Yulon Aims to Sell 50,000 LUXGEN-branded Cars in China in 2013

Taipei, Dec. 5, 2012 (CENS)--The Yulon Group of Taiwan, the largest automobile manufacturing conglomerate on the island, recently said that its Chinese subsidiary Dongfeng Yulon Motor Co., Ltd. is expected to sell about 33,000 LUXGEN own-brand cars across the Taiwan Strait.

Dongfeng Yulon is a joint venture between Yulon and major Chinese automaker Dongfeng. The venture locally produces, markets and sells LUXGEN cars in China.

Yulon's board of directors recently resolved to carry out capital increment of two auto distributors for Dongfeng Yulon, so as to boost its shareholding to 51%.

According to Yulon, it adjusted the shareholding in Chinese LUXGEN distributors so as to match its business strategy. In most cases, Yulon holds a 51% stake in an auto distributor, so as to allow more talents to join the distributor's operation for better sales performance.

With China being the most important market for LUXGEN cars outside Taiwan, Yulon has been accelerating its business development in the mainland market. By the end of 2012, Dongfeng Yulon aims to have 200 sales points throughout China.

Dongfeng Yulon sold about 30,000 LUXGEN7 SUVs in 2012, and total sales in China have reached 40,000 units (since fourth quarter of 2011). The venture is scheduled to launch a new passenger car model, the LUXGEN5 Sedan, in 2013, and expects to boost its annual sales to more than 50,000 units.

Yulon reiterated that it would continue to develop sales network in China. The Taiwanese group decided to issue NT$6 billion (US$200 million) worth of unsecured corporate bonds in August 2012 to raise funds for financing distribution-chain development in China.