Dongfeng light engine company to operate in '09
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Shanghai, November 7 (Gasgoo.com) Dongfeng Auto Co., a light truck producer under China's third largest automaker Dongfeng Motor Corp, has formed a light engine company this week. The new company will start to produce light diesel engines next year, reported Nanfang Daily today.
The newly built Dongfeng Light Engine Company is located in the Shiyan manufacturing base, Hubei province, which is home to Dongfeng Auto. Sources said that the parent company Dongfeng Motor invests 367.2 million yuan ($52.8 million) in cash in the engine company, holding 51% stake in it.
The other 49% stake in the engine company is held by the light-truck maker Dongfeng Auto, who invests with its manufacturing facility and equipment.
An earlier report said Dongfeng Auto's turnover in the third quarter this year increased to 3.45 billion yuan from 3.13 billion yuan of one year before. However, its Q3 net profit fell by 37% year on year to 66.11 million yuan ($9.69 million).
Dongfeng Motor has a 50:50 joint venture with U.S. engine giant Cummins -- Dongfeng Cummins Engine Co., Ltd., which had produced one million engines by March 2007. The venture has made a Cummins ISLe diesel engine for a Dongfeng heavy-duty Tianlong truck.
