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Dongfeng Motor Corporation (DFM)

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Dongfeng-Nissan JV to launch new heavy truck range in China
1st June 2006
Dongfeng Motor Co., Ltd (DFL), the joint venture between Nissan Motor Co., Ltd (Nissan) and Dongfeng Motor Group Co., Ltd, has announced that a all-new heavy-duty truck range, ‘Dongfeng Tianlong’, will be launched in China. This truck series, bearing the Dongfeng brand, is manufactured by Dongfeng Commercial Vehicle Company, a subsidiary company under DFL.
The company has fixed a total vehicle sales target of 620,000 units by 2007, of which CVs will account for 320,000 units and cars for 300,000. DFL CV says it aims to be a top three world truck manufacturer, and for the Nissan brand to become ‘one of the best brands in China’.
(Source: DFL release, 1 June)


Dongfeng trucks:


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China' has always been big in making trucks, but its good that DFM is working with Nissan on this even though i didnt know that Nissan had much experience in trucks manufacturing :confused:

History of Dongfeng:


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Volvo keen to buy Nissan's interest in Dongfeng Motor

VOLVO AB, Europe's second-largest truckmaker, wants to discuss with Chinese authorities if it may buy part of Nissan Motor Co's stake in Dongfeng Motor Co to help it expand in the world's most populous country.

Volvo would be interested in taking control of commercial vehicles units of Dongfeng, China's biggest maker of heavy-duty trucks, while staying out of its carmaking operations, Chief Executive Officer Leif Johansson said yesterday at a presentation for investors in Gothenburg, Sweden, where the company is based.

"As a consequence of Nissan Motor exiting their truck assets, we have an opportunity to discuss with Chinese authorities," Johansson said. "It would be interesting if we could find a structure where we focus on the trucks, but it's very complex."

The company, which also builds buses, construction equipment, airplane parts and marine equipment, wants to boost its share of the faster growing markets in China, Japan and Southeast Asia as sales growth in North America and Europe slows from record levels in 2005.

Johansson declined to predict when talks might begin, and said discussions with Chinese authorities are "always sensitive."

Dongfeng Motor is a venture between Japan's Nissan and China's Dongfeng Motor Group Co. Nissan earlier this year sold a 13 percent stake in truckmaker Nissan Diesel Motor Co to Volvo for 1.5 billion kronor (US$210 million), and Johansson said the company had indicated at the time that a deal on Dongfeng might also be possible.

The Swedish truckmaker sold its car operations to Ford Motor Co in 1999 to focus on the more profitable business of commercial vehicles and it now also owns the Renault RVI and Mack truck brands. Volvo in 2001 sold a 3.3 percent stake in Mitsubishi Motors Corp, which at the time built both trucks and cars, to DaimlerChrysler AG, the world's largest truckmaker.

Johansson also reiterated the company's market forecasts for 2006, given in April.

"We will give the same outlook as we did last time," he told reporters on the sidelines of the conference.

In Europe, Volvo expects industrywide sales of as many as 280,000 trucks. European sales last year, including Renault trucks, which Volvo also sells, totaled 277,000, a record. In North America, where the company also sells Mack brand trucks, as many as 350,000 vehicles will be sold, Johansson said.

Paul Vikner, head of the Mack truck unit, said yesterday it was his "personal feeling" that the truck market this year "is not going to be as bad as some people think."
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isnt nissan a much bigger company than volvo?
It is the truck making division of Volvo we are talking about here, which is a different company to the car makind side of Volvo which is owned by Ford. Volvo Trucks is pretty big, but I don't know how that compares with Nissan.
Ukraine’s LuAZ and one of China’s largest carmakers sign contract

by Orysia Kulick, Kyiv Post Staff Writer
Jul 13 2006, 02:27

Ukraine’s second largest car producer, the Lutsk Motor Plant (LuAZ), and one of China’s largest carmakers, Dongfeng Motor Corporation, signed a contract June 30 to jointly develop a new freight and cargo truck manufacturing plant in Cherkasy Region.

In a recent press release, LuAZ announced that the new facility will produce freight and cargo trucks with a capacity of 2-10 tons, and is expected to be operational by the end of 2007. The plant will have the capacity to produce 12,000 freight and cargo trucks annually and potentially about 1,000 new jobs as early as next year.

LuAZ is part of the Bohdan Corporation, a group reportedly linked to pro-presidential businessman Petro Poroshenko, which deals with the production, sale and distribution of cars, trucks and buses of various sizes and trademarks.

About $35 million will be invested into the project by the group, according to a spokesman for the company’s Kyiv office, Serhiy Krasulya. China’s Dongfeng Motor Corporation will supply modern equipment and technical support for the facilities, and will also help set up and launch the new plant. Krasulya could not say whether the trucks would be sold under the Dongfeng trademark or another trademark adapted to the Ukrainian market.

