Hyundai may shift commercial vehicle base to China
Hyundai Motor Co. is thinking over establishing a commercial vehicle plant in Guangzhou China. The automaker signed a memorandum with Guangzhou Automobile Co in 2005 and agreed to offer an investment fund of $430 m on each part to build commercial vehicle plant in the region, with an annual output of 200,000 units.
According Hyundai Motor Co, discussions with Guangzhou Auto on further cooperation are making progress. If the two shifts can't be fully implemented in Guangzhou the surplus 50,000 annual production will be assembled in the form of CKD and exported abroad.
The move indicates Hyundai will shift its commercial vehicle production base to China.
Hyundai's light commercial vehicle base in Turkey can only offer weak productions and assemble parts provided by the company, so the Guangzhou plant would be the car maker's first large commercial vehicle factory abroad.
Hyundai Guangzhou base currently produce around 50,000 buses and trucks annually, while Hyundai originally plans to reach an annual production of 100,000 through the introduction of two shifts.
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