China's biggest car maker to raise funds for new energy development

China's biggest car maker to raise funds for new energy development

Summary

China's biggest car maker to raise funds for new energy development

SAIC will look to raise funds by selling shares to its parent company and employees, as well as investment firms, insurers and trust funds.
SAIC will look to raise funds by selling shares to its parent company and employees, as well as investment firms, insurers and trust funds. (Photo: China News Service)


SAIC Motor Corp. has announced plans to raise as much as 15 billion yuan ($2.4 billion) through a private share sale to develop its own brand cars and new-energy vehicles, reported The First Financial Daily.

The Shanghai-based company will look to raise funds by selling shares to its parent company and employees, as well as investment firms, insurers and trust funds.

They will invest 4 billion yuan ($630 million) into the development of its own brand of cars, as well as using 1.8 billion yuan ($280 million) into developing new-energy commercial vehicles.

SAIC, who have joint manufacturing ventures with Volkswagen and General Motors, have stated that remaining funds will be invested into fuel-cell cars and smart-driving technology.

Despite cuts to car prices, SAIC saw its net profit growth slow to 3.8% in the third quarter, down from the 7% first quarter growth, reported the Wall Street Journal.