Truck and bus maker Isuzu Motors plans to withdraw from its Chinese joint venture company Guangzhou Isuzu Bus, according to a local report.
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Talks between Isuzu and Guangzhou Auto over their bus-making joint venture company are nearing completion and a final deal is expected to be reached by the end of March, Shanghai Securities News reported, according to Gasgoo.com.
The reports said the ‘divorce’ had come after an eight-year-long unsuccessful partnership. Insiders reportedly said both Quangzhou Auto and Isuzu wanted to quit the joint venture and restructure their business operations.
By quitting the Guangzhou project, Isuzu wanted to restructure its operations in China with more focus on the Chongqing-based Qingling Auto, Shanghai Securites News said.
Meanwhile, Guangzhou Auto planned to restructure its commercial vehicle truck-making business with a joint venture project begun with Hino last December.
The report said the $US200m joint venture between Guangzhou Auto and Hino had won Chinese authorities’ approval to produce commercial vehicles, including trucks and buses, earlier this year. Hino and Guangzhou Auto would each hold 50% stakes in the joint venture.
According to the Chinese report, Guangzhou Isuzu Bus Co was formed in March 2000 with Isuzu holding a 49% stake and Guangzhou Auto 51%. The joint venture was designed to produce Isuzu’s large-sized buses including the Gala, E-, S- and V- series.
The JV’s facility has a designed annual capacity of 800 buses and 400 chassis. However, it facility produces less than 200 buses a year, according to the China Association of Automobile Manufacturers, Shanghai Securities News said.
