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Dongfeng Motor Corporation

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Dongfeng Motor Corporation
Type Public
Founded 1969
Headquarters Wuhan, Hubei, China
Key people Xu Ping
Industry Automotive
Products Motor Vehicles
Employees 106,000 (approx.)
Website www.dfmc.com.cn
Dongfeng Motor Group Co[1] (SEHK: 0489) (
中文:
) and Dongfeng Automobile Co Ltd (SSE: 600006) (
中文:
) are publicly listed, Chinese vehicle manufacturers that are part of a single entity, Dongfeng.

In 2010, the company sold 2.72[2] million units making it the second most-productive Chinese vehicle-maker.[3] It reported 1.72 million sales of passenger vehicles that same year.[4]

Dongfeng is the Chinese partner in joint ventures with companies including Nissan,[1] Honda,[1] Kia Motors,[5] and PSA Peugeot-Citroen.[6]

Also manufacturing spare parts[7] as well as buses, trucks, and cars sold eponymously at home and abroad,[8] Dongfeng is traditionally one of the "top 4" domestic automakers.[9]

Contents

HistoryEdit

Construction beijing 2008 water cube 7
Dongfeng truck during the construction of Beijing's "Water Cube"
Scoty6776Added by Scoty6776
DFM Mini Van EQ5021
DFM Mini Van EQ5021 in Chile, 2008
Scoty6776Added by Scoty6776

Historically also known as "Second Automobile",[10] Dongfeng, or East Wind in Chinese, was founded in 1981[10] or 1969.[11] Perhaps its origins lie in a 1968 dictate of Chairman Mao Zedong as part of his "Third Front" strategy its far inland location in Hubei Province meant to protect it from foreign invasion. Traditionally manufacturing commercial vehicles, by 2001 these made up roughly half of production.[11]

GrowthEdit

Eventually rising to become the second-largest domestic automobile manufacturer in China,[1] by the mid-eighties its assets had tripled from those initially given to it by the state in 1981, and management was desirous of even greater production capacity.[10] By 1995 the company was experiencing financial difficulties, as was the case with many automobile manufacturers at this time.[7]

Dongfeng was asked by the state in 2009 to help spearhead further consolidation efforts in the sprawling Chinese auto industry[12] as were many other auto-making entities with close ties to the Chinese State.

That same year, it sold 1.9 million vehicles[13] ranking second among domestic automakers[1] and third overall.[9]

Conflicts with the StateEdit

Once considered a discrete entity by the state for planning purposes in the 1980s,[10] this state owned enterprise[14] has come into conflict with authority at both the national and provincial levels.[15] Alongside First Automobile Works it saw the successful dismantling of the Automobile Corporation, a central government entity presumably tasked with preventing non-competitive business practices through dictating output volumes and curtailing purchasing, as well as exasperation at the right of the State to make managerial appointments.[10]

Recent eventsEdit

At the 2010 Beijing Auto Show Dongfeng showed an electric vehicle concept car, a physical representation of its vow to bring an electric car to market by 2015. China subsidies oil and Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.[16]

Own brand passenger vehiclesEdit

Currently selling under only one own brand, newer Nissan technology will underpin Dongfeng sales starting in 2012.

FengshenEdit

2009 saw the release of their own-branded sedan, the Fengshen S30.[17] Dongfeng-made passenger vehicles were, until the S30, all made by Chinese-foreign joint ventures and carried foreign brand names. These JVs continue to produce the great majority of its passenger products as of 2010.[17]

The own-brand models now include a hatchback as well, the Fengshen H30.[17]

VenuciaEdit

A Dongfeng/Nissan own brand, its cheaper offerings and ties to a famous-name foreign automaker attractive to the less-affluent inland city consumer,[18] Venucia (Qi Chen) is expected to sell new models (based on old Nissan technology) starting in 2012.[19]

The name is derived from that of the Roman god of beauty, Venus.[19]

Joint venturesEdit

Dongfeng is the Chinese partner in many joint ventures that make trucks and cars.

CumminsEdit

A subsidiary of Dongfeng subsidiary Dongfeng Automobile Co Ltd,[20] Dongfeng Cummins Engine Co Ltd is a joint venture with American engine-maker Cummins that was established in 1995[21] and manufactures truck engines,[22] etc.

