CMC's China Affiliate to Boost Car Production Capacity

Taipei, May 19, 2010 (CENS)--Taiwan-based automaker China Motor Corp. (CMC) of the Yulon Group recently said its Chinese affiliate South East (Fujian) Motor (SEM) will invest 1 billion renminbi (RMB) in a three-stage capacity expansion at its plant in Fuzhou, Fujian Province, with the expansion to raise SEM's annual capacity to 300,000 cars with double shifts.

SEM will launch the 1,200cc mini commercial van, the C1, in November in China, built on the CMC Varica platform. Priced under 36,800 RMB, the C1 will not be the only new model to be launched, with SEM to launch at least one new model under its own brand yearly.

Having sold over 87,000 new cars in 2009, SEM is a major bread winner for CMC. A senior SEM executive said corporate sales totaled about 33,700 vehicles in the first quarter, up 130% year-on-year (YoY), and the goal is to reach 160,000 vehicles this year.

Working double shift, said the executive, enables SEM to achieve annual capacity of 220,000 vehicles.

The just-ended 2010 Beijing International Automobile Exhibition (Auto China) saw SEM unveil a BEV built on its Delica van platform, and jointly developed with American Electric Vehicles (AEV) of the USA. The BEV has been made in limited numbers without confirmation of volume production.

SEM is a joint venture between the Fujian Motor Industrial Group (FJMG), CMC, and Mitsubishi Motors of Japan. The SEM executive said that signing the Economic Cooperation Framework Agreement (ECFA) will enable SEM to import CMC-assembled Mistubishis as the Colt-Plus subcompact and Outlander SUV for sale in China, as well as planning to export its V3 sedan to Taiwan.