BEIJING, April 22 -- Dongfeng Motor Group Co Ltd, the mainland's third largest car manufacturer, saw its turnover surge to 41.7 billion yuan (US$5.2 billion) in 2005, an increase of 27.5 per cent year- on-year.
The Hubei-based company reported that its sales volume amounted to 595,000 units in 2005, 40.7 per cent up from the previous year.
Its market share in the mainland's car market increased from 8.3 per cent in 2004 to 10.3 per cent in 2005.
The company saw its sales of passenger vehicles amount to 351,219 units in 2005, shooting up by 98.5 per cent from the previous year.
Sales of passenger vehicles produced by its three joint ventures - Dongfeng Nissan, Dongfeng Peugeot Citroen and Dongfeng Honda - grew by 139 per cent, 58 per cent and 151 per cent respectively in 2005.
Dongfeng Motor's net profit also soared by 21.3 per cent to reach 1.6 billion yuan (US$200 million) in 2005, exceeding its own forecast of not less than 1.5 billion yuan (US$187.5 billion) announced when it launched its public offering in Hong Kong at the end of 2005.
Xu Ping, chairman of Dongfeng Motor, felt satisfied with the company's results in 2005, describing them as "inspiring ones" that marked a good beginning. The achievements came despite overcapacity and price wars.
The company is expected to launch at least 10 types of passenger vehicles by 2008, with two to three new models annually introduced by Dongfeng Peugeot Citroen and Dongfeng Nissan, and one to two new models from Dongfeng Honda Automobile every year.
Donfeng Motor will remain keen on developing commercial vehicles such as heavy and light vehicles.
As the largest maker of heavy vehicles and with the second-largest market share for light vehicles on the mainland, Dongfeng Motor is about to introduce a series of new commercial vehicles.
"We will further strengthen our heavy and light vehicle segments in the next three years by introducing more new models into the local market," Hu Xindong, a managing director of the company told China Daily.
Hu said to sustain the company's expansion, Dongfeng's capital expenditure for 2006, 2007 and 2008 would amount to a total of 20 billion yuan (US$2.5 billion).
As for development in 2006, Xu expected his company's growth rate to be quicker than the average growth rate of China's car market.
Xu indicated that there would be no big price cuts in 2006 and that a weakening steel price would help the company to further extend its profit margin. (Source: China Daily)

Dongfeng Auto said it sold 62,940 vehicles in the first half, up 10% from a year earlier. Its engine sales fell 16% to 47,867 units over the same period.
Dongfeng Auto has a 50-50 diesel engine manufacturing joint venture with Cummins Inc. (CMI) of the U.S.
A joint venture between Dongfeng Motor Corp. and Japan's Nissan Motor Co. (NSANY) controls 70% of Dongfeng Auto.
-Rose Yu and Zheng Jin contributed to this story, Dow Jones Newswires; 8621 6120-1200; rose.yu@dowjones.com

Tian Ying
2006-08-29
DONGFENG Motor Group Co, the largest publicly traded Chinese automaker, said first-half profit rose 69 percent on higher sales at its ventures with Nissan Motor Co, PSA Peugeot Citroen and Honda Motor Co.

Net income increased to 1.11 billion yuan (US$139 million), or 0.13 yuan a share, from 660 million yuan, or 0.11 yuan, a year earlier, the automaker, based in Wuhan in central China, said in a Hong Kong stock exchange statement yesterday. Sales rose 9.9 percent to 23.3 billion yuan.

Dongfeng Motor's three car ventures sold more vehicles as they introduced new models and offered discounts, according to Bloomberg News. The ventures' combined unit sales rose almost 50 percent in the first half, according to the China Association of Automobile Manufacturers.

Dongfeng Motor's first-half operating profit, or sales minus the cost of goods sold and administrative expenses, rose 39 percent to 1.71 billion yuan, it said.

