Dongfeng to source Nissan Bluebird cars from Yulon

Shanghai, December 18 (Gasgoo.com) Mainland China's automaker Dongfeng Motor Group expects to source the Nissan Bluebird (Sylphy) mid-sized sedans from its Taiwan partner Yulon Group, SinoCast reported yesterday. This deal will help ease Nissan's output constraint in its joint venture with Dongfeng. 
 
Dongfeng Motor Group Chairman Xu Ping will start his visit to Taiwan tomorrow to talk with the Yulon Group CEO Kenneth Yen about the two companies' further cooperation, a move to benefit from the soon-to-be-signed Economic Cooperation Framework Agreement (ECFA) between the mainland and Taiwan.

If the deal is sealed, one of the beneficiaries will be Japan's Nissan Motor, a mutual partner of both Dongfeng Motor and Yulon Motor, said analysts, as Nissan's new investment in the mainland Chinese market will focus on developing electric vehicles.

Sales of Nissan cars are expected to top 530,000 units in the mainland market this year, which will require the Japanese automaker to boost its local output. Dongfeng Motor's procurement of the Bluebird cars from Taiwan's Yulon can help ease the capacity constraints.

Dongfeng Nissan Passenger Vehicle Company mainly produces the Tiida, Livina and Bluebird cars in Guangzhou, southern Guangdong province. And its Teana production base is located in the central city of Xiangfan, Hubei province.
 
Mainland China's auto industry regulators have recently approved Yulon's application to set up Dongfeng Yulon Motor Co., a joint venture between Yulon Motor and Dongfeng Motor.

Nissan's China JV expects its 2010 sales to reach 1 million vehicles, and aims to sell 600,000 passenger cars next year.