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DaimlerChrysler signs JV agreement in Fujian
(Xinhua)
Updated: 2004-05-25 09:09

World auto giant DaimlerChrysler signed in Fuzhou an agreement over the weekend to form a joint venture with Fujian Motor Industry Corp on the Chinese mainland and China Motor Corp from Taiwan to produce Mercedes-Benz van, an official said Monday.

The three companies will invest US$235 million into the joint venture, to be located in Fuzhou, capital of Fujian Province.

Under the agreement, the Fujian auto firm will control a 50 percent stake of 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 begin producing Mercedes-Benz Sprinter, Vito and Viano vans in small numbers within this year, said the official of the Fujian Provincial Economic and Trade Commission.

The Fujian auto firm and China Motor has been running a joint venture in Fuzhou since 1995, producing minivans and Lioncel compact sedans, a model which is based on the Lancer of Mitsubishi Motor. The Japanese car maker controls a 25 percent stake of China Motor.

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