South Korea's Hyundai Motor Gets Joint Venture Approval From China

SEOUL, South Korea October 13, 2002 Reuters reported that South Korea's largest car maker, Hyundai Motor Co., said Monday it received approval from China to set up a passenger car joint venture with Beijing Automotive Industry Holding.

Hyundai Motor will invest a total of $1.1 billion in the venture Beijing Hyundai Automotive by 2010, including the initial investment of $100 million, the company said in a statement.

The venture will produce 2,000 passenger cars by the end of this year and increase production to 30,000 units in 2003 and to 500,000 units by 2010, the car maker said.

Hyundai Motor also expects the Beijing city government to choose Hyundai Motor's midsize sedan Sonata as the standard taxi model in the city, where about 67,000 taxicabs are running, the South Korean car maker said.

The company hopes its Sonata will become the standard taxi model for all of China, which would boost its sales in that country, it said.

Hyundai Motor also said its unnamed main supplier has already agreed with a Chinese car parts-making company to set up a joint venture, it said.