The Southeast V6 concept at Aprils Shanghai motor show: this Lancer-based model is due to be built in Fuzhou later this year

The Southeast V6 concept at April's Shanghai motor show: this Lancer-based model is due to be built in Fuzhou later this year

Dongfeng Motor has taken a shareholding in MMC's joint venture partner Fujian Motor. The deal gives China's second largest OEM new access to manufacturing capacity in the country's south east.

The state-run partner of Nissan Motor, PSA Peugeot Citroen and Honda Motor said it would inject funds into Fujian Motor Industry Group. This will be in exchange for an undisclosed stake from the Fujian provincial government, a report carried by Bloomberg states.

Fujian Motor's main car making partner is Taiwan's China Motor Corporation (CMC), which builds Mitsubishi-based vehicles in Fuzhou under the Southeast and Mitsubishi brands. Under the new agreement, Dongfeng and Fujian will establish an investment firm into which the assets of the Southeast Fujian Motor Corporation joint venture will be placed.

Fujian's other foreign partner is Daimler AG. A then-new factory has built the Mercedes-Benz Vito and Viano vans in Fuzhou, the capital Fujian province, since August 2009, adding the Sprinter minibus in January 2010. The facility is part of a joint venture between Daimler, CMC and Fujian Motor. Originally called DaimlerChrysler Vans China (DCVC), the JV was established in late 2005. The name was changed to Fujian Daimler Automotive Company, following the German firm's sale of Chrysler.

Dongfeng's investment in Fujian is understood to be part of the Communist Party's ongoing attempt to encourage domestic makers towards consolidation. Presently, there are some 110 foreign and Chinese brands operating in the country.

Author: Glenn Brooks