Daihatsu quits China JV after change in sales plan

Shanghai, January 12 (Gasgoo.com) Japan's minicar maker Daihatsu Motor recently announced that it had withdrawn from a 50-50 joint venture in China with FAW Jilin Automobile Co., Ltd., after it started to sell its vehicles under Chinese partner FAW's brand, SinoCast reported.

Daihatsu Motor has made such a decision after it adjusted its sales strategy in the Chinese auto market. It will sell all its shares in FAW Daihatsu (Jilin) Body Parts Co., Ltd., an auto parts maker in China, to FAW Jilin.

The Japanese minicar maker's sales and net profit had witnessed the first decline in the past six years. Moreover, the Xenia, the only model made in China via technology transfer, could hardly have a satisfactory performance.

Daihatsu said in July 2009 that it would start selling vehicles in China under its Chinese partner FAW's brand from the autumn, as sales under its own brand remain sluggish due to weak brand recognition.

As a smThe Japanese automaker stressed that it would continue the licensing agreement with its Chinese partners, and share technology targeted at engines and gearboxes with them.

aller-car subsidiary of Toyota Motor, Daihatsu began selling its Xenia compact minivan in 2007 and initially planned to produce 30,000 vehicles a year.