Tong Yang Industry Co (
DaimlerChrysler Vans (China), a joint venture between DaimlerChrysler and Taiwanese commercial vehicle maker China Motor Corp (
"DaimlerChrysler chose Tong Yang as one of several auto components suppliers," said Fancy Hsu (
The deal will give a boost to the Tainan-based company's original equipment manufacturing busi-ness, which now only makes up 20 percent of Tong Yang's total sales, Hsu said. She declined to give further details of the deal.
Tong Yang shares climbed NT$2, or 3.88 percent, to close at NT$53.5 on the TAIEX yesterday.
The company's proposed contract business with DaimlerChrysler has been viewed as a sign of substantial progress made by local auto parts makers. For Tong Yang, its operation of 11 factories in China, including one in Fuzhou, might have helped it to win the contract when DaimlerChrysler sent a delegation to Taiwan in March in search of potential auto parts suppliers.
Taiwanese companies exported NT$107.7 billion worth of auto parts last year, a 19 percent rise from 2002, with a big portion of that amount going to American retailers and auto maintenance service providers rather than automakers, according to statistics provided by Taiwan Transportation Vehicle Manufacturer's Association (台灣區車輛工業同業公會).
Foreseeing limited impact on the auto industry from China's curbs on excess investments, Tong Yang will keep unchanged its Chinese expansion plan totalling NT$100 million this year, said Tong Yang chairman Michael Wu (
"We will not slow our expansion because of Beijing's moves," Wu said. "With all our plants fully loaded, we still cannot meet the thriving demand there."
Far from worrying that Beijing's stringent measures to tighten credit and investment may deal a blow to Chinese car sales, Wu said he did not expect any setbacks for his company.
With the global economy rebounding, Wu said he expects his company's sales to grow 15 percent this year from NT$6.67 billion reported in 2003. This figure does not include sales from overseas units.
In the year's first four months, Tong Yang posted record-high earnings of NT$515 million on revenues of NT$2.39 billion.
Wu made the remarks on the sidelines of a press conference for the annual International Auto and Motorcycle Parts and Accessories Show, organized by the Taiwan External Trade Development Council (
The trade fair is expected to attract about 5,000 overseas buyers this year, nearly 30 percent more than the 3,879 registered in 2002. The trade show was suspended last year due to SARS outbreaks.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
RSS