The plan of Hyundai Motor Co., Ltd. and Huatai Automobile Co., Ltd. to form a joint venture for a bus manufacturer may be aborted due to the newly announced automobile industry policy. Huatai Motor Company is a privately-held company. Zhang Cailin, general manager of Huatai Automobile Sales Co., Ltd., said that the company is in urgent need of the joint venture. This joint venture will extend the term of the technology licensing agreement between Huatai Automotive and the Korean company. The newly announced automobile industry policy stipulates that no more than two joint ventures of foreign automakers producing similar models in China, and Hyundai Motor and Kia Motors, which holds a majority stake, have already established a joint venture. Guoxin Junan Securities analyst Zhang Xin said that Hyundai must join hands with Beijing Automotive Investment Co., Ltd., Dongfeng Motor Co., Ltd. or Yueda Automotive Group to acquire Huatai, which is the only way the new policy can be allowed.
New Deal in the Automotive Industry May Lead to Hyundai Motor Joint Venture Abortion
The plan of Hyundai Motor Co., Ltd. and Huatai Automobile Co., Ltd. to form a joint venture for a bus manufacturer may be aborted due to the newly announced automobile industry policy. Huatai Motor Company is a privately-held company. Zhang Cailin, general manager of Huatai Automobile Sales Co., Ltd., said that the company is in urgent need of the joint venture. This joint venture will extend the term of the technology licensing agreement between Huatai Automotive and the Korean company. The newly announced automobile industry policy stipulates that no more than two joint ventures of foreign automakers producing similar models in China, and Hyundai Motor and Kia Motors, which holds a majority stake, have already established a joint venture. Guoxin Junan Securities analyst Zhang Xin said that Hyundai must join hands with Beijing Automotive Investment Co., Ltd., Dongfeng Motor Co., Ltd. or Yueda Automotive Group to acquire Huatai, which is the only way the new policy can be allowed.