South East Asian Automotive News

Nissan has suspended its project to build a car assembly factory in Danang City. Nissan TCM Vietnam planned to invest US$110m in the construction of the factory. The current economic crisis has, however, persuaded key shareholders Tan Chong Motor of Malaysia and Nissan to put the venture on hold. (May 26^th 1998)

Vietnam Motor Corporation (VMC), between the Vietnamese, Chinese and the Philippine governments, is opening its second car sales and maintenance center in Hanoi. The center will be the fourth largest in Vietnam. VMC has supplied 50% of all taxis in Hanoi and Ho Chi Minh City since it began operating in 1992. It has assembled almost 10,000 cars and has sold 8,000. (May 27^th 1998)

Japan Storage Battery Co and Mitsubishi Corp plan to cut the start-up capital for a Vietnamese battery JV from US$5m to US$3m. The plant will produce about 400,000 auto batteries and 1 million motorcycle batteries per year. Japanese Storage Battery Co. will own 70% of the venture and Mitsubishi will contribute the remainder of the capital. The plant will open in March 1999. (May 29^th 1998)