May 28, 2012
INFINITI MODELS TO BE MANUFACTURED IN XIANGYANG, CHINA BEGINNING 2014
XIANGYANG, China (May 28, 2012) - Dongfeng Motor Co., Ltd. (DFL) and the City of Xiangyang today announced that the Xiangyang plant in Hubei Province, China, has been selected as the local production site for Infiniti. The plant, operated by Dongfeng Motor Co., Ltd., Nissan's joint venture company in China, will manufacture two Infiniti models starting in 2014.
DFL will invest RMB 2 billion (US$ 315 million)* in the Xiangyang plant to meet growing Chinese customer demand. Production capacity at the plant, which currently produces Teana and Murano, will be increased from 130K to 250K units.
"The localization of Infiniti at our Xiangyang plant is a significant milestone for us," said Kimiyasu Nakamura, president of Dongfeng Motor Co., Ltd (DFL). "It proves that we are fully capable of producing luxury vehicles of the highest quality standards here in China, at the same level of quality as the Tochigi plant, its mother plant, in Japan," he added.
The Infiniti brand was first introduced to China in 2007, and continues to strengthen its product lineup and expand its sales network to satisfy customers in the growing Chinese luxury segment.
"Local production will allow our valued Chinese customers more access to our products and enhance our brand awareness," added Allen Lu, Managing Director of Infiniti Business Unit, China. "I am confident this new development is a key step to reach our aggressive global sales target of 500,000 units by 2016."
The two models to be produced at the Xiangyang plant will be named at a later date.
* Amounts of dollars are translated for the convenience of the reader at foreign exchange rates of 0.157 dollar/ yuan.
Dongfeng Motor Co., Ltd. (DFL)
Established in 2003, Dongfeng Motor Co., Ltd. is a strategic partnership between Dongfeng Group and Nissan Motor Co., Ltd. DFL is the first joint venture in China to have a full lineup of passenger vehicles, LCVs and H&MCVs, and has grown faster than the total market in China. Registered capital of the company is RMB 16.7 billion, the largest automotive joint venture investment in China, with Dongfeng and Nissan each holding a 50 percent stake.
Nissan Motor Co. Ltd. and its business in China
Nissan Motor Co., Ltd., the second-largest Japanese automotive company, is headquartered in Yokohama, Japan, and is part of the Renault-Nissan Alliance. Nissan provided customers with more than 4.67 million vehicles globally in 2011. China is the largest single market for Nissan, representing more than a quarter of its total global sales. Nissan started full-scale operations in the Chinese market in 2003 with the establishment of Dongfeng Motor Co., Ltd. Nissan launched its luxury brand, Infiniti, in China in 2007. Nissan's sales volume, including both passenger and light commercial vehicles, has risen from 94,000 units in 2003 to approximately 1.25 million units in 2011. For 2012, Nissan is targeting sales of 1.35 million vehicles in China.
Infiniti, the luxury automotive brand from Japan, reflects its brand promise, "Inspired Performance," with a model lineup of sedans, coupés, SUVs and crossovers featuring exhilarating performance, emotive design and cutting-edge technology. Infiniti continues to launch across the globe through a dedicated network of Infiniti Centres that share a commitment to exceptional hospitality throughout the entire period of ownership.