Dongfeng Motor Group, one of China’s top four automakers, has announced a EUR 7 million investment plan to reinforce manufacturing and test laboratory activities at the company’s subsidiary T-Engineering in Trollhättan, Sweden.
T-Engineering, which is the only Dongfeng-owned company outside of China, develops electronic systems for trucks and cars (Engine Management Systems) with a staff of 100. A further 20 employees will be recruited during 2018 as a result of the investment.
Speaking to Swedish Radio’s (Sveriges Radio) programme Ekot, Klas Lundgren, CEO at T-Engineering, comments:
“This investment comes directly from China and gives us excellent opportunities for testing a range of concepts in our labs. It also demonstrates Dongfeng’s commitment to Trollhättan with continued activities and growth in the region.”
Dongfeng is the world’s third largest truck manufacturer producing 180,000 heavy and medium duty trucks every year, as well as passenger cars through a number of joint ventures. The state-owned company is headquartered in Wuhan, the capital of Hubei Province in China, and has 190,000 employees.
In 2012, Dongfeng acquired a 70 per cent stake in the Swedish engineering company T-Engineering AB. The investment here is not unexpected given that Trollhättan is a core cluster of Sweden’s automotive sector.
Dongfeng also has close ties to another Swedish company, Volvo Group, which purchased a 45 per cent stake in the joint venture Dongfeng Commercial Vehicles in 2015.