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Posts Tagged ‘Dongfeng’

French Automaker Peugeot Receives Chinese Bailout

Family reduces stake to secure Dongfeng’s investment.

by on Feb.19, 2014

Peugeot and Dongfeng inked a $1.1 billion deal giving the French automaker a much-needed infusion of cash.

Struggling French automaker Peugeot is receiving a helping hand from halfway around the world with Chinese investor Dongfeng investing 800 million Euros, or $1.1 billion, in the European firm.

It’s a critical step for PSA Peugeot Citroen, which has been facing increasing problems – and mounting losses – in the face of Europe’s worst economic crisis in decades. There have been concerns Peugeot might not be able to survive without outside help, a situation that has led the heirs to the Peugeot family to sharply reduce their stake in the maker in return for Dongfeng’s help.

No Games!

In turn, Dongfeng gets to bolster its position in its home market – now the largest automotive market in the world – gain access to much-needed technology, and potentially put it in a position where it could expand beyond China’s borders. A number of Chinese makers have been hoping to expand into Europe and North America but so far have faced numerous obstacles along the way. (more…)

Chinese Expanding Hybrid Offerings

From six models in 2008 to 19 by 2015 as native and global brands expand in world's largest vehicle market.

by on Feb.03, 2010

A 2011 introduction is planned for China.

The world’s largest auto market is about to catch up with western ones, as both offshore makers and native brands rush to introduce hybrids during the next few years.

The market is expanding elsewhere so it is no surprise that carmakers and component suppliers in the Chinese automotive industry are preparing to triple the number of hybrid offerings, according to the latest research from the Frost & Sullivan auto consultancy.

Only six hybrid models were available in the market at the beginning of last year. However, new models from both native and global makers will see the number increase to at least 19 by 2015.

Native brands are likely to enter the hybrid car market with micro hybrids. Global makers, especially the Japanese who lead in Hybrid technology, are expected to increase their sales with mild and full hybrids.

Toyota Motor Corporation will introduce the Camry hybrid in China around 2011. Native brands such as SAIC Motor, JAC, Dongfeng, Brilliance Auto, and FAW Car all have plans to commercialize hybrid cars in the next two to three years.

Plugged In!

Despite clear fuel economy advantages, many potential customers are reluctant to invest in a hybrid due to its higher initial purchase cost. Frost says in such a scenario, the penetration levels will depend greatly on the extent to which the central government leverages sponsorship to private consumers.

Meanwhile, the government has taken regulatory initiatives to reduce CO2 emissions, giving a boost to the market.   (more…)