CHONGQING — Antonov and Loncin Holdings, one of China’s largest motorcycle makers in Chongqing, are to set up an automatic transmission joint venture in Chongqing, according to an Antonov company news release on January 23, 2008.
The new JV will be close to a 50:50 split, with Loncin having the majority holding. The annual production capability is planned at 200,000 units. Initially, the products will be targeted at Chinese domestic market, while to export worldwide in the long term.
The JV is expected to be formed in May this year, once Antonov has completed its prototype vehicle and Loncin has completed the detailed production planning and costing.
Antonov will establish a WOFE in China first to secure Antonov’s finance contribution to the JV.
This enables Antonov to have closer control over its intellectual property rights in order to reduce risk and generate better returns compared with a pure licensing business model in China.
“I am very happy we are getting commercial projects on track being backed by an efficient concentrated organization on one place with all facilities required,” said John Moore, chief executive officer of Antonov.