New Joint Venture to Produce Motorcycles EstablishedThe giant Tianjin Motor Group Co., Ltd. (TMG) and Hainan Sundiro Motorcycle Co., Ltd. (HSM) have decided to jointly establish a new company, announced TMG Friday in Tianjin.The new joint venture will produce motorcycles under the brands of "Honda" and "Sundiro". According to the announcement, the new company will have total registered capital of 99.97 million US dollars. Honda Motor Co., Ltd. of Japan will hold 50 percent of the shares, TMG and HSM will hold 2.67 percent and 47.33 percent. Zhai Honghao, general manager of TMG, said that the cooperation with HSM will surely improve the technology and management of the motorcycle industry in China. Even though China has become the world's largest provider of motorcycles after 40 years of development, the industry still cannot get rid of blind expansion and disordered competition. This cooperation of two giant motorcycle providers is much likely to have a positive influence on the whole industry, Zhai said. The new company will be mainly based on Tianjin-Honda Motor Co., Ltd., a joint venture of Honda Motor Co., Ltd. of Japan and TMG, whose yearly output of motorcycles has reached 400,000. Established in 1988, HSM is a listed company and can produce one million motorcycles annually. |
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