Japan's Isuzu, Shanghai Auto Agree On Truck JV

WASHINGTON July 16, 2003; Takeshi Takeuchi writing for Dow Jones reported that Japan's Isuzu Motors Ltd. and China's Shanghai Automotive Industry Corp. have agreed in principle to set up a heavy-duty truck joint venture in Shanghai within this year, the daily Yomiuri Shimbun reported on its Web site Wednesday.

The two companies will formalize the tie-up agreement as early as next month, the report added.

Isuzu, now struggling to resuscitate its business with the help of its main creditor bank and General Motors Corp. , is hoping to make the joint venture project the main engine of its revival efforts, the daily said.

The joint-venture will be capitalized at about Y5 billion, with Shanghai providing 60% of the capital and Isuzu and GM 20% respectively, the daily said.

The JV plans to produce 10,000 large trucks with a carriage capacity of about 10 metric tons annually from next year, the report added.

Isuzu already has two joint-venture companies with China's medium-sized truck makers, producing 40,000 trucks there. The company aims to increase the annual production in China to 70,000 by 2005.