Dongfeng Honda Automobile Co began making Civic compacts in March and sold more than 6,000 of them by the end of June, Honda said last month. The model helped Dongfeng Honda Automobile Co increase its unit sales by more than half.

Previously, it made only CR-V sport-utility vehicles.

Dongfeng Peugeot Citroen Automobile Co introduced the Peugeot 206 compact in January, the C-Triomphe sedan in March and the 307 compact in May. PSA Peugeot Citroen aims to boost its sales in China about 40 percent this year to 200,000 vehicles.

The French carmaker is "confident" it will return to profit in the country this year after two years of losses at its venture with Dongfeng, Claude Satinet, head of its Citroen unit, said in February.
http://www.shanghaidaily.com/art/2006/08/29/290417/JVs_boost_Dongfeng_earnings.htm

Navistar Subsidiary Signs Licensing Agreement with One of China's Largest Diesel Engine Makers
WARRENVILLE, Ill.--Dongfeng Chaoyang Diesel Co. (DCD), one of China’s largest diesel engine makers, and MWM International Industria De Motores Da America Do Sul Ltda.(MWMI), a subsidiary of Navistar International Corporation today announced that DCD has been licensed to manufacture and sell select diesel engines in China.
Under the licensing agreement, an MWMI affiliate and DCD will establish strategic cooperation in the areas of engine development and vehicle application for diesel engines on Chinese vehicles.
Specific terms of the agreement are not being disclosed by either company, and the agreement is subject to Chinese Government approval.
“I consider this strategic cooperation with DCD a big step forward in our growth strategy of utilizing our assets and what others have developed as we tap the growth markets in China,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer. “This aligns with our strategy of providing great products to our customers, and a competitive cost structure to assure profitable growth for investors.”
Initial estimated annual volumes are expected to be 40,000 to 50,000 engines per year and start of production is forecasted in early 2008. The agreement may be extended to other engine families and other countries in the region.
“This agreement broadens our lineup and gains us valuable strategic global partners,” said Mr. Zhao Zhuang, president of Dongfeng Chaoyang Diesel Co. “As a major diesel engine maker in China, we will continue to provide our customers with the world’s leading lineup of light commercial vehicle diesel engines.”
MWMI produces a broad line of medium and heavy duty diesel engines ranging from 50 to 375 horsepower for use in pickups, SUVs, vans, light, semi and heavy trucks, and buses as well as agricultural, marine and electric generator applications. OEM customers include a number of the most important corporations in the automotive, agricultural and industrial segments, including Ford, General Motors, Land Rover, Volkswagen, Volvo, Nissan, CNH and AGCO.
“The acquisition of MWMI last year broadens our global offering of engines and helps us to execute our growth strategy,” said Jack Allen, president, International Engine Group. “Our licensing agreement with DCD reflects International Truck and Engine Corporation’s stepped-up global sales and marketing efforts to grow our business around the world.”
“We are establishing this strategic cooperation to use each other’s strengths,” said Waldey Sanchez, president and CEO of MWMI. “Our ability to grow outside of Brazil, share our technology and leverage our products to serve Euro certified markets is important, and our agreement with DCD reinforces the value we offer global markets.”
International Truck and Engine Corporation, through its affiliated companies is the world's leading diesel engine maker across the 50 to 375 horsepower range. In North America, International and its affiliates have nearly 50 percent share of the diesel pickup engine market, and 40 percent of the market for medium-duty commercial trucks and buses. In South America, International and its affiliates have more than 50 percent market share in the mid-sized pickup/SUV segment and accounts for nearly 40 percent of all diesel engines produced.
Navistar International Corporation is the parent company of International Truck and Engine Corporation. The company produces International® brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. A wholly owned subsidiary offers financing services. Additional information is available at www.nav-international.com.


source:http://www.theautochannel.com/news/2006/09/28/023391.html

BEIJING (XFN-ASIA) - Dongfeng Automobile Co Ltd's third-quarter net profit was 84.14 mln yuan, 32.15 pct more than a year before because of increased sales of diesel engines, the company said.

