Cars
Beiqi Foton to inject $50m into JV with Cummins
(Xinhua)
Updated: 2010-05-06 14:56
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Beiqi Foton Motor Company said Thursday it will pump 340 million yuan ($50 million) into its joint venture, Beijing Foton Cummins Engine Co, by the end of next year to ease the company's funds shortage.
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The joint venture faces a funds shortage of 680 million yuan over the next two years as 2009 sales were lower than expected and after it splashed out on developing the Euro V and Euro VI engines.
The funds injection will help solve the joint venture's capital shortage problem, the report said.
The other two stakeholders, Cummins Inc and Cummins (China) Investment Co, will invest 68 million yuan and 272 million yuan, respectively, into the JV in the coming two years to bring the total funds injection to 680 million yuan.
