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Talk of the day -- Luxgen expected to turn a profit

2014/06/05 13:11:09

(Courtesy of Luxgen)

Sales of Luxgen's latest U6 Turbo crossover will officially start June 6 in China. The popular vehicle is expected to help Luxgen, a wholly owned subsidiary of Taiwan's Yulon Motor Co., to turn a profit this year.

The following are excerpts from the Commercial Times' coverage of the local carmaker's progress:

Hsiao Ming-hui, vice president of Yulon Motor, said Luxen has received more than 5,000 orders for the U6 in China since pre-sales were launched at the Beijing International Automotive Exhibition in April.

Pre-sale orders are likely to top 6,000 by the time official sales begin, Hsiao said.

In light of the popularity of the U6, he predicted that Luxgen will be able to achieve its sales target for Taiwan and China of 60,000 units (15,000 units in Taiwan and 45,000 units in China) this year, which he said will help the self-developed brand turn a profit.

Also, Yulon President Yao Chen-hsiang said the start of U6 sales will boost the company's consolidated revenue and improve its gross margin in the second half of this year.

According to Hsiao, Yulon's gross margin was low in the first half of the year, due mainly to costs incurred by introducing the new U6 model and investment in production facilities. (June 5, 2014)

(By Y.F. Low)