Dongfeng: New Factory will Be Built

According to the development plan of Dongfeng Motor Co Ltd (DFL), it will spend 1 billion Yuan to build a light commercial vehicle plant in the city of Zhengzhou, which would be operational in 2010 with an annual production capacity of 120,000 units. DFL also expects to export 10 percent of its commercial vehicles by 2012, up from 5 percent last year.

Regarding the dealer, DFL plans to increase the number of its dealerships to 1,430 by 2012 from 971 last year to boost sales. To cut costs, it also plans to source 90 percent of transmissions, engines and other parts in China by 2012, up from 70 percent last year.

Full-year sales of Dongfeng in 2008 are predicted to hit 10 million units, up from 8.8 million in 2007.

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