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54-451: The company develops and markets vehicles under its own branding, such as 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. In addition to commercial and consumer vehicles, it also manufactures parts and cooperates with foreign companies. As

108-565: A 50-50 joint venture to produce Cummins diesel engines known as Dongfeng Cummins Engine Co. Ltd. Dongfeng sells vehicles under various brand names. Other brands may be associated with products manufactured or assembled by joint-venture companies that see foreign firms cooperate with Dongfeng in order to gain access to the Chinese market. Voyah (岚图) is a premium EV brand directly under Dongfeng Motor Corporation specializing in designing and developing electric vehicles . M-Hero Technology (猛士科技)

162-532: A 70 percent stake in the Swedish engineering company T Engineering AB. In December 2013, Dongfeng and the French automaker Renault agreed to form a 50:50 joint venture, Dongfeng Renault Automotive Co Ltd., to manufacture Renault brand passenger cars for the Chinese market. The two partners agreed to invest an initial 7.76 billion yuan (US$ 1.27 billion) in the venture, which became Dongfeng's sixth joint venture with

216-407: A China-based medium- and heavy-duty truck manufacturing joint venture, Dongfeng Commercial Vehicles, with 55% ownership by Dongfeng Motor and 45% by Volvo. As part of the transaction, Volvo will pay 5.6 billion yuan (US$ 900 million) to Dongfeng, which will pay Nissan Motors to replace it with Volvo in an existing commercial vehicle joint venture. It is unclear if the vehicles produced will be sold under

270-424: A distinct legal structure, with financial and developmental goals, like making services more accessible while earning profit (such as a state railway). They can be considered as government-affiliated entities designed to meet commercial and state capitalist objectives. The terminology around the term state-owned enterprise is murky. All three words in the term are challenged and subject to interpretation. First, it

324-421: A foreign automaker—the most of any Chinese automaker. In February 2014, loss making PSA Peugeot Citroën , a joint venture partner of Dongfeng since 1992, was recapitalized, with Dongfeng Motor Group taking a 14% stake. In 2017, it was announced that Dongfeng Motor Corporation would be re-incorporated as a limited company , renaming to 东风汽车集团有限公司 , which only differ from its subsidiary Dongfeng Motor Group for

378-470: 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

432-420: 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,

486-661: A public objective. For that reason, SOEs primarily operate in the domain of infrastructure (e.g., railway companies), strategic goods and services (e.g., postal services, arms manufacturing and procurement), natural resources and energy (e.g., nuclear facilities, alternative energy delivery), politically sensitive business, broadcasting, banking, demerit goods (e.g., alcoholic beverages ), and merit goods (healthcare). SOEs can also help foster industries that are "considered economically desirable and that would otherwise not be developed through private investments". When nascent or 'infant' industries have difficulty getting investments from

540-495: A regular enterprise, state-owned enterprises are typically expected to be less efficient due to political interference, but unlike profit-driven enterprises they are more likely to focus on government objectives. In Eastern Europe and Western Europe , there was a massive nationalization throughout the 20th century, especially after World War II . In the Eastern Bloc , countries adopted very similar policies and models to

594-688: A state-owned enterprise of China, Dongfeng is controlled and managed by SASAC , which under Chinese law performs the functions of an investor. 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

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648-571: A sub-brand under one unified Dongfeng brand but remain its independent marque. Dongfeng eπ is the premium EV sub-brand under the Dongfeng brand. The first Dongfeng eπ concept car debuted on 2018 Beijing Auto Show, and its prototype was named as Aeolus eπ01 formerly. In August 2023, Dongfeng Motor announced the consolidation of One Dongfeng brand. The Dongfeng eπ, Aeolus , and Dongfeng Nammi became sub-brands under Dongfeng brand. Dongfeng Nammi (previously known as Dongfeng EV or Dongchuang Zilian)

