A not so popular U.S.-based engineering and design company stated it plans to invest 10 billion yuan ($1.41 billion) to make sports cars with China’s FAW Group under the model of choice of late revolutionary chief Chairman Mao Zedong, Hongqi.
Silk EV Monday said it had signed a memorandum of understanding with FAW to launch a joint venture in the state-owned auto manufacturers’ hometown of Changchun, northern China, to make vehicles it has dubbed the S-sequence.
The program was first reported Friday by state media CCTV and Xinhua.
Silk EV is a full auto solutions supplier focused on the China auto sector, its website confirmed.
It founded a company in Shanghai’s free trade zone in April 2019 with registered capital of 1 million yuan ($141,281), showed a submitting on the official National Enterprise Credit Information Publicity System.
Hongqi, meaning Red Flag, was introduced by FAW in 1958 and is widely considered an emblem of China’s ruling Communist Party, with former chief Mao often seen riding in luxurious black saloons.
It has undergone several developments over the decades, falling out of favor in the Eighties and now enjoying a revival as the government promotes home-grown brands.
FAW aims for year-on-year Hongqi sales to double to 200,000 automobiles this year and reach 1 million by the end of the last decade.