Taiwan's Luxgen enters into joint venture with China's Dongfeng Auto

Yulong Motors' Luxgen 7

Taiwan’s Yulong Motors, the company behind the Lexgen range of MPVs and SUVs, has entered into a joint venture with mainland China based Dongfeng Auto in a deal that calls for RMB3.4 billion in investment – a good part of which will be sunk into a new manufacturing facility to be created in Hangzhou, China. With an envisaged long term capacity of 240,000 cars and 200,000 engines per year, the new site will also support a new R&D centre.

The new company, Dongfeng-Luxgen, have already established a common supply chain in China and plan to source materials and components from both mainland China and Taiwan. Dongfeng Auto, one of China’s largest car makers, already operates joint ventures with Honda, Kia, Nissan and PSA (Peugeot-Citroen).