Dongfeng Motor Group wants to buy control package in Hafei Auto for 270 milion dollars. Hafei is a producer of city passenger cars. Both companies are cooparating with PSA concern. French company is producing Peugeot 206 and 307, as well as Citroen C2, C4 and Xsara Picasso in cooparation with Dongfeng. Till 2009, bigger cars like 407, 407 coupe, C5 and C6 will join them. Hafei has also signed an agreement about producing vans and minibuses for a local market.

Dongfeng is going to create its own research and development center, which, latest till 2010, will create the first passenger car. Production will be placed in Wuhan. Sources announces, that the new, singly designed model will have European stylistics and will be placed in B-segment (city cars).

Thanks to wider range of its model, Dongfeng/Hafeii, will have the possibility to compete with the biggest market players – SAIC and FAW. Right now Dongfeng Motor Group is the third biggest car maker in China. Through 11 months it sold 1,02 million vehicles, from which 70% were passenger cars, and 30% - utility cars. Five years ago, the sale’s structure was reverse.

Editorial comment:
The car on the picture is the newest Hafei’s model – Saibao V. The front of the car reminds a new generation of Subaru Impreza. The car was shown at the last year motor show in Pekin, earlier than the Japanese car. Logo is also similar...

Source: Forbes