Zotye, BAW negotiate JV
- Source: Global Times
- [16:15 May 31 2010]
- Comments
Zotye Holding Group is negotiating with Beijing Auto Works (BAW) to build a joint venture and establish a microcar production plant in Jinhua City, Zhejiang Province, a senior official of Zotye told China Business News (CBN) on May 30.
The possible acquisition of Zotye by BAW has caused speculation by insiders that suggest Jinghua city government is promoting the deal in order to give the city a name for auto production base.
However, an official from Zotye denied the so called acquisition and revealed the two companies are in talks for production cooperation as SUV-oriented Zotye is considered a good complement to BAW.
With the strength gained with the launch of Zotye 2008 electric vehicles and the strategic partnership with the JV between Potevio and China National Offshore Oil Corp. Zotye now is aiming to expand in the market and boost its development.
Zotye began to manufacture models with Fiat techniques. With production plants in Zhejiang and Hunan Provinces, the average domestic monthly Zotye SUV sales have reached about 5,000 units.
BAW is expected to establish the Beijing Automobile Co., Ltd. next month, and acquiring small-sized enterprises will be a shortcut to self-development.