The company is the listed unit of Dongfeng Motor Corp. It makes light trucks, diesel engines and castings.

Dongfeng Automobile said in a statement to the Shanghai Stock Exchange that it had sold 31,045 vehicles in the third quarter, 31.77 pct more than a year before.

Sales of diesel engines rose 63.29 pct to 23,632 because of rising domestic sales of heavy trucks.

Core revenue rose 37.09 pct to 2.45 bln yuan.

Earnings per share rose to 0.042 yuan from 0.03 yuan.

The company gave no forecasts of earnings for this year.

Its assets were 10.48 bln yuan at the end of last month, 7.56 pct more than at the end of last year.

Dongfeng Automobile has a 50-50 joint venture with Nissan Motor Co and a 50-50 joint venture with Cummins Inc of the US.



(1 usd = 7.90 yuan)

BEIJING (XFN-ASIA) - Dongfeng Motors, which has a 12.6 pct share of the Chinese auto market, and car parts maker Minth Group are among a number of vehicle companies looking at acquiring assets from distressed US vehicle suppliers Delphi Corp and Visteon Corp, the South China Morning Post reported, citing an industry source.

'We do have a process that we are undergoing but we are not confirming specific companies we are in talks with,' the Hong Kong newspaper cited a Delphi company source as saying.

Delphi's US operations filed for bankruptcy last year and the company in March announced that it would sell or close its brakes, catalyst, instrument panel, door and steering units. These sales are expected to be completed by the end of next year, the newspaper added.

Japanese exterior component manufacturer Faltec has secured its first order from Dongfeng Motor Co. To supply components to the OEM, Faltec is building a manufacturing plant in China, Automotive News China has reported.

Japanese logistics company Nippon Express says it has linked up with a transportation subsidiary of Chinese automaker Dongfeng Motor, targeting growth in the Asian region.

Nippon Express said it had started shipping auto parts for Dongfeng Cummins Engine Co.
The Japanese company believes this is the first such tie-up with a shipping company affiliate of a Chinese automaker.

Nippon Express will initially offer shipping services for 13 component parts suppliers in Hubei province and expand the operation to other auto-related sectors in China

The companies renegotiated their March 2005 agreement because Dana filed for Chapter 11 bankruptcy protection in March 2006.
Dana said Monday its Dana Mauritius Ltd. unit agreed to initially pay about $5 million to acquire 4% of the venture, Dongfeng Dana Axle Co. This part of the transaction is expected to close by the end of this month.
Dana Mauritius will acquire another 46% of the venture after April 1, 2008, but within three years from when it receives government approvals for the amended agreement.

Dongfeng Motor sold 1.02 million vehicles in first 11 months of 2007.

Shanghai. December 17, 2007 - Dongfeng Motor Group, China's third-biggest auto maker, sold 1.02 million vehicles in the first eleven months, exceeding the company's one million sales target set at the beginning of the year, the company announced in its monthly sales report.

The company’s sales report shows that 70 percent of vehicles sold in the first eleven months are passenger vehicles while 30 percent are commercial vehicles. This is a complete reversal of the percentage situation from five years ago.

Founded in 1969, Dongfeng Motor Corporation (DFM) is one of China’s three biggest automakers—the other two being FAW and SAIC. The company's product portfolio covers almost all segments of commercial vehicles and medium-low end cars.

source: Gasgoo.com

I think this is a very good goal and hope dongfeng achieves it



http://www.theautochannel.com/news/2007/12/28/074087.html

China auto maker to develop hydrous ethanol engines
(Xinhua)
Updated: 2008-01-01 17:40


Dongfeng Motor Corporation, one of China's largest auto makers, has completed its initial research of using hydrous ethanol in automobiles.

The new technology could produce combustible gas, mainly hydrogen, from hydrous ethanol that contained 65 percent ethanol. The present ethanol-fueled vehicles needed pure ethanol blended with gas, the China Association of Automobile Manufacturers said.

