Jiangling Motors to set up auto plant in Poland

Shanghai, September 8 (Gasgoo.com) Jiangling Motors Corp, one of the biggest commercial vehicle manufacturers in China, is planning to invest US$1.2 billion to build a car factory in Poland, reported Polish daily Rzeczpospolita recently. The new plant is to make 400,000 vehicles per year.

Representatives of Jiangling Motors, 30% owned by Ford Motor Co, will talk with officials from relevant Polish authorities in mid-September on the cooperation project. Industry insider indicated that it will become the first auto manufacturing plant established by a Chinese enterprise in Europe, if the deal is nailed down.

"Initially the Chinese should not invest less than euro 1 billion," said Jakub Faryś, head of the Polish Automotive Industry Union.

The Chinese carmaker in Jiangxi province said that its Landwind series, which has a fairly good performance-price ratio, has passed the relevant tests in the country. The plant is designed to produce 400,000 cars annually, outpacing the largest local producer Fiat Auto Poland, which built almost 362,000 vehicles last year.

"Of course, they (cars) cannot be compared to BMW or Volkswagen, but for a small price you will be able to buy one heck of a car," Rzeczpospolita quoted Jiangling's Peter Bijvelds as saying.

Jiangling sold 51,722 vehicles in the first half of this year, up 14% year-on-year. Its vehicle sales in June alone reached 9,936 units, a rise of 11% over a year ago.