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AMC's Chinese puzzle

10th May 1986, Page 22
10th May 1986
Page 22
Page 22, 10th May 1986 — AMC's Chinese puzzle
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Which of the following most accurately describes the problem?

• Production of American Motors' (AMC) four-wheeldrive Jeep models at its Peking plant has been halted by repayment problems caused by China's lack of foreign exchange.

The AMC plant, which opened in September last year, has been unable to pay for Jeep kits already shipped from the US for local assembly.

Little over 700 vehicles have been built at the plant.

AMC is waiting for a letter of credit from the Chinese authorities before it will resume the shipment of completely knocked down kits to China and will keep the Peking plant closed until it receives agreed payments.

Despite the current problems with foreign exchange, AMC is understood to be keen to continue producing vehicles there.