Yulon Group to invest US$1 billion into electric vehicle development

Taiwan’s Yulon Group has decided that the electric vehicle (EV) is the future of the automotive industry and is determined to become a major player in that market. Chief Executive Officer Kenneth Yen announced the company will invest NT$20 billion to NT$30 billion (US$666.7 million to US$1 billion) into electric vehicle development. Yulon’s plans in terms of the growth of the EV market are to place resources into related businesses such as the production of lithium-ion power cells for EVs. In addition, Yulon plans to invest in battery-related businesses, such as battery maintenance and recycling. The company will expand into the battery business through investment, joint ventures and acquisitions. Yen said, “Yulon has already poured NT$20 billion to NT$30 billion into the development and manufacturing of battery electric vehicle (BEV) products and will continue to invest a similar amount, or even more into this emerging business. In the past, we sold assembled cars and then the transactions came to an end. But in the EV business of the future, we are thinking of the continuing business. Unlike gasoline engines, EV battery packs can generate continued business related to their maintenance and replacement; this will necessitate a brand new business model, and that’s the direction of our business development in the future. This means a brand new supply chain filled with unlimited business opportunities.” The Yulon Group is an automotive manufacturer and a major contract automotive assembler for Nissan and a local assembler for Mitsubishi. There are 45 auto-related companies within the Yulon Group. The combined revenues for the company in 2010 are NT$280 billion (US$9.3 billion) and net profits are NT$18 million (US$600 million). (March 8, 2011)