TAIWAN: China Motor Corp sales up, China JV to start 2007
China Motor Corp has said that its joint venture with DaimlerChrysler for the Chinese market is expected to begin operations in the second half of 2007.
Taiwan's China Motor Corp holds a 16.33% in the joint venture. DaimlerChrysler holds 33.67%, with the remaining share owned by Southeast Motor, a 50-50 joint venture between China Motor and China's Fujian Automobile Industry Group.
China Motor executive vice president Hsu Li-Min was quoted by Dow Jones saying the joint venture is expected to make 40,000 recreational vehicles a year under the Mercedes-Benz brand. That total may be raised to 60,000 units a year.
The joint venture is still awaiting government approval however.
Separately, China Motor said it achieved a pretax profit of TWD4.76bn (US$146m) in 2005 on sales of TWD50.81bn. The Taiwanese company saw domestic sales of 88,105 autos and exports of 70,141 units.
The company added that it was expecting to see a rise in profits this year on the back of higher shipments and contributions from South East Motor. It has a target of 91,600 domestic sales this year, and exports of 80,000-90,000 units.