Oleg Omelnytskyj, director of, said that this step “will strengthen the position of Chinese freight and cargo trucks on the Ukrainian market and also make them more affordable to local consumers,” adding that in addition to the new LuAZ facility, two others currently produce trucks of this size – Foton, also in Cherkasy Region, and the Kremenchuk Car Assembly Plant in Poltava Region, which reached an agreement with another leading Chinese car manufacturer, First Automobile Group, Corporation (FAW), to begin commercial assembly of FAW trucks in the fall of 2005.

LuAZ’s new freight and cargo truck plant will adhere to the most stringent European environmental regulations, according to the company press release. The company said it will invest more than $3 million just on equipment that ensures these environmental standards at the new plant.

Elena Fedorey, spokesperson for AIS Corporation, an official dealer for FAW, said that LuAZ’s new facility in Cherkasy “is first and foremost another sign that the range of automobiles being assembled on the Ukrainian market continues to diversify,” adding that FAW is China’s leading manufacturer of freight and cargo trucks and that they haven’t observed significant competition from Dongfeng automobiles because they are in a different price bracket.

Fedorey noted that although the demand for cargo trucks continues to increase in Ukraine, the projected production capacity of the new plant seems ambitious. “In all of 2005, for example, only about 1,800 Chinese freight and cargo trucks were brought to the market.”

LuAZ recently inked a contract with Dongfeng Motor Corporation as part of general expansion efforts by the company, which in addition to developing the freight and cargo truck plant, is also in the process of moving its car manufacturing facilities from Lutsk to another plant located in Cherkasy Region.

This new car manufacturing facility in Cherkasy is currently under construction and is expected to open in 2008. The plant will include a new paint shop and testing facilities for completed cars, and is projected to assemble around 60,000 Ladas and 60,000 Hyundai and Kia cars annually.

According to Krasulya, the company acquired an existing facility from the car manufacturer Roto two years ago to consolidate their manufacturing facilities in central Ukraine and expand their production of automobiles in Ukraine.

“The car market is growing dynamically and it was not possible to expand our facilities in Lutsk because of certain limitations,” Krasulya said, adding that by concentrating their manufacturing facilities in Cherkasy, the company will also be able to economize on logistical costs.

Autoconsulting’s Omelnytskyj concurred that “the Bohdan Corporation’s current strategy is geared toward concentrating their main operating facilities in Central Ukraine … a justifiable location given that it makes little logistical sense to transport cars and trucks from its facilities in western Ukraine to buyers in eastern regions.”

Moreover, according to Omelnytskyj, western Ukraine also has a considerable bus manufacturing tradition, which should make the Lutsk plant’s transition from auto and bus to exclusively bus manufacturing a natural one.
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great contracts are always a good sign of entering foreign markets

Products of Hubei God sail Special Purpose Vehicle:


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Nissan Diesel to continue relationship with China's Dongfeng

Last Update: 5:20 AM ET Sep 25, 2006

TOKYO (MarketWatch) -- Nissan Diesel Motor Co.'s (7210.TO) top executive Monday said the company would continue its relationship with its Chinese partner Dongfeng Motor Group Co.
Nissan Diesel President and Chief Executive Iwao Nakamura was speaking after Sweden's Volvo AB (VOLV) said it would buy Nissan Motor Co.'s (7201.TO) remaining stake of about 6% of outstanding shares in the Japanese truck maker.
Dongfeng Tianlong broke new record - 600 trucks/month

November 07, 2006

After broke the monthly output record of 500 in October, Dongfeng Tianlong commercial vehicle assembly plant has a monthly output of 600, creating a new high.

As the main produce position, the assembly plant put their attention on upgrading new products’ quality and performance from May 18 of this year. And they have got a good active course. By the end of October, they have solved 51 puzzling problems including 27 constructions and installation problems, 6 technique and procedure problems, 5 product problems and 13 design problems.

Now, Dongfeng Commercial Vehicle Company is compartmentalizing the market according to the market requirements, and creating new products to acclimatize themselves to different requirements from different customers.
China's Dongfeng in Talks With Volvo

Last updated: Sunday, January 21, 2007 11:39 PM EST

HONG KONG - Chinese automaker Dongfeng Motor Group Co. said Monday it is considering selling a stake in a commercial vehicle unit to Swedish truck maker AB Volvo.

The unit is part of Dongfeng's joint venture with Japan's Nissan Motor Co. The three parties were discussing whether Volvo would replace the Japanese company as Dongfeng's partner in the medium and heavy-duty commercial vehicles arm, the Chinese automaker said in a statement.

Nissan would then focus on just the passenger car and light commercial vehicle unit, said Dongfeng, which is listed in Hong Kong.

Dongfeng said the companies have not entered any binding agreements that will require the approval by the relevant authorities of Beijing.

