BEIJING - Dongfeng Motor Co., Ltd. (DFL), Nissan’s local partner in China, today announced it’s 2008 to 2012 mid-term business plan for China focused on building a stronger market position and increased global competitiveness.
The ambitious five-year plan, named Plan 13 ("one cubed"), expands on the company’s previous business blueprint, Plan 23 ("two cubed"), under which the company doubled sales volume between 2003 and 2007.
Plan 13 has the following objectives represented by three “1”s:
1. Significant Growth
· Further business expansion targeting sales of 1 million vehicles and revenue of RMB 100 billion (USD: 14.5 billion) by 2012
2. Operational Enrichment
· 1st Class in quality at all levels of product, sales & service and cost competitiveness
3. Trusted Company
· Creating 1 company through the formation of a single DFL corporate culture that combines the best of the Dongfeng Group and Nissan
Details of these three objectives are:
Significant Growth:
DFL sales have grown rapidly in
Part of the sales growth will be supported by local production at a new LCV plant built by DFL at
In further support of growth, DFL will expand its sales network for both passenger vehicles and LCVs. The number of dealerships will increase from 300 to 420 for passenger vehicles, from 420 to 630 for LCVs and from 250 to 380 for heavy & medium commercial vehicles (H&MCVs) from 2007 by 2012.
Another key element for DFL’s growth strategy will be strengthening of the company’s overseas business to meet commercial vehicle demand in growing markets by doubling the export ratio from 5% in 2007 to more than 10% by 2012 in total sales of LCVs and H&MCVs. Both the number of models and destinations for export will be increased to achieve this objective.
“From combined sales for passenger vehicles and commercial vehicles of 298,000 units in 2003, in line with our business plan, we doubled sales to 610,000 units in 2007,” said Kimiyasu Nakamura, president of DFL. “PLAN 13 aims to accelerate our growth in
Operational Enrichment:
DFL’s continued commitment to competitiveness will be achieved through high quality R&D capability, products and sales & service operations. To enhance cost competitiveness, DFL will work towards increasing localization of the passenger vehicles for transmissions, engines and other parts from 70 percent in 2007 to 90 percent in 2012.
Trusted Company:
A new objective for PLAN 13 is for DFL to become identified and recognized as a “Trusted Company.” A significant element of this will come from the robust DFL corporate culture that will evolve as a unified blend of the working cultures of Dongfeng Group and Nissan. DFL aims to be a trusted company by delivering valuable products and services that meet the needs of stakeholders, including customers, employees, suppliers and shareholders, while meeting the needs of the larger society by meeting environmental and social expectations.
DFL will bring environmental friendly technology to market through all business activities including products and services. The company aims to boost the number of passenger vehicle sold with continuously variable transmissions (CVTs) to 50 percent of sales by 2012.
DFL also will be exploring alternative fuel trucks, such as liquid natural gas (LNG).
DFL will continue work on STAR WINGS, the new navigation system that will be available with the new Nissan Teana. STAR WINGS is a cooperative project between Nissan and the Beijing Transportation Information Center (BTIC) which enables city drivers to shorten driving times by using real-time traffic information, leading to reduced travel time up to 20 percent based on market trial conducted by Nissan.
Through the elements set forth in PLAN 13, DFL has set a sales target of 680,000 vehicles for 2008.
Source:Infibeam.com
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