Dongfeng Motor plans auto plant in Philippines

Dongfeng Motor Co. Ltd., the third-largest car and bus maker in China, has expressed interest to put up an assembly plant in the Philippines.

Alfonso Uy, president of the Federation of the Filipino-Chinese Chamber of Commerce and Industry Inc., told reporters yesterday that Dongfeng Motor's general manager relayed to him the company's interest to invest in bus and car assembly operations here.

"Dongfeng is the top three bus and car maker in China and is owned by the Chinese government. It wants to introduce its buses and cars in the domestic market initially and put up an assembly plant here over the long term," said Uy at the sidelines of a Chinese business convention at the Mall of Asia in Pasay City.

He said the Chinese company planned to assemble cheap cars and buses for the domestic market.

Uy said Dongfeng's interest to set up an assembly plant in the Philippines was part of the company's thrust to become a major player in the international market. The Chinese government has been encouraging companies to expand their businesses overseas instead of merely focusing on the domestic market.

Founded in 1969, Dongfeng Motor, formerly Second Automobile Works Co., is one of the three giant automakers in China. Its main businesses include passenger vehicles, commercial vehicles, engine, auto parts and components and equipment.

The company over the last 40 years has set up a chain of research and development as well as manufacturing facilities in several cities in China, including Hubei, Shiyan, Xiangfan, Wuhan and Guangzhou.

It has several business branches in Shanghai, Liuzhou (Guangxi), Yancheng (Guangxi), Nanchong (Sichuan), Zhengzhou (Henan), Urumchi (Xinjiang), Chaoyang (Liangning), Hangzhou (Zhejiang) and Kunming (Yunnan).

The company has registered an annual output of 1.137 million vehicles as of end-2007, sales income of 164.8 billion yuan, 12.94-percent market share and a workforce of 121,000.

The company ranks 20th among China's top 500 domestic companies and fifth among the top 500 local manufacturers.

Dongfeng assembles and sells commercial vehicles, including medium and heavy commercial trucks, medium-duty buses and light commercial vehicles and passenger cars such as sedans and sports utility vehicles.