South Korea’s SsangYong Motor has signed a completely knocked-down (CKD) agreement to export its Istana van to China, according to the World Markets Research Centre Daily Analysis.
Ssangyong has granted Chinese vehicle maker Shanghai Huizhong exclusive rights for the local production and sale of the Istana from 2004 to 2010.
The South Korean automaker is to help its Chinese partner raise local content levels of the Istana through the provision of technology and workers, and will have export rights for the vehicle. Shanghai Huizhong acquired production lines for Ssangyong’s buses and trucks in 2001.
The Chinese company is expecting revenue of over RMB958.8 billion ($US841.8m) from its van venture with sales of 75,000 units until 2008.
Ssangyong has exported its Musso sports-utility vehicle to New Dadi in China since 2000, and is seeking to set up a further joint venture with local company Jiangling Motors, the report said.