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DaimlerChrysler, Fujian to form joint venture

BEIJING - German-United States auto giant DaimlerChrysler, Fujian Motor Industry Corp on the Chinese mainland and China Motor Corp from Taiwan are working on a joint venture to produce its Mercedes-Benz van.

The joint venture has been approved by the National Development and Reform Commission and is scheduled for establishment in mid-2004.

The three companies will invest 200 million euros into the joint venture, which will be located in the eastern Chinese city of Fuzhou, according to DaimlerChrysler. The Fujian auto firm will control a 50 percent stake in the joint venture, and the rest will be held by DaimlerChrysler and China Motor.

With an annual capacity of 40,000 units, the venture will start to produce the Mercedes-Benz Sprinter, Vito and Viano vans at the end of 2005, DaimlerChrysler said. The effort is seen as a new crucial step of DaimlerChrysler to expand into Chinese mainland.

DaimlerChrysler clinched a deal in September 2003 to invest 1 billion euros with Beijing Automotive Industry Holdings Corp to produce Mercedes-Benz sedans and trucks in Beijing. The Fujian automaker and China Motors now run a joint venture in Fuzhou, producing minivans, and the Lioncel compact sedan which is based on the Lancer of Mitsubishi Motor.

The Mercedes-Benz E and C-class sedans will be produced in 2005 at Beijing Jeep, the joint venture between DaimlerChrysler and Beijing Automotive. Mercedes-Benz trucks will be made at Beijing Foton, a subsidiary of Beijing Automotive.

DaimlerChrysler also has a Mercedes-Benz bus joint venture in China's Jiangsu province and a technical licensing production project of its Setra coaches in Auhui province.

(Asia Pulse/XIC)
 
Jan 6, 2004


 


   
         
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