Experts said producing 65 percent ethanol could save up to 60 percent of energy compared with producing the same amount of pure ethanol, as dehydration was energy-consuming.

The use of hydrous ethanol, unlike some synthetic fuels that required adapted engines, only needed an additional device to be fixed on present engines. Thus, it was more likely to be accepted by consumers.

The company planned to set up an ethanol-fueled car production plant by the end of 2008. This included a design and test center, as well as an assembly plant for ethanol engines.

The plant was expected to produce a small amount of ethanol cars by year-end.

http://www.chinadaily.com.cn/bizchina/2008-01/01/content_6362904.htm

Dongfeng Auto 2007 profits up 9.5% on rising sales.

March 31, 2008 - Dongfeng Auto Co, a light commercial vehicle producer under China's third largest automaker Dongfeng Motor Group, on Saturday announced profits were up 9.5 percent last year on rising demand for trucks and diesel engines.

Gross profit reached 677.8 million yuan ($95.5 million), from 619.3 million yuan a year earlier, the Wuhan-based company said in a statement to the Shanghai Stock Exchange.

Net income rose 0.6 percent to 489.3 million yuan last year, it said. Per-share earnings rose to 0.245 yuan from 0.243 yuan in 2006.

Revenue surged 26.6 percent to 12.8 billion yuan after the company raised vehicle sales by 18.9 percent to 150,038 units during the year. About 76 percent were light trucks.

Dongfeng Auto, which is a partner of Japan's Nissan Motor Co, produces Nissan-brand sport-utility vehicles (SUV) mainly in a Zhengzhou plant. Its SUV sales soared 61.6 percent to 12,607 units last year.

Hong Kong-listed Dongfeng Motor Group and Nissan each owns 50 percent of the parent of Dongfeng Auto.

It also makes diesel engines with US engine giant Cummins Inc, with sales up 42.2 percent to 136,973 units last year.

Domestic vehicle production and sales both surged more than 20 percent to a record 8.8 million units last year, in contrast to weakening sales worldwide.

Light truck sales rose 16.2 percent to 1.1 million units last year, while SUV sales jumped 50 percent to 357,366 units, according to the semi-official China Association of Automobile Manufacturers.

The company said transportation demand would remain strong as the government tried to encourage consumer spending. China would also boost the incomes of farmers and build more roads in the vast countryside, it added.

source: Xinhua

I dont like the use og ethanol. What has happed in America is that the price of corn has gone up so the price of pork and beef has gone up. We nedd to feed the people of the world before we worry whether they can drive.

Dongfeng Motor March vehicle sales rise 41 pct.

April 11, 2008 - Dongfeng Motor Group Co's vehicle sales in China rose 41 percent in March from a year earlier, beating 24.72 percent overall growth in the world's second-largest auto market.

Dongfeng, China's third-largest automaker, sold 120,605 vehicles in March, it said in a statement on Friday.

Sales of passenger cars grew 41.35 percent to 71,661 units last month, while sales of commercial vehicles were up 40.62 percent at 48,944 units, it said.

From January to March, its passenger car sales rose 29.35 percent to 180,150 units, while sales of commercial vehicles were up 31.87 percent at 47,865 units.

Dongfeng's venture with PSA Peugeot-Citroen moved 23,373 cars in March, up 3.61 percent, after declines during the first two months of the year.

The French car maker blamed the falls on freak snow storms that battered many of the country's eastern and southern regions and blocked supplies of auto parts.

At Dongfeng's venture with Nissan Motor, car sales grew 34.99 percent to 31,845 units in March, while sales of commercial vehicles rose 30.36 percent to 47,834 units, Dongfeng said.

Sales at Dongfeng's tie-up with Honda Motor surged 70.48 percent last month to 16,443 units, it said.

source: Reuters

Dutch Postal Company TNT to test Dongfeng Electric Vehicles in China .

