Local automakers are expected to deepen collaboration with their Chinese counterparts next week when a cross-strait automaker convention opens in Taipei.
Six or seven memorandums of understanding (MOUs) are expected to be signed between the two sides, with partnerships spanning research and development, manufacturing and production of cars and components, said Liao Ching-chiu (廖慶秋), assistant research and development vice president of the Automotive Research & Testing Center (車輛研究測試中心), one of the organizers.
“Taiwanese carmakers have the edge in component manufacturing and we are more technologically advanced,” Liao told reporters on the sidelines of a press conference yesterday.
The two-day convention will start on Tuesday at the Grand Hyatt Hotel.
Taiwanese firms will use the opportunity to interact with Chinese firms and hopefully attract investment, especially with the expected signing of an economic cooperation framework agreement (ECFA) with China next year, Liao said.
Taiwan’s automakers could produce 700,000 vehicles a year but current output is just over 200,000.
The idle production facilities could be utilized by forging closer ties with Chinese manufacturers, Liao said.
“Our technology will be able to improve the quality and systems of cars made in China and then both sides could team up to export them abroad,” he said.
The event promises to be a boon for local automakers with 100 top executives from China set to attend.
The big names from China include Geely Automobile Holdings Ltd (吉利汽車), Chery Automobile Ltd (奇瑞汽車) and Dongfeng Motor Group Co (東風汽車).
Meanwhile, Yulon Motor Co (裕隆汽車) is to introduce a revamped model of Geely’s Panda cars in the near future, becoming the first Taiwanese automaker to launch Chinese models here.
Yulon is expected to import auto parts from Geely to produce and distribute a more affordable line of vehicles under a new brand, Tobe (酷比), marking Yulon’s second brand name in Taiwan.
Other local automakers that have expressed an interest in introducing Chinese models include Prince Motors Co (太子汽車), which said earlier this year that it planned to introduce models from Chery; and Sanyang Industry Co (三陽工業), which is mulling the assembly of buses for Xiamen Golden Dragon Van Co (廈門金龍集團).
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