Hyundai Motor and its Chinese partner, Beijing Automotive Industry Holding Co., have signed a contract to develop a new 50-50 auto manufacturing venture, Beijing Hyundai Motor. In the long term it is planned that the venture will expand its annual output capacity to 200,000 units in 2005 and 500,000 units in 2010.
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Hyundai Motor is planning to invest a total of $1.1 billion by 2010, including an initial investment of $100 million and additional $330 million by 2005.
Under the joint-venture agreement signed by Hyundai Motor Chairman Chung Mong-koo and his Chinese counterpart in a signing ceremony in Beijing, construction for the joint venture car plant is set to begin in June for completion in December.
“From late this year, Beijing Hyundai Motor will begin with production of EF Sonata mid-size sedan, with its production line set to spread to Avante XD compact and other Chinese market-oriented models. In addition to the Hyundai models, the joint venture plant plans to develop its own models suitable to local motorists’ tastes,” said the statement.
“Moreover, qualified parts suppliers will also accompany Hyundai in its Chinese project, while an independent auto technology research center will be set up to support Beijing Hyundai.”