Dutch postal company TNT NV yesterday launched a trial of China's first zero-emission electric delivery vans in Wuhan, capital of Hubei Province, in a cooperative agreement with Dongfeng Motor Co.

Two light electric trucks, each of which cost 300,000 yuan (US$42,860) in research and development, will be tested for six months, and the two companies are exploring the feasibility of expanding the use of such vans to other cities across the country.

"The trial launch of China's first two electric delivery vans is significant," TNT's CEO Peter Bakker said at the launch ceremony. "It will be the first market outside of Europe that TNT is bringing this trial, which will reduce CO2 emissions from our own delivery fleet."

The initiative is part of TNT's strategy to become the first zero-emission road and air transport company.

The vehicles are designed to run at most 80 kilometers per hour and capable of carrying a load of 1 ton.

"The battery, able to work for a year, supports vehicles to run 160km to 200km once fully charged, which is suitable for inner-city routes," Bakker said.

The two firms are expecting policy and funding support from the government.

"The government hasn't issued rules on regulating electric vehicles and we hope special policies can be mapped out to support such vehicles' normal operation," said Dongfeng Automobile CEO Zhu Fushou.

Zhu said R&D costs "are four times that of fuel vehicles and batteries also cost a lot."

TNT already runs several electric vehicles in the United Kingdom, the Netherlands, Belgium and Luxembourg. TNT successfully tested a 7.5 ton zero-emission electric truck in London for a year and is considering adding 50 more to its UK fleet.

Source: Shanghai Daily

Dongfeng sees strong H1 sales growth of 30.59%

August 07, 2008

Shanghai, August 7 (Gasgoo.com) Dongfeng Motor Corp bucked the downturn of China's auto market in the first half of 2008 by selling as many as 724,700 vehicles, up 30.59% year on year (y/y), reported China Business News today.

From January to June, Dongfeng Motor Corp had the largest sales of vehicles in China. In the six-month period, the group sold a total of 724,700 vehicles while producing 719,100 units, up 22.4% y/y. Of the vehicles it sold, 477,900 units are passenger vehicles, up 25.26%, and 246,700 are commercial vehicles, up 42.30%, both much higher than the national sales growth rates (17% and 4% respectively).

The first-half sales achievements show that Dongfeng Motor Corp, now as the third biggest car-making group in China after SAIC and FAW, is narrowing its distance with the second largest carmaking giant FAW. In 2008, Dongfeng aims to sell 477,900 vehicles and achieve sales revenue of 180 billion yuan ($26.4 billion), with its net profit to exceed last year's.

Dongfeng Motor Corp operates many car-making joint ventures in China, including Dongfeng Peugeot-Citroen, Dongfeng Motor Co (with Nissan), Dongfeng Honda, Dongfeng Yueda Kia, Dongfeng Auto Co., Ltd (with with Cummins), Dongfeng Liuzhou and others.

http://www.gasgoo.com/auto-news/7356/Dongfeng-sees-strong-H1-sales-growth-of-30-59.html

Dongfeng Motor to export 400 CNG vehicles to Thailand

August 8, 2008 - Dongfeng Motor will export 400 compressed natural gas (CNG) vehicles to Thailand this year, according to Shihua Financial Information.

At the vehicle delivery ceremony on August 6, Dongfeng Motor announced its plans to export 400 CNG vehicles to Thailand this year with each vehicle priced at 400,000 yuan ($58,224) besides the 35 CNG tractors this time.

The exported CNG tractors, as Dongfeng’s latest batch of special commercial vehicles, are developed to suit Thailand's environment and meet their particular demand, said Xu Ping, Dongfeng general manager.

Early in 2007, Dongfeng Special Commercial Vehicle Co. has signed an export deal with a Thailand company to jointly explore the Thailand market and extend the export to other southeast countries. In November 2007, the first 21 units of 280hp CNG tractors were successfully put into operation in Thailand by Dongfeng.

source: Gasgoo.com

From:ReutersAugust 09, 2008
:eek: Dongfeng Motor Group (0489), China's third-largest automaker, said its vehicle sales growth slowed to a single-digit rate in July as stricter emission standards curbed truck sales.

