Another Chinese carmaker on the "own-brand" road

As more and more Chinese automakers are moving towards creating their own brand images, DongFeng Motor Corporation (DFM) too has followed suit.

One of DFM’s first steps has been the creation of their Department of Passenger Vehicles. The department was officially established July 25th, in Wuhan City. Wuhan City houses the majority of DFM's passenger vehicle plants. The department is a landmark for DFM as it will their first plants dedicated solely to the production of foreign-brand sedans.

DFM has invested 7.6 billion RMB (1.0 billion USD) into the new sedan production base in Wuhan, which is set to break ground this September. The project consists of two stages: the first stage of the project will be completed by 2008 with an investment of 3.6 billion RMB; the second stage will start in 2010 with around a 4.0 billion RMB investment.

In addition in 2008, DFM will begin construction of a new R&D centre for DFM's brand sedans. It is planned to be completed and operational by early 2010.

DFM brand vehicles, according to sources will have European characteristics. It will most likely be classified as a B-segment family sedan, and will most likely have either a 1.6L to 2.0L engine.

Also during the same month Guangzhou Honda Automobile Co., Ltd. (GHAC); Honda's automobile production and sales joint venture in China, has announced plans to establish their own R&D plant in China. In addition VW plans to sell their next-generation Passat built by Shanghai VW.