Gearing for car plant
BOOMING Guangdong province continues to develop its own car industry, looking at an eventual capacity of one million vehicles a year to satisfy the strong local demand.
Although international experts had suggested Guangdong should start out with making car parts, the provincial leadership seems convinced the local market is too lucrative to be handed over to foreign car makers.
Vice-Governor Zhang Gaoli revealed that discussions with five overseas car makers were under way to set up a joint venture, the second car production line in the province.
''We are assessing the conditions of co-operation offered by the foreign companies, including their technology capability, terms of loans and the provision of training. I hope a selection can be made in first quarter of next year,'' he said.
While Beijing had given approval for a production line with an annual capacity of only 60,000 cars, Guangdong province would design the plant with a potential capacity of 100,000 cars.