A report from AutoAsia Online says that Yulon Motor Corp., Nissan’s longstanding partner in Taiwan, is to invest US$16 million to set up a plant in Hubei Province, China. Until now, the best information was that Yulon would invest US$11 million. Yan Kaitai, chief executive of Yulon Group and vice president of Yulon Motor, told AutoAsia Online that Taiwanese manufacturing firms must look to China for future growth. Yulon, he concluded “has to go overseas and mainland China is a good choice”, especially as the local market continues sluggish.

Yulon’s Chinese partner is Fengshen Automotive Co, a recently formed joint venture between Dongfeng Automobile Group, Jingan Auto and Yunbao Auto that will make Nissan Bluebird sedans. Yulon will have a 25% stake.

The project was approved by the State Economic and Trade Commission last August, since when the partners have signed a technical agreement with Nissan Motor to import technology and tooling for Bluebird production.

The Fengshen range, comprising automatic and manual versions of the Bluebird, will have 45% local content. Fenghsen Auto aims to produce and sell 6,500 cars this year and 20,000 next year.