Mitsubishi and Changfeng consider China venture

Japan's Mitsubishi Motors Corp is seeking approval from China to set up an auto manufacturing joint venture with Hunan Changfeng Motors Co, a Changfeng executive said on Tuesday.

Mitsubishi and Changfeng had decided to go for a 50/50 venture making sedans and sports utility vehicles (SUVs)."But no agreement has been signed so far. The project needs the approval of the government," the executive added.The executive did not reveal the financial details of the venture.

Mitsubishi, which owns 16.07 percent of Hunan Changfeng -- a SUV and pickup truck maker -- has been seeking to deepen its ties with the Chinese firm for years.

Reuters reported in 2006 that Mitsubishi was interested in setting up a joint venture with Changfeng, and if successful, the Japanese firm could invest at least 1 billion yuan ($138 million) into the project.

Li Jianxin, chairman of Changfeng Group -- parent of Changfeng Motors -- siad this week that the group might consider building an assembly plant in the United States if its plan to start exporting SUVs to the United States in 2009 materialises.

Changfeng, based in the southern province of Hunan, is among a growing number of Chinese automakers hoping to make a name abroad. A few other Chinese automakers have also expressed interest in setting up plants in the United States. ($1=7.244 Yuan)

Views:0