FAW Jilin Automobile Co., Ltd. (FJA) and Daihatsu Motor Co., Ltd. (DMC) held a ceremony in the city of Jilin on October 31 to commemorate the signing of a technical licensing agreement and other related contracts towards the production of a new compact vehicle based on an MPV (multi-purpose vehicle) developed jointly by Toyota Motor Corporation (TMC) and Daihatsu. According to the agreement, FJA will manufacture a new MPV based on the Toyota Avanza/Daihatsu Xenia with an initial annual output of 30,000 units. Production is scheduled to begin in the first half of 2007. FJA will sell the new vehicle under the Daihatsu brand name. By licensing production of the Xenia to FJA and developing long-term synergies with FAW Group, Daihatsu hopes to increase its brand recognition in China while achieving a faster entry into the Chinese market and minimizing production and investment cost.
Mr. Jin Yi, vice president of FAW Group and chairman of the board of directors of FAW Jilin Automobile, and Mr. Teruyuki Minoura, president of Daihatsu Motor Company, signed the agreement on behalf of the both parties. Participants at the ceremony included Mr. Zhu Yanfeng, president of FAW Group, Mr. Wang Min, governor of Jilin province, Mr. Jiao Zhengzhong, vice governor of Jilin province and secretary of the Jilin city CCP Committee, Mr. Xu Jianyi, mayor of Jilin city, and media journalists.
An important part of FAW Group's forward-thinking expansion strategy, the project will also benefit the economic development of the city of Jilin and surrounding Jilin province.
The new model has been carefully designed to appeal to the unique demands and requirements of Chinese consumers. With its modern sporty design, spacious and functional interior, powerful 1.3 liter VVT-I DOHC engine, and high level of safety features, the car represents a new era in the development of mini vehicles in China.
FAW Jilin Automobile Co., Ltd. was founded in 1980 and became a wholly owned subsidiary of FAW Group in 1987. The home of mini vehicle production for FAW Group, the company manufacturers a wide range of mini vehicles for both consumer and commercial use, including passenger vans, delivery vans, pickup trucks, and cab and chassis models. Production totaled 90,000 units in 2004.
Daihatsu Motor Co., Ltd. is recognized around the world for its expertise in small car design. With a rich history dating back to 1907, the company became a subsidiary to Toyota Motor Corporation in 1967. The company currently produces a diverse range of mini vehicles including MPVs, passenger vans, roadsters, and SUVs.
FAW Group is a leading global manufacturer of quality passenger cars, trucks, and buses. Established in 1953, the company is China¡¯s oldest and largest automotive group. Annual sales exceed one million units.