Nissan to set up joint venture in Vietnam with Kjaer.
Nissan Motor Co., Japan's third-largest automaker, said Monday it will set up a joint venture in Vietnam with Denmark-based car distributor Kjaer Group A/S to boost sales in the emerging market.
Nissan Vietnam LLC will be capitalized at $10 million, with 26 percent owned by Nissan and the remaining 74 percent by Kjaer, an international car distributor focusing on emerging markets, Nissan said.
Based in Hanoi, Nissan Vietnam will start operations later this month to import and distribute Nissan vehicles, parts and accessories.
Nissan has been selling its Tiida hatchback, the X-Trail sport utility vehicle, and other cars in Vietnam through Motorcare Co., a Kjaer subsidiary.
Nissan last year sold 518 vehicles through the Kjaer subsidiary, up from 175 units the previous year.
By setting up the joint venture, Nissan aims to increase its sales further in Vietnam in the face of plunging vehicle demand especially in developed countries.
''Vietnam is a promising new market for Nissan and offers the kind of growth opportunities that can justify investments in localized production,'' Colin Dodge, Nissan's senior vice president for global overseas markets, said in a statement.
''By working with a partner experienced in this market, we aim to bring the best suited Nissan products to customers in Vietnam,'' Dodge said.
Flemming Eltang who was chief financial officer of Kjaer and has been named as Nissan Vietnam's general director said the new company will first focus on dealer development and study the possibility of local production in the future for its long-term business strategy.
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|Publication:||Japan Transportation Scan|
|Date:||Dec 8, 2008|
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