Shanghai (ZXZC)- On November 17 and 18, Dongfeng Motor Corporation saw two new subsidiaries established after integrating businesses of six auto parts units, according to the automaker's official WeChat account.

The establishment of the two newly-launched subsidiaries, dubbed Dongfeng Automotive Chassis System Co.,Ltd and Dongfeng Electric Drive Systems Co.,Ltd, signifies the acceleration of the auto group's efforts on systematizing and integrating auto parts core businesses.

Dongfeng Automotive Chassis System Co.,Ltd are integrated with Dongfeng Automotive Wheel Co.,Ltd, Dongfeng Automotive Propeller Shaft Co.,Ltd, Dongfeng Motor Suspension Spring Co.,Ltd and Dongfeng Motor Pump Industry Co., Ltd, involving a total registered capital of RMB479 million. It will focus on such core products of automotive chassis system as steel automotive wheel, aluminum automotive wheel, leaf spring, air suspension and propeller shaft.

According to the planning, the new chassis system company aims to increase the annual revenue to RMB3.8 billion in 2022 from RMB2.6 billion in 2018 and triple annual operating profit by 2022 with three major assembly products—automotive wheel, suspension and propeller shaft as focus.

Dongfeng Electric Drive Systems Co.,Ltd is the result of the merger and consolidation of Dongfeng Automobile Electronics Co.,Ltd, a subsidiary of Dongfeng Electronic Technology Co.,Ltd (DETC), and Dongfeng Motor Electric Co.,Ltd, which is acquired by DETC. The new company will work on developing businesses including drive motor, motor controller, vehicle control unit, vehicle instrument, sensors, electric generator and starter, etc.

Based on the planning, the newly-built electric drive system company is ambitious to make the new energy business income rise to RMB500 million in 2020 from RMB220 million in 2018 with the conventional businesses growing steadily at the same time.