Qingling Motors teams up Isuzu in engine production (2005-9-12)

China\’s Qingling Motors Co. said Monday it has entered an agreement with Japan\’s Isuzu Motors Ltd. to establish a joint venture to produce truck engines and engine parts in China.

Qingling, which is 20% owned by Isuzu, said the total investment of the joint venture will be at least CNY1.50 billion. Qingling will have a 50% stake in the company.

In a statement, China\’s largest truck maker by sales said there is great demand for engines and their parts in the Chinese and overseas markets.

The joint venture will produce new models of Isuzu engines in addition to existing ones, and will have a target annual production and sales volume of 175,000 engines.

The company didn\’t say when it expects the joint venture to begin operations.

In July, Isuzu raised its stake in Qingling to 20% from 6.9%. Isuzu has said stronger ties with the company would be vital for increasing its Chinese market share.