Dongfeng Motor Corporation (DFM) and the Swedish contracting engineer T Engineering recently signed two deals whereby DFM acquired 70% of T Engineering’s shares and agreed on project cooperation, so that, as DFM put it, “the first international R&D base of Dongfeng is now officially settled in Sweden.” DFM has contracted to buy the remaining 30% of T Engineering’s equity within two years.
T Engineering is to provide electronic control technology support and services for DFM’s China-developed PSVs and commercial vehicles, and “further accelerate and promote Dongfeng’s internationalisation process.” An initial three specific projects are now underway.
T Engineering is located in the Innovatum Science Park in Trollhattan, and currently has 32 employees. Its main R&D activity has been focused on engine control systems, hybrid and electric powertrains, and transmission and chassis control systems. It has several years’ experience in automotive software and the development of electronic products. In future, under DFM’s wing, the company is expected to expand its fields of expertise into e.g. electrical architecture.
T engineering will henceforth be run as an overseas R&D institute affiliated to DFM, but is to retain its independence and undertake R&D projects for other companies besides DFM’s various business units.
The acquisition of T Engineering is described by DFM as an important measure to enhance its in-house development capacity fast and effectively. “In automotive R&D, software and electronic control units play a crucial role, but it is also the technical bottleneck that makes it difficult for Chinese own brand manufacturers to break through,” admitted the Chinese OEM.
DFM plans to further expand its overseas R&D business from the base of T Engineering, extending from electronic controls to transmission systems and vehicle platforms and further, to build “an international centre that broadly utilises European automotive technical personnel.”
