Taipei,Sept.5,2012--Yulon Group of Taiwan,a major carmaker on the island,recently announced the issuance of NT$6 billion(US$200 million)in unsecured corporate bonds to further develop distribution channels in China for its own line of Luxgens.
Yulon has set up an auto production joint venture in China,Dongfeng Yulon Motor Co.,Ltd.,with Chinese automaker Dongfeng Group to local assemble,sell Luxgens,of which Dongfeng Yulon sold about 20,000 units in the first half.
Dongfeng Yulon has about 120 distributors in China and the number is expected to increase to some 200 by the end of the year.
Yulon also aims to accelerate building supply chains in China.For example,its affiliate Advance Power Investment Co.,Ltd.(CECTEK)is developing,manufacturing engines for Luxgens.
Dongfeng Yulon sells mainly the Luxgen7 sport utility vehicle(SUV)in China,and will launch others,including the Luxgen multi-purpose van(MPV)and CEO(top-end MPV),as well as the Luxgen5 Sedan by year-end,with annual production capacity targeted at 120,000 units by 2013,from about 60,000 units,and mid-term goal to offer a 10 model lineup,as well as annual capacity of 240,000 units.
Yulon`s board recently announced to cancel a land development project next to its auto plant in Sanyi,central Taiwan,which originally aimed to expand annual capacity to 200,000 internal combustion engines and electric cars,adding that the reversal is to evade uncertainties related to the project,with the group to instead develop independently such land and build opportunely production lines.
