Dongfeng Automobile Company

Dongfeng Automobile Co., Ltd. ( abb. DFAC) is a Chinese automobile company based in Xiangyang, Hubei. It is a subsidiary of Dongfeng Motor Co., Ltd. (DFL) which is a joint venture of Dongfeng Motor Group (DFG) and Nissan. DFG is majority owned by Dongfeng Motor Corporation, a Chinese state-owned enterprise.

It makes light commercial vehicles for the Chinese market.[1] It also makes diesel engines in a 50-50 joint venture with Cummins, Inc. known as Dongfeng Cummins Engine Co. Ltd.[1]

As of May 2018, DFAC is a constituent of small cap index SSE 380 Index.[2]

History

The predecessors of Dongfeng Automobile Company, were a light commercial vehicles factory, an engine factory and a foundry[3] of Dongfeng Motor Corporation,[4][5] that were located in Xiangyang, Hubei province. Founded in Shiyan in 1969, the ultimate parent company Dongfeng Motor Corporation was headquartered in Wuhan, the provincial capital of Hubei since 2003.[6] However, the headquarter of Dongfeng Automobile Company was remained at Xiangyang.

The first factory of Dongfeng Motor in Xiangyang was first built in 1983.[7]

Dongfeng Automobile Company Limited (abb. DFAC) was incorporated as a subsidiary (70% shares) of Dongfeng Motor Corporation on 21 July 1999, the date of receiving the license of incorporation,[1] or 15 July, the date of the first annual general meeting.[5] In the same year the rest of the shares were floated on the Shanghai Stock Exchange.[5] The company also signed a leasing agreement with Dongfeng Motor Corporation, regarding the land lease and trademarks.[5]

In 2001, the shares held by Dongfeng Motor Corporation were transferred to an intermediate parent company Dongfeng Motor Group (known as Dongfeng Motor Co., Ltd. at that time), as part of a debt restructuring.[1] In 2003, the shares were transferred again, to a Sino-Japanese joint venture [new] Dongfeng Motor Co., Ltd. .[1]

In 2010, it was reported that the company started to build its electric bus assembly line.[8]

Subsidiaries

DFAC acquired 51% stake of Zhengzhou Nissan Automobile in 2005 for CN¥352 million from two other state-owned companies: CITIC Automobile (of CITIC Group) and Zhengzhou Light Vehicle Works .[9] DFAC also subscribed a capital increase of Zhengzhou Nissan, for CN¥530 million in 2008. On 13 June 2017, DFAC announced to sell Zhengzhou Nissan to the direct parent company Dongfeng Motor Co., Ltd. for about CN¥788 million, subject to the approval of extraordinary general meeting.[10][11] It was approved on 28 June.[12]

• current

• former

Joint ventures

Dongfeng Cummins Engine Co., Ltd. (abb. DCEC), a joint venture of Cummins and Dongfeng in Xiangyang (formerly called Xiangfan), was established in 1995.[13] It manufactured heavy duty vehicle engines.[14]

Shareholders

[1] DFAC was majority owned by a joint venture Dongfeng Motor Co., Ltd., making DFAC was indirectly owned by the Chinese Government (via Dongfeng Motor Corporation), the French State (via Renault), H share shareholders of Dongfeng Motor Group and other shareholders of Nissan and Renault (via Nissan).

The Chinese Government also owned an additional 2.74% shares via their sovereign wealth fund Central Huijin as the second largest shareholder of Dongfeng Automobile Company.

Products

External links