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Hyundai Establishes Joint Venture
Hyundai Motor Group has signed agreements to establish a new joint venture with Jiangsu Yueda Automobile Factory, which will mark the South Korean car giant's official entry into the mainland, Nanfang Dushi Daily reported on Wednesday.
The new 50-50 joint venture has a total investment of US$650 million (HK$5.05 billion).
According to Yueda's general manager, Liu Bimao, the Korean investor will not only continue to take charge of the production, technology and quality, but also direct management and sales.
Hyundai's Shanghai office will take care of sales operations. Production capacity will be 150,000 vehicles a year.
Mr Liu said the joint venture planned to produce the latest passenger cars from Hyundai Motor Group .
Jiangsu Yueda is a mainland listed company, with about 3.5 billion yuan (about HK$3.18 billion) in total assets and a market capitalization of 6 billion yuan.
The firm started co-operation with South Korea's Kia in 1996. Hyundai replaced Kia as the joint-venture partner.
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