China is a Major Sales Driver for Yulon: CEO Kenneth Yen

Taipei, June 25, 2012 (CENS)--Kenneth Yen, CEO of Yulon Group, the largest carmaker in Taiwan, recently said that China is buoying group operations this year, while new car sales in Taiwan is not expected to be overwhelming this year, statements made at the shareholders meeting of China Motor Corp. (CMC), which is chaired by Yen, an affiliate of the Yulon Group and makes Mitsubishis in Taiwan.

According to Yen, the Chinese car market is expected to continue to grow 5% this year, and CMC-reinvested Chinese automaker South East (Fujian) Motor Co., Ltd. (SEM), a joint venture between Fujian Motor Industrial Group (FJMG) of China, Mitsubishi Motors of Japan, and CMC, will further broaden product lines by launching the brand-new V5 sedan.

The Chinese central government is scheduled to offer more subsidies to fuel car sales in the rural areas, which, Yen said, will drive demand for one to 1.5 years to benefit not only SEM but also other Yulon-reinvested Chinese subsidiaries or affiliates.

Yen said in addition to the Taiwan-made Mitsubishi Veryca mini van and Zinger commercial/recreational van, CMC has been approved by its Japanese technical partner Mitsubishi to begin exporting Taiwan-assembled Mitsubishi Lancer Fortis sedans to Kuwait. Lancer Fortis is the first CMC-produced sedan for export through Mitsubishi's global sales channel, Yen said, and CMC will continue to tap more export opportunities from the Japanese partner and try to become Mitsubishi's other overseas production base.

Yen has reduced twice his forecast of total new-car sales in Taiwan in 2012, with the latest being 360,000 to 370,000 units, also having told investors not too worry about Yulon's operations this year for more lucrative opportunities in China.