Dongfeng Capital Increase and Fuqi: Yulong Bureau


On May 15, Chen Guorong, the general manager of Taiwan Yulon Motors, flew to Wuhan and accompanied the chairman of Dongfeng Group Xu Ping and General Manager Zhu Fushou to Fuzhou the next day.

At 11:30 in the morning, at the West Lake Hotel in Fuzhou, Zhu Fushou and the Fujian Provincial Government signed a framework agreement that included Dongfeng’s capital increase in Fuqi, and the joint venture with Fuqi to establish an investment company to hold Southeast Automotive. For Chen Guorong, he rushed for nearly a year to finish the bridge.

According to the framework agreement, Dongfeng Motor Corporation will acquire 45% equity interest in Fuqi held by the Fujian Provincial State-owned Assets Supervision and Administration Commission in a capital increase manner; the two sides will form an investment company, holding Southeast Automotive Industry Co., Ltd. (Southeast Automobile for short), and the investment company's shareholding ratio 2:1.

According to the agreement, Dongfeng will become the largest shareholder of South East Auto, and the next step in the reorganization of Southeast Auto is already expected. Li Chunrong, secretary of the party committee of Dongfeng Passenger Vehicle Co., Ltd., euphemistically stated in April: “Many media are passing Dongfeng to acquire a company (Southeast Auto). I’m here to say that even if there are companies that have acquired M&A, we can also be independent in Dongfeng. It is arranged in it."

Yulon completely relies on Dongfeng

Taiwan Yulon Motors owns a 25% stake in Southeast Motors through its subsidiary China Motors. Southeast Automotive, which was established in 1995, had sales of 83,533 vehicles as early as 2003. However, after nearly 10 years of Chinese auto blowout, its target sales volume in 2012 was only 110,000.

What makes Yulon a huge contrast is that Dongfeng Yulon, which was established in 2010 with Dongfeng, has shown another spring scene. In September 2010, Dongfeng Yulon, which was formally signed by the two parties, quickly entered the operating track and began mass production of automobiles in less than a year.

What makes Yulon surprised is that during the first full year of Dongfeng Yulon’s official sales in 2012, the sales volume was as high as 31,000 units, sales revenue was 6.485 billion yuan, and profits were realized. In today's fiercely competitive Chinese auto market, it can be called a miracle in the industry. Dongfeng Yulon has set a goal of selling 55,000 vehicles and challenging 60,000 vehicles this year.

Based on the recognition of Dongfeng's joint venture culture, Yulon expressed hope to build more business cooperation with Dongfeng. The Southeast Motor Corporation, a joint venture with Fuqi and Mitsubishi, has been in turmoil for many years. Fuqi also expressed its willingness to sell stocks to rescue the crisis.

In fact, Dongfeng has a deep relationship with Yulong. Dongfeng and Yulon jointly established Fengshen Automobile in Guangzhou in 2000. The bluebirds produced were recognized in the market. Despite the joint venture between Dongfeng and Nissan in 2003, the cooperation with Yulon ceased. However, the relationship between the two parties during the cooperation period has been difficult to give up. After Dongfeng had a joint venture with Yulon in 2010, Dongfeng Yulong’s deputy general manager Bai Qingyuan and head of marketing headquarters Dan Zhidong were formerly known as Guangzhou Fengshen.

Against this background, Chen Guorong actively participated in the negotiation of Dongfeng's entry into Fuqi. As a hero of this marriage, Chen did not appear in the contract photo, but he first went to Wuhan and accompanied Dongfeng officials to Fuzhou. In the future reorganization of the southeastern automobile, Yulon and Dongfeng will not have much disagreement.

In addition, the cooperation between Dongfeng and Yulon has a political background. Dongfeng Yulon is considered to be the first large-scale economic project after the signing of the ECFA. In the early stages of its establishment, Dongfeng Yulon set a grand goal of using eight years to increase production capacity to an annual output of 500,000 vehicles.

