SHANGHAI, China — Shanghai Automobile Industry Corp. (SAIC), China's top automaker, says it will build a plant in Hebei Province to help meet the growing demand for alternative-energy cars in northern China. Electrically powered and hybrid buses will be the first priority, SAIC said.
SAIC announced that it has formed a strategic tie-up with the government of Tangshan in the province to jointly develop what China calls "new-energy vehicles," its listed unit said in a statement to the Shanghai Stock Exchange this week.
Located in the Caofeidian economic development zone in Bohai Bay, the factory will roll out energy-saving and eco-friendly vehicles, with a preliminary focus on electric and hybrid buses.
SAIC said production will later expand to other vehicles and mainly serve demand in Tangshan and the province as well as the greater northeast region.
Lured by government stimulus measures, including subsidies and trial projects, carmakers in China are expecting a surge in demand for "green" vehicles.
SAIC, the Chinese partner of General Motors and Volkswagen, set up a company with a $293 million investment early this year to focus on electric cars and hybrids. SAIC plans to market a series of new-energy vehicles starting in 2010, including mild hybrid and plug-in strong hybrid models as well as its self-developed electric car.
Inside Line says: SAIC sets a good example from its spot atop the Chinese auto industry. — Vivian Jin, Correspondent
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