source: Gasgoo.comJanuary 3, 2008 – Japanese commercial vehicle maker Isuzu has established a 50-50 joint venture sales company with its Chinese partner, the Chongqing-based Qingling Motors, Chinese newspaper Shanghai Securities News reported today.
The two sides have signed a joint venture agreement, the report said. Under the agreement, the two sides will each invest USD 2.3 million to form Qingling-Isuzu (Chongqing) Sales Company. The joint venture sales company will sell Qingling-made Isuzu vehicles and auto parts; it will also provide aftermarket services to Isuzu brand vehicles.
Qingling has been Isuzu’s most important partner over past year. However, Isuzu has become unhappy about the Qingling Motors’ performance in recent years. Last year, Qingling Motors sold only 30,000 vehicles, while its one-time lesser competitor Changan Motors sold 850,000 vehicles in the same year.
Under Isuzu’s mid-term plan, the Japanese automaker plans to reach USD 17.4 billion in sales revenue from April 2008 through March 2011, an increase of 21 percent from the current level. Isuzu also hopes to make USD 1.3 billion in operational profits during the same period.
The newly established joint venture sales company plans to sell 1,000 Isuzu vehicles annually in 2008 and 2009, according to Shanghai Securities News.