Silk-FAW said it would provide more than one billion euros ($1.02 billion) to build an electric car production facility in Italy.
Silk-FAW, the start-up of US automotive design and engineering firm Silk EV and Chinese automaker FAW will complete the purchase of land in the city of Reggio Emilia where the production site will be built on August 5. This includes the company’s headquarters, research facilities
Previously the Italian regional government Emilia-Romagna had hoped for assurances from Silk-FAW for fear the plan might not work.
“Silk and FAW are committed to the success of our partnership,” said Li Chongtian, Silk-FAW board member and head of FAW Capital Holding Co., the unit responsible for FAW’s external investments.
Li Chongtian said Silk-FAW had been working to ensure the joint venture had the necessary resources to carry out its business plan.
Silk-FAW will use the Hongqi brand to develop and manufacture luxury electric and hybrid hypercars in China and Italy.
The city of Reggio Emilia is traditionally known as the “Valley of Motorcycles” for being home to major Italian brands such as Ferrari, Lamborghini, Maserati and Ducati.
Silk-FAW targets production of electric hypercars to begin in early 2023.
