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.