Reuters
China’s state-owned vehicle manufacturer Beijing Automotive Group Co Ltd said on Wednesday it had agreed to buy smaller domestic firm Zhenjiang Automobile to help it meet its target to double production by end-2015.
Beijing Auto did not disclose the value of the deal but said in a statement it would invest 15 billion yuan ($2.45 billion) in Zhenjiang Automobile to expand vehicle production.
Beijing Auto aims to produce 3.5 million vehicles by the end of 2015, compared with 1.7 million units last year.
Beijing Auto produces vehicles on its own and in joint ventures with global automakers, including Daimler AG , the owner of the Mercedes-Benz brand, and Hyundai Motor Co. Most of its cars are sold within China.