Dongfeng Motor Co., Ltd. President Nakamura Gongtai:
Dongfeng Automobile Co., Ltd. , the parent company of China (parent company is Dongfeng and Nissan), the president of Dongfeng Motor Co., Ltd. (parent company is Dongfeng and Nissan) disclosed in an exclusive interview with this reporter that “Dongfeng Limited will invest RMB 6.5 billion in the next two years. The three new plants, Dongfeng Motor Co., Ltd.'s goal of selling 1 million vehicles in 2012 are expected to be realized ahead of schedule.†This move has become the new climax of the expansion of Chinese auto makers in 2009.
Reporter: Dongfeng Limited 's expansion of the operation is very surprising in scale. Please tell us about the direction of expansion.
Nakamura Gongtai: Dongfeng Nissan, Dongfeng Commercial Vehicles, and Zhengzhou Nissan , the three major factories of Dongfeng Limited , will build new factories. In Huadu, Guangzhou, Dongfeng Nissan will invest 5 billion yuan to build a second plant with an additional capacity of 240,000 vehicles. By then, Dongfeng Nissan will have a total capacity of 600,000 vehicles. Dongfeng Commercial Vehicle Co., Ltd. has planned to invest 1.5 billion yuan in additional investment. First, it will build another new engine plant at Shiyan Base and will increase its production capacity by 100,000 units. Second, it will build a second plant at Zhengzhou Nissan, and it will be completed in 2010. The production capacity is 100,000 vehicles.
Reporter: This expansion plan is very large. How do you balance risks and opportunities?
Nakamura Gongtai: Nissan has always been very cautious about overseas investment. The reason why we invest more in the Chinese market is because we believe that the Chinese automotive market has great potential for development. Judging from previous data, the socialization of automobiles has started after the ownership of more than 20 vehicles per 1,000 people in the general country. In the United States, the number of people in existence has reached 750, and Japan has reached 679, while the Chinese mainland has only reached about 20 to 50, so the Chinese auto society has only just begun.
Reporter: At the same time as Dongfeng's production has improved, how will it consider the relationship between vehicle exhaust emissions and environmental pollution?
Nakamura Gongtai: The environmental field has always been a problem that we attach great importance to. In terms of commodities, passenger cars will actively use Nissan technology and strive to reach the international advanced level. Therefore, in order to improve fuel economy, we will increase the loading rate of the infinite gearbox. At the same time, commercial vehicles will promote energy conservation, use new alternative fuels and accelerate the popularization of LNG trucks.
The fuel economy of the continuously variable transmission is better, and the effect of reducing carbon dioxide emissions can be achieved by greatly increasing its loading rate. Therefore, we plan to increase its loading structure from 13% in 2007 to over 50% in 2012.
Reporter: Has Dongfeng's limited overseas business plans been affected in this financial crisis?
Nakamura Gongtai: As one of the pillars of strong growth, we have been actively expanding our overseas business. When Dongfeng Limited was established in 2003, the export volume was only over one thousand units. By 2007, the export sales volume had exceeded the plan and reached 16,000 units, and the export volume accounted for 5% of the sales volume of commercial vehicles, achieving a substantial increase. We believe that there will be greater opportunities in the future and plans to further expand the export of spare parts.
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