Joint Venture Proposal for Newchin Corporation


Toyota Corporation

Dear Newchin Corporation

TOYOTA's proposal to Newchin Corporation

We select "Corolla Sedan" as suitable compact car to newchin's request

Corolla Sedan technical characteristics:

1. Fuel economic

for example
1300cc DX (MT)
city-19km/l, 60km/h const.drive-27km/l

2. High mileage

Fuel Tank Capasity- 50 l
city-950km, 60km/h constant drive-1350km

3. Low maintenance and reliable

Corolla is known as very reliable car in Japan.
Usually there is no need to maitain specially for about 10 years.

4. Low emissions

Corolla passed the Japan Low Emissions Laws.
So there is no worry about pollution of the environment.

5. Low cost

for example
Corolla Sedan 1300 DX (MT) 8281$
Corolla Sedan 1500 DX (MT) 9063$
This is the lowest cost type in Japan.

6. Natural gas, electric or other alternative energy sources

Toyota has reserched and developed the car running by alternative energy sources for 20 years.
methanol, natural gas, and electric car already exists, and can be released to market if the cost is reduced.

7 Safety

Air Bag - standard
Anti Lock Braek system - option

Plant production capability:

1. Initiall plant capacity : 200,000 car per year
2. Expansiion : increased to 400,000 cars per year in the next five years

Ownership:

1. 60% TOYOTA
2. 40% Newchin Corporation

Management:

Board of Directors - total of 15
1. 8-TOYOTA
2. 6-The Newchin Corporation
3. 1-Foreign Investment Commission of China

Financing:

Contribution toward total capitalization:

1. 40% Equity

  • -60% to be provided by TOYOTA
  • -40% to be provided by Newchin Corporation
  • 2. 60% to be borrowed in the form of bonds by our joint venture

    Locations:

    Tianjin

    human resources are plenty in Tianjin and it is easy to supply materials for car production.

    others:

    training and technology transfer

    TOYOTA Technical Center, China was established in January andopened in April 1995 to assist in the development of China's automobile and auto parts industry.

    Best wishes,

    Toyota


    Copyright 1996, Toyota Team Designed and Maintained by Zan Kuang.