Iveco has signed a new agreement with one of China’s leading car manufacturers and the Chongqing Heavy Vehicles Group, to establish a long-term partnership in China in the heavy truck and engine fields.
The agreement with the SAIC Motor Corporation, envisages the acquisition of a 67 per cent share in the capital of Chongqing Hongyan Automotive Co. Ltd, which is a subsidiary of the Chongqing Heavy Vehicle Group, on the part of a 50-50 financial joint venture to be set up by Iveco and SAIC Motor (SAIC Iveco Commercial Vehicle Investment Company Ltd). The Chongqing Heavy Vehicle Group will control the remaining 33 per cent.
The industrial activities covered by the agreement include the manufacture and assembly of heavy commercial vehicles and diesel engines, with Iveco technology.
“Extensive collaboration between Iveco, SAIC Motor and the Chongqing Heavy Vehicle Group is a significant step forward in our global development strategy,” said Paolo Monferino, Iveco’s managing director. The agreement bolsters Iveco’s position on the rapidly expanding Chinese market, where we have already been present for many years in the light commercial vehicle sector. We expect the agreement will enable us to create a solid base for the supply of products and services at competitive costs.”
Iveco, a member of the Fiat Group, is already a well known brand in China, selling from the early nineties its light commercial vehicles all around the country. In 1996 it established its first JV productive site in Nanjing where, in partnership with NAC Group, close to 20,000 Daily’s are produced per year.