Continuing the flow of foreign investment into China, Toyota and Volvo have signed joint venture deals worth $257 million with Chinese automakers.
Toyota has agreed a $152 million 50-50 joint venture with First Automotive Works, China's biggest automaker, to build engines for upscale sedans. The venture will begin production in 2005 and will eventually aim for an annual production of 130,000 3.0 litre V6 gasoline engines.
Toyota has pledged more than $2 billion over the last year and a half in a series of ventures with Chinese partners, in order to catch up to Volkswagen and General Motors which dominate the foreign car market.
Volvo has signed a $105 million joint venture with China Heavy Truck Corporation and First Automotive Works to build engines for trucks. Volvo will own 52% of the venture but a site for the plant has not been decided on yet. However the company is today opening another joint venture truck making plant in Shandon province, which will have an annual capacity of 10,000 units.