702-435: Is Dongfeng's brand for budget electric vehicles. The company previously sells the vehicle produced by eGT New Energy Automotive, a joint venture between Dongfeng and Renault-Nissan Alliance in Chinese market. In 2023, it was capital-increased and rename to Dongfeng Nammi, transitioning from a sales company to one with production capabilities. Dongfeng Liuzhou Motor Co., Ltd. is a subsidiary of Dongfeng Motor Group, located in

756-624: Is Dongfeng's brand for high performance luxury off-road vehicle. The Chinese name of the brand Mengshi (猛士) was inherited from the military vehicle line of Dongfeng. In 2023, the brand unveiled its first full-size luxury off-roader M-Hero 917 , a high performance EV/ EREV . In August 2023, Dongfeng Motor announced restructure of its subsidiary brands Aeolus (Dongfeng Fengshen) , Dongfeng eπ and Dongfeng Nammi . The three brands were consolidated into one "Dongfeng" brand, which unified in marketing and production management. The three brands became sub-brands and remained using independent marques. Aeolus

810-474: Is a 55% owned listed subsidiary that produces light commercial vehicles under Dongfeng branding. It was formed in 1998 by Dongfeng Motor Corporation, and was transferred to DFL in 2003, who held a 60.1% stake. In 2022, DFL transferred 29.9% stake back to Dongfeng Motor Corporation, who then bought another 25.1% from other investors, obtaining majority stake of 55%, fully streamlining all commercial vehicle production to Dongfeng Motor Corporation direct control. It has

864-402: Is a 55-45 joint venture between Dongfeng Motor Corporation and Volvo which produces medium-heavy trucks under Dongfeng branding. It was formed in 1975 by Dongfeng Motor Corporation, and was transferred to DFL in 2003. In 2013, DFL sold the medium-heavy truck business back to Dongfeng Motor Corporation, who then formed the joint venture with Volvo in 2015. Dongfeng Automobile Company Ltd . (DFAC)

918-562: Is a viable argument for SOEs is debated. SOEs are also frequently employed in areas where the government wants to levy user fees , but finds it politically difficult to introduce new taxation. Next, SOEs can be used to improve efficiency of public service delivery or as a step towards (partial) privatization or hybridization. SOEs can also be a means to alleviate fiscal stress, as SOEs may not count towards states' budgets. Compared to government bureaucracy, state owned enterprises might be beneficial because they reduce politicians' influence over

972-764: Is approximately 70% of total employment. State-owned enterprises are thus a major factor behind Belarus's high employment rate and a source of stable employment. In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi Arabian national oil company , Saudi Aramco , which the Saudi government bought in 1988, changing its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines , and owns 70% of SABIC as well as many other companies. China's state-owned enterprises are owned and managed by

1026-542: Is debatable what the term "state" implies (e.g., it is unclear whether municipally owned corporations and enterprises held by regional public bodies are considered state-owned). Next, it is contestable under what circumstances a SOE qualifies as "owned" by a state (SOEs can be fully owned or partially owned; it is difficult to determine categorically what level of state ownership would qualify an entity to be considered as state-owned since governments can also own regular stock , without implying any special interference). Finally,

1080-617: Is highlighted in the predominant local terminology, with SOEs in Canada referred to as a " Crown corporation ", and in New Zealand as a " Crown entity ". The term " government-linked company " (GLC) is sometimes used, for example in Malaysia , to refer to private or public (listed on a stock exchange) corporate entities in which the government acquires a stake using a holding company . The two main definitions of GLCs are dependent on

1134-701: Is the ultimate parent company using the Dongfeng name and is directly controlled by the State-owned Assets Supervision and Administration Commission of the State Council . Dongfeng Motor Group (DFG) is a listed subsidiary that is majority owned (66.86%) by Dongfeng Motor Corporation. The Dongfeng Motor Group (DFG) subsidiary is responsible for several joint ventures with foreign car companies, such as Dongfeng Motor Company Limited (DFL or commonly known as Dongfeng Nissan), Dongfeng Honda Automobile, Dongfeng Peugeot-Citroën Automobile. Of