Dongfeng Motor, set up in June 2003, is owned equally by Nissan and Dongfeng. Under the joint venture, passenger cars are produced under the Nissan brand, while trucks under the Dongfeng name.

Volvo, the world's second-biggest truck maker by sales, has said it was interested in taking over Nissan's stake in Dongfeng's truck unit. Volvo Chairman Finn Johnsson said in September that any decision on a deal involving Dongfeng may take 18 months from that time.

Volvo's planned expansion in China is part of the Gothenburg-based company's plans to expand its market share in Asia. In April last year, it bought a 13 percent stake in Nissan Diesel Motor Co., Nissan's truck-making unit, with the option to increase the stake to 19 percent.

Volvo draws most of its truck sales from Europe and North America, and has a market share of just 0.7 percent in Asia, according to the company.

A service of the Associated Press(AP)
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Dongfeng Auto First-Quarter Profit Rises 24% on Truck Sales

By Kyunghee Park

April 28 (Bloomberg) -- Dongfeng Automobile Co., a Chinese partner of Nissan Motor Co., said profit increased for a third straight quarter, by 24 percent, as China's surging economy boosted demand for trucks and other commercial vehicles.

Net income in the first quarter rose to 131.4 million yuan ($17 million), or 0.0657 yuan per share, from 105.9 million yuan, or 0.053 yuan per share, a year earlier, the company said today in a statement filed to the Shanghai stock exchange. Sales rose 30 percent to 2.98 billion yuan.

Automakers are introducing more models and cutting prices to increase market share in China, where economic growth has enabled more people able to buy cars. Vehicle sales have more than tripled over the past five years in China, which surpassed Japan as the world's second-largest auto market last year.

Dongfeng, a truckmaker based in Wuhan in central China, makes engines with Columbus, Indiana-based Cummins Inc. The company's parent is equally owned by Hong Kong-listed Dongfeng Motor Group Co. and Nissan, Japan's third-largest automaker.

Dongfeng Auto said in March that 2006 vehicle sales rose 17.5 percent to 126,200 units and engine sales gained 12 percent to 96,300 units. In addition to Nissan products, the company also makes its own truck brand, Duolika.

Dongfeng Auto aims to raise annual vehicle sales to 30 billion yuan by 2011, according to the company's Web site. Sales of trucks and buses may rise 7.8 percent to 2.2 million units in China this year, according to the China Association of Automobile Manufacturers.

Shares of Dongfeng Auto fell 2.3 percent to 8.19 yuan in Shanghai. The stock has more than doubled this year, compared with a 70 percent gain for the Shanghai and Shenzhen 300 Index.

To contact the reporter on this story: Kyunghee Park in Hong Kong at [email protected] .

Last Updated: April 27, 2007 20:46 EDT
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Dongfeng eager to introduce vehicles in Pakistan

"The China Commercial Automobile Company-Dong Feng wants to introduce buses, trucks and pick-ups in Pakistan according to the market demand. Experts from both sides should work out a possibility of a joint venture between Dong Feng and Pakistan Automobile Company (PACO).

This was stated by a delegation of Dong Feng Automobile Co Ltd, which held a meeting with Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen on Thursday. The minister appreciated the delegation for showing interest in Pakistan¡¯s auto sector. The Dong Feng delegation is on a visit to Pakistan to discuss the possibility of a joint venture with PACO. The meeting was also attended by Shahab Khawaja, Secretary for Industries, Production and Special Initiatives, Engineering Development Board (EDB), PACO and other senior officials.

The meeting was held to discuss the possibility and terms and conditions of the joint venture between PACO and Dong Feng. Dong Feng¡¯s representatives in their presentation told the meeting that Dong Feng is one of the biggest automobile manufacturers in China. Trucks, pick-ups and buses are the main products of the company. The Dong Feng delegation further said that they want to introduce their products in Pakistan according to the market demand. It was decided in the meeting that discussions would continue between experts from both the sides to work out a possibility of a joint venture between Dong Feng and PACO. The minister assured full cooperation and support to the Chinese delegation and said that every effort will be made to make this joint venture a success once all the formalities and modalities are agreed and settled. staff report."

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Dongfeng to Joint Venture With Volvo in May 08

i like volvo :)

SHANGHAI - August 13, 2007: Dongfeng commercial vehicle and AB Volvo are in talks about setting up a joint venture next year, a source from Dongfeng Motors said.

"If nothing goes wrong, the two companies will officially start cooperation by next May," the unnamed sources from Dongfeng Motor said yesterday.

In January, Dongfeng and Volvo signed a draft agreement. Under this draft agreement, AB Volvo will be Dongfeng Motors next partner after Nissan in the commercial vehicle production.

"Star of Dongfeng" light truck

Currently, the two parties are awaiting the approval from Chinese government.