Light Fuqi southeast

According to the agreement set up by the two parties in August last year, the reorganization plan was divided into two steps: Dongfeng acquired 40% shares of Fuqi after the agreement was reached, and realized the first step to invest in Fuqi. It also placed a station in the Fuzhou Group, which currently has a vacant general manager position. General Manager; In the subsequent operations, Dongfeng will support Fuqi on a variety of resources. When Fuqi has sold 300,000 vehicles for the entire year, Dongfeng has the right to acquire 20% shares of Fuqi and become a controlling shareholder. .

However, the agreement signed after 9 months was changed to Dongfeng’s 45% equity holding in Fuzhou through the capital increase. Although the equity transferred was increased, Fuqi still maintained its status as a major shareholder. The latest agreement did not mention two steps, meaning that Fuqi did not intend to transfer the control of Fuqi Group.

The question in the industry is why Dongfeng Motor has to be the second largest shareholder that may cause it to dilemma in its future operations. The answer is that Dongfeng sacrificed its control over Fuqi in exchange for control of Southeast Auto. According to the previous 50% for Fuqi, 25% for China Motors and Mitsubishi Motors, Dongfeng will have 2/3 of the original 50% share of Fuqi, which is approximately 33.3% of the total shares of Fuzhou Automobile (Fufeng Group). To 16.7%), plus a 25% stake in Yulon, which has a good relationship, Dongfeng can actually control Southeast Motor.

The framework agreement did not specifically mention changes in the shares of Fuqi's other segments. If Dongfeng holds a 45% stake in Fuqi, Dongfeng does not have the right to speak in the Mercedes-Benz Fujian, Fujian Xinlongma and other automobile enterprises.

In November 2011, Fujian proposed to achieve a target of 1 million cars and a total output value of 200 billion yuan for the auto industry by 2015. In the same year, only 12.3 million units were sold by Fuzhou. Fujian Province needs Dongfeng Motor Company to provide such a strong financial backing to revitalize Fuqi.

Tong Dongcheng, deputy general manager of Dongfeng Motor, told reporters on the night of signing the contract: “In the next decade, the Chinese auto industry will also reshuffle the current scattered and chaotic industries. There must be new reorganizations for companies with low levels. It is the inevitable result of the market. Only when it is restructured can there be scale, only progress, and innovation."



1. Model : K8500XE

2. Rated Frequency (HZ): 50 or 60

3. Rated output power (KVA): 6.5

4. Max output power(KVA): 7.0

5. Rated Rotation Speed:(rpm):3600

6. Power factor:1/0.8

7. Phase Number:Single or 3 phase

8. Excitation Transistorized: Self-Excitation, brushless

9. Fuel Consumption:(g/KW H): 330

10. Fuel tank capacity: 12.5 L

11. Continuous Running Time(hr)(@Rated Power):5.5 hours

12. Noise Level: (Dba@7m)(Zero Load-full load): 75-80

13. Start system: Electric Starter

14. Fuel Type: Summer:0#,Winter:-10#,Chill cold:-35# Diesel oil

15. Lube: SAE10W(Above CD Grade)

16. Engine: K D 192 FE

17. Engine Type: 1 cylinder 4 stroke air cooled ,Vertical Diesel Engine

18. Bore X Stroke: 92 X 75

19. Displacement(cm3) :499

20. Compression Ratio: 19:1

21. Rated Power(KW/rpm): 8.2/3600

22. Optional Standard: ATS / Remote control /Three Phase /Wheel and Handle

23. Net Weight(kg): 106

24. Overall Dimension(mm) (L X W X H):740 X 515 X 640


5KVA air cooled silent diesel generator

Air Cooled Diesel Generator

Silent Diesel Generators,Portable Silent Generator,Silent Camping Generator,Silent Suitcase Generator

Weifang Jinma Diesel Engine Co.,Ltd , http://www.goldenhorsepower.com