Chinese auto giant to move headquarters out of mountains to industrial capital i
( 2003-09-23 19:10) (Xinhua)
One of China's largest carmakers, Dongfeng Motor Corp., has decided to move
its headquarters of three decades in central China's mountains to the city of
Wuhan, setting itself in a strategic location in the country.
According to Miao Xu, general manager of Dongfeng, the move on Sept. 28 will
be to the Economic and Technological Development Zone of Wuhan, the capital of
central China's Hubei province and one of the leading industrial and commercial
cities in China.
The company overcame resistance from veteran, retired staff who held
affections towards the old location, in Shiyan city in the province, and from
the local government that was afraid of the move would undermine the city's
economy which is highly dependent on the Dongfeng Motor-backboned auto industry.
But aiming for a competitive edge in one of the world's most promising auto
markets, Dongfeng chose to make the move out of the mountainous city of Shiyan,
where the motor works was first built over three decades ago in the wake of
China's national strategy of building up industries in interior areas.
On July 1, Dongfeng and Japanese auto giant Nissan formed an equally owned
two billion-US dollar venture based in Wuhan, creating the opportunity for
Dongfeng to use foreign capital to renovate its manufacturing facilities that
will remain in Shiyan and appropriate distribute and arranged its 100,000
employees.
The new firm, Dongfeng Motor Co. Ltd., has employed 74,000 people and
officially went into operations on July 1, producing a full-line of vehicles
ranging from trucks and buses to light commercial vehicles and passenger cars.
Katsumi Nakamura, a Nissan executive appointed president of the joint
venture, said that the headquarters of Dongfeng Motor Co. Ltd. will also move to
Wuhan where it is registered.
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