Lifan Auto seeking new partner in Ethiopia for JV

Shanghai, August 27 (Gasgoo.com) Lifan Auto, a Chinese company that has ended its cooperation with Ethiopian automaker Holland Car, says it is vigorously seeking another local partner to form a joint-venture company in the East African country, Nazret.com reported earlier this week.

Lifan, also known as Yangfan, announced Friday that it has terminated its auto-parts supply contract with Holland Car Plc. The Chinese automaker claims Holland Car failed to observe the Exclusive Agency Agreement that the two companies had entered because the Ethiopian partner had not reached the promised target of sales in 2008.

"The terms of the agreement no longer apply and no common ground could be found, though Lifan has exhausted all means of resolving the problem," the company's statement reads.

Though representatives of the company were not willing to disclose details of the breach, they say they have taken the action after numerous efforts were made to contact and correct the situation with the Ethiopian company - Holland car.

After terminating its contract of supplying auto-parts to Holland Car, Lifan says it is vigorously seeking a new local partner to form a joint-venture company in Ethiopia to produce Lifan cars.