Yulon has been restructuring its Chinese auto business and distribution channels over the past year as it struggles to boost Luxgen sales in China. Dong Feng Yulon Sales, which is 50 percent owned by Yulon, distributes Luxgen vehicles in China, while Dongfeng Yulon Motor Co (東風裕隆汽車), a 50-50 venture between Yulon and Chinese automaker Dongfeng Automobile Co (東風汽車), makes Luxgen vehicles. Yulon, based in Miaoli County’s Sanyi Township (三義), has been in discussions with its Chinese partner about a restructuring of Dongfeng Yulon Motor to stem losses, Yulon told investors in August. “The court has approved that Dong Feng Yulon Sales Co should enter an insolvency procedure, given its financial situation,” Yulon spokesman Steven Lo (羅文邑) told a media briefing at the Taiwan Stock Exchange on Friday. Yulon shares jumped to NT$37.7 yesterday, with turnover surging to 10.62 million shares, three times the average trading volume of 3.1 million shares in the first 10 trading days of this month.

Source: Taipei Times November 16, 2020 15:56 UTC