China's LeEco to Invest $1.8 Billion to Build Electric Car Plant
August 10 2016 - 10:00AM
Dow Jones News
SHANGHAI—Chinese tech and entertainment company LeEco plans to
invest 12 billion yuan ($1.8 billion) to build a plant in China to
produce smart, internet-connected electric cars.
The plant, which will be based near the picturesque Mogan
Mountain in the eastern Zhejiang province, will have an annual
production capacity of 400,000 battery-powered vehicles, the
company said in a statement Wednesday.
The facility is part of a $3 billion auto theme park which will
also include entertainment facilities featuring auto-related
elements. All vehicles in the park will be electric, shared, and
will be driven autonomously based on internet technology, LeEco
said.
The company didn't say when construction will start or
production will commence.
"The Moganshan project will be open to all LeEco's strategic
partners including Faraday Future in terms of marketing and
exhibition, car sharing and auto financing," said Jia Yueting,
LeEco's founder and chairman, in the statement.
He also said LeEco and Faraday will deepen their global
strategic partnership in terms of manufacturing, research and
development, supply chain, and charging facilities.
Faraday Future, backed by LeEco, is building a factory in North
Las Vegas, Nevada, and aims to begin selling a car in the U.S. next
year.
Huge government subsidies have fueled electric car sales in
China, where the government hopes to cut reliance on oil imports
and reduce air pollution. The government also hopes that Chinese
companies could pioneer the world's electric car market.
Beijing's ambition, as well as Tesla Motors Inc.'s initial
success, has inspired dozens of new entrants to the world's largest
automotive market.
Wanxiang Group Corp., a Chinese automotive components maker that
owns U.S. electric-car maker Karma Automotive, has said it plans to
build a $375 million plant to produce electric vehicles. Wanxiang
currently doesn't build cars in China and its plan is being
reviewed by Chinese authorities.
Other high-profile auto startups include NextEV, which is backed
by internet giant Tencent Holdings Ltd. and Sequoia Capital, and
Future Mobility Corp., whose investors include Tencent and Foxconn
Technology Group, which assembles Apple Inc.'s iPhones.
Rose Yu contributed to this article.
(END) Dow Jones Newswires
August 10, 2016 09:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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