The company announced its exit from its JV with China FAW for R1.75 billion. This represents almost the same amount which it has invested over the last eight years (in rupee terms) and is also c.1x book value post the accumulated losses. The Chinese JV had struggled in initial years. It achieved profitability in CY10 but again returned to losses resulting in record losses last year. With the Chinese CV market remaining weak, the company was struggling to achieve Ebitda break-even and with the JV unable to manage costs, we believe this exit to be positive. It will free up capital, as the JV also has R4 billion of loans and should result in better allocation of management bandwidth. We expect c4% earnings growth on this account in FY15/16.