Dongfeng Motor delays 23-bln-yuan investment

Shanghai, December 12 (Gasgoo.com) China's third-biggest carmaker, Dongfeng Motor Group Co. Ltd. (0489.HK), has decided to slow down its investment in order to avoid the impact of the financial crisis on the auto industry.

A top executive of Dongfeng Motor told the business newspaper that the global financial crisis and domestic auto market downturn have forced the company to adjust its 23 billion yuan ($3.36 billion) investment plan for 2008 and 2009 as announced in its mid-2007 report.

However, the company expects its sales in 2008 to exceed 1.1 million vehicles, compared with 949,500 in 2007, reported National Business Daily today. The company booked total net profit of 7.843 billion yuan by the end of June.

Meanwhile, the executive declined to comment on the report that Dongfeng has halted its talks on joint venture with Volvo, only saying "no more information is available now about the joint venture project between Dongfeng and Volvo."

Dongfeng Motor is the Chinese joint venture partner of Nissan, Honda and Peugeot Citroen.

Dongfeng Motor Co., a joint venture between Dongfeng Motor and Nissan, targets passenger vehicle growth of 14.5 percent in 2009, which would be "very challenging" to achieve.

Dongfeng Peugeot Citroen Automobile Co., Dongfeng Motor's joint venture with PSA Peugeot-Citroen, has decided to launch hatchback C-Elysee, sedan C-Quatre and the new C5 next year.