International Auto Manufacturers Eye NE ChinaSeveral multinational auto makers including General Motors Corp. and Tsusho Kaisha Ltd. have become the first to seek investment and cooperation opportunities in Shenyang, following the government announcement that it plans to stimulate the local auto industry.Chen Zhenggao, the new city mayor, said recently that the auto industry has been listed as one of the pillar industrial sectors in the city in the future, and the city authorities have worked out a series of policies and supportive measures to back up the industry. Shenyang is now one of China's auto bases, after several decades of development. A few large-sized auto makers such as the Shenyang Gold-Cup Auto-Making Company (SGCAMC) and the Songliao Automobile Company Ltd.(SAC) have developed in the city. AndChina' s first truck was manufactured in the early 1930s. The SGCAMC used to work in cooperation with the Changchun First Auto Group, but the relationship came to an end last year due to big differences in both their production conditions and development strategies. The city is now able to process light passenger cars, sedans, trucks and agricultural-vehicles, and it is especially strong in auto parts manufacturing. Statistics show that the city's annual auto manufacturing capacity has reached 280,000, with the actual annual production standing at 120,000. Its output value of automobiles and auto parts came to 18 billion yuan (about 2.16 billion U.S. dollars) last year, ranking sixth in China's cities. The SGCAMC has set up a joint venture with the US General Motors to mainly produce trucks. The SAC is now negotiating with US car-maker Ford for a cooperative contract in light passenger cars and cross-country vehicles. Japan's Tsusho Kaisha Ltd. and the Hino Motors, ltd. are also seeking opportunities to cooperate with local companies in top-grade and middle-class passenger car production. Official sources said the city aims to increase its annual auto output to 500,000, with an annual growth rate being 36 percent, and its annual output value to 65 billion yuan in near future. |
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