Shanghai Automotive to increase capacity
One of China's largest automakers, Shanghai Automotive Industry Group Co (SAIC), reportedly plans to expand its joint venture factories with Volkswagen AG and General Motors. The expansion will increase SAIC's annual production capacity to 1.1 million vehicles, an increase of nearly 50% from its current production level. The company also disclosed plans to build three additional engine plants. SAIC is currently focusing on cutting production costs, which rose due to the soaring prices of steel and energy.