC Motor Corp.
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