Dongfeng Motor interested in Serbian truck-maker

Shanghai, November 4 (Gasgoo.com) A technical team from the Chinese automaker Dongfeng Motor Corp will visit Serbian truck and bus producer FAP next week to look into the technical capabilities of the Priboj-based company, local media reported yesterday.

The Priboj Automobile Factory (FAP), located in southwestern Serbia, expects a letter of intention from Dongfeng Motor after the visit regarding interest in privatizing the company and a decision for investing in its production, said FAP General Director Mirko Stojović.

Dongfeng Moor Corp, China's third-largest automaker, announced the possibility that FAP will begin producing two types of Dongfeng trucks, which would be assembled and sold in the former Yugoslavia and extended region.

"Interest in the purchase of FAP was also shown by potential buyers from Turkey, Syria and Russia, but the Privatization Agency will not announce a third tender until it receives a letter of intention and guarantees that a serious buyer has arrived," Stojović said.

FAP has closed 40 contracts to produce over 200 trucks which will be sold to buyers for subsidized prices. The 100 government-subsidized trucks will be delivered by the end of the year, and 50 trucks will be delivered monthly next year.

Dongfeng Motor has recently signed a contract to export its vehicles to South Korea. A one-ton truck, a commercial minivan, and six- and nine-passenger vans will go on sale in the Korean market starting in April 2010.