Dongfeng Yulon JV to produce Luxgen cars in 2010

Shanghai, December 28 (Gasgoo.com) Taiwan's automaker Yulon Group plans to mass-produce its Luxgen-brand cars next year in its joint venture in mainland China with Dongfeng Motor Corp, the Taiwan Economic News reported over the weekend, citing local industry sources.

Dongfeng president Xu Ping recently visited Taiwan and talked with Yulon CEO Kenneth Yen over issues of joint market development and investment tactics in the mainland, the sources said.

Yulon Group set up a joint venture, the Luxgen Motor (Zhejiang) with Zhongyu Group in Zhejiang province in 2007. The project, however, terminated as the mainland began restructuring its auto industry, urging Yulon to turn to Dongfeng for its own-brand car project in the booming auto market.

Dongfeng Hangzhou Motor under the Dongfeng Group, which currently produces medium- and large-size buses with annual capacity of 30,000 units, would be merged into the planned Dongfeng Yulon Motor Co., a joint venture that has reportedly got the mainland's regulatory approval.

The Luxgen-brand vehicle models developed by Yulon, including their techniques, will be swapped for share in Dongfeng Yulon. Yulon plans to invest NT$30 billion (US$923.1 mln) next year to boost market share for Luxgen vehicles in Taiwan and the mainland.

Yulon Group has recently unveiled the Luxgen7 CEO luxury multi-purpose van (MPV), the most luxurious model so far in Yulon's own-brand Luxgen lineup.