August 30, 2006
NISSAN AND DONGFENG TO SET UP CHINA AUTO FINANCE COMPANY
WUHAN (Aug. 30, 2006)--Nissan Motor Co., Ltd., (NML) and Dongfeng Motor Group Co., Ltd. (DFG), signed an agreement today to establish an auto finance company based in Shanghai by 2007.
Dongfeng Nissan Auto Finance Co., Ltd., (DNAF) will provide new car retail finance to Nissan and Infiniti customers and inventory finance to dealers handling either brand. The Infiniti brand will be introduced into China next year.
The company will be capitalized at 500 million yuan (US $62.7 million). Nissan will hold a 65% stake in the company, while DFG will own the remaining 35%. The companyfs board members will consist of five directors with three assigned from Nissan and two from DFG. In total, 200 new jobs will be created in the next few years.
gDongfeng Nissan Auto Finance will support Nissanfs growth in China by fully leveraging Nissanfs expertise in global sales finance and Dongfengfs experience and influence in China operations,h Joji Tagawa, corporate vice president, global treasury and head of investor relations, said at the signing ceremony.
gWe look forward to providing Chinese consumers with competitive financial products and exceptional service to help them finance the vehicles of their choice,h said Liu Zhangmin, president and CEO of DFG.
The new company will help strengthen sales of locally-built Nissan vehicles, as well as imported Infiniti brand cars. Inventory financing will be widely available in China from the start. By 2010, retail financing will be expanded to other major Chinese cities including Beijing, Guangzhou and Wuhan.
The establishment of the new company is pending approval by the China Banking Regulatory Commission (CBRC).
In 2007, sales of Nissanfs locally built and imported passenger vehicles are expected to amount to more than 300,000 units, up about 50% from this year. Nissanfs China vehicles are built at Dongfeng Motor Co., Ltd., its joint venture with DFG.
Note: Amounts in RMB are translated for the convenience of the reader only at the rate of 1 RMB per 0.125 US dollar, based on the exchange rate in effect as of Aug. 29, 2006