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. It is highly likely that we will see the Luxgen brand being shined loud and bright at next week’s Guangzhou Auto Show, we will have to wait and see to learn more.