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15

Toyota-FAW Venture Plans

Toyota Motor Corp has agreed to joint with FAW, China's largest car company.

Toyota Motor Corp has agreed to joint with FAW, China's largest car company.

Under optimistic forecast the Toyota-FAW joint venture will be able to produce 400,000 cars a year by 2010.

Toyota will invest $1.27bn in the venture, and FAW will acquire a controlling stake in Tianjin Automotive Xiali.

The Toyota-FAW venture plans to manufacture luxury saloons, mini cars and sports utility vehicles. The production is to start in mid-2003 at FAW's factory in Tianjin with a target of 100,000 mini cars annually.

The SUVs will be made in Changchun, FAW's heartland in the north-eastern province of Jilin, and will also start in mid-2003 with an initial target of between 10,000 and 20,000 cars a year.

Medium and large luxury saloons will enter production in perhaps 2005 in Tianjin, with a 50,000 annual target.FAW also plans to buy 50.98 per cent of the compact-car maker Tianjin Automotive Xiali in a deal worth $172m.

This factory, which has a 50-50 venture with Toyota, plans to start making mid-range cars in October with an annual capacity of 30,000 units.