Iveco, a Fiat
Group Company, has finalised a joint venture agreement with
the SAIC Motor Corporation, one of the leading Chinese
automotive manufacturers, and the Chongqing Heavy Vehicle
Group, to establish a longterm partnership in China in the
field of heavy commercial vehicles.
Once the agreement signed last week will have been approved
by the Chinese central authorities, Iveco and SAIC will
establish a 50-50 Joint Venture, under the name of SAIC
Iveco Commercial Vehicle Investment Company Ltd. This
Company’s first act is the acquisition of a 67% share of
Chongqing Hongyan Motor Co. Ltd, which is a subsidiary of
the Chongqing Heavy Vehicle Group.
The agreement also envisages an increase in the registered
capital of the JV, preliminary to the construction of a new
production plant located in Chongqing. The total amount to
be invested, as per the industrial business plan, is about
Euro 120 million (of which Iveco will be responsible for
Euro 40 million), intended to support a volume increase from
the current 15,000 to 40,000 heavy commercial vehicles in
the medium term.
Industrial plans include the assembly of Iveco heavy
commercial vehicles (Stralis range) and product and process
related improvements in the Chongqing product range, for
consolidating and reinforcing the offer on the local market,
as well as developing vehicles having the best mix of local
and European components and technologies.
“The agreement is part of a broad plan for Iveco development
in China” said Paolo Monferino, Iveco CEO. “Iveco considers
China as a priority”, he added “not only because of its
market’s size, growth rate and cost conditions: here,
engineering knowledge is outstanding as well as the
potential for global product planning; furthermore the
partnership with SAIC is a milestone in our strategy”.
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Industrial plans include the assembly of Iveco heavy
commercial vehicles, the Stralis range (above), and product and process
related improvements in the Chongqing product range, for
consolidating and reinforcing the offer on the local market,
as well as developing vehicles having the best mix of local
and European components and technologies. |
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Iveco, a Fiat Group Company, has finalised a joint
venture agreement with the SAIC Motor Corporation,
one of the leading Chinese automotive manufacturers,
and the Chongqing Heavy Vehicle Group, to establish
a longterm partnership in China in the field of
heavy commercial vehicles. |
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SAIC Motor Corporation Limited (SAIC Motor), in Shanghai, is
one of the three largest auto-makers in China. It sold over
682,000 vehicles in the first half of year 2006 and has more
than 56,000 employees. It encompasses SAIC Group’s assets in
such business sector, as vehicle key components,
branding and auto related services. SAIC Group, with a
consolidated revenues exceeding US$ 14,4 bn in year 2005 is
one of the Fortune Global 500 corporations. FIAT Group and
SAIC have already set up three joint ventures for industrial
co-operation: Shanghai New Holland, the leader in the 50HP
tractor’s market in China, Huadong Teksid, the biggest
producer of engine blocks in China, and Shanghai Meridian,
producing magnesium casting components.
Chongqing Heavy Vehicle Group (former Sichuan Automobile
Factory), owned by the 33-million inhabitants Chongqing
Municipality through its subsidiary Chongqing Hongyan
Automotive, is one of the major producers of medium and
heavy trucks in China (over 15,000 per year) and relies on a
large distribution network throughout China.
Iveco designs, manufactures, and sales a broad range of
light, medium and heavy commercial vehicles, off-road
trucks, city and intercity buses and coaches as well as
special vehicles for applications such as fire fighting,
offroad missions, civil defence and protection. Iveco
employs 32,000 people and runs 49 production units in 19
Countries in the world using excellent technologies
developed in 15 research centres. Besides Europe, the
company operates in China, Russia, Turkey, Australia,
Argentina, Brazil, and South Africa. More than 4,500 service
outlets in over 100 Countries guarantee technical support
wherever in the world an Iveco vehicle is at work. Iveco is
a Fiat Group Company.
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