Dongfeng is making ready to promote its stake in its engine three way partnership with Honda in response to filings with the Guangdong belongings and equities alternate.
A value for the state-owned automaker’s 50 per cent share within the three way partnership has not been set, and bids might be accepted till September 12.
Honda has not dedicated to purchasing out Dongfeng’s share, and it’s unclear whether or not there are some other firms . In a press release to The Nikkei, Honda stated it will “think about numerous potentialities” about what to do subsequent.
CarExpert can prevent 1000’s on a brand new automotive. Click on right here to get an excellent deal.
Established in 1998, the engine maker has 827 staff. Its belongings are valued at ¥5.4 billion (A$1.2 billion), and it has ¥3.3 billion (A$715 million) in debt.
Final 12 months the engine three way partnership misplaced ¥228 million (A$49 million) as Chinese language shoppers continued their fast embrace locally-developed EV fashions.
In response to Bloomberg, Dongfeng’s gross sales have been fallen dramatically over the previous few years. After peaking at 3.8 million gross sales in China in 2016, the corporate’s gross sales slid to only 1.5 million final 12 months.
Gross sales are reportedly down 10 per cent throughout the first half of 2025, and Dongfeng’s earnings have dropped 90 per cent.
Dongfeng operates joint ventures with Honda and Nissan. Along with this it additionally manufactures vehicles on the market underneath its personal model, in addition to Voyah, M-Hero, Aeolus, and Forthing.
Nissan has been leaning on Dongfeng’s “new vitality” platforms and know-how to increase its plug-in hybrid and EV lineup in China. This 12 months’s launches embody the Frontier Professional PHEV ute, and the electrical N7 sedan.
Honda has two three way partnership companions in China: GAC and Dongfeng. For a lot of the fashions it makes and sells in China there are two variations, typically with beauty and naming variations. The Civic, for instance, is a Dongfeng Honda product, whereas the virtually equivalent Integra is made and offered by GAC Honda.
Neither Dongfeng or Honda have indicated whether or not the construction of their automotive manufacturing partnership is underneath assessment. At present every automaker holds a 50 per cent share in Dongfeng Honda.
When the Chinese language authorities opened up the nation’s automotive market, they required abroad carmakers to type joint ventures with native producers with a most 50 per cent stake for the overseas agency.
Within the final decade these guidelines have been loosened up. Overseas producers are in a position to purchase out their current accomplice, though few have gone down this route, BMW being one notable exception. Abroad carmakers can even setup factories with no native accomplice, with one distinguished instance being Tesla.
MORE: The whole lot Honda
