Silk-FAW confirms plan to construct electrical sports activities vehicles in Italy

MILAN (Reuters) — Silk-FAW, a start-up of U.S. automotive engineering and design agency Silk EV and Chinese language automaker, stated on Monday it might press forward with a plan, value over one billion euros ($1.02 billion), to construct electrified vehicles in Italy.

Silk-FAW will finalize the acquisition of the land within the metropolis of Reggio Emilia the place the manufacturing web site can be constructed on Aug. 5, it stated in an announcement after attending a videoconference with native authorities.

It will maintain the opening ceremony for the development of the location, which may even embody the corporate’s headquarters and a analysis middle, in early September, it added.

Earlier this month Italy’s Emilia-Romagna regional authorities sought reassurances from Silk-FAW amid worries by the native authorities that the plan won’t go forward.

Silk-FAW board member Li Chongtian — who can be head of FAW Capital Holding Co., the unit in command of FAW’s exterior investments — confirmed FAW’s full assist to the venture.

“Silk and FAW are dedicated to the success of our partnership,” he stated within the assertion, including the group was working to make sure the three way partnership had the required sources to execute its marketing strategy.

Silk-FAW plans to develop and produce electrical and hybrid luxurious hypercars in China and in Italy below the Hongqi model.

Final 12 months it picked town of Reggio Emilia to construct its facility, in an space often called Italy’s “Motor Valley” which is house to manufacturers together with Ferrari RACE.MI, Lamborghini, Maserati and Ducati.

Manufacturing was anticipated to start out at the start of 2023 however the plan has but to make progress, with the corporate citing issues with the mortgage wanted to purchase land for the plant.

The Emilia-Romagna regional authorities and town Reggio Emilia stated in a separate assertion that Monday’s videoconference was “vital and vital” however added they had been nonetheless ready to obtain minutes of the assembly signed by Silk-FAW executives confirming their commitments.

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