Thu, Aug 29, 2013 - Page 13 News List

Yulon Motor Co formally enters the Russian market

FOREIGN AMBITIONS:Derways will begin selling the Luxgen 7 SUV in Russia next month, while Yulon plans to introduce a new sedan model next year

By Camaron Kao  /  Staff reporter

Yulon Motor Co (裕隆) said yesterday its Russian partner Derways Automobile Co had started manufacturing Luxgen-brand cars, making the beginning of Yulon’s entrance into the Russian automotive market.

Derways will also be responsible for selling Luxgen cars, Yulon president Yao Chen-hsiang (姚振祥) told a press conference in Taipei.

The Russian firm will begin selling Luxgen 7 sports utility vehicles (SUV) next month, with a sales target of 500 cars a month, Yao said, adding that Yulon would introduce a new sedan to the Russian market next year.

According to Yulon, 3 million cars a year are sold in Russia.

Russia is Yulon’s second foreign market for Luxgen cars. It entered the Chinese market last year and sold 31,000 cars.

The company aims to sell 50,000 cars in China this year, Yao said.

Yulon also exports 300 to 400 Luxgen cars to Vietnam a year, he said.

Domestically, Yao said he expects total car sales to be flat this year from about 366,000 units a year ago.

“Our economy is still in a transition period,” Yao said. “Customers will be more willing to buy cars only when they earn more money.”

Yao, 59, only took over as company president on Aug. 8, but he has worked for Yulon for 35 years.

He served as a factory director of the company’s major factory in Taiwan from November 1999 to July 2000 and was then promoted to general manager of Yulon’s production system, a position he held until May 2005, when he was appointed vice president.

Former president Chen Kuo-rong (陳國榮) is now vice chairman of the company, responsible for other businesses such as textiles and a land development project in Taipei’s Xindian District (新店), according to the company.

Yulon’s shares dropped 0.76 percent to NT$46 yesterday, underperforming the TAIEX, which was up 0.05 percent.

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