The firm moved 71,854 vehicles in July, up 3.37 percent from a year earlier, with sales of passenger cars rising 18.46 percent but sales of commercial vehicles down 26.31 percent.

A Dongfeng executive blamed the weak truck sales last month on the introduction of Euro III emission standards on July 1, which spurred customers to make purchases before then.

http://yaqeenauto.spaces.live.com

Dongfeng Motor to build auto parts remanufacturing base

September 18, 2008


Shanghai, September 18 (Gasgoo.com) Earlier this month, Dongfeng Motor said it plans to spend 200 million yuan ($29.19 million) building an auto parts remanufacturing trial base, according to Beijing Times today.

The Technique Policy of Recycling and Reutilization of Automotive Products issued by the NDRC (National Development and Reform Commission), China’s top economic regulator, required that the country should have 95% of its vehicles recyclable by 2017. To capture this huge market potential, Dongfeng Motor plans to invest 200 million yuan to build an auto parts remanufacturing trial base within three years.

The remanufacturing facility, covering 200,100 square meters, is expected to recycle 50,000 waste and old vehicles, 100,000 ton of scrap materials and also to remake 100,000 components, Zhu Fushou, general manager of Dongfeng Motor said.

http://www.gasgoo.com/auto-news/1007795/Dongfeng-Motor-to-build-auto-parts-remanufacturing-base.html

Dongfeng to mass-produce hybrid cars in Wuhan.

October 9, 2008 - Dongfeng Electric Vehicle Co, a subsidiary of Dongfeng Motor Co, said it will roll out its own-brand hybrid car by the beginning of 2009 in Wuhan, targeting sales of 5,000 units for the year, xinhuanet,com reported yesterday, citing executives of Dongfeng Electric Vehicle Co.

Currently Dongfeng Electric Vehicle Co. has finished the research and development of a function hybrid sample and a performance hybrid sample. The company plans to launch Micro-Hybrid programme by the beginning of next year, which will add a control system onto ordinary vehicles for saving fuel at 5% to 7% by increasing cost for each vehicle by 3,000 yuan ($440).

If the market comes up to expectation, the company will further launch its Micro and Higher Hybrid programme, which the cost for each vehicle will increase by 30,000 yuan, aiming to save fuel up to 30%.

At present China’s hybrid market covers Toyota’s Prius, selling at 259,800 yuan-279,800 yuan, and Honda’s Civic, priced at 269,800 yuan. Industry insiders said the hybrid vehicle may find it difficult to reach common Chinese families for its high price.

The Prius only targets to sell 1000 units this year, and Civic is also expected to sell 200 units for the year.

from Gasgoo.com

Dongfeng CV export surges 120% y/y in Jan-Sept

October 16, 2008
Shanghai, October 16 (Gasgoo.com) Dongfeng Motor Co's commercial vehicle division said it exported 9,811 vehicles in the first nine months, representing a growth of 120 year on year, state media Xinhua reported Wednesday.

The unit said it has fulfilled its export target set for the full year of 2008 one quarter ahead of schedule. It initially targets export volume of 9,000 units for the year.

From January to September the company produced 163,552 units and sold 160,151 commercial vehicles, up 13.44% and 14.38% each. In terms of sales target, it said 85.46% of the 2008 target is already achieved.

The Dongfeng CV division is actually expanding the export ratio of commercial vehicles as of the second half year amid domestic economic downturn. Iran, Russia and Vietnam are among its most important export destinations.

The company plans to sell double its export ratio of commercial vehicles to more than 10% by 2012 from 5% in 2007 in an effort to boost of the company's overseas business. Annually 400,000 commercial vehicles are projected to be sold by that time.

