China: SAIC Motor unveils action plan to boost sales

<p>Chinese carmaker SAIC Motor Corp has pledged to increase spending to build up its own car brands.</p>

Chinese carmaker SAIC Motor Corp, the manufacturing partner of General Motors and Volkswagen, has pledged to increase spending to build up its own car brands.

Chairman Chen Hong told shareholders yesterday (June 19th) that the company is facing a shortage of talent and lacks innovation, after sales barely rose in the first five months, Bloomberg reports.

SAIC Motor’s own-brand deliveries gained 0.1 per cent between January and May 2014 to 85,155 units, compared with a 7.4 per cent gain for its car venture with GM.

Chen Hong said that SAIC Motor will place “utmost importance” on developing electric cars and aims to cut their costs, adding that the company is considering opening a venture capital unit in Silicon Valley.

The company’s shares have risen 7.7 per cent this year in Shanghai trading, compared with a 4.4 per cent decline in the benchmark Shanghai Composite Index.

Meanwhile, Hong Kong shares snapped a four-day losing streak today, as Macau shares suffered a loss for the week.

The Hang Seng Index gained 0.1 per cent at 23,194.06 points, while the China Enterprises Index edged up 0.4 per cent.

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