Iran Khodro Investment Development Co may sever its partnership
with Chinese auto maker Jinhua Youngman Automobile Manufacturing Co
Ltd after just one year, state media said yesterday.
Iran Khodro, Iran's largest auto manufacturer, is expected to
scale back its investment with Zhejiang-based Youngman. The Chinese
car maker has sped up development with British maker Lotus
Engineering after failing to gain enough technical support from
Iran Khodro, Shanghai Securities News reported, citing an
unidentified source.
Youngman is developing models with Lotus, while Iran Khodro is
also pouring investment into China's fifth-largest car maker Chery
Automobile Co Ltd, the Shanghai-based paper said.
Officials from Youngman declined to comment.
Iran Khodro signed a deal with Youngman in 2006 to set up a
joint venture in China, with 70 percent of the stake held by
Youngman.
The tie-up, part of Iran Khodro's plan to tap the emerging
Chinese market, included a plant to make 30,000 Samand sedans a
year in Shandong Province.
Details of the break-up haven't been outlined, said the
newspaper, adding that Youngman plans to produce Lotus models in
Shandong.
Youngman started cooperating with Malaysian car maker Proton,
owner of Lotus, in July last year. The first model, an imported RCR
roadster coupe, went on sale in China last month priced between
US$17,800 and US$20,500.
(Shanghai Daily February 5, 2008)