"Dongfeng engine plant is likely to introduce the Renault-made engines and produce it locally,"a Dongfeng Motors official said.

The output and sales of commercial vehicle boomed in the first half of this year. China Heavy Vehicles and Shanxi Heavy Vehicles, whose commercial vehicles sales grew 68.33% and 87.55% respectively in the first half year.

By contrast, Dongfeng Motors' market share in commercial vehicles declined 4%. Thus, Dongfeng Motors is eager to have a new partner to boost its flagging commercial vehicle production.
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Volvo might be in for long wait with Dongfeng JV

BRUSSELS (Reuters) - Swedish industrial group Volvo AB (VOLVb.ST: Quote, Profile, Research) could have to wait years before it can begin manufacturing heavy trucks in China together with potential joint venture partner Dongfeng Motor Group Co Ltd (0489.HK: Quote, Profile, Research).

"We are 90 percent through with our discussions," Volvo Deputy Chief Executive Jorma Halonen told Reuters in Brussels on Thursday, adding though that progress in talks was not the only factor affecting its timetable.

When asked when the joint venture could be finalized, Halonen said it could take anywhere between 2 to 15 years
Dongfeng sold 170,000 commercial vehicles in January to november

Shanghai, December 6, ( - Dongfeng Commercial Vehicle Company, a division of Dongfeng Motor Group, sold 171,113 commercial vehicles during the past 11 months this year, of which 20,075 units are Dongfeng's newly launched heavy-duty truck models, according a recent announcement made by Dongfeng Motor Group.

Sales of Tianlong and Dalishi, the company's latest launched heavy-duty truck models, has reached 21,991 units within 18 months since they hit market. The growth is faster than any other newly launched heavy truck models in the Chinese market.

The company said it has achieved its 2007 full-year sales target by the end of the past November. The company also planned to sell 5,500 heavy trucks in overseas market and it has sold 4745 vehicles year to date.

Dongfeng Commercial Vehicle Company, is China's second largest heavy truck maker in China. It sold 47,903 heavy-duty trucks during the past three quarters, which represents 20 percent of the market share, second only to Sinotruck's 22 percent.

Volvo AB, the Swedish industrial group is reportedly to be in talks of establishing a joint venture with Dongfeng to manufacture heavy trucks in China.
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Volvo, Dongfeng talks near completion.

February 13, 2008 – Despite setbacks, negotiations between AB Volvo Group and Dongfeng Commercial Vehicle Company have entered the final stage. The two sides will create a 50-50 joint venture in China to produce Volvo and other brands heavy duty trucks.

An unnamed executive from Volvo (China) Investment Co. denied an earlier report that "Volvo could have to wait years before it could start production of heavy trucks in China with Dongfeng", saying that the negotiation is making progress as scheduled.

According to a memorandum of understanding that Volvo AB and Dongfeng Motor signed in early 2007, the two sides will sign an official joint venture agreement in 2008.

Dongfeng has reserved a plant site near its headquarter in Wuhan city, Hubei province. But the joint venture will operate in both Wuhan and Shiyan, a city that is home to Dongfeng’s commercial vehicle production facilities, according sources familiar with the joint venture project.

The joint venture plant, with a designed capacity of 200,000, is expected to produce both Dongfeng and Volvo brands trucks, as well as engines for Renault heavy duty trucks, according to the MOU.

Volvo-brand heavy trucks will be its high-end products produced by the joint venture while Dongfeng-brand will take the middle or lower-end segment. Volvo trucks produced by the joint venture will be sold through Dongfeng's existing distribution network.

Volvo Group sells Volvo, Renault, Mack and Nissan Diesel brands. The company sold around 6,000 trucks in Chinese market over past years, while Dongfeng sold a total of 188,000 commercial vehicles in China last year.
Re: Dongfeng Tianlong

Dongfeng light trucks sell 10,000 units in 3 months

August 28, 2008

Shanghai, August 28 ( Dongfeng Motor said Wednesday that the terminal sales of its third-generation light truck has surpassed 10,000 units since the models were launched onto the market three months ago, and the sales are seeing a month-on-month increase, reported China Business News today.

The project of developing the new-generation Dongfeng light trucks started on February 10, 2006, as part of the three series (Xiaobawang, Jinba, Duolika) of Dongfeng product upgrade project, which include up to 200 models. The overall upgrade program is intended to boost the vehicles' quality and make them meet the latest emissions standards at home and abroad.

The sales growth of the Dongfeng light trucks, which were designed and built to meet the China III emissions standard, indicates that new-generation vehicle models are gaining wider recognition and acceptance in the country's auto market.

Compared with their predecessors, the all-new products have increased Dongfeng light truck's brand value. The application of new light material and eco-friendly cutting-edge technology has greatly improved the Dongfeng brand.
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