Furthermore it plans to expand its dealerships from 420 to 630 for LCVs and from 250 to 380 for medium- and heavy-duty commercial vehicles by 2012.

http://www.gasgoo.com/auto-news/1008056/Dongfeng-CV-export-surges-120-y-y-in-Jan-Sept.html

Dongfeng light engine company to operate in '09

November 07, 2008

Shanghai, November 7 (Gasgoo.com) Dongfeng Auto Co., a light truck producer under China's third largest automaker Dongfeng Motor Corp, has formed a light engine company this week. The new company will start to produce light diesel engines next year, reported Nanfang Daily today.

The newly built Dongfeng Light Engine Company is located in the Shiyan manufacturing base, Hubei province, which is home to Dongfeng Auto. Sources said that the parent company Dongfeng Motor invests 367.2 million yuan ($52.8 million) in cash in the engine company, holding 51% stake in it.

The other 49% stake in the engine company is held by the light-truck maker Dongfeng Auto, who invests with its manufacturing facility and equipment.

An earlier report said Dongfeng Auto's turnover in the third quarter this year increased to 3.45 billion yuan from 3.13 billion yuan of one year before. However, its Q3 net profit fell by 37% year on year to 66.11 million yuan ($9.69 million).

Dongfeng Motor has a 50:50 joint venture with U.S. engine giant Cummins -- Dongfeng Cummins Engine Co., Ltd., which had produced one million engines by March 2007. The venture has made a Cummins ISLe diesel engine for a Dongfeng heavy-duty Tianlong truck.

http://www.gasgoo.com/auto-news/1008290/Dongfeng-light-engine-company-to-operate-in-09.html

Chinese car giant seeks Australian partners.



CHINA'S second largest car manufacturer is keen to strike deals with its struggling Australian counterparts, a move that may breathe life into the Rudd Government's $6 billion restructure of the industry.

The entreaty by Dongfeng Motor Corp, one of China's big three state-owned car makers, follows its rival Cherry establishing a research centre in Australia, and Australian companies Futuris and Bosch subsidiary PBR using China to manufacture parts.

The brightest spot in China's exploding automotive manufacturing sector is the green car, with the country leading the world in sales and development of electric vehicles.

This is understood to be a key area of interest in Australia for Dongfeng, which dovetails nicely with the green big-car component of Canberra's $6 billion bailout of the sector last year.

Senior Dongfeng executives plan to join a delegation from the company's home city of Wuhan to Australia in July. The delegation, headed by the Wuhan Communist Party secretary, wants to develop new trade relationships between the 11-million strong city in central China and Australian businesses.

"Dongfeng are very keen to develop strategic partnerships with our auto industry for component supply," Trade Minister Simon Crean said after a visit to Wuhan last week.

"What we have to encourage -- because they are the big growth in autos -- is our strength in the auto sector."

In the past quarter China passed the US in the sales of regular cars for the first time. In April passenger sales rose 37.4 per cent from a year earlier to a record high, according to figures released last Friday.

"They (Dongfeng) are doing a whole lot of joint ventures," Mr Crean said. "They want to develop their own brands. What we offer therefore is the competitive edge with design and innovation and component supply to help them to achieve that objective."

Dongfeng already has joint-venture arrangements with Nissan, Renault and Kia. But the Chinese manufacturer's desire to build its own brands and establish its own supply chains provides an opportunity for Australia, people close to last week's talks say.

The group makes more than 1.1million vehicles each year and employs more than 120,000 people.

"The Australian auto sector basically since the Button car plan has understood the importance of innovation globally," Mr Crean said. "Why couldn't it be engaging with the global behemoth in autos?"

Still, a record number of China's 61 listed car and parts makers are now posting losses.

As the small cars making up most of the volume in the market add little to manufacturers' bottom lines, they are looking offshore for growth, while most large Western car makers conduct fire sales to ward off collapse.

Chinese companies have already snapped up MG and Rover. China's first private auto company, Geely, has been linked with the sale of Ford's Volvo unit and General Motors' Saab, although the company denied any intentions last week.

