SHANGHAI -- Daihatsu Motor Co., the small vehicle unit of Toyota Motor Corp., announced last week that it has decided to dissolve its joint body parts manufacturing joint venture formed with FAW Jilin Automobile Co.
Daihatsu will sell its 50 percent interest in FAW Daihatsu (Jilin) Body Parts Co. to its joint venture partner FAW Jilin Auto, the Japanese company said in a statement.
Daihatsu's decision to exit the joint venture will allow the company to improve management efficiency by consolidating resources, the company said.
The former joint venture, now a subsidiary of FAW Jilin Auto, will continue to build body parts under the licensing agreement reached before between Daihatsu and FAW Jilin Auto.
Set up in 2006 with registered capital of $28.7 million in northeast China's Jilin province, FAW Daihatsu manufactures vehicle body parts. It also assembles the Xenia minivan.
In the first 11 months of 2009, the joint venture sold 2,198 units of the Xenia in China, down by 40 percent year-on-year, according to Automotive Resources Asia, a unit of J.D. Power.
FAW Jilin Auto is a subsidiary of China FAW Group Corp., a major state-owned automaker.