Dongfeng Motor expects chances for overseas M&A

Shanghai, April 14 (Gasgoo.com) China's major automaker Dongfeng Motor Group Co (0489.HK) expects to have opportunities for mergers and acquisitions in the global auto sector that is still reeling from the fallout of the global recession, Reuters reported today.

"The company will closely monitor opportunities for overseas acquisitions," Xu Ping, chairman of the Hong Hong-listed company of Dongfeng Motor Corp, told reporters in a news conference on today.

Xu added that the possible appreciation of China's currency, the yuan, would further strengthen Dongfeng's position in making any acquisitions. The Chinese yuan is believed to see it value rise again in the next few months. And some Chinese auto companies hope to "go global" by M&A.

Dongfeng Motor, the Chinese joint venture partner of Nissan Motor, Honda Motor and PSA Peugeot Citroen, is also ready to follow suit after China's largest private automaker Geely Holding Group signed a definitive deal late last month to buy the Volvo car unit from Ford Motor.

Dongfeng Motor Group's profit rose 58% last year to 6.25 billion yuan ($915 million) as vehicle sales were boosted by government incentives. Its sales grew by 44% in 2009 to 1.9 million vehicles, with sales of passenger cars up 45.6% to 1.05 million.