Piaggio Group signs Memorandum of understanding with Zongshen in commercial vehicles buisness

Jul 20 2008 12:43
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Signature during the Mayor of Chongqing’s visit to Pontedera

Piaggio Commercial Vehicles: approximately 92,000 vehicles sold in the first half of 2008 (+8.9% YoY)

Pontedera, 29 July 2008 – Today at the Piaggio Group’s headquarters in Pontedera, the Piaggio Group and the Zongshen Industrial Group signed a memorandum of understanding to organise a feasibility plan for a new equally owned joint venture to develop and manufacture Ape petrol and diesel three- and four-wheel commercial vehicles in Chongqing, People’s Republic of China. The vehicles will be sold on the Chinese market.

The MoU was signed by the chairmen and CEOs of the two companies – Roberto Colaninno and Zuo Zongshen – during a visit by a large delegation from the Chongqing city council led by Mayor Wang Hongju and including the city’s councillors for foreign affairs, economic growth, science and technology: The delegation was accompanied by the senior managers of the Zongshen Group.

Piaggio and Zongshen (a private group based in Chongqing and one of China’s largest engine and two-wheel motorised vehicle constructors) have worked together in China since the formation of Piaggio Zongshen Foshan Motorcycle Co. Ltd. (PFM) on 15 April 2004. Headquartered in Foshan in Guangdong province, PFM is owned by Piaggio and the Zongshen Group with a 45% share each, and by Foshan City Council (10%). The company was established as a result of a strategic industrial and commercial cooperation agreement for the manufacture in China and marketing in China and the rest of the world of components, engines, scooters and motorcycles based on Piaggio patents and technology. In 2007 Piaggio Zongshen Foshan Motorcycle built more than 209,000 vehicles (more than 57,000 with Piaggio technology).

In the first half of 2008, the Piaggio Group’s three- and four-wheel commercial vehicles business (Ape, Quargo and Porter ranges) reported worldwide sales of approximately 92,000 vehicles, for YoY growth of 8.9% on approximately 84,000 vehicles sold in the first half of 2007.

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