Nissan Motor and Dongfeng Motor Corp., China’s third largest automaker, are expected to finalise on Monday their landmark joint venture deal, Dow Jones reported, noting that, in September 2002, Dongfeng clinched China’s biggest car making foreign investment as Nissan agreed to pay 8.55 billion yuan for a stake in the company’s core operations.
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According to the news agency, a statement issued on Friday by Nissan’s public relations consultants in China says the two car makers plan to announce the official establishment of the new joint venture on Monday at a ceremony in Wuhan, capital of China’s Hubei province.
Nissan, which already makes its Bluebird model in China, will begin manufacturing Sunny models this month and plans to locally produce six models by 2006, Dow Jones said.
The report added that Nissan also expects to invest Y20 billion-Y30 billion to develop vehicles specifically for the Chinese market, and is targeting local sales of 220,000 passenger cars and 330,000 commercial vehicles by 2006.
By adding sales from the growing market in China to its group account, Nissan aims to achieve its target of an additional one million in global annual vehicle sales by the end of fiscal 2004, Dow Jones said.
The news agency noted that Nissan, owned 44% by Renault, also has a pickup truck joint venture in Zhengzhou, central China.
