Dongfeng Motor Launches Component Parts Company

“Dongfeng Motor Co. will inject parts and components assets into Dongfeng Technology or related parts and components, whether there is any possibility of listing and other related issues, but also wait until the related parts and components company personnel are in place before they may have specific plans.” Technology director Tianya told reporters.

On the last day of 2009, after Dongfeng Technology announced the announcement of Dongfeng Motor Co., Ltd.'s decision to establish a parts and components company, the market speculated that Dongfeng Technology might become a listed company of Dongfeng Motor Co., Ltd., a similar example being Shanghai Automotive Co., Ltd. The automobile has become a listed company of parts and components under the Shanghai Automotive Group.

According to the announcement, Dongfeng Motor Co., Ltd. plans to invest the equity held by some of its component parts and subsidiaries in parts and components companies, including Dongfeng Technology. Tianya said that at present, the company only received notice of the establishment of a parts and components company. After such a change, Dongfeng Technology became the grand company of Dongfeng Motor Co., Ltd., which has no influence or changes on the company’s asset composition.

Dongfeng Motor Co., Ltd. is the parent company of Dongfeng Motor Co., Ltd., which is listed on the A-share market. It is understood that the proposed spare parts company will be established by Dongfeng Motor Co., Ltd.'s parts and components business units, and will be transformed from a separate parts and components management department into a legal company with industrial assets. Dongfeng Motor Co., Ltd. Parts Business Unit was established on August 19, 2003. Parts & Components Division has 17 subsidiary companies (specialized factories) including Dongfeng Technology, with total assets of more than RMB 6 billion and nearly 30,000 employees. The products produced by Dongfeng Parts and Components Co., Ltd. involve six series of heavy, heavy, light, sedan, micro, and agricultural products, more than 100 models, more than 1,000 generic names, annual production capacity of 400,000 units (sets), and annual sales revenue of nearly 100. 100 million yuan. Holding more than 54 parts and components companies, distributed in Hubei, Jiangsu, Qinghai, Shanghai and other places.

According to Yao Hongguang, an analyst at Union Securities Automotive Industry, the emphasis placed on parts and components companies by major auto groups has improved. For example, FAW Group, which he had researched some time ago, now has ideas for bigger and stronger parts and components. . He said that a strong parts platform can stabilize the vehicle development system, and the support for auto companies is not just from cost control. Therefore, he believes that this will be a trend in the development of the automotive industry, Dongfeng Motor will definitely have this consideration.

At present, Dongfeng Motor Company is undergoing a new round of personnel changes. Judging from the public information obtained, the appointment of related personnel of the parts and components company is also highly valued. Deputy General Manager of Dongfeng Motor Co., Ltd. and Vice President of Dongfeng Motor Co., Ltd. and General Manager of Dongfeng Parts and Components Division Ouyang Jie concurrently serve as directors of Dongfeng Automobile Parts Co., Ltd. In addition, the majority of the management of the parts companies comes from Dongfeng Motor Corporation.

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