Taiwan’s Yulon Group Reaps Fruit From Affiliates in China in 2011


Taipei, Jan. 16, 2012 (CENS)--Yulon Group of Taiwan, the largest automobile carmaker on the island, reaped lucrative returns from reinvested businesses in China in 2011.

According to Yulon, its affiliated Chinese automaker Dongfeng, the third-largest car maker in China, sold over 800,000 cars in 2011, about a 30% increase from the previous year and much higher than the average 5% growth of overall new-car sales in China.

Dongfen, according to some institutional investors, would yield NT$3.2 billion (US$106.7 million) in returns to the Yulon Group in 2011, higher than about NT$2.9 billion 9US$96.7 million) in 2010.

Dongfeng completed construction of a new factory in Huadu, Guangdong Province, to raise total capacity to some 1.2 million units in 2012 and aim to sell a record one-million-plus units in 2012, which will yield more returns to Yulon.

Dongfeng Yulon Motor Co., Ltd., a joint venture between Yulon and Dongfeng in China to locally produce and sell Yulon’s Luxgen line, kicked off production and sales in the late third quarter, and had received orders for over 10,000 units of the Luxgen SUV.

Dongfeng Yulon will launch a multi-purpose van (MPV) in mid-2012 and a sedan later in the year. With aggressive building of distribution channels, Dongfeng Yulon will likely achieve its annual sales goal of 50,000 cars in China in 2012, or even 60,000 to 70,000 units.

The South East (Fujian) Motor Co., Ltd. (SEM), a reinvested auto-making venture between Taiwan-based China Motor Corp. (CMC) under the Yulon Group and Fujian Motor Industrial Group (FJMG) to locally produce Mitsubishis and SEMs, sold about 110,000 new cars in 2011, much better than the originally expected 80,000 units, and expects challenge annual sales goal of 120,000 units in 2012, driven by the launch of the SEM V5 in October.

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