Dongfeng Motor Corporation Ltd. is a Chinese state-owned automobile manufacturer headquartered in Wuhan, Hubei. Founded in 1969, it is currently the third largest of the "Big Four" state-owned car manufacturers of China, namely: SAIC Motor, FAW Group, Dongfeng Motor Corporation, and Changan Automobile, with car sales of 5.37 million, 3.50 million, 3.28 million and 2.30 million in 2021 respectively.
The company develops and markets vehicles under its own branding, such as Venucia, Fengdu, Voyah, Aeolus, Forthing, as well as under foreign-branded joint ventures such as Dongfeng-Honda, Dongfeng-Nissan and Dongfeng-Peugeot Citroën (all via subsidiary Dongfeng Motor Group). In 2021, foreign-branded cars took 79% of sales. It also produces electric vehicles under some of the previously listed brandings, including dedicated EV brands such as Voyah.
In addition to commercial and consumer vehicles, it also manufactures parts and cooperates with foreign companies.
Some sources may refer to the company as Dong Feng, use an acronym like DFM, or use the name in conjunction with others when referring to a subsidiary, joint venture, or other associated enterprises such as "Dongfeng Yueda Kia", for example.
As a state-owned enterprise of China, Dongfeng is controlled and managed by SASAC, which under Chinese law performs the functions of an investor.
History
Background and founding
During the Korean war, there was a need for trucks to be used on the battlefield. The Ministry of Machinery planned a factory to build an imitation of the GAZ-51 truck. This was originally planned to be at Qingshan District, Wuhan, and later revised to Wuchang District, also in Wuhan. In 1955, these sites were disregarded as being too vulnerable to air raids, and Chengdu was chosen as the proposed site. The reasoning is also mentioned in a dictate of Chairman Mao Zedong; as part of his "Third Front" strategy However, due to the poor state of the economy, the plans were shelved.
In 1957, Hunan was picked as the site for the proposed truck factory, as the Yangtze basin area of the province didn't have any heavy industry yet. In 1960 preparations started at the site in Shiyan, but were abruptly halted. As the Chinese economy improved, and as a result of the Sino-Soviet split, production of military trucks came into the spotlight again, and construction of the Second Automobile Works () was included in the third five-year plan in 1965.
The company was officially founded in 1969 at a village of 100 residents, that would later grow to become Shiyan city. This remote location was chosen as its topography consisted of over 40 shallow valleys, allowing factories to be concealed, while also being on the route of the Xiangyang–Chongqing railway. Due to its remote countryside location with limited equipment, the company only managed to produce 200 automobiles by 1972.
Mass production (1975-2000)
In 1975, the first EQ240 2.5-ton Dongfeng truck was produced, followed by the EQ140 5-ton model in 1978, which was also the first civilian truck by the company. At its peak the EQ140 held a domestic market share of 66%. In 1986, Dongfeng surpassed 100,000 vehicles produced annually. In 1987, a new 3-ton model was launched.
Traditionally manufacturing commercial vehicles, by 2001 these made up about 73% of Dongfeng's production. By 2012, that figure had reversed, and 73% of manufactures were passenger cars. However, the percentage of consumer offerings was likely lower as passenger car counts may include microvans, tiny commercial vehicles that are popular in China.
Between 1978 and 1985 alongside the market-based Chinese economic reforms instituted by Deng Xiaoping, Dongfeng was transformed from a manufacturer of two heavy-duty trucks with fragmented operations and ownership into a single, centrally managed enterprise. This process included placing all Dongfeng operations—from part manufacture to vehicle assembly—under the control of a single business entity and the merger of six truck production bases as well as a number of other companies previously controlled by provincial governments. Post-1985, further reforms took place that allowed Dongfeng greater autonomy; the company was removed from the direct administrative control of the central government.
By the mid-1980s, its assets had tripled from those initially given to it by the state in 1981, and management was desirous of even greater production capacity. But in 1995, the company was experiencing financial difficulties as was the case with many Chinese automobile manufacturers at this time. The situation was still dire in 1998 precipitating a 1999 restructuring of the company.