Changsha partners French firm to develop motor-homes
French motor-home maker Pilote Group and Hunan-based Leopaard Co signed to establish a caravan-making joint venture in Changsha on Nov 2.
Hunan RV Pilote Co Ltd is the country's first enterprise focused on recreation vehicle production and marketing.
Consul Guillaume Perissinotto of the Consulate General of France in Wuhan, Vice Governor of Hunan province Zhang Jianfei and Liu Mingli, vice mayor of Changsha were in attendance and witnessed the contract signing.
French automobile corporation Pilote Group and Hunan based-Leopaard Co sign a contract to found a joint venture in Changsha, on Nov 2. [Photo/icswb.com]
According to the agreement, both sides will invest 20 million yuan ($3.02 million) in cash and raise investment to 300 million yuan in the next five years. The new company will be devoted to introducing and developing large family and executive self-propelled cars, track trailer vans and camp vans.
The deal between the French and Hunan-based companies was finally struck after two years of negotiations and reflects the emerging tourism equipment manufacturing industry in China.
Zhang said at the signing ceremony that the founding of the joint venture is in line with the development strategy of the automobile industry in Central China's Hunan province.
It will boost that industry and help diversify the product mix, Zhang pointed out.
Zhang Jianfei, vice governor of Hunan province gives a speech at the signing ceremony held in Changsha, Nov 2. [Photo/icswb.com]
The Pilote Group, established in 1962, has been producing motor-homes for 55 years.
In China, there are about 450,000 caravans, or motor-homes in stock. Once the specialized firm is operational, it is expected that the production and sales volume will increase by 70 percent within the next five years.
"China is experiencing a booming tourist industry, and has a strong demand for recreational vehicles," said Li Jianxin, chief executive officer of Leopaard. "Our venture is expected to become the first brand in the field in China."
The consortium plans to manufacture and sell about 500 cars in 2018 and 1,500 in 2019 with the figure to rise to 3,000 in 2020.
Li Jianxin (R), chief executive officer of Leopaard Co, gives an interview after the signing ceremony. [Photo/icswb.com]
Source: Changsha Evening News