Dongfeng Motor Co., Ltd. Parts & Components Business UNT. - FY 2006-2007
Highlights by division
In January 2006, Dogleg Visteon (Shiyan) Automotive Trim Systems Co., Ltd. was established as a joint venture between the Company and Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd. with a registered capital of 88 million yuan. The Company will invest in kind with production equipment of its existing plant of Dongfeng Electronic Technology Co., Ltd. Automotive Trim System Company, while Dongfeng Visteon (Wuhan) Automotive Trim Systems will invest in capital. The new joint venture has already obtained interior trim business for the Teana of Dongfeng Nissan Passenger Vehicle. Furthermore, the joint venture has developed new products for Dongfeng-Peugeot-Citroen Automobile, and is expanding production of interior trims for passenger cars. The joint venture partner, Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd. is a company established in September 2003 jointly with U.S. Visteon and its Chinese subsidiary, Yanfeng Visteon Automotive Trim Systems Co., Ltd.
Dongfeng Visteon Automotive (Shiyan) Trim Systems Co., Ltd.
|Shareholder||Ratio of shareholding|
|Dongfeng Electronic Technology Co., Ltd.||60%|
|Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd.||40%|
In February 2006, Shanghai Johnson Controls Automotive Electronics Co., Ltd. was established as a joint venture with U.S. Visteon with a registered capital of 5 million dollars. The new joint venture manufactures electronic components for automobiles, including instrument panels for passenger cars, information displays and body controllers. The Company provided manufacturing facility owned by its subsidiary, Shanghai Dongke Auto Component Co., Ltd., to the new joint venture.
Shanghai Johnson Controls Automotive Electronics Co., Ltd.
|Shareholder||Ratio of shareholding|
|Dongfeng Electronic Technology Co., Ltd.||50.01%|
The Wuhan Plant of Dongfeng Behr Thermal Systems Co., Ltd., a joint venture with Behr, was completed in January, 2006.
In December 2007, Dongfeng Visteon Wuhan Automotive Trim Systems Co., Ltd. completed the majority of its facility expansion project at its Wuhan Plant. The additional lines will manufacture products to supply Dongfeng-Peugeot-Citroen Automobile.
Dana Mauritius Ltd., and Dongfeng Motor Co. Ltd. amended the agreement to develop their joint venture, Dongfeng Dana Axle Co. Ltd. Certain terms of the original agreement were renegotiated after Dana filed for reorganization under Chapter 11 of the United States Bankruptcy Code in March 2006. Under the amendments and other agreements signed by the both companies Dana Mauritius will make an initial payment of 38.8 million RMB (approximately USD 5 million) to Dongfeng for a 4-percent equity interest in the joint venture. Closing of this part of the transaction is expected to be completed by the end of March 2007. Dana Mauritius will purchase the remaining 46-percent equity interest after April 1, 2008, and within three years of receiving the aforementioned government approvals. Dana Mauritius has made no changes in its plan to inject capital in Dongfeng Axle Co., Ltd.
Metal forming parts
In October 2007, three companies in the Dongfeng Motor Group, namely, Wuhan Dongfeng Stamping Co., Ltd.; Dongfeng Motor Die & Mould Co.,Ltd.; and Wuhan Dongfeng Hongtai Holdings Group Co., Ltd. merged to form Dongfeng Mould Stamping Technical Co., Ltd. in Wuhan City. Integrating large-die production technology and press forming technology, the new company will supply stamped parts for use in vehicles developed and manufactured by Dongfeng-Peugeot-Citroen Automobile; Dongfeng Honda Automobile (Wuhan); and Dongfeng Motor.