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1188-715: The State-owned Asset Supervision and Administration Commission (SASAC) . China's state-owned enterprises generally own and operate public services, resource extraction or defense. As of 2017 , China has more SOEs than any other country, and the most SOEs among large national companies. China's SOEs perform functions such as: contributing to central and local governments revenues through dividends and taxes, supporting urban employment, keeping key input prices low, channeling capital towards targeted industries and technologies, supporting sub-national redistribution to poorer interior and western provinces, and aiding

1242-673: The 2013 creation of a partnership with French Renault means it retains this title today. In 2004, intermediate holding company of the group, Dongfeng Motor Group, became a listed company in the Hong Kong Stock Exchange ; Dongfeng Yueda Kia remained in the unlisted portion of the group. Dongfeng announced in November 2006 that they intend to sell their vehicles in Japan. In 2009, it sold 1.9 million vehicles ranking second among domestic automakers and third overall. In 2010,

1296-650: 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 ( 第二汽车制造厂 ) 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

1350-517: The Fengdu brand is to focus on producing affordable Crossover utility vehicles, the product line of the brand started by producing out of production Nissan CUVs bearing the Dongfeng logo. Dongfeng Automobile Company has decided to diversify the Dongfeng CUV product line. For this purpose the sub-brand of Fengdu was created. Older Nissan tooling was set up in China by Zhengzhou-Nissan to produce

1404-882: The Minister of Finance II, the Minister in the Prime Minister's Department in charge of the Economic Planning Unit, the Chief Secretary to the Government, Secretary General of Treasury and the heads of each of the GLICs (the Employees Provident Fund, Khazanah Nasional Berhad , Lembaga Tabung Angkatan Tentera (the armed forces pension fund), Lembaga Tabung Haji and Permodalan Nasional Berhad . Khazanah Nasional Berhad provided

1458-1019: The USSR. Governments in Western Europe, both left and right of centre, saw state intervention as necessary to rebuild economies shattered by war. Government control over natural monopolies like industry was the norm. Typical sectors included telephones , electric power , fossil fuels , iron ore , railways , airlines , media , postal services , banks , and water . Many large industrial corporations were also nationalized or created as government corporations, including, among many others: British Steel Corporation , Equinor , and Águas de Portugal . A state-run enterprise may operate differently from an ordinary limited liability corporation. For example, in Finland, state-run enterprises ( liikelaitos ) are governed by separate laws. Even though responsible for their own finances, they cannot be declared bankrupt ;

1512-528: The Volvo brand as a smaller, pre-existing Volvo-Dongfeng joint venture markets and assembles products with a "UD" brand and the Dongfeng brand name is traditionally used on commercial vehicles. A Nissan joint venture engine production base in Shiyan , Hubei province , was producing diesel engines c. 2010, and it is possible this location was one asset of the former Nissan joint venture Dongfeng bought out as part of

1566-681: The Volvo deal. The company uses the Dongfeng Trucks brand. Based in Wuhan , Hubei province, Dongfeng Honda Automobile Company was established in 2003 and manufactures Honda-branded SUVs and automobiles for the Chinese market. Products produced by this joint venture with Honda include the Honda Civic , the CR-V , and the Spirior . As of early 2011, some offerings may incorporate Japanese-made parts. In 2010, its model line included what

1620-540: The city of Liuzhou , Guangxi, China. Passenger vehicles produced by Dongfeng Liuzhou Motor bears the Forthing (Dongfeng Fengxing) brand. Dongfeng is the Chinese partner in many joint ventures that make trucks and cars. On August 29, 2017, the Renault-Nissan Alliance and Dongfeng Motor Corporation announced the establishment of a joint venture, eGT New Energy Automotive Co., Ltd. This joint venture

