FAW Car, a unit of Chinese automaker FAW Group Corp, said on Monday it planned to invest $345 million to bolster its internally developed car brands.

The investment will add 200,000 units of annual capacity for its own-brand cars by 2012, it said in a statement. Annual capacity for its own-brand cars is currently 120,000 units, a company executive said.


FAW Car, maker of Red Flag cars once favored by top Chinese Communist Party leaders, did not say how it would fund the project. It warned that the investment carried risks due to worsening economic conditions but said it would improve the company's competitive position in the long term.

Source: Reuters