Dongfeng Auto Plans to Integrate Business Avoiding Internal Competition

In 2013, the sales volume of Dongfeng Auto is 3.535 million, ranking 2nd in the whole industry. The sales revenue is 453.36 billion Yuan. Mr. Zhu, the general manager of Dongfeng Auto, said the sales target of 2014 is 3.8 million and 4.5 million in 2015. In the future, besides sales increasing, Dongfeng Auto also plans to integrate branch offices to increase efficiency and avoid internal competition. On the development of self-owned brand, Mr. Zhu hopes the growth of Dongfeng Auto could be higher than others and to achieve the volume of 3 million in 2016. And Mr. Zhu said there would be a result in few months for Dongfeng Auto to become a shareholder of PSA but no details revealed.

Among the sales volume of 3.535 million, there are 1.271 million for self-owned brands, ranking 2nd from 3rd. The data of self-owned brand passenger cars is 0.6556 million ranking 3rd from 4th. Mr. Zhu said 2014 and 2015 are import for self-own brands of Dongfeng Auto and there would be lots of methods to increase the sales and competitiveness. Dongfeng Auto will integrate 3 self-own brands to coordinate resources and release more new products.

At present, there are 14 branches in Dongfeng group whose business cover commercial vehicle, passenger car, spare parts, auto equipment and so on. Some branches even compete for themselves. Mr. Zhu said Dongfeng Auto plans to integrate business and source to avoid internal competition. The future design is 10 to 15 finished automobile units, 2 to 3 spare parts units and 2 to 3 financial companies.