Chinese carmaker Guangzhou Automobile Group (GAC) has announced that it will transfer RMB 11 billion ($1.7 billion) into its wholly-owned electric vehicle subsidiary, as the business is set to launch a rechargeable model that may have the world’s longest range, reports Caixin. The Shanghai-listed GAC will inject RMB 7.4 billion in cash and RMB 3.6 billion in tangible assets including manufacturing equipment into GAC Aion.
State-owned GAC, which is China’s 10th biggest car manufacturer according to data from the China Association of Automobile Manufacturers (CAAM), is seeking external capital to fund the unit’s future growth.
GAC Aion will pay RMB 5 billion to purchase some intangible and fixed assets related to pure electric cars from GAC R&D Center and GAC’s passenger vehicle unit in a deal that will in turn let it assume the sellers’ debts.
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