SAIC seeks export capital
3 July 2006
Shanghai Automotive Industry Corp (SAIC), China's biggest carmaker, plans to raise up to US$1.25 billion with an A-share listing in the second half of this year to fund its export goals, the South China Morning Post reported. The listing vehicle will include the assets of the company's joint ventures with GM and Volkswagen and its own assembly and parts and components plants. SAIC already has one listed subsidiary, Shanghai Automotive. SAIC has announced plans to spend US$1.7 billion to develop its own model range by 2010 and reduce its heavy dependence on GM and Volkswagen, whose brands account for most of the cars produced by its joint ventures. The Chinese firm has set a production target of 200,000 own-branded vehicles by 2009.