Nissan Motor Co. said Tuesday it will set up a joint venture with Taiwan-based Yulon Motor Co. by the end of the year to promote car sales in Taiwan and China.
The joint venture will take over Yulon's nonmanufacturing businesses, including marketing, purchasing and engineering. It will also provide support for Nissan's operations in China, the company said.
Nissan will have a 40 percent stake in the joint venture by exchanging all of its shares in Yulon Motor with new shares issued by the new firm. Nissan formed an alliance with Yulon Motor in 1959 and now holds a 25 percent stake in the company.
Yulon Motor will hold the remaining stake in the joint venture and continue to manufacture Nissan models, including the March compact. Production volume came to 56,000 units under the Nissan brand last year.