Shanghai. February 4 (Gasgoo.com) – China's Youngman Auto Group and Iranian automaker Khodro are in talks for a divorce, Shanghai Securities News reported today.
It's very likely that Youngman Auto and Khodro's cooperation may end up in a divorce, a senior Youngman Auto official said on deep background.
Youngman Auto is currently focusing a joint program with Lotus cars of the United Kingdom and Proton Auto of Malaysia while Khodro is seeking cooperation project with Chery Auto in Iran, the Shanghai Securities News said.
Back in 2006, China's Youngman Auto and Iranian automaker Khodro formed a 70:30 joint venture project in the city of Tai An, Shandong province. The two sides have injected US$60 mln in initial investment. The joint plant is expected to start production by June 2008.
The project, with a projected total investment of US$200 mln, is designed to produce 120,000 vehicles annually. In this joint project, Iran Khodro holds 30 percent stake and Jinhua Young Man Automobile holds the remaining 70 percent, Xinhua News Agencey said.
The project, with a projected total investment of US$200 mln, is designed to produce 120,000 vehicles annually. In this joint project, Iran Khodro holds 30 percent stake and Jinhua Young Man Automobile holds the remaining 70 percent, Xinhua News Agencey said.
