* Jianghuai partners with exiled tycoon Yang to make cars
* Venture aims to make 1 mln cars in 8 years
* Yang plans multi-bln-dlr U.S. plants to make cars
By Samuel Shen and Karen Yeung
SHANGHAI, Aug 10 Chinese carmaker Jianghuai
Automobile Co (600418.SS) said on Tuesday it plans to invest
about 30 billion yuan ($4.4 billion) on production of
clean-technology vehicles through a partnership with Yang Rong,
a Chinese automobile tycoon who fled the country after being
accused of economic crimes.
Jianghuai will set up a 50-50 venture with the private
equity unit of Yang's Far East Golden Resources Group (1188.HK)
and aims to make 1 million cars in the next eight years,
Jianghuai said in a statement filed with the Shanghai Stock
The venture, based in China's northern city of Tianjin, will
also make car engines and batteries.
The government of China, the world's biggest auto market,
would invest more than 100 billion yuan to subsidize its
fledgling environmentally friendly car industry over the next 10
years, according to official media. [ID:nTOE67303F]
Other carmakers, including Toyota Motor (7203.T), General
Motors [GM.UL], Ford Motor (F.N) and BYD Co (1211.HK), are all
racing to develop electric and hybrid cars as the U.S. and other
governments set tough fuel economy and emissions standards.
Yang, chairman of Far East, and the former chairman of
Brilliance China Automotive Holdings (1114.HK), BMW's (BMWG.DE)
partner in China, told Reuters in an interview last October that
he was planning three multi-billion-dollar U.S. plants to make 3
million clean-technology vehicles per year by 2017 and was
seeking investors for a 60 billion yuan project in China to make
6 million clean-tech engines.
Yang, who is also called Yeung Yung, was at one time China's
most influential carmaker, helping transform Brilliance from a
stagnant state-owned auto factory into the country's top maker
of mini-vans. He fled China in 2002 for the United States after
being accused of economic crimes.
(Reporting by Samuel Shen and Karen Yeung; Editing by Ken