Toyota Motor Corp. and AB Volvo each announce engine-making joint ventures in China to support their vehicle-building operations there.

Toyota is teaming up with China’s First Automotive Works Group to open an engine-manufacturing facility in Changchun, China. The FAW-Toyota plant will have an annual production capacity of 130,000 engines. FAW Toyota Changchun Engine Co. Ltd. will begin production of 3L V-6 engines in early 2005.

The two auto makers signed a collaborative agreement regarding automotive operations in 2002, which was followed by an April 2003 pact regarding the joint production of four models. So far, the Land Cruiser and Land Cruiser Prado SUVs and Corolla sedan are in production.

The plant will supply engines for a fourth model, the Crown luxury sedan, slated for production at Tianjin FAW Toyota Motor Co. Ltd.

Heavy-truck specialist Volvo also is teaming up with FAW, as well as China National Heavy Truck Corp., for a $200 million plant that is slated to produce 50,000 engines by 2010. Volvo will invest $105 million for a 52% stake.

Volvo last summer inked a deal to form a truck-making joint venture with China National, which will have the capacity to build 2,000 trucks annually.