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JAC to establish new JV in Brazil

Updated: 2011-11-28 14:05

(chinadaily.com.cn)

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Anhui-based JAC Motors is further developing its Latin American ties, having signed an agreement with Brazilian dealership network SNS to establish a new joint venture.

According to the agreement, both parties will invest $600 million in establishing a new joint venture to sell and market JAC vehicles in the country. The new venture will have a yearly production capability of 100,000 passenger vehicles. JAC will have a 20 percent stake in the venture, with 10 percent being in financial assets and 10 percent in technology, while the remaining 80 percent will be controlled by SNS.

The JV's new factory will contain welding, painting, assembly and other required production facilities. Without expressed permission from the Chinese manufacturer, SNS will be prohibited from altering the JAC-badged vehicles in anyway. The JV's vehicles will be primarily delivered in knockdown form for assembly in Brazil, and are only to be permitted to be sold within the country.

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