China FAW Group Corp has said it will invest 7.2 billion yuan ($1.15 billion) in product research and development in 2013, Beijing Times reported Thursday, citing the company's chairman Xu Jianyi.
FAW's investment in research and development will total 35.5 billion yuan from 2011 to 2015, China's 12th Five-Year Plan period. Out of the total, 10.5 billion yuan will be spent on research in the Red Flag car series, 3 billion on electric cars, and 5.5 billion on building passenger car research labs.
FAW's total investment in the luxury Red Flag sedan will amount to 15.7 billion yuan. Nine Red Flag models are expected to be released in the upcoming five years.
FAW plans to focus on improving its engines, transmissions, axles, car bodies, and automotive electronics.