DanaEdit

Dongfeng established its joint venture with American parts-maker Dana Corporation, Dongfeng Dana Axle Co, c. 2005.[23] As of 2011, Dana and Dongfeng both have 50% ownership of this joint venture.[24]

HondaEdit

Based in Wuhan, Hubei province,[25] Dongfeng Honda Automobile Company was established in 2003[25] and manufactures Honda-branded SUVs and automobiles for the Chinese-market.[26] Products produced by this joint venture with Honda[26] include the Honda Civic hybrid[27] and the CR-V.[28] Dongfeng also owns 10% of Honda's importer in Guangdong Province, Honda Automobile (China) Company, in addition to a joint venture engine manufacturing company, Dongfeng Honda Engine Co.

In 2010, its model line included what was China's most-purchased SUV that year, the CR-V.[29] Other Honda-branded models sold in China are made by Guangqi Honda Automobile (of the Guangzhou Automobile Group), but in 2004 Honda made an agreement that allowed it to sell Dongfeng-built CR-Vs through Guangzhou's showrooms.[30]

KiaEdit

A joint venture with the Korean Kia Motors, Dongfeng Yueda Kia Automobile Co is based in Yancheng, Jiangsu province and produces Kia-branded automobiles for the Chinese market.[31]

While Kia car assembly began at a non-Dongfeng affiliated company with the Kia Pride in 1997 at Jiangsu Yueda Auto Works, an equally owned partnership (Yueda Kia Motors) was formed in 1999, and Dongfeng took over half of Jiangsu Yueda's ownership of that in March 2002.[32] Kia has a 50% share while Dongfeng and Jiangsu Yueda Investment Co Ltd (SSE: 600805) each hold 25% ownership.[33]

In 2010 its Sportage was the 8th most-purchased SUV in China.[34]

The company has two production bases in China.[35]

NissanEdit

Nissan and Dongfeng have a long-standing relationship. Early on, the Chinese company produced diesel-powered Nissan trucks built from complete knock down kits, and Nissan has lent Dongfeng technical assistance.[36] When the Chinese State began allowing foreign automakers access to its market though joint ventures with Chinese companies, Nissan chose Dongfeng. It remains the only Chinese parter of Nissan,[37] although each foreign automaker is allowed two Chinese partners.[31]

Dongfeng Motor CompanyEdit

Main article: Dongfeng Motor Company

Established in 2002[11] and beginning operations with Nissan in July 2003,[38] Dongfeng Motor Co Ltd manufactures Dongfeng-branded heavy trucks, Dongfeng and Nissan-branded light commercial vehicles, and passenger vehicles[39] for the Chinese market. A few of its Dongfeng-branded light commercial vehicles have been exported to Afghanistan, Pakistan, Africa, and the Middle East.[40]

It is equally owned by Dongfeng Motor Group Co and Nissan China Investment Co,[39] and as of 2010 it is the largest joint venture automobile manufacturer in China.[41]

Other Nissan activitiesEdit

Zhengzhou Chaiyou
Dongfeng Rich (Rui Qi, Zhengzhou ZN1021)
Scoty6776Added by Scoty6776

Other joint ventures include the Dongfeng Nissan-Diesel Company, which produces heavy trucks, and Dongfeng Nissan Passenger Vehicle Co (Zhengzhou Nissan Automobile), a unit of Dongfeng Motor Company[42] that makes automobiles for the domestic market and has exported to Egypt.[43] Another unit of Dongfeng Motor Company, Zhengzhou Nissan Automobile Co, manufactures light commercial vehicles.[44] Most Zhengzhou products are sold under the Dongfeng brand, such as the Dongfeng Rich (Rui Qi),[45] a reworked Nissan D22.[46]


ModelsEdit
InfinitiEdit

Infiniti-branded vehicles are most probably imported.[47]

PSA Peugeot-CitroënEdit

Main article: Dongfeng Peugeot-Citroën Automobile

Dong Feng Peugeot Citroën Automobile Company is a joint venture with PSA Peugeot-Citroën set up in 1992 and based in Wuhan, capital of Hubei province.[48]

Currently selling a range of Peugeot and Citroën models, its first offering was a hatchback built from semi-complete knock-down kits, the ZX Fukang. Its first Peugeot-branded product was introduced in 2002.[48]

Some of the engines made by this joint venture are used in other Dongfeng passenger car products the Fengshen S30 and H30, for example.[49]

YulonEdit

An equally owned joint venture with Taiwanese automaker Yulon Motors, Dongfeng Yulon[50] (or Dongfeng Luxgen[51] or Dongfeng Yulong[52]), was set up in 2009[53] and will manufacture Yulon's Luxgen models in China after the completion of a planned production base in the Hangzhou Xiaoshan Linjiang Industrial Zone in 2011.[50] The cars will be sold in China[54] and production capacity will initially be 240,000 units/year.[55] 120,000 of these units are vehicles and the other half engines.[56]

As of late 2010, 35 out of a planned 60 sales outlets have signed on to sell the Taiwanese cars. This JV is Dongfeng's second try at a cooperation with this Taiwanese company.[50]

Production bases and facilitiesEdit

Originating from Hubei province, Dongfeng now has sites in many places throughout China.

