Dongfeng to reorganize its three subsidiary brands, aims to mimic GM

Gasgoo.com (Shanghai March 27) - Dongfeng Motor is planning to mimic General Motors by classifying its subsidiary brands, Dongfeng Liuzhou Fengxing, Fengshen and Zhengzhou Nissan, into three different categories, Beijing News reported today. The three brands will be divided into family-oriented, fashionable and functional categories, and will all be incorporated into Dongfeng Commercial Vehicle. The brands' vehicles will all jointly use the same Dongfeng logo.

According to the Dongfeng official, Fengxing, Fengshen and Zhengzhou Nissan will imitate GM's Chevrolet, Buick and GMC brands, respectively. The proposal is the newest development in Dongfeng's strategic plan to develop its own brand business. According to its plan, which was announced in 2011, Dongfeng's subsidiary brands will share the same auto part suppliers and sell their vehicles through the same sales channel in order to minimize costs. The three brands' models will be sold via 'allied dealerships,' (pictured) the first of which were established in Fujian's Hongyan, Hubei's Xiangtan and Jilin's Xinhui. Three Dongfeng allied dealerships have already opened their doors for business.

From 2013 to 2020, Dongfeng will invest a total of 15.7 billion yuan ($2.5b) in research and development work for its commercial vehicle division. The manufacturer also has plans to establish a new automobile test center in Hubei's capital of Wuhan.