This could become one of the most ambitious automotive development projects in the history of the automobile.

Shanghai International Automobile City Development Co. has begun construction on a 200,000-sq-meter site at Jiading on what is called the Auto R&D Harbor.  The $238.5 million site will house about 120 buildings in varying sizes with plans to accommodate about 150 automotive design and R&D companies.  Completion is expected in about 18 months.

"China's auto R&D is still at a nascent stage," commented Rong Wenwei, general manager of the SIACDC.  "There is a lot to be explored and improved in this sector to upgrade the country's auto manufacturing expertise."

According to the Shanghai Daily, 17 companies have already signed agreements to occupy space at Auto R&D Harbor, some 40% of them foreign companies that include Pininfarina and Delion AG.  The newspaper said preferential policies are being provided to tenants that include tariff concessions for imported equipment and tax relief programs.