Dongfeng Motor to slash 20% capital spending

Shanghai, March 20 (Gasgoo.com) Chinese automaker Dongfeng Motor Group Co plans to slash annual capital spending to 8 billion yuan ($1.17 mln) from the previously scheduled 10 billion yuan from 2009 to 2011 due to challenging economic conditions, reported Beijing Times, citing company sources.

"The plan applies to Dongfeng's joint ventures with Honda Motor, Nissan Motor, Kia Motor and French carmaker PSA Peugeot-Citroen in China and some other subsidiaries," said Hu Xindong, secretary of Dongfeng Motor.

Hu said the company would delay or cancel non-core activities and would only invest in immediately urgent projects.

Asked if Dongfeng was interested in buying any foreign or domestic car brand, Hu said it would do so if that company can make up for Dongfeng's weak sector or if it is a direct rival of Dongfeng.

The third-largest Chinese automaker has earlier lowered its sales growth target for 2009 to 6 percent compared with the achieved growth rate of 16 percent in 2008. The automaker expects to sell 1.4 million vehicles in 2009, compared with 1.3 million units sold in 2008.