Yulon to build vehicles for China’s Geely

Taiwan’s Yulon Motor Co. announced plans to build vehicles developed by Geely Automobile Holdings Ltd. in Taiwan. The vehicles will be shipped to Taiwan from China as completely knocked down (CKD) kits to be built up locally under the Yulon brand and sold at a price below NT$350,000 (US$10,590). The plan may also result in Yulon’s own self-developed vehicle, the Luxgen, which is being sold in China under the Geely brand. Given the declining market in Taiwan, which does not seem to be improving, Yulon said that it is looking at a lower-cost vehicle to boost sales. (January 6, 2009)