RTTNews) - Thursday, Chinese automaker, Shanghai Automotive Industry Corp. dropped its plans of setting up a joint venture factory with South Korea's Ssangyong Motor Co., to manufacture SUVs, sources familiar with the matter said.
Shanghai Automotive Industry is a longtime partner of General Motors Corp. and Volkswagen AG. The company owns a 51% stake in South Korea's Ssangyong.
Though the reason for the cancellation of the project was not known, the companies are still discussing other ways to expand in China, sources said.
Shanghai Automotive Industry had earlier agreed to partner with Ssangyong to build a factory in China to manufacture about 100 thousand SUVs a year in Shanghai.
Due to rising gasoline costs and stringent pollution control measures, the demand for luxury vehicles is slowly on the wane while Economy models are gaining popularity. Copyright(c) 2006 RealTimeTraders.com, Inc. All Rights Reserved
source:http://www.tradingmarkets.com/tm.site/news/ASIAN MARKETS/207964/
Shanghai Automotive Industry is a longtime partner of General Motors Corp. and Volkswagen AG. The company owns a 51% stake in South Korea's Ssangyong.
Though the reason for the cancellation of the project was not known, the companies are still discussing other ways to expand in China, sources said.
Shanghai Automotive Industry had earlier agreed to partner with Ssangyong to build a factory in China to manufacture about 100 thousand SUVs a year in Shanghai.
Due to rising gasoline costs and stringent pollution control measures, the demand for luxury vehicles is slowly on the wane while Economy models are gaining popularity. Copyright(c) 2006 RealTimeTraders.com, Inc. All Rights Reserved
source:http://www.tradingmarkets.com/tm.site/news/ASIAN MARKETS/207964/