Dongfeng and Taiwan's Yulon form China production venture
State-owned Dongfeng Motor Co. and Taiwan's Yulon Motor Co. have unveiled a 50-50 production joint venture that will produce both gasoline- and electric-powered cars.
The new venture - Dongfeng Yulon Motor Co., located in the east China city of Hanzhou - will build a range of vehicles carrying Yulon's Luxgen brand.
The new venture will launch eight models over the next few years. The partnership will develop both gasoline and electric powertrains for each model, Dongfeng said in a statement.
The first model will be an SUV that will make its debut in the third quarter of 2011. Further details on the product line have yet to be disclosed.
By 2013, the joint venture will build up to 240,000 vehicles. Annual output will increase to 500,000 units by 2018.
Total investment in the joint venture is estimated at 3.4 billion yuan ($515 million).
Dongfeng Yulon is Yulon's second production joint venture in mainland China. In 1995, the Taiwanese company established its first joint venture, Southeast Motor Co., in the east China coastal city of Fuzhou.
Equally owned by Yulon and mainland China's Fujian Motor Group, Southeast makes its own brand cars and light buses. It also assembles Mitsubishi's Lancer and Galant cars as well as Chrysler's Dodge Caravan under licensing agreements.
In Taiwan, Yulon produces its own models under the Tobe and Luxgen brands, and also vehicles for Nissan and Mitsubishi.
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