Iveco,
the commercial vehicle division of Italian industrial group Fiat, has pulled out
of a bus joint venture in East China's Jiangsu Province, according to a source
from the company's operations in China. The
source told that Iveco had sold its 50 per cent stake in the bus venture to the
Chinese side, Changjiang Bus Group, based in Changzhou, Jiangsu Province, for
just US$1. The
venture between Changjiang Bus and Iveco was launched in 2001 with an investment
of almost US$100 million. Having
an initial production capacity of 6,000 to 7,000 units, it was the biggest Sino-foreign
bus operation at the time. However,
the venture suffered heavy losses due to sluggish sales and poor management.
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