Dong Feng eyes vehicle assembly
Manila Bulletin – Mon, Apr 29, 2013
Dong Feng Motors, second among the ''Big Five'' Chinese automakers, is planning to invest in manufacturing assembly in the country given the right incentives.
Businessman Francis Chua, one of owners of China Dong Feng Motor Distributors, Inc. Philippines, the exclusive distributor of Dong Feng brand in the Philippines divulged the Chinese motor vehicle manufacturer's plan upon his arrival from the Shanghai International Motor Show where Dong Feng was one of the exhibitors.
''They will invest in motor vehicle assembly in the country given the proper incentives,'' Chua said.
Chua justified the need to extend incentives to the car manufacturing sector as he cited the stiff competition from fellow ASEAN countries for foreign investments once the full ASEAN integration comes into full force by 2015.
''While all investors are looking at ASEAN because it will be a one huge market with the same tariff rate come 2015, an ASEAN country still has to come up with better incentives to attract non-ASEAN companies to invest in its country. It is not easy because each ASEAN country has now become our competitor,'' Chua said.
''So we need government to come up with proper incentives to win a foreign investment,'' he said.
Founded in 1969, Dong Feng Motor has the financial muscle to invest in a manufacturing plant in the Philippines. It ranks second among the ''Big Five'' Chinese automakers in China. It has a complete line of vehicle categories from passenger cars, a series of light commercial vehicles including heavy to light trucks, special vehicle series, pick-ups, buses, tractors, dump trucks. It also produces motor vehicle parts including Dongfeng Cummins engine parts.
Dong Feng, Chua said, is a highly diversified Chinese firm and is present in all motor vehicle categories. It has 50 subsidiaries with each one producing a particular category. It has existing partnerships with foreign carmakers such as Nissan and Citroen.
''But its expertise is really on the commercial trucks. In terms of commercial vehicles, Dong Feng is the biggest in China,'' he said.
Thus, Chua said, ifever Dong Feng will decide to enter in the local motor vehicle market they would be suited for trucks, either light trucks or heavy trucks.
For now, Chua said Dong Feng will have to concentrate on establishing its presence in the country.
Chua, who revived his partnership with Dong Feng five years ago, has already established a showroom along Macapagal Avenue. Another showroom will be put up in Davao.
''We will establish dealerships around the country,'' he said.
''We will establish dealerships around the country,'' he said.
He also noted of the various car manufacturing firms in China and most of them are exporting because they cannot sell in the Chinese market, but Dong Feng has already established a good name and is now China's second biggest.
This year alone, Dong Feng is producing 3.2 million units of vehicles for the Chinese market alone. In 2010, Dong Feng had an annual output of 1,137,000 vehicles and 121,000 registered employees. The company ranks 20th in Top 500 of domestic enterprises and 5th in Top 500 of domestic manufacturers respectively.
Aligned with the trend of auto industry development in world market, the company has defined its position and set a goal to build a centennial company capable of sustained growth.
More aggressively, Dong Feng is also looking forward to becoming the No. 1 in China, internationally weighted auto maker in the world with convincing profit rate, sustainable development and constant value returning to shareholders, customers, employees and society.
Through over 40 years of development, Dong Feng has established R&D and manufacturing facilities as well as an extensive distribution and after-sales network.
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