Changfeng (Group), a Chinese partner of Mitsubishi Motors Corp., is expected to finalize in late May the scheme of setting up a factory in the US, becoming the first Chinese automaker to create a complete vehicle factory in the world's first largest auto market. As possible localization three places are pointed – center of USA, north-east USA and Canada. Chinese company is currently looking for new partners in Europe and Russia.

The whole project will contain three stages:

1. The first scheme is to build a complete production line, which contains pressing, welding, painting, and general assembly facilities, the US. It will need a minimum investment of USD 120 million to USD 140 million.

2. The second is to ship parts to the US, assemble them in the US factory and sell complete vehicles to US customers. It is forecast to cost USD 20 million.

3. The third is to seek a local original equipment manufacturer (OEM) to produce vehicles in the US.

In 2009 Changfeng (Group) will export Liebao SUV, showed at the Detroit motor show. Forecasts for 2008 say about 4,500 cars planned to export, which means 50% more than a year before.

Source: Trading Markets