US engineering and design firm Silk EV is investing 10 billion yuan or roughly $1.4 billion in China as part of a collaboration with FAW Group to develop the Chinese conglomerate's first-ever sports car. The sports vehicles will be developed under FAW Group's premium Hongqi car brand.
The partnership will include the establishment of a new Chinese joint venture company that will be manufacturing the new Hongqi S series sports models. Both companies will jointly build a manufacturing base that will assemble the vehicles in China's Jilin Province. The deal was signed on Thursday last week through a virtual conference attended by representatives from both companies.
According to its website, Silk EV already has established engineering and design contracts with popular international sportscar brands such as Porsche, Lotus, Ferrari, and Bugatti. The US-based company currently has active operations in countries such as Italy and China.
Silk EV chairman, Jonathan Krane, mentioned during the conference that Jilin province, where FAW group is located, will be the perfect location to host Hongqi's sports car program. He added that the auto industry in the region is thriving and there is a huge reserve of talent in the area that will fit the needs of both companies.
FAW Group, which was established back in 1958, is one of China's largest automakers and is one of the country's first car brands. The Chinese automotive firm has slowly been ramping up its expansion into the premium vehicle sector, with its eyes on the sports cars and supercar segments. Last year, the company caught the world's attention when it unveiled its first sports car prototype, called the S9, during the Frankfurt Auto Show In Germany.
The S9 sports the company's newly developed V8T hybrid powertrain with a maximum output of 1,400 horsepower. FAW Group claimed that the vehicle could reach maximum speeds of up to 400 kilometers per hour and can accelerate from 0 to 100 kilometers in just 1.9 seconds.
Apart from the sports car segment, FAW Group is also aiming to a leader in developing new energy vehicles. Last week, the company broke ground on its new energy manufacturing facility in Changchun, the capital of Jilin Province. The facility is expected to go into full operation in 2022 with a capacity of 200,000 vehicles per year.
FAW Group aims to launch at least 17 new vehicle models over the next five years. This will include new energy vehicles, sports utility vehicles, and its new sports car models. Despite the coronavirus pandemic, FAW Group was able to increase the vehicle output of its Hongqi brand by 74 percent during the first quarter of this year, producing more than 21,300 vehicles during the three months.
