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Holy Detante Batman, Taiwan & China Automakers May Form Alliance

6 June 2000

    TAIPEI - A ray of hope has emerged from behind the dark cloud of tensions 
between Taiwan and China. It appears that Taiwan's Yulon Motor Company will 
invest one billion Taiwan dollars ($32 million US) in order to form a joint 
venture with China's Dongfeng Motor. 

    Nissan Motor Co., which is a key technology provider to both companies, is 
also expected to join the venture.  The Economic Daily News quoted the Yulon 
Vice Chairman as saying, "The mainland-bound project will be finalized at the 
end of this year." 

    Yulon sold 72,000 cars in Taiwan last year, taking a 7.5% market share.  
It owns a 5% share of Xiamen Motor Company.  Dongfeng, based in China's central 
Wuhan province, is the fourth largest automaker on the mainland.  It sold 
162,000 vehicles in 1999, which accounted for nearly 9% of the Chinese market. 


MJR