Taiwan's China Motor and the DaimlerChrysler group have struck an agreement on a joint venture in the Chinese mainland, it was reported Monday.
China Motor unit South-East Motor Corp and DaimlerChrysler will invest more than US$50 million establishing a plant in Fuzhou, a city in the southeastern Chinese province of Fujian.
The plant will produce Mercedes-Benz Vito vans, the Commercial Times said.
When asked to comment on the report a China Motor official said the company was in talks with DaimlerChrysler, but would not give details.
"We are making assessments but no details have been drawn," he said.
"It's too early to talk about that."
South-East Motor, a 50-50 joint venture between China Motor and the Fujian provincial government, was launched in 1996, making China Motor the only Taiwanese carmaker to operate on the mainland.
China Motor vice-chairman Kenneth Yen said the company would not produce Mercedes-Benz vehicles in Taiwan, however, because of the weakening domestic market.
Currently, China Motor, Taiwan's leading commercial automobile manufacturer, is licensed by Mitsubishi to produce automobiles and cars.
(China Daily 06/11/2001)