Silk-FAW confirms plan to build electric sports cars in Italy

MILAN, July 25 (Reuters) – Silk-FAW, a begin-up of U.S. automotive engineering and structure business Silk EV and Chinese automaker FAW (000800.SZ), explained on Monday it would press in advance with a prepare, worthy of in excess of a person billion euros ($1.02 billion), to develop electrified vehicles in Italy.

Silk-FAW will finalise the invest in of the land in the city of Reggio Emilia where the creation internet site will be constructed on Aug. 5, it mentioned in a assertion after attending a videoconference with neighborhood authorities.

It would hold the opening ceremony for the design of the web page, which will also incorporate the firm’s headquarters and a exploration centre, in early September, it extra.

Before this thirty day period Italy’s Emilia-Romagna regional government sought reassurances from Silk-FAW amid concerns by the community authorities that the program might not go in advance. browse additional

Silk-FAW board member Li Chongtian – who is also head of FAW Money Keeping Co., the device in demand of FAW’s exterior investments – verified FAW’s entire guidance to the undertaking.

“Silk and FAW are committed to the achievements of our partnership,” he stated in the assertion, introducing the group was functioning to make certain the joint venture had the needed sources to execute its small business program.

Silk-FAW plans to establish and create electric and hybrid luxurious hypercars in China and in Italy underneath the Hongqi brand.

Final calendar year it picked the metropolis of Reggio Emilia to create its facility, in an location regarded as Italy’s “Motor Valley” which is house to brand names such as Ferrari (RACE.MI), Lamborghini, Maserati and Ducati.

Generation was expected to get started at the beginning of 2023 but the strategy has still to make development, with the business citing complications with the mortgage loan required to purchase land for the plant.

The Emilia-Romagna regional governing administration and the metropolis Reggio Emilia explained in a individual assertion that Monday’s videoconference was “necessary and significant” but included they ended up even now waiting to receive minutes of the assembly signed by Silk-FAW executives confirming their commitments.

($1 = .9791 euros)

Reporting by Giulio Piovaccari, modifying by Giulia Segreti and Keith Weir

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