Dongfeng Motor Co., Ltd. (DFM), local Nissan partner in China, has announced medium-period 2008-2012 activity’s plan, in which pressure is put to build stronger market position and boosting global competition. Ambitious five-year plan “one to cube” is continuation of “two to cube” one, among which the company doubled the number of cars sold in 2003-2007.

DFM states dynamic growth of sale in China, where it sold 610,000 cars in 2007. Thinking about this trend’s continuation, DFM wants to sell over 1 mln cars annually till 2012 and reach 14.5 bln USD of profit. DFM will launch over 10 new passenger models under Nissan brand and more than 5 new commercial vehicles under Nissan and Dongfeng brand. The new commercial vehicles’ factory, being built by DFM in Zhengzhou will be responsible for supply, needed for reaching sale’s growth. Production will start in 2010. DFM, Dongfeng Automobile Co., Ltd. (DFAC) and Nissan (China) Investment Co., Ltd. (NCIC) are going to invest 145 mln USD to be able to produce over 120,000 cars annually. Achieving growth’s strategy, DFM will be enlarging sale’s network of passenger cars as well, as commercial vehicles.

The next important part of DFM growth’s strategy will be intensification of overseas’ activity to satisfy demand for commercial vehicles on developing markets through double the export’s amount from 5% in 2007 to over 10% till 2012 together in light, middle and heavy commercial vehicles.

DFM will be trying to increase its competitiveness through developing possibilities in the area of search-developing projects and raising products and activities’ quality in the area of sale and service. To rationalize costs, DFM will be raising the share of local sources of deliveries in transmissions, engines and other passenger cars’ parts from 70% in 2007 to 90% in 2012. Dongfeng Nissan Technical Center, now testing and searching for local sources of delivering parts, will widen building’ activity.

DFM will launch eco-friendly technologies in all area of its activity, through offered products and service. The company wants to enlarge passenger cars’ equipped with automatic transmission (CVT) share to 50% total number of sold cars. DFM will also proceed surveys under alternative petrol for trucks, such as liquid gas (LNG) and elaborate the new navigation system, letting drivers in the city reduce the time of journey even to 20% on the base of information about traffic given in the real time.

In 2008 Nissan plans to sell 500,000 of cars, among which there will be four new Nissan models and three ones of Infiniti. The company expects, that till 2012 it will sell 800,000 cars annually.

Source: Nissan