Common use of Purpose, Scope of Business and Scale of Production Clause in Contracts

Purpose, Scope of Business and Scale of Production. 4.1 The purpose of the JV Company is to use efficient and advanced technology, product planning and management, production and distribution techniques to manufacture in the PRC, market and sell the JV Products worldwide, to improve the value and competitiveness of such products, to introduce new products, and to obtain satisfactory economic benefits for the Parties. 4.2 The business scope of the JV Company shall be to produce Motor Vehicles in the PRC, and to sell and distribute worldwide Motor Vehicles produced by the JV Company, and the parts, components and accessories therefor. 4.3 The JV Company’s production scale is expected, in Phase One, to reach no less than 150,000 Motor Vehicles per annum. In accordance with relevant market and sales conditions, such scale may be gradually expanded.