China: Dongfeng to launch own brand trucks
Monday, November 06, 2006, AutomotiveWorld.com
Dongfeng Motor Corporation will introduce its own brand of commercial vehicles in 2008, The Standard newspaper has reported, citing the company's Hong Kong-listed subsidiary, Dongfeng Motor Group.
The Group currently manufactures and sells passenger and commercial vehicles through joint venture operations with Nissan, PSA Peugeot-Citroën and Honda.
According to the report, the business may eventually be bought by its subsidiary. "We will let our parent company develop Dongfeng's own branded vehicles. Then we will buy the business when the profit margin becomes comparable to that of the existing business," executive director and president of Dongfeng Motor Group, Liu Zhangmin, was quoted as saying by The Standard.
In the first ten months of fiscal 2006-2007, the group sold 594,932 vehicles, 35.3% of which were commercials. Its first-half profits grew by 69% thanks to strong sales at Nissan, PSA Peugeot-Citroën and Honda. Dongfeng's net income in the same period rose to Yuan 1.11bn (US$139m) from Yuan 660m (US$82.90m) a year earlier.
Published on Monday, November 06, 2006
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