Mr Crean defended the $6billion industry restructuring package announced late last year.

"It's $6 billion over 20 years to position us for the clean car in an economy where you thought you could get away with making big cars forever," Mr Crean said.

"I tell you what in terms of a restructuring package I would far prefer to have: a mechanism that was driving the pace of innovation and building on our strengths rather than just trying to prop up an industry."


http://www.theaustralian.news.com.au/story/0,25197,25465504-2702,00.html

Question: Why are all the Chinese car manufacturers going to Asutralia? Nz has same safety standards and emissions standards as they do and some new metal would better than all those crappy Jap imports we seem to be getting.

Detroit Electric to supply electric car technology to Dongfeng

June 20, 2009 - Dongfeng has commissioned Detroit Electric to jointly research, develop, market and sell Electric Vehicles in China using Detroit Electric’s electric drive systems.

The Chinese company will provide the cars, and Detroit Electric will provide the propulsion, similiar to the arrangement that DE has with Proton. But the DE-Proton deal involves rebadging the Persona and GEN2 under the Detroit Electric brand, but for Dongfeng, the two companies will study and explore the market entry strategy under the Dongfeng and Detroit Electric brand.

The two companies are also discussing the possibility of forming a joint venture company to manufacture, assemble, produce and supply the electric drive technology in China to the Dongfeng Group and other vehicle manufacturers that want to buy the technology.

Dongfeng does Kia, Nissan, PSA Peugeot Citroen and Honda in China, but they have been recently focusing on developing their own brand too. They recently launched a sedan based on the old Citroen ZX chassis called the Dongfeng Aeolus Fengshen.


source: paultan.org

Dongfeng and Yulong to make SUV together
From China Car Times:
Dongfeng and Taiwan’s Yulong Motor Corp are planning on working together this year to build a new range of cars for both the Chinese mainland, and Taiwan.

The partnership between a mainland and Taiwanese car company is thought to be the first of its kind, and will see Dongfeng-Yulong work together to produce a new SUV in 2010.

Yulong designed their own MPV for the Taiwanese market, the Luxgen, and plan to introduce it into the Chinese mainland market very soon. The Dongfeng-Yulong SUV is expected to be shown off towards the middle of next year, and will go into production in October 2010 with a 2.0l engine.

Dongfeng trucks are going to be assembled in Serbia:
Dongfeng and Serbia's JAT sign deal to manufacture trucks (http://english.chinatruck.org/news/2009/1124/article_1294.html)

(chinatrucks.com, Nov. 24, 2009)Dongfeng motors and Serbia's truck maker FAP signed a business cooperation pact for the production of heavy-duty trucks, which could lead to privatization of the Serbian company.

The companies signed the memorandum of understanding on Nov.23 during a China-Serbia investment forum in Belgrade...
I don't know why the headline says "JAT" - the company is called FAP (http://www.fap.co.rs/) (Fabrika automobila Priboj).

See also: Dongfeng Motor interested in Serbian truck-maker (http://english.chinatruck.org/news/2009/1105/article_1255.html)

Dongfeng trucks are going to be assembled in Serbia:

I don't know why the headline says "JAT" - the company is called FAP (http://www.fap.co.rs/) (Fabrika automobila Priboj).

See also: Dongfeng Motor interested in Serbian truck-maker (http://english.chinatruck.org/news/2009/1105/article_1255.html)

FAP trucks was very famous here, but after the war whole production line and developing new models simply stop, FAP still produce merecedes benz old truck models which they are selling with FAP logo on it, also they are using cummins enignes like DFM trucks, in many countries of ex yugoslavia there is still lot of FAP trucks running, some of them are also in Africa when FAP won a tender as only truck which can be driver at such sunny area

this can be very good choice for DFM becasue DFM need only to modernize production line and knowlege those workers have there, it can be step forward for DFM trucks in EU