China in talks to set up car plant

BEIJING: China has offered Pakistan to enhance their bilateral cooperation in automobile sector.

“We are already in process of negotiation with Pakistani counterparts to set up car plants,” said Zhang Yi, an official of the Chinese automobile company, based in East China Anhui Province.

Talking to APP, he said the two sides can join hands to manufacture cars both for domestic and export purposes. Chinese automakers are actively engaged to have a big presence in international markets independently or by joining forces with foreign partners.

Chinese automakers have three main paths to go abroad mergers and acquisitions (M&As), building plants and direct exports.

According to the sources, it is a good way to expand swiftly in overseas markets as it will help Chinese automakers control foreign brands, development capabilities and production lines of foreign companies. Shanghai Automotive Industry Corp (SAIC), newly-crowned as one of the world’s top 500 multinationals, has taken the lead in this way.

The biggest and most profitable passenger car maker, SAIC in July signed a memorandum of understanding with creditors of Ssangyong Motors to buy a majority 48.9 per cent stake in the South Korean automaker. In late 2002, SAIC paid US$59.7 million to acquire a 10 per cent stake in General Motors’ venture in South Korea, GM Daewoo Automotive & Technologies Co Ltd, marking the first overseas acquisition by a Chinese vehicle company. SAIC, the joint venture partners of GM and Germany’s Volkswagen in China, is also reportedly in merger talks with MG Rover, the biggest British automaker. SAIC aims to increase its annual output to 4 million units and become one of the world’s six biggest automakers by 2020. —APP

http://www.dailytimes.com.pk/default.asp?p...-10-2004_pg5_12

GOOD GOOOD

we need that, we gotta have our own Auto mobile industry

This is what I meant.