HANGZHOU — The Dongfeng Yulon Motor Co., a joint venture between automobile makers in Taiwan and China, was officially opened yesterday in Hangzhou, in China’s Zejiang Province.
The new venture involving Yulon Motor, one of the leading car manufacturers in Taiwan, and Dongfeng Motor, a Chinese state owned car maker, drew a total capital investment of 3.4 billion Chinese yuan (about US$570 million), with Yulon and Dongfeng each holding a 50 percent share. The new company will have an annual capacity of 120,000 cars and 120,000 engines, with both Yulon and Dongfeng jointly holding the Luxgen brand developed by Yulon, in the Chinese market.
A Luxgen SUV, to be built at the Hangzhou plant in the middle of next year, will be the first of eight car models that Dongfeng Yulon plans to produce.
The joint venture will begin commercially producing two models each year beginning from the second year of its establishment, offering customers options for each model of either petroleum-fueled or new energy engines.
Tongfeng Yulon Chairman Zhou Wenjie said the goal of his company is to produce high-priced quality cars and to become one of the top-notch car markers in the world within five years.