Beijing (Gasgoo)- On Sept. 17, Dongfeng Motor Group Co., Ltd. announced it has signed an investment agreement with Dongfeng Motor Co., Ltd., Xiangyang Holdings, and Xianggao Investment to establish a new joint venture with a registered capital of RMB 8.47 billion.
The venture will focus on developing Dongfeng Motor's premium off-road new energy vehicle brand M-Hero and adopt a cooperation model with Huawei that sits between Huawei's "HI" model and "Smart Selection" partnership.
Dongfeng Motor Group will contribute RMB 3.55 billion in intangible assets, including the licensing rights for the M-Hero series trademarks, vehicle platforms, and proprietary intelligent driving technologies. Dongfeng Motor Co., Ltd. will invest RMB 920 million in physical assets, such as tooling, buildings, and equipment, along with intangible process frameworks for vehicle development. Xiangyang Holdings and Xianggao Investment will inject RMB 2.88 billion and RMB 1.12 billion in cash, respectively.
Upon its establishment, the joint venture will integrate production across M-Hero's existing bases in Xiangyang, Wuhan, and Shiyan, with each plant focusing on different models. Dongfeng Motor said the initiative is designed to consolidate resources and accelerate the development of its M-Hero brand while enhancing cooperation with Huawei in next-generation intelligent vehicle technologies.
