The Chinese authorities have approved Hyundai Motor's proposed joint venture with Beijing Automotive Industry, the Financial Times said. Hyundai plans to invest US$1.1bn in the plant over the next eight years, building a facility capable of producing 500,000 units annually by 2010. Production of Hyundai's Sonata and Elantra passenger cars at the plant is expected to start by the end of this year.
Shanghai Automotive Industry Corp (SAIC) is to join General Motors in a joint venture with South Korea's Daewoo Motor Co, China Daily said. SAIC will pay US$60m for a 10 per cent stake in GM Daewoo Auto and Technology Co, which will own three of Daewoo's manufacturing plants. The Chinese company described the move as part of its 'go abroad' strategy and an important first step in participation in the international market.