Daimler to break ground for van factory in China

Shanghai. October 18 (Gasgoo.com)- Fujian Daimler Motor Co., the joint venture between Daimler and two Chinese partners will hold a groundbreaking ceremony for a long-awaited van manufacturing project on October 23, the company announced today.

In this joint venture, Fujian Motor Industry Group holds 50 percent, and Daimler 33.78 percent and the Taiwan-based China Motor Corporation 16.22 percent. The plant, located in Fuzhou city, Fujian province, will come into operation at the end of this year.

"The products are mainly Daimler-branded light commercial vehicles, including Vi-to/Viano and Sprinter models," Huang Wencheng, general manager of the Taiwan-based China Motor Corporation told the local media earlier this year. In January this year, the joint venture was Okayed by the Chinese authorities.

The initial annual output capacity is around 40,000 units and it will later be expanded to 60,000 units.

Back in late 2003, the then-Daimler-Chrysler has already sealed an agreement with its Chinese partners to set up the van JV, but government approval process was delayed due to an  overcapacity problem in China's auto industry.