China approves Toyota's plan

China approves Toyota's plan

TOKYO (AFP): Beijing has approved Toyota Motor Corp.'s plan to
assemble cars jointly with a local partner, a daily said
Saturday.

China's national development planning committee approved an
application filed jointly by the top Japanese carmaker and
Tianjin Automotive Industrial (Group) Co., the Tokyo Shimbun
said, quoting Tianjin Automotive officials.

The two partners plan to set up a joint venture this year
under a 30-year contract, and start producing small cars of
around 1,300-cc in 2002, it said.

At the start, they plan to assemble 30,000 units a year at
Tianjin Automotive's existing plant, but hope to eventually raise
the output to 100,000, it said.

The equally owned venture will be capitalized at 750 million
yuan (US$90 million), it said.

Toyota will be the third Japanese car maker to assemble cars
in China after Suzuki Motor Corp. and Honda Motor Co. Ltd.