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See Chinese TV Report on MVP RV/Chung Deal
Posted By RVBusiness On March 8, 2011 @ 1:25 pm In Breaking News | No Comments
Editor’s Note: Here are two looks at how China Central Television (CCTV) covered the announcement earlier this year that Chinese investor Winston Chung had made a major investment in California-based MVP RV to produce 30,000 motorhomes for a growing RV market in China.
Click here to see film clips from the China TV network’s coverage. A shot list, explaining what’s on the video, is availabel on the link. A slightly edited CCTV news story story follows.
In efforts to step up overseas investments, Chinese private companies put about 5 billion U.S. dollars into American companies in 2010, double the figure in 2009.
In 2010, the Shenzhen-based Winston Battery Company invested more than US $310 million into MVP RV and brought the van manufacturer back from the verge of bankruptcy.
As was reported by the Wall Street Journal, when sales were slow last year, Mr. Williams led a team of MVP RV executives to Shenzhen, China. There he was introduced to Winston Chung, whose company, Winston Global Energy, makes batteries for electric vehicles. Over the course of several months, Mr. Chung became the majority shareholder in MVP RV in exchange for his US$310 million investment.
Messrs. Williams and Chung hope to develop a battery-powered motor home for the U.S. market and promote it in China’s rapidly expanding automotive market as well.
Balqon Corp., the world’s first company to specialize in the lorries motored by non-polluting lithium battery, also received investment from the Winston Battery.
“The partnership is very beneficial for us because we not only receive the investment but we also have our customer or entry into the Chinese market. Similarly we’re also now the exclusive distributor of Winston battery in North American market… For us, it’s a win-win solution,” said Jaime Jimenez, CEO of Balqon Corporation.
Krystal Enterprises, a luxury concierge car manufacturor, is the third company benefiting from Winston’s investment.
Winston’s large inputs into the U.S. automobile industry also eased the local employment pressure to a considerable extent. The MVP RV company is starting to recruit new workers and the formerly laid-off have retured to their work, after the US$310 million investment was in place.
Luis Alfaro, a worker at MVP RV, said: “I got an unemployment for 6 months, there’s a new company by the plan…I appreciate they give us opportunities.”
During Chinese president Hu Jintao’s visit to the U.S., many Sino-U.S. co-orporative investment projects were signed. The investment to the MVP RV is one of them. It demonstrates that China’s overseas investment has developed to a higher level of mergers and acquisitions, joint ventures and so on. Analysts say that opportunities for private Chinese companies’ investments in the US are increasing. And the clean-energy, auto, IT and medical care industries are the ones to look out for.
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