Mitsubishi Fuso in tie-up with Chinese firm-Nikkei

TOKYO, Aug 30, 2003; Reuters reported that the truck-making unit of Japan's Mitsubishi Motors Corp is set for a tie-up with a Chinese automobile firm to produce large trucks in China, the Nihon Keizai Shimbun (Nikkei) reported on Saturday.

Mitsubishi Fuso Truck and Bus Corp, which is unlisted, at first plans to outsource production of trucks with capacities of 10 tonnes or more, such as mixers, to Anhui Xingma Auto Co Ltd.

But the two plan to jointly establish a production company within two or three years to take aim at the Chinese truck market, expected to grow rapidly in the run-up to the 2008 Olympic games in Beijing, the Nikkei added.

Production of trucks with parts shipped in from Japan has already begun. The target number of units produced is several hundred for the current fiscal year and 1,500 for fiscal 2004, which starts next April 1.

Eventually, Mitsubishi Fuso will procure parts from local suppliers prior to the two firms setting up their joint production company, the Nikkei added.