Daihatsu to make cars in China

NEW YORK, Oct 02, 2002 Reuters reported that Japan's Daihatsu Motor Co. plans to jointly produce minicars with China's No. 1 auto group, First Automotive Works by 2005, with a target of 100,000 units annually in 2007, the Nihon Keizai Shimbun reported.

The move would follow plans by global auto giants to enter the growing Chinese market, including Daihatsu's parent company, Toyota Motor Corp, which struck up a comprehensive alliance with FAW in August.

The paper's Thursday online edition, monitored here Wednesday, said Daihatsu will likely pay around 20 billion yen ($163 million) to build a plant after setting up a joint venture in 2004. Details such as the facility's location and investment ratios will be decided later, it reported.

Daihatsu, which already has a technical tie with another Chinese car company, Tianjin Automobile Xiali Co. Ltd., said last year it had been approached by at least two Chinese companies about joint production in China.

With its planned production of Mira and Move minicars and some sports utility vehicles, Daihatsu intends to supplement Toyota's strategy in China's zooming auto market, the paper said.

None of the companies were available for immediate comment.