US-based Cornell Capital Partners and Beijing's Jinche Yingang Auto Maintenance Centre have announced the establishment of a joint venture focusing on vehicle after-sales servicing.
The new business will be called Beijing Sino-US Jinche Yingang Auto Tech Services Ltd (Sino-US AutoMart).
Sino-US AutoMart has total assets of US$29.45 million, and US$11.78 million of registered capital. The Chinese side will have 67% of the new joint venture, with the US firm holding the remaining 33%. The company has employed more than 1,000 people in China.
Sino-US AutoMart will focus on automobile after-sales services, including repairs and maintenance, insurance, the sale of parts, interior furnishings, care products, tyres and windscreens.
"We have six flagship stores, but want 60 in Beijing by the first quarter of next year. We want to be the nation's largest network for maintenance and sales," said Pang Guisan, president and chairman of the firm.
"We are planning to set up more than 3,000 chain and franchise stores in major cities across China."
He said this last goal would be implemented within five years, with a total expected turnover of RMB10 billion a year.