UPDATE 1-Dongfeng/Nissan China JV sets growth goals
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BEIJING, May 28 (Reuters) - Chinese auto maker Dongfeng's (0489.HK) joint venture with Japan's Nissan Motor (7201.T) on Wednesday outlined ambitious plans to expand in the world's fastest-growing market.
The joint venture, Dongfeng Motor Co Ltd (DFL), expects to sell 1 million vehicles annually by 2012, up from 610,000 last year, its president, Kimiyasu Nakamura, told reporters.
The venture, which brings together China's third-largest automaker, Dongfeng Motor Group Co, with Japan's No. 3, will build a new 1 billion yuan ($144 million) plant to underpin its expansion, Nakamura told reporters.
The factory will open in 2010 with the capacity to build 120,000 light commercial vehicles a year, he said.
Outlining the JV's medium-term strategy, Nakamura said DFL planned to launch 15 new commercial and passenger vehicle models in the next five years.
"We would like to reach this 1 million units within this 5-year period," he said.
By 2012, the JV is projecting annual sales of 100 billion yuan ($14.39 billion), up from 59.32 billion yuan ($8.54 billion) last year.
As part of its plan, DFL hopes exports of commercial vehicles will be growing at 10 percent a year by 2012, twice as fast as now.
Xu Ping, the JV's chairman, said it was in talks with Volvo (VOLVb.ST), the world No. 2 truck maker, about cooperating on the research and development of commercial vehicles. The aim was to promote Dongfeng's brand in China, Xu said.
The joint venture, which said it doubled its sales in the previous five-year planning period, sold 101,769 cars in the first four months of 2008, 23.2 percent more than a year earlier.
Dongfeng also has joint ventures with PSA Peugeot-Citroen (PEUP.PA) and Honda Motor (7267.T). ($1=6.948 Yuan) (Reporting by Kirby Chien; Editing by Alan Wheatley and Ken Wills)
