Dongfeng Peugeot and Dongfeng Honda to open new facilities in Wuhan

The automotive industry in Wuhan, the capital of Hubei, is all set to grow more than 70 billion yuan (US$11.18 billion) in value per year, according to a report published in the Changilang Daily. Forecasts for 2016 show Wuhan’s worth at 400 billion yuan (US$63.86 billion), and the new production programs of Dongfeng Peugeot and Dongfeng Honda will both be contributing factors to the growth of the city. Dongfeng Peugeot’s joint venture will manufacture transmission systems in its Wuhan facility to the tune of 8 billion yuan (US$1.26 billion) as part of its plan to make the city its third major Chinese production site. It is currently the largest auto program in Wuhan. Meanwhile, Dongfeng Honda is ready to begin work on its second factory which will begin operations on July 1. The new plant will add to the joint venture’s overall production capacity and bring it to 500,000 vehicles. The joint venture has been continuously pushing its first production site to the limit, and even after the earthquake in Japan last year and the subsequent decline in the domestic market, Dongfeng Honda continued to perform well in China. It has been selling around 20,000 CR-V SUVs every month, prompting the joint venture to hatch up plans for the release of five new models this year. (January 29, 2012)