Yulon Group (
"[With the expansion in China] Yulon Group's revenue will jump to nearly NT$300 billion this year following the completion of a spin-off plan this month," said Kenneth Yan (
Yulon announced in late May its plan to divide itself into two separate entities. Under the company's organizational restructuring plan, Yulon this month formally split into Yulon Motor, which will continue engaging in original equipment manufacturing, and Yulon Nissan Co (裕隆日產), a new joint-venture 40 percent owned by Nissan Motor Co.
The Yulon Nissan Co will take part in all investment projects in China together with Nissan, as well as all Nissan-car related business in the greater China region, a partnership that is expected to help Yulon gain over its rivals.
"We'll join Nissan's expansion efforts in China by providing car-design, developing and producing capabilities," Yan said during a speech at Yulon Motor's 50th anniversary ceremony.
"Expanding in China is unavoidable," Yan said.
Yulon Nissan is expected to produce a total of 550,000 vehicles in 2006 and 900,000 vehicles by 2009 thorough its Chinese unit Fengshen Automotive Co (
Fengshen, a three-way investment between Yulon Nissan, Nissan and China's Dongfeng Motor Corp (
Compared with limited growth in Taiwan, China's automobile market is expected to jump by 10 percent to 20 percent annually in the foreseeable future, said Han Chen-ping (
As for China Motor Corp (
Southeast Motor's sales of 500 million Chinese yuan (about NT$2 billion) constituted about one-third of China Motor's total sales of NT$6 billion during the first nine months this year, according to Yulon.
In terms of earnings, Yulon Nissan spokesman Wu Hsin-fa (
The good news, however, did not move the Yulon Motor's and China Motor's shares yesterday. Yulon Motor shares dropped by 0.72 percent to end at NT$41.50 each, while China Motor shares remained unchanged on the TAIEX.