DaimlerChrysler said on Wednesday that the Chinese government has cleared a van production joint venture with two partners to make 40,000 vehicles a year in China from 2005, according to Associated Press (AP).
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The report said the joint venture with China Motor Corp. and Fujian Motor Industry Group, due to be established in mid-2004, involves a total investment of about €200 million ($US245 million), according to a DaimlerChrysler statement.
DC reportedly said it will make the Mercedes-Benz Sprinter, Vito and Viano models at a venture to be called DaimlerChrysler Vans China located in Fuzhou City.
According to AP, Fujian will hold 50% of the joint venture with the other half held by DaimlerChrysler Vans Hong Kong Ltd., which is in a joint venture holding company of DaimlerChrysler and Taiwan’s China Motor Corp.
Associated Press said the van joint venture expands DaimlerChrysler’s position in the Chinese vehicle market and noted that, in September, the company signed a €1 billion ($1.22 billion) deal with Beijing Automotive Industry Holding Co. to make Mercedes-Benz cars and trucks in China.
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