Car firm maps inland sales spree
(Shanghai Daily)Updated: 2007-03-28 14:13 Geely Automobile Holdings Ltd said yesterday it has set up two joint ventures with a sister company to build and sell economy cars in inland provinces where labor costs are low and sales are just beginning to take off.
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Geely Automobile, based in Zhejiang Province near Shanghai, said it plans to spend US$75 million on each of the ventures to be built in central China's Hunan Province and in Gansu, in the northwest.
The Hunan venture will be 53.19 percent owned by Zhejiang Haoqing, a Geely subsidiary, and 46.81 percent owned by Centurion Industries Ltd, a holding company registered in the British Virgin Islands that is wholly owned by Geely.
The Gansu venture, to be based near the provincial capital of Lanzhou, will be 53.19 percent held by Zhejiang Geely Merrie and 46.81 percent by Centurion, it said. All companies involved are controlled by Geely's chairman and founder Li Shufu.
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