Dongfeng sitesEdit

Its first production base for passenger vehicle manufacture is in Wuhan, capital of Hubei province, and the second, in the city of Wenzhou, Zhejiang province.[7] Some commercial vehicles are most likely made in the city of Shiyan, Hubei province, as it is the home to a Dongfeng commercial vehicle division.[57]

Joint venture sitesEdit

Joint venture sites are located all over China.

WuhanEdit

Dongfeng has multiple production bases in Wuhan, capital of Hubei province.[58] Two[58] are for its joint ventures with Honda, one of which should see completion in 2012,[59] and another two are for its joint venture with PSA Peugeot Citroën.[48] A third Wuhan base for this latter joint venture is planned.[60]

XiangfanEdit

Various sites in Xiangfan, Hebei province, produce Cummins truck engines,[7] Thomson International thermostats,[36] disc brakes in cooperation with the Heubei Asbestos Product Mill and the Italian ALA,[36] powertrains for its joint venture with PSA Peugeot Citroën,[48] light commercial vehicles for a joint venture with Nissan,[37] and cars.[37]

ShiyanEdit

A Nissan joint venture engine production base in Shiyan, Hubei province, produces diesel engines, and other sites here produce auto parts.[37]

ZhengzhouEdit

A joint venture with Nissan has a production base, Zhengzhou Light Truck plant, in Zhengzhou, capital of Henan province.[37] In 2010, this was joined by a second increasing production capacity by 120,000 units/year.[61] Production capacity figures may consider engines and vehicles as discrete.

GuangzhouEdit

A passenger-car production base[62] and technical center[63] in Guangzhou, Guangdong province,[62] is part of both the Nissan joint venture Dongfeng Motor Co[11] and a unit of that joint venture,[42] Dongfeng Nissan Passenger Vehicle Co.[64]

Another Guangzhou production base manufactures Nissan engines.[65] Yet another produces engines for the Dongfeng-honda joint venture.[30]

A Huadu District, Guangzhou city, Guangdong province, production base is under construction as of late 2010.[61] It will have a 240,000 units/year production capacity,[61] but these may be engines not vehicles. It could be the large-scale vehicle production base currently being built that will expand Dongfeng-nissan local production capacity to 600,000 units/year.[49]

Jiangsu provinceEdit

Its joint venture with Kia has two production bases the newer located in the Yancheng Economic Development Zone of Jiangsu province.[33]

ShanghaiEdit

An R&D center in Shanghai,[48] the China Tech Center, is wholly owned by PSA Peugeot Citroën[60] but lends assistance to Dongfeng's joint venture with this French automaker.

Overseas activitiesEdit

Dongfeng is involved in a number of ventures in foreign countries, including Indonesia and Myanmar.[66]

The PhilippinesEdit

Main article: Dong Feng Motor Philippines

China Dong Feng Motor Distributors, Inc. Philippines is the sole manufacture/distributor of Dong Feng brand in Philippines.

The main business are sales of the Dongfeng series light commercial vehicles, Dongfeng Cummins engines parts, mini-vans, the Special Purpose Vehicle series, pickups, buses, tractor heads and dump trucks etc.

VietnamEdit

A Dongfeng company, Dongfeng Liuzhou Motor Co Ltd, sells in Vietnam.[66]

ParaguayEdit

A Dongfeng subsidiary, Zhengzhou Nissan Automobile, in early 2011 signed a deal with AM Reguera, a Paraguayan company that assembles automobiles and makes appliances, for the manufacture of pick-up trucks scheduled to start in 2012 after construction of a production base in Capiatá.[67]

United Kingdom and IrelandEdit

DFSK UK is the trading name of Vestatec Automotive Distribution Ltd., (VAD Ltd.) a British company established specifically to import and distribute DFSK mini vans into the UK and Ireland. In December 2011 DFSK launched a range of four mini vans called DFSK Loadhoppers into the UK light commercial vehicle market.

