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Ping gambles on bold strategy

Xu Ping, chairman of Dongfeng Motor, is betting that a big investment in an ailing European car company will help revive at least one of China’s domestic auto brands.

As one of China’s “big three” state automotive groups, Dongfeng has stuck closely to the government’s development script for the car industry, which for the past 30 years has emphasised partnerships with foreign multinationals.

Dongfeng has four passenger car joint ventures – with Peugeot, Hyundai, Honda and Nissan– and is planning a fifth with Renault. But while these have made Dongfeng one of China’s biggest car companies, development of its own Aeolus passenger sedan has lagged behind.

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