SAIC to develop electric vehicles

Shanghai Automotive Industry Corp. (SAIC) Group and its subsidiary SAIC Motor plan to invest two billion yuan (US$292 million) to develop electric-gasoline and electric cars. The two companies will establish a joint venture with a registered capital of 600 million yuan (US$87.6 million), with SAIC Group contributing 540 million yuan (US$78.8 million), or 90% of the stakes of the joint venture, and SAIC Motor making up the remainder with 60 million yuan (US$8.76 million). One hundred million yuan (US$14.6 million) will be earmarked for fixed assets and the rest for research and development. (December 15, 2008)