ReferencesEdit

Smallwikipedialogo.png This page uses some content from Wikipedia. The original article was at Dongfeng Motor Corporation. The list of authors can be seen in the page history. As with Tractor & Construction Plant Wiki, the text of Wikipedia is available under the Creative Commons by Attribution License and/or GNU Free Documentation License. Please check page history for when the original article was copied to Wikia

  1. ↑ 1.0 1.1 1.2 1.3 1.4 UPDATE 2-Incentives boost China's SAIC Feb auto sales 45 pct reuters.com, Mon Mar 8, 2010 10:09pm EST
  2. ↑ China Car Market 101: Who Makes All Those 18 Million Cars? thetruthaboutcars.com, January 19, 2011
  3. ↑ Sales surge, but congestion concerns rise people.com.cn, November 15, 2010
  4. ↑ Dongfeng hits 2010 target 40 days early chinadaily.com.cn, 2010-11-29
  5. ↑ "Kia to Launch New China Plant in 2007". WardsAuto.com, Vince Courtenay, Nov 15, 2006.
  6. ↑ UPDATE 1-PRESS DIGEST - China - March 3 reuters.com, Tue Mar 2, 2010 8:25pm EST
  7. ↑ 7.0 7.1 7.2 7.3 Industrial change in China: economic restructuring and conflicting interests, page 89 By Kate Hannan, Routledge, 1998, ISBN 0415162467, 9780415162463
  8. ↑ The new Motor City money.cnn.com, OCTOBER 28, 2008: 10:03 AM ET
  9. ↑ 9.0 9.1 New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
  10. ↑ 10.0 10.1 10.2 10.3 10.4 Industrial change in China: economic restructuring and conflicting interests, pages 23-25 By Kate Hannan, Routledge, 1998, ISBN 0415162467, 9780415162463
  11. ↑ 11.0 11.1 11.2 11.3 NISSAN AND DONGFENG TO ESTABLISH THE MOST COMPREHENSIVE PARTNERSHIP IN COMMERCIAL AND PASSENGER VEHICLE OPERATIONS IN CHINA Nissan Official Site, September 19, 2002
  12. ↑ Spencer: China's Auto Consolidation: Birth of the Behemoths JLM Pacific Epoch, March 23, 2009
  13. ↑ "Dongfeng Motor: Company Profile", ChinaAutoWeb.com. 
  14. ↑ Outpacing its green due, China pursues leadership in new energy solutions xinhuanet.com, 2009-07-21
  15. ↑ Industrial change in China: economic restructuring and conflicting interests, page 96 By Kate Hannan, Routledge, 1998, ISBN 0415162467, 9780415162463
  16. ↑ For China's oil subsidy, see China's fuel subsidy costs the world reuters.com, Wed Jun 4, 2008 8:08am EDT
  17. ↑ 17.0 17.1 17.2 Dongfeng offering own-brand sedans chinadaily.com.cn, 2010-02-08
  18. ↑ AUTOSHOW-China joint venture brands eye growth in inland cities reuters.com, Mon Dec 20, 2010 5:44am EST
  19. ↑ 19.0 19.1 Dongfeng Nissan unveils a new brand for China Nissan Official Site, September 8, 2010
  20. ↑ Introduction Dongfeng Automobile Co Ltd Official Site
  21. ↑ How Cummins Does It: The engine maker runs different game plans in India and China businessweek.com, AUGUST 22, 2005
  22. ↑ Introduction Dongfeng Automobile Co. Ltd. Official Site
  23. ↑ COMPANY NEWS; DANA FORMS VENTURE WITH DONGFENG MOTOR OF CHINA nytimes.com, March 11, 2005
  24. ↑ Dana Expands Its Control in Two Ventures in China, India wsj.com, JULY 6, 2011, 1:25 A.M. ET
  25. ↑ 25.0 25.1 Dongfeng Honda Automobile Co., Ltd. Honda Official Site
  26. ↑ 26.0 26.1 Honda takes Civic to China. By: Webb, Alysha. Automotive News, 3/27/2006, Vol. 80, Issue 6195
  27. ↑ Dongfeng Is Plugged Into China's Electric Car Market by Gordon Platt. Global Finance. New York: Feb 2010. Vol. 24, Iss. 2; pg. 16
  28. ↑ Dongfeng Honda's new CR-V goes on sale in Guangzhou. China Business News. Shanghai: Mar 15, 2010.
  29. ↑ Top 10 Best-Selling Sedans and SUVs in 2010 chinaautoweb.com, January 14, 2011
  30. ↑ 30.0 30.1
  31. ↑ 31.0 31.1 Dongfeng Motor Corp. By: Treece, James B. Automotive News, 5/14/2007 Supplement, Vol. 81
