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BIZCHINA> Direct Investment

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Piaggio studying JV in China for small vehicles

(Agencies)
Updated: 2008-07-31 16:36

Italian scooter maker Piaggio has signed a memorandum of understanding with China's Zongshen Industrial Group to look at the possibility of a joint venture for small commercial vehicles, it said on Tuesday.

The venture would be owned equally between the two companies and would develop three- and four-wheel Ape line vehicles in Chongqing in China, Piaggio said.

Piaggio already has a joint venture with Zongshen based in Foshan, in Guangdong province, which was set up in 2004 and produces two-wheelers.

Piaggio said that venture, Piaggio Zongshen Foshan, produced over 209,000 vehicles in 2007.

It said worldwide Piaggio sold around 92,000 three- and four-wheel vehicles in the first six months of 2008, up 8.9 percent on a year ago.

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