DaimlerChrysler, China Motor plan JV

Taipei, June 11: Taiwan's China motor and the DaimlerChrysler Group have struck an agreement on a joint venture in mainland China, it was reported on Monday.

China’s motor unit South-East Motor Corp. and DaimlerChrysler will invest more than $50 million establishing a plant in Fuzhou, a city in the south-eastern Chinese province of Fujian.The plant will produce Mercedes-Benz Vito vans, a local paper reported.

When asked to comment on the report a China motor official said the company was in talks with DaimlerChrysler, but would not give details. “We are making assessments but no details have been drawn,” he said.“It’s too early to talk about that.”

South-east motor, a 50-50 joint venture between China Motor and the Fujian provincial government, was launched in 1996, making China Motor the only Taiwanese carmaker allowed by Chinese authorities to operate on the mainland.

China Motor vice chairman Kenneth Yen said the company would not produce Mercedes-Benz vehicles in Taiwan, however, because of the weakening domestic market.

Currently, China Motor, Taiwan’s leading commercial automobile manufacturer, is licensed by Mitsubishi to produce automobiles and cars here.

-- PTI