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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