DaimlerChrysler AG, the fifth-largest automaker, is in talks with Taiwan's biggest truckmaker and its Chinese partner about forming a joint venture to make trucks in China.
South-East Motor Corp (東南汽車), which is equally held by Taiwan's China Motor Co (中華汽車) and Fujian Provincial Automobile Industry Corp, is "still in talks with DaimlerChrysler," South-East Motor spokesman Huang Tao said. DaimlerChrysler spokeswoman Karin Malmstrom declined to comment on the talks.
A local Chinese-laguage newspaper reported earlier that DaimlerChrysler and China Motor may invest more than US$50 million to make Mercedes-Benz trucks in China's Fujian province. The South-East Motor venture was formed in 1995.
China Motor declined to confirm the talks, saying it doesn't plan to form a joint venture "like the newspaper has described," spokeswoman Hung Mei-chuan said.
DaimlerChrysler has held talks about a truck venture in China with First Auto Works, the country's biggest automaker, other Chinese-language newspapers have reported, though the German company hasn't commented. The company already makes cars in China in a joint venture called Beijing Jeep Corp.
China Motor, Taiwan's largest maker of truck and vans, is 15 percent owned by Japan's Mitsubishi Motors Corp, which in turn is 37 percent owned by DaimlerChrysler. China Motor is the local Mitsubishi assembler and retailer in Taiwan.
``China Motor would naturally consider DaimlerChrysler as a joint venture partner, because DaimlerChrysler is a major shareholder of our close partner Mitsubishi,'' Hung said.
China, Taiwan Sales Separately, China Motor will not introduce Mercedes-Benz trucks in Taiwan, where automobile demand is declining, the Commercial Times reported, citing China Motor Vice Chairman Kenneth Yan (
"Taiwan's car market is indeed shrinking as the island's economy slows," Hung said.
Taiwan's economy grew 1.1 percent in the first quarter from a year earlier, the slowest pace in 25 years, with the jobless rate was at a record 4.3 percent in April.
China Motor sales in Taiwan in the first five months fell 19 percent from the same period a year earlier. The carmaker's sales last month were NT$3.2 billion (US$94 million), 23 percent lower than in the year-earlier month.
Truck sales in China rose 17.2 percent to 295,544 vehicles in the first four months of 2001, according to the Shanghai Automobile News.
China Motor shares fell 0.4 percent to close at NT$27.2 in Taiwan. DaimlerChrysler shares fell 0.1 percent to 53.64 euros in Frankfurt.
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