November 4, 2005
Formosa Automobile Sales Corp. and Europe's third largest heavy truck maker DAF Trucks signed a contract in late October under which Formosa will begin assembling DAF trucks in Taiwan in January 2006. Besides making trucks for the domestic market, the new partners will supply trucks to the Southeast Asian market and plan to move into China together in the future.
In addition to manufacturing, the deal calls for the establishment of an after-sales service network and a distribution network.
The companies that make up Formosa Plastics Group currently operate around 2,000 trucks and replace about 200 trucks each year. This demand alone is sufficient to guarantee a basic sales volume for DAF trucks in Taiwan. Overall, there is an annual demand of over 3,000 heavy trucks in Taiwan.
Formosa and DAF intend to focus initially on assembling 25-, 35- and 43-ton trucks.
The Dutch truck maker has a 77-year history and employs over 6,000 workers.
(United Daily News)
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