With an investment of 16.7 billion yuan (2 billion US dollars), the new company was founded jointly by Dong Feng Motor Corp. and Japan's Nissan Motor Co., Ltd., each holding a 50 percent stake.

Dong Feng general manager Miao Wei is to be the new company's chairman and Katsumi Nakamura of Nissan has be named president. Production will begin on July 1.

The new company will be the first joint-venture in China to have complete production lines for trucks, cars, light business vehicles and other autos.

It was the joint venture to enjoy such wide and deep cooperation, said Carlos Ghosn, president of Nissan Motor Co., Ltd., adding that the project had received significant support from the Chinese government.

Miao Wei said all the necessary procedures concerning the establishment had been completed since the two sides signed an agreement on long-term cooperation last September. The new company was a result of sincere collaboration between two sides.

It would produce 550,000 units from 2006 if all plans go smoothly, said Katsumi Nakamura.

(Xinhua News Agency June 9, 2003)