South Korean automotive parts manufacturer Myongshin has agreed to produce Chinese electric vehicles (EVs) on a contract basis at the Gunsan car plant it acquired from General Motors earlier this year.
Myongshin, which makes electric vehicle parts for companies such as Hyundai Motor and Tesla, confirmed it hads agreed with Future Mobility Corp (FMC), which is backed by Chinese internet giant Tencent, to produce its Byton M-Byte electric crossover vehicle from 2021.
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The consortium that acquired the Gunsan facility, led by Myonghsin, for a reported KRW113bn (US$99m) in June plans to invest an initial KRW200bn to refurbish the factory. It has set an output target of 50,000 Byton EVs for 2021, rising to 150,000 units in 2025.
Under GM Korea ownership the Gunsan plant had a production capacity of 250,000 vehicles per year.
Myongshin vice-president Park Ho-seok said the Byton vehicles would be sold domestically and overseas – mainly in North America and Europe – taking advantage of South Korea’s current free trade agreements with these markets.
FMC, co-founded by former BMW and Nissan Motor executives, established the Byton brand in 2017.
