A little-known U.S. engineering and design company said it plans to spend 10 billion yuan ($1.41 billion) to produce sports cars with China‘s FAW Group SASACJ.UL under the late communist leader Mao Zedong, Hongqi’s brand of choice.
On Monday, Silk EV told Reuters it had signed a Memorandum of Understanding with FAW to start a joint venture in Changchun, northern China’s state-owned automaker’s hometown to produce cars that it called the S-series.
The program was first reported by CCTV and Xinhua state media on Friday. FAW has reported to Reuters the information from CCTV.
Silk EV is a full-fledged automotive solutions company focused on the auto industry in China, its website has revealed.
It launched a corporation with a declared capital of 1 million yuan ($141.281) in Shanghai’s free trade zone in April last year, displaying a report on the official National Business Credit Details Publicity List.
Hongqi, meaning the Red Banner. FAW unveiled it in 1958 and they consider it a symbol of the ruling Communist Party of China. With former leader Mao frequently seen traveling in high-end black saloons.
Over the decades it has undergone many revamps. Dropping out of favour in the 1980s and now experiencing a resurgence as the government supports home-grown brands.
The FAW is planning to increase annual Hongqi sales this year to 200,000 vehicles. And also hit 1 million by the end of the decade. The company also plans include 21 models by 2025.