Nissan — Dongfeng Automaking Venture

Nissan Motor Co. will form a venture to make cars in China with Dongfeng Motor Corp., joining Toyota Motor Corp. and other carmakers.

It's proposing that it will be a 50-50 venture. The agreement is to be signed this month in Beijing.

The automakers will start a joint company to make 150,000 cars a year in 2004, with investment of about $410 million.

The joint venture will use Dongfeng's plants in the Guangdong and Hubei provinces to make Nissan cars such as the Cefiro and Sunny sedans.

The Japanese company expects sales in the country to contribute as much as 10 percent of its annual growth target of 1 million units within three years, as local production expands.

Shares of Nissan rose as much as 0.5 percent to 933 yen.