Shares of the nation’s biggest automaker, Yulon Motor Co (裕隆汽車), rallied nearly 7-percent — the daily limit — yesterday after the company received the go-ahead to make its Luxgen brand cars in China.
Shares of Yulon closed up 6.92 percent to NT$39.4 on the Taiwan Stock Exchange.
Dongfeng Yulon (東風裕隆), a joint venture between Yulon and China’s No. 4 automaker Dongfeng Automobile Co (東風汽車), has received official approval from the Chinese authority to manufacture cars in the world’s biggest automotive market, the company said in a statement yesterday.
Yulon, which holds 50 percent of Dongfeng Yulon, planned to invest 755 million yuan (US$111.5 million) in the venture, which will have 1.55 billion yuan in initial capital.
This marks Yulon’s second car making venture in China.
Dongfeng Yulon will be located in Hangzhou, Zhejiang Province, the statement said.
Yulon’s shares have risen 4.5 percent since early this year and have jumped 20 percent in the past 12 months, outpacing other auto shares on the TAIEX, which are up 12 percent in the past year.
“This project will enhance the research and development capability of Taiwan’s auto industry and help push exports of Taiwan’s auto component makers,” the statement said.
The venture is set to produce 120,000 vehicles per year in the initial stage, with models ranging from sports utility vehicles, multi-purpose vehicles and sedans, the statement said, adding total investment would eventually hit 3.4 billion yuan.
Taiwan’s auto production currently stands at 280,000 units a year.
Dongfeng Yulon’s first-phase production facilities are expected to be ready by the end of next year, with both parties to jointly handle recruitment, equipment purchase, safety recognition and the sales network.
Yulon, which mainly produces cars for Nissan in Taiwan through a licensing agreement with its Japanese partner, has a previous joint venture in China called South East Motor (Fujian) (東南汽車).
While the statement did not specify the models to be produced by Dongfeng Yulon, the Chinese-language Economic Daily News said the venture would mainly manufacture Luxgen vehicles — Yulon’s first attempt at building its own brand.
The first Luxgen, a 2.2-liter minivan for family use, was unveiled in Taiwan in September last year. Since then Yulon has received orders from more than 10,000 local motorists, Luxgen said.
The Luxgen project has cost Yulon about NT$15 billion (US$472 million) since it started four years ago.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle
RSS