Nippon Express concludes strategic business tie-up agreement with member of China's Dongfeng Motor Group
28 Dec 2011
Alliance aimed at bolstering automotive logistics services in China
Nippon Express (China) Co., Ltd., a subsidiary of Nippon Express Co., Ltd. (Kenji Watanabe, President), on December 2 concluded a strategic business alliance agreement with Guangzhou Fengshen Logistics Co., Ltd. ("Fengshen Logistics"), a member of the Dongfeng Motor Group(*), China's third largest automotive manufacturer.
As a company specializing in automotive logistics, Fengshen Logistics is primarily responsible for procuring production parts, transporting finished vehicles and storing/distributing maintenance parts for the Dongfeng Motor Group. It has numerous locations in Wuhan, Xiangyang, Zhengzhou, Beijing, Shanghai and Jinan as well as Guangzhou, operates its own fleet of more than 500 vehicles and boasts more than 4,400 employees.
In recent years, more than 100 large and small automotive manufacturers from various countries have set up shop in China, now the world's largest automotive sales market. Policies encouraging greater automobile use in rural areas have provided a tailwind for the early stages of a full-scale motorization encompassing an increasingly broad spectrum of car buyers. This has put pressure on manufacturers to extend their sales networks into China's expansive inland, and there is growing demand for timely supply of maintenance parts via logistics networks covering the whole of China.
Our company is seeking through this strategic business alliance to engage in cooperative delivery with Fengshen Logistics, which is already performing this function in some locales, to make our truck operations more efficient and to expand our operating lanes. By supplementing procurement logistics, long deemed our company's strong suit, with sales logistics for maintenance parts, we will be able to provide high-quality services that satisfy the logistics needs of Japanese and foreign automotive manufacturers.
* Dongfeng Motor Group: Dongfeng Motor Group is one of China's largest automotive manufacturing groups, producing its own brand of passenger and commercial trucks and participating in joint ventures with Nissan, Honda, Peugeot, Citroen, and Kia.