1674-842: The company sold 2.72 million units, making it the second most-productive Chinese vehicle-maker. It reported 1.72 million sales of passenger vehicles that same year. 2011 production figures put the company in second place, in terms of production volume, in its home market; Dongfeng produced 3.06 million vehicles that year. It was the second-largest Chinese automaker in 2012 by production volume, and Dongfeng manufactured over 2.76 million whole vehicles that year with passenger cars comprising 73% of manufacture. The number of cars counted as passenger vehicles may conflate consumer offerings and tiny commercial trucks and vans known as microvans , however. Dongfeng established its first research and development facility outside of China in October 2012 when it acquired

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1728-450: 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. In 1992, the company changed its name to Dongfeng, or "East Wind" in Chinese. This state owned enterprise has come into conflict with authority at both the national and provincial levels. Alongside First Automotive Works it saw

1782-491: The early 2000s. But its first was established in 1992 with French PSA Group . Known as Dongfeng Citroën Automobile Company (DCAC), it was the forerunner to the current Dongfeng Peugeot-Citroën Automobile Limited (DPCA). By 2003, Dongfeng had established joint ventures with Kia Motors ( Dongfeng Yueda Kia , 2002), Honda ( Dongfeng Honda , 2003), and Nissan ( Dongfeng Motor Co., Ltd. , 2003). As of 2011, it had more Sino-foreign joint ventures than any other Chinese automaker, and

1836-579: The electric city car targeted at European market. Its main products, the Renault Group's Renault City K-ZE / Dacia Spring , Seres Group 's Fengon E1 and Nissan's Vanucia E30 (second generation) are rebadged by Dongfeng's Nano Box and EX1 city car. Dongfeng established its joint venture with American parts-maker Dana Holding Corporation , Dongfeng Dana Axle Co, c. 2005. As of 2011, Dana and Dongfeng both have 50% ownership of this joint venture. In January 2013, Dongfeng and Volvo agreed to form

1890-507: The form of Public Sector Undertakings (PSUs). The Malaysian government launched a GLC Transformation Programme for its linked companies and linked investment companies ("GLICs") on 29 July 2005, aiming over a ten-year period to transform these businesses "into high-performing entities". The Putrajaya Committee on GLC High Performance ("PCG"), which oversaw this programme, was chaired by the Prime Minister , and membership included

1944-553: The joint ventures, DFL (or Dongfeng Nissan), formed in 2003, is the largest and sells Nissan-branded vehicles under its Dongfeng Nissan Passenger Vehicle Company (DFN) division. The DFN division also produces cars using Infiniti and Venucia branding. In 2017, DFL acquired 51% stake in Zhengzhou Nissan (total 79.651%) from its own subsidiary (at the time) Dongfeng Automobile Company Ltd. (DFAC) to consolidate Nissan China operations under DFL. Dongfeng Commercial Vehicle (DFCV)

1998-412: The leading application of the incomplete contract theory to the issue of state-owned enterprises. These authors compare a situation in which the government is in control of a firm to a situation in which a private manager is in control. The manager can invest to come up with cost-reducing and quality-enhancing innovations. The government and the manager bargain over the implementation of the innovations. If

2052-428: 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

2106-592: The negotiations fail, the owner can decide about the implementation. It turns out that when cost-reducing innovations do not harm quality significantly, then private firms are to be preferred. Yet, when cost-reductions may strongly reduce quality, state-owned enterprises are superior. Hoppe and Schmitz (2010) have extended this theory in order to allow for a richer set of governance structures, including different forms of public-private partnerships . SOEs are common with natural monopolies , because they allow capturing economies of scale while they can simultaneously achieve

2160-399: The private sector (perhaps because the good that is being produced requires very risky investments, when patenting is difficult, or when spillover effects exist), the government can help these industries get on the market with positive economic effects. However, the government cannot necessarily predict which industries would qualify as such 'infant industries', and so the extent to which this

2214-428: The proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (more than 50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC. The act of turning a part of government bureaucracy into a SOE is called corporatization . In economic theory ,

