Iveco,
Fiat’s commercial vehicle subsidiary, has created a new joint venture in China
to manufacture and market buses. The new company will be owned 50% by Iveco and
50% by the Changzhou Bus Company. The agreement entails an investment of USD40
million by Iveco, USD10 million of which in the form of expertise. The contribution
of the Chinese partner will take the form of land, product range, buildings, machinery
and plant.
Changzhou, a municipal company, manufactured approximately 5,600 town buses
and touring coaches in 2000. It achieved a market share of 16%, taking third
place in the Chinese market, which is the largest in the world for buses.
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The Changzhou Bus Company is located in the city of Changzhou, which has a
population of 3 million inhabitants, in the province of Jiangsu.
The plant covers an area of 200,000 square metres and employs a workforce of
3,000.
As a result of its collaboration with Iveco, the new company will turn out
three new ranges of buses – minibuses, town buses and touring coaches – with
chassis, engines and mechanical assemblies developed by Iveco.
The first vehicles bearing the Iveco trademark will leave the assembly lines
in the first quarter of 2002.
This operation will further strengthen Iveco’s presence in China, where two
joint ventures have been in operation for several years: Naveco (in Nanjing,
50% owned by Iveco) has been manufacturing the Daily since 1995, and Haveco
(in Huangzhou, 33% owned by Iveco) has been producing gearboxes since 1996.
Giancarlo Boschetti, Iveco’s CEO, underlined that "the Chinese bus market
is extremely interesting, because it can count on volumes of 50,000 to 60,000
units per year. What is more, this market is growing constantly as a result
of both the exodus of the rural population towards the cities and the giant
infrastructural development plans implemented by the Chinese government.
"Iveco aims to be a leading player in this market, and the new joint venture
is proof of our intentions."
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