Nissan Motor and its Chinese partner, Dongfeng Motor Co (東風汽車), will invest 50 billion yuan (US$8 billion) and launch about 30 new models in China over the next five years, the Japanese auto giant said yesterday.
The two firms also plan to increase sales from nearly 1.3 million vehicles last year to more than 2.3 million units by 2015 and launch a fully electric zero-emission car for the Chinese market, Nissan said in a statement.
“Nissan’s strong partnership with Dongfeng Motor Corporation has been the primary driver of its robust growth over the past eight years in the Chinese market,” Nissan CEO Carlos Ghosn said in the statement.
“The new plan, with its investments in capacity, products and innovation, will ensure that China continues to be Nissan’s largest global market,” Ghosn said.
China, which overtook the US to become the world’s top auto market in 2009, has become increasingly important for global players. Auto sales in China rose more than 32 percent last year to a record 18.06 million units.
However, the sector has since lost steam after Beijing phased out sales incentives such as tax breaks for small-engined vehicles, introduced to ward off the impact of the global financial crisis.
The government is considering new incentives to revive the sector. Nonetheless, an industry group still predicted earlier this month that auto sales growth was expected to slow, despite showing a slight rebound last month.
Nissan said its Chinese joint venture planned to achieve and maintain a 10 percent share of the Chinese market over the next five years.
Ghosn told reporters at a press conference that Nissan currently has a 6.2 percent share of the market.
The two firms will also build a new manufacturing facility in the eastern province of Jiangsu, which will reinforce existing plants in other parts of the country to achieve the 2015 sales target, it added.
Sales of the first passenger vehicle sporting the Dongfeng Nissan brand Venucia are scheduled for next year, and a total of five new models will be launched under that brand.
Nissan also said yesterday it planned to invest US$320 million in Indonesia to more than treble production capacity at its West Java factory and set up a new engine assembly plant nearby.
“We plan to increase production capacity at the plant from 50,000 vehicles per year to 180,000 vehicles for each year by 2013,” Nissan Motor Indonesia vice president of sales and promotion Teddy Irawan said.
“This September we’ll complete the first phase of the capacity expansion to increase production from 50,000 units to 100,000 units. In the next phase, we’ll raise capacity from 100,000 units to 180,000 units,” Irawan said.
Indonesia, Southeast Asia’s largest economy, is seeking billions of dollars in foreign investment to help it achieve its target of 7 percent growth by 2014. It aims to attract private investment of up to US$465 billion by 2025.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to