Suzuki Motor To Produce Cars, Motorcycles in China
TOKYO (AP) _ Suzuki Motor Co. of Japan announced Thursday it is forming the first Japanese-Chinese joint venture to build passenger cars in China.
Suzuki will invest $170 million to build a car manufacturing plant in Chongqing in southeastern Sichuan province by spring 1995, said spokesman Katsuyuki Asai.
The Chinese government-owned Changan Automobile Corp. will own 50 percent of the plant while Suzuki wilol own 35 percent and the rest will be held by Nissho Iwai Co., a Japanese trading firm, Asai said.
Suzuki is the largest minicar producer in Japan. General Motors Corp. of the United States owns a 3.5 percent stake in Suzuki.
Suzuki said the plant is the first joint venture in China for any Japanese passenger car maker.
Asai said 20,000 cars would be produced in 1995 and 50,000 in 1996.
He said Suzuki also will invest $51 million in a joint venture to build motorcycles with government-owned Wangjiang Machinery Co. The venture will take over China North Industries Group’s Wangjiang Machinery Plant, which has been producing Suzuki’s motorcycles since October 1992.
Asai said the plant will be owned 50 percent by the Chinese government- owned Wangjiang Machinery Co., 35 percent by Suzuki and 15 percent by Nissho Iwai.
In 1993 7,500 motorcycles are to be produced, with an increase to 50,000 a year by 1995 and 100,000 a year eventually.
Asai said all passenger cars and motorcycles would be marketed in China.