  32. ↑ (2006) World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o., 230–231. 
  33. ↑ 33.0 33.1 Dongfeng Yueda Kia Says 2nd Factory to Start Production Soon. SinoCast China Business Daily News. London (UK): Aug 6, 2007.
  34. ↑ Top 10 Best-Selling Sedans and SUVs in 2010 chinaautoweb.com, January 14, 2011
  35. ↑ Hyundai lines up slew of new models, ups forecast chinadaily.com.cn, 2010-01-05
  36. ↑ 36.0 36.1 36.2 Industrial change in China: economic restructuring and conflicting interests, page 90 By Kate Hannan, Routledge, 1998, ISBN 0415162467, 9780415162463
  37. ↑ 37.0 37.1 37.2 37.3 37.4 "Nissan's China Business" Nissan Official Site, May 2009
  38. ↑ The English Translation of the "Yukashoken-Houkokusho" for the year ended March 31, 2006, Page 4 Nissan Official Site,
  39. ↑ 39.0 39.1 PDF file of a 04-07 Mid-term Plan Presentation Nissan Official Site, June 16th, 2008
  40. ↑ China section of Nissan Annual Report, 2006-07 Nissan Official Site
  41. ↑ Dongfeng Motor announces management changes. China Business News. Shanghai: Mar 16, 2010.
  42. ↑ 42.0 42.1 DONGFENG NISSAN RELEASES NEW TEANA IN CHINA Nissan Official Site, Apr 20, 2006
  43. ↑ DONGFENG NISSAN PRODUCES ONE MILLIONTH VEHICLE IN CHINA Nissan Official Site, September 19, 2008
  44. ↑ ZHENGZHOU NISSAN LAUNCHES HIGH-END LCV NT400 CABSTAR IN CHINA Nissan Official Site, November 12, 2009
  45. ↑ "Dongfeng Rich Pickup Truck from Zhengzhou Nissan". ChinaAutoWeb (2010-12-13).
  46. ↑ "憨厚新浪汽车试驾郑州日产锐骐皮卡汽油版" (in Chinese). Zhengzhou Nissan Automobile Co (2009-10-31). Retrieved on 2010-11-12.
  47. ↑ NISSAN AND DONGFENG TO SET UP CHINA AUTO FINANCE COMPANY Nissan Official Site, August 30, 2006
  48. ↑ 48.0 48.1 48.2 48.3 48.4 China Division: PSA Peugeot Citroën in China; NEWS KIT PSA Peugeot Citroën Official Site, April 2010
  49. ↑ 49.0 49.1 Dongfeng sales continue surge chinadaily.com.cn, 2010-06-28
  50. ↑ 50.0 50.1 50.2 Cross-Straits partnership links Dongfeng and Yulon chinadaily.com.cn, 2010-12-20
  51. ↑ Dongfeng-Luxgen formally announce JV partnership chinacartimes.com, December 14, 2010
  52. ↑ Leading car makers across Taiwan Strait set up JV chinadaily.com.cn, 2010-12-15
  53. ↑ Prospect of Chinese sales drives Yulon Motor shares up taipeitimes.com, Tue, Sep 07, 2010
  54. ↑ Yulon’s LuxGen heading to China taipeitimes.com, Wed, Feb 17, 2010
  55. ↑ Leading car makers across Taiwan Strait set up JV chinadaily.com.cn, 2010-12-15
  56. ↑ Dongfeng forges JV with Taiwan carmaker chinadaily.com.cn, 2010-10-11
  57. ↑ China's auto industry not overheated, analysts say chinadaily.com.cn, 2010-10-18
  58. ↑ 58.0 58.1 Honda to build 168 mln USD new plant in China xinhuanet.com, 2010-01-21 00:11:20
  59. ↑ Honda says JV with Dongfeng to build new China plant reuter.com, Wed Jan 20, 2010 1:18am EST
  60. ↑ 60.0 60.1 Peugeot sees China driving its brand chinadaily.com.cn, 2010-10-29
  61. ↑ 61.0 61.1 61.2 Ready consumer cash fueling robust sales chinadaily.com.cn, 2010-10-25
  62. ↑ 62.0 62.1 Dongfeng Motor Company Passenger Vehicle's Guangzhou Huadu Plant Goes into Operation Nissan Official Site, May 18, 2004
  63. ↑ DONGFENG MOTOR COMPLETES NEW DONGFENG NISSAN TECHNICAL CENTER Nissan Official Site, March 20, 2006
  64. ↑ DONGFENG MOTOR CO., LTD. ANNOUNCES THE EXPANSION OF HUADU PLANT IN GUANGZHOU Nissan Official Site, July 29, 2009
  65. ↑
  66. ↑ 66.0 66.1 China, ASEAN in creation of win-win situation chinadaily.com.cn, 2010-10-29
  67. ↑ AM Reguera fabricará desde el 2012 camionetas en Capiatá ultimahora.com, Monday, February 21, 2011 (Translated)

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