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Southeast Motor considers IPO, Mitsubishi van deal

Southeast Motor Co (東南汽車), a venture between the Fujian provincial government and Taiwan's China Motor Co (中華汽車), said it's considering an initial share sale by 2004 to fund expansion and make vans for Mitsubishi Motors Corp.

China Motor, Taiwan's largest maker of truck and vans, is 15 percent owned by Japan's Mitsubishi Motors, which in turn is 37 percent owned by DaimlerChrysler. China Motor is the local Mitsubishi Motors assembler and retailer in Taiwan.

Southeast Motors will sell yuan-denominated shares, which only Chinese investors can buy. The assembler hasn't decided how much money it plans to raise, said company spokesman Li Zhongyong.

Southeast Motor, which has made 45,000 Mitsubishi Freeca and Delica vans each year since 1996, plans to expand annual capacity to 100,000 units within two years, from 60,000 now, Li said. "We are currently making preparations and adjustments to expand our production line," he said.

The Chinese assembler's plan will help Mitsubishi, Japan's fourth-biggest automaker, expand in the world's fastest-growing auto market. The plan will also help it compete with rivals Honda Motor Corp, General Motors Corp and Volkswagen AG, which have been making passenger cars in China for years.
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