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2268-451: The question of whether a firm should be owned by the state or by the private sector is studied in the theory of incomplete contracts developed by Oliver Hart and his co-authors. In a world in which complete contracts were feasible, ownership would not matter because the same incentive structure that prevails under one ownership structure could be replicated under the other ownership structure. Hart, Shleifer, and Vishny (1997) have developed

2322-634: 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. 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,

2376-703: The second generation Nissan X-Trail rebadged as the Dongfeng Fengdu MX6 . The current Fengdu range comprises the following models: Government owned corporation A state-owned enterprise ( SOE ) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goods at lower prices, implement government policies, or serve remote areas where private businesses are scarce. The government typically holds full or majority ownership and oversees operations. SOEs have

2430-469: The service. Conversely, they might be detrimental because they reduce oversight and increase transaction costs (such as monitoring costs, i.e., it is more difficult and costly to govern and regulate an autonomous SOE than it is the public bureaucracy). Evidence suggests that existing SOEs are typically more efficient than government bureaucracy, but that this benefit diminishes as services get more technical and have less overt public objectives. Compared to

2484-465: The state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. State-owned enterprises are a major component of the economy of Belarus . The Belarusian state-owned economy includes enterprises that are fully state-owned, as well as others which are joint-stock companies with partial ownership by the state. Employment in state-owned or state-controlled enterprises

2538-497: The state's response to natural disasters, financial crises and social instability. China's SOEs are at the forefront of global seaport-building, and most new ports constructed by them are done within the auspices of the Belt and Road Initiative . As of at least 2024, an Ethiopian SOE is Africa's largest and most profitable airline, as well as Ethiopia's largest earner of foreign exchange. In India , government enterprises exist in

2592-568: The successful dismantling of the Automobile Corporation, a central government entity presumably tasked with preventing non-competitive business practices through dictating output volumes and curtailing purchasing as well as exasperation at the right of the State to make managerial appointments. The Chinese partner in many Sino-foreign joint venture companies, Dongfeng initiated most of these cooperative efforts with foreign firms in

2646-657: The term "enterprise" is challenged, as it implies statutes in private law which may not always be present, and so the term "corporations" is frequently used instead. Thus, SOEs are known under many other terms: state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, government-owned company, government controlled company, government controlled enterprise, government-owned corporation, government-sponsored enterprise , commercial government agency, state-privatised industry public sector undertaking, or parastatal, among others. In some Commonwealth realms , ownership by The Crown

2700-476: The word 股份 ) (share). In 2020, Dongfeng dissolved its ventures Dongfeng Renault , Dongfeng Yulon and withdrawn from Dongfeng Yueda Kia in 2021. On June 12, 2020, the mass-produced version of the Dongfeng Sharing-VAN 1.0 rolled off the production line at its technical center, demonstrating Dongfeng's 5G-enabled autonomous vehicle with level 4 applications. Dongfeng Motor Corporation (DFM)

2754-451: Was China's best-selling SUV that year, the CR-V. Other Honda-branded models sold in China are made by Guangqi Honda Automobile , but a 2004 agreement allowed Dongfeng-built CR-Vs to be sold through Guangqi's showrooms . Dongfeng Fengdu Fengdu (风度) is a sub-brand of Zhengzhou Nissan , a subsidiary of Dongfeng Automobile, launched during the 2013 Shanghai Auto Show . As the aim of

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2808-553: 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

2862-463: Was created for the collaborative development and sale of electric vehicles in China. Renault and Nissan each hold a 25% stake in eGT, while Dongfeng owns the remaining 50% of the shares. eGT has established its production facility in Shiyan City, Hubei Province, located in the central region of China. The joint venture shares the production line and supply chain with Dongfeng Nammi and produces

2916-572: Was launched in July 2009 using the Chinese name Fengshen (风神), and was later renamed to Aeolus as the English name. Several models during the 2010s was produced with support from PSA Peugeot Citroën and in the same factories that produce its Peugeot and Citroën-branded products for the Chinese market. The Aeolus S30 may have been the first instance of Dongfeng using its own "Dual Sparrows" logo in combination with its name. In August 2023, Aeolus became

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