Taiwan's automaker Yulon Group plans to mass-produce its Luxgen-brand cars next year in its joint venture in mainland China with Dongfeng Motor Corp, the Taiwan Economic News reported over the weekend, citing local industry sources.
Dongfeng president Xu Ping recently visited Taiwan and talked with Yulon CEO Kenneth Yen over issues of joint market development and investment tactics in the mainland, the sources said.
Yulon Group set up a joint venture, the Luxgen Motor (Zhejiang) with Zhongyu Group in Zhejiang province in 2007. The project, however, terminated as the mainland began restructuring its auto industry, urging Yulon to turn to Dongfeng for its own-brand car project in the booming auto market.
Dongfeng Hangzhou Motor under the Dongfeng Group, which currently produces medium- and large-size buses with annual capacity of 30,000 units, would be merged into the planned Dongfeng Yulon Motor Co., a joint venture that has reportedly got the mainland's regulatory approval.
The Luxgen-brand vehicle models developed by Yulon, including their techniques, will be swapped for share in Dongfeng Yulon. Yulon plans to invest NT$30 billion (US$923.1 mln) next year to boost market share for Luxgen vehicles in Taiwan and the mainland.
Yulon Group has recently unveiled the Luxgen7 CEO luxury multi-purpose van (MPV), the most luxurious model so far in Yulon's own-brand Luxgen lineup.
Re: Dongfeng-Yulon JV
Re: Dongfeng-Yulon JV
So Yulon and Dongfeng are back together again building cars on the mainland. Yulon, Nissan and GM's partner on Taiwan, was very much present in China in the early 2000s' building Bluebirds under the Dongfeng Aeolus (aka Fengshen) brand, even before Nissan landed its mega JV with Dongfeng
But today's Yulon Motor is very independent now, and much stronger as it teams up with Geely as well, for other lofty plans.....
Yulon, like vintage wine.......
Luxgen SUV spotted out testing in China
First concrete result od Dongfeng-Yulon JV - Luxgen SUV:
Re: Dongfeng-Yulon JV
China govt OKs Yulon's production of Luxgen sedans
Dongfeng-Yulon, a 50:50 joint venture in mainland China, between Dongfeng Motor and Taiwan's Yulon Group, recently received official approval from China's National Development and Reform Commission (NDRC) to produce Yulon's own-brand Luxgen sedans in the country, media reported today.
The Dongfeng-Yulon JV, with a total investment of 3.4 billion yuan ($499 million), will be dedicated to the production of Luxgen vehicles, including MPV, SUV, Sedan and gasoline models as well as various electric cars deriving from those models in their plant, located in Xiaoshan District, Hangzhou city, east China's Zhejiang province.
The first-phase construction of the JV's Xiaoshan plant will be completed in 2011, with an annual capacity of 120,000 vehicles and 120,000 engines. The vehicle capacity will be gradually augmented to 240,000 units, approaching Yulon's annual sales of 280,000 autos in Taiwan.
Reportedly, Yulon sought the partnership of Dongfeng for the joint venture, following failure to obtain the approval of a joint-venture plan with Zhongyu Group of Zhejiang Province by NDRC. Dongfeng was Yulon's first choice for the partnership, which, though, failed to materialize at the beginning.
Dongfeng and Taiwan’s Yulong ink deal to put Luxgen in China
29 September 2010
Earlier today in Beijing, the Chairman of Dongfeng Auto Group Mr. Xu Ping He and Yulong Auto’s Mr. Yan Kai Tai announced the creation of a new partnership that will see Yulong’s Luxgen motors being produced in China. In front of 300 selected guests and VIP’s, Mr. Xu and Mr. Yan announced that the Luxgen brand, originally a Taiwanese branded vehicles that was self developed by Yulong Motor, will be produced in Hangzhou.
Dongfeng Auto are expected to invest 775 million RMB into the partnership, which will see it being a fifty-fifty joint venture run the by the pair. The first Luxgen plant will be based in Hangzhou’s Xiaoshan Industry park and has a wide mandate to produce passenger vehicles including MPV’s, SUV’s, sedans and also pure electric vehicles. Dongfeng will be assisting Yulong with the development of the Luxgen brand for the Chinese market, although it is unclear how far this will go. The first Luxgen model is expected to be produced in July but a launch will happen towards the end of 2011 and will be sold under the Luxgen moniker, although it will be called Na Zhi Zhen in Chinese.
The Taiwanese-Chinese partnership is expected to promote further reunification between the two, which have been separated since the Nationalist government of China fled the mainland in 1949 and set up base camp in Taiwan, however in recent years the Taiwanese and Chinese government have relaxed their stance towards one another. The mainland government gave its blessing to the partnership earlier this year on July 29th, and have since revealed that total investment in the project is expected to reach 3.4 billion RMB.
Luxgen is a relatively new brand and was developed by Taiwan’s Yulong Motor for use within Taiwan and China. Luxgen currently has two models in its line up, both of which have been spotted out testing in the Chinese mainland before now. Luxgen’s MPV and SUV are powered by a 2.2 inline 4 engine built by the Chunghwa Engine Corp and has a turbo supplied by Garret, the engine is good for 173bhp of power (270Nm).
Re: Dongfeng-Yulon JV
Teasers of the Luxgen Neora (concept car):
Source: http://news.u-car.com.tw/news-detail.asp?nid=11622 & http://auto.163.com/10/1116/08/6LJKA6GD0008432U.html
Dongfeng-Luxgen formally announce JV partnership
Taiwan’s Yulong motors has formally signed a joint venture partnership with mainland auto maker Dongfeng, making this Dongfeng’s 6th joint venture partnership after successful partnerships with Honda, Kia, Nissan, and also Peugeot and Citroen.
Dongfeng Auto and Luxgen will have a 50:50 partnership which will be called Dongfeng-Luxgen Auto Company and will have a total investment of 3.4 billion RMB, an R&D center will be created in Hangzhou alongside a new factory which will be capable of producing 240,000 cars per year. In its first term the factory will produce 120,000 vehicles and 200,000 engines.
In 2011 Luxgen will launch their first SUV and MPV models and will aim to have 8 models on the market in the next few years and will include pure electric and also traditional engine forms.
Dongfeng-Luxgen have already set up basic supply chain systems in China and will source materials from both sides of the Taiwan straits. By the end of 2011 Luxgen aims to have around 65 dealers in the Chinese market. This is the first time that a Taiwanese and Mainland Chinese company have worked together in such a capacity, and it is expected to bring about more chances for Chinese mainland and Taiwanese interaction.
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