Changfeng plans to increase purchase volumes of auto parts

At present Changfeng Motor Co. buys 20 percent of its parts from global suppliers and that number will grow to 40 percent, mainly to improve the quality of Changfeng vehicles, says Changfeng CEO Chen Zheng Chu.

The Hunan based automaker's main product is the Mitsubishi Pajero and a version of the Pajero sold under its own brand, Liebao. It buys many parts from Mitsubishi's suppliers as well as its subsidiary plants.

Changfeng is capable to undergo full-scale vehicle production but the company still has to rely heavily on suppliers, and the world is happy to provide parts that Changfeng does not make itself or can't buy from domestic suppliers.

Chen says Changfeng is using its investment capital to build its engineering and design capability. He says the company can develop a vehicle from scratch and in 2009 plans to launch a line of sedans.

The company has 450 engineers and 900 technicians. Production capacity is 150,000 units. Sales and operating profit are 4.1 billion and 50 million Yuan in 2006.