Why did the Hyundai Motor announces China truck venture (AP) ?”
Hyundai Motor Co. said Sunday it has agreed to launch a $400 million truck manufacturing venture in China with a local partner as it seeks further inroads in the world’s biggest auto market. Hyundai Motor, South Korea’s largest automaker, said it signed an initial agreement with Chinese commercial vehicle manufacturer Baotou Bei Ben Heavy-Duty Truck Co. and has set a sales target of 100,000 heavy duty trucks in China by 2014. Under the deal, signed Saturday in Seoul, the two companies will invest a total of $400 million to set up the 50-50 joint venture next year, Hyundai said. It will take over the Chinese company’s existing large truck business that can manufacture 40,000 vehicles a year. Hyundai, which already makes passenger cars in China, said it will initially focus on heavy duty trucks in the new venture and gradually boost its investment to include what it described as a “full lineup of commercial vehicles.” “The joint venture will initially launch a refreshed Baotou Bei Ben mo
Hyundai Motors of South Korea has agreed to a joint venture with the Chinese Baotou Bei Ben Heavy-Duty Truck company. Hyundai Motors of South Korea has agreed to a joint venture with the Chinese Baotou Bei Ben Heavy-Duty Truck company. As part of the deal, Hyundai will have to agree to a US$400-million joint venture in China next year. Hyundai agreed to a 50:50 stake to take over the Chinese firm’s large truck manufacturing sector to increase production from the current 40,000 units a year to 100,000 units a year by 2014. The South Korean company said the deal would help it move into the world’s largest and fastest-growing market for commercial vehicles and establish its reputation as the most comprehensive vehicle manufacturer in the world’s largest auto market.
