Yulon Nissan to Raise Share in Chinese Affiliate Fengshen Motor

Taipei, Nov. 16, 2011 (CENS)--Yulon Nissan Motor Co. of Taiwan recently announced to increase its stake in Chinese automaker Guangzhou Fengshen Motor Co., Ltd., a joint venture with Dongfeng Motor of China to produce Nissans in China.

Yulon Nissan plans to increase its stake in Fengshen by 5% to 15% for 49 million renminbi (RMB), while sell all its shares in Dongfeng Yulon Motor Sales Co., Ltd., a joint venture with Dongfeng Motor to sell light-trucks, to Dongfeng Motor.

Before the share increase, Yulon Nissan held 25% in Fengshen Motor, which returned 60 million RMB on investment to Yulon Nissan last year, as well as steady returns in the first three quarters.

Fengshen Motor registered net earnings of 240 million RMB in 2010. The company is capitalized at 2.14 RMB in which Yulon Nissan has invested US$10.9 million. Industry sources said that sales of shares in Dongfeng Yulon Sales is part of Yulon Group's plan to invest more resources into Fengshen Motor, which sells cars and auto parts and plans to strengthen operational scale and expand sales in 2012.