BEIJING, Sept. 29 (Xinhua) -- A new automaker, established Tuesday, plans to manufacture and sell automobiles under the brand name "Beijing", company management said Wednesday.
BAIC Motor, jointly funded by Beijing Automotive Group (BAIC Group), the Beijing State-owned Assets Management Co. and four other companies and organizations, has total assets of more than 10 billion yuan (about 1.5 billion U.S. dollars), said Han Yonggui, deputy general manager of BAIC Group.
Records show BAIC Group holds 51 percent of the company's share.
The new company plans to build sedans, SUVs, new energy vehicles and electric vehicles branded "Beijing", with an output of 700,000 autos in five years.
The first Beijing sedans and jeeps will be manufactured by the end of 2010 and brought to the market in 2011, said officials.
High quality assets of BAIC Group were transferred to the new company, including its share of Beijing-Hyundai Automotive Co., a joint venture with automaker Hyundai of the Republic of Korea. BAIC Group's share of Beijing Benz Automotive Co., a joint venture with German automaker Daimler AG, will also be transferred to the company in the future, Han said.
"With the establishment of BAIC Motor, BAIC Group successfully transitioned from an investor into an industry player with a portfolio covering the entire business chain of R&D, manufacturing and branding," said Xu Heyi, chairman of BAIC Group.
"It is an important move to boost Beijing's automobile industry," Xu said.