Prince Motors Ceases Operation, Terminate Ties with Chery

Taipei, Jan. 9, 2012 (CENS)--Taiwan's Prince Motors Co. and five subsidiaries or affiliates, the former local car assembler for Suzuki Motor Corp. of Japan, recently applied to the government for ceasing operations in Taiwan.

All Prince Motors' established cooperation ties with Chinese automaker Chery Automobile Co., Ltd., have also come to an end de facto.

Industry sources said that Chery has been aggressively trying to find another partner in Taiwan, and most major auto assemblers on the island are potential candidates, including Yulon Motor Co., China Motor Corp., Ford Lio Ho Motor Co., Sanyang Industry Co., Ltd. etc.

Prince Motors terminated the labor contracts with employees on January 3, 2012 and most of the employees have stopped working for the automaker and related firms. An anonymous employee of Prince Motors said that the firm has delayed his salary payment for more than one year.

Industry insiders said that Prince Motors cooperated with Chery about three years ago, but sales of locally assembled Chery cars have been sluggish. There are now still many Chery Appola (A3) staying at the warehouse.