Joint Venture Proposal for Newchin Corporation
Dear Newchin Corporation
TOYOTA's proposal to Newchin Corporation
We select "Corolla Sedan" as suitable compact car to newchin's
Corolla Sedan technical characteristics:
1. Fuel economic
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
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.
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
1. 60% TOYOTA
2. 40% Newchin Corporation
Board of Directors - total of 15
2. 6-The Newchin Corporation
3. 1-Foreign Investment Commission of China
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
human resources are plenty in Tianjin and it is easy to supply materials
for car production.
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
1996, Toyota Team Designed
and Maintained by Zan Kuang.