Cross-Straits partnership links Dongfeng and Yulon

08:39, December 20, 2010      

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Leading automakers on the Chinese mainland and Taiwan formally unveiled a new joint venture on Dec 14, the first major cross-Straits deal since September's adoption of the Economic Cooperation Framework Agreement (ECFA) to lower cross-Straits trade barriers.

The 50-50 partnership between Dongfeng Motor Corp and Yulon Motor is headquartered in Hangzhou, capital of East China's Zhejiang province.

Zhou Wenjie, an executive from Dongfeng, has been appointed chairman of the new Dongfeng-Yulon, while Jack Hsin-fa Wu, a top manager at Yulong, was appointed general manager.

Each side will invest 3.4 billion yuan to fund development and a factory that is now being built in Hangzhou's Xiaoshan Linjiang Industrial Zone. In its first phase, the facility will have a production capacity of 240,000 units, according to Zhou.

Plans call for Dongfeng-Yulong to make SUVs, sporty cars, multi-purpose vehicles, sedans and purely electric vehicles under the brand Luxgen, a name the company says combines "luxury and genius".

The first of the joint venture's eight planned Luxgen models will be an SUV expected to hit the market in the middle of